Document:

exv4w1

 

Exhibit
4.1

 

ADVANTA BUSINESS CARD MASTER TRUST

as Issuer

and

DEUTSCHE BANK TRUST COMPANY AMERICAS

as Indenture Trustee

CLASS A(2005-A3) TERMS DOCUMENT

dated as of October 26, 2005

to

ADVANTASERIES INDENTURE SUPPLEMENT

dated as of November 1, 2004

to

INDENTURE

dated as of August 1, 2000

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 

	 	 	 	Page

	 

	 	ARTICLE I	 	 	 	 
	 

	 	Definitions and Other Provisions of General Application	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.01

	 	Definitions
	 	 	3	 
	 
	 	 	 	 	 	 
	Section 1.02

	 	Governing Law
	 	 	6	 
	 
	 	 	 	 	 	 
	Section 1.03

	 	Counterparts
	 	 	6	 
	 
	 	 	 	 	 	 
	Section 1.04

	 	Ratification of Master Indenture and AdvantaSeries Indenture Supplement
	 	 	6	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE II	 	 	 	 
	 

	 	The Class A(2005-A3) Asset Backed Notes	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.01

	 	Creation and Designation
	 	 	7	 
	 
	 	 	 	 	 	 
	Section 2.02

	 	Interest Payment
	 	 	7	 
	 
	 	 	 	 	 	 
	Section 2.03

	 	[Reserved]
	 	 	7	 
	 
	 	 	 	 	 	 
	Section 2.04

	 	Required Deposits of Available Principal Collections to the Principal
Funding Account; Payment of Principal
	 	 	7	 
	 
	 	 	 	 	 	 
	Section 2.05

	 	Holders’ Rights to Payments of Interest and Principal
	 	 	8	 
	 
	 	 	 	 	 	 
	Section 2.06

	 	Cash Collateral Account
	 	 	8	 
	 
	 	 	 	 	 	 
	Section 2.07

	 	Spread Account
	 	 	8	 
	 
	 	 	 	 	 	 
	Section 2.08

	 	Delivery and Payment for the Class A(2005-A3) Notes; Form and
Denomination
	 	 	9	 
	 
	 	 	 	 	 	 
	Section 2.09

	 	Manner of Payment of Class A(2005-A3) Notes
	 	 	9	 
	 
	 	 	 	 	 	 
	Section 2.10

	 	Monthly Servicing Fee
	 	 	9	 

 

 

     CLASS A(2005-A3) TERMS DOCUMENT, dated as of October 26, 2005 (the “Terms Document”),
between WILMINGTON TRUST COMPANY, as Owner Trustee of ADVANTA BUSINESS CARD MASTER TRUST, a common
law trust organized and existing under the laws of the State of Delaware (herein, the
“Issuer” or the “Trust”), and DEUTSCHE BANK TRUST COMPANY AMERICAS (formerly known
as Bankers Trust Company), a banking corporation organized and existing under the laws of the State
of New York, not in its individual capacity, but solely as indenture trustee (herein, together with
its successors in the trusts thereunder as provided in the Master Indenture, (the “Indenture
Trustee”)) under the Master Indenture, dated as of August 1, 2000 (the “Indenture”)
between the Issuer and the Indenture Trustee. This Terms Document supplements the AdvantaSeries
Indenture Supplement, dated as of November 1, 2004 (the “AdvantaSeries Indenture
Supplement”) between the Issuer and the Indenture Trustee, which supplements the Indenture.

     Pursuant to this Terms Document, the Issuer shall create a new tranche of Class A Notes and
shall specify the principal terms thereof.

ARTICLE I

Definitions and Other Provisions of General Application

     Section 1.01 Definitions. For all purposes of this Terms Document, except as otherwise
expressly provided or unless the context otherwise requires:

          (1) the terms defined in this Article have the meanings assigned to them in this Article, and
include the plural as well as the singular;

          (2) all other terms used herein which are defined in the AdvantaSeries Indenture Supplement or
the Master Indenture, either directly or by reference therein, have the meanings assigned to them
therein;

          (3) all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles and, except as otherwise herein expressly
provided, the term “generally accepted accounting principles” with respect to any computation
required or permitted hereunder means such accounting principles as are generally accepted in the
United States of America at the date of such computation;

          (4) all references in this Terms Document to designated “Articles,” “Sections” and other
subdivisions are to the designated Articles, Sections and other subdivisions of this Terms
Document;

          (5) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to
this Terms Document as a whole and not to any particular Article, Section or other subdivision;

          (6) in the event that any term or provision contained herein shall conflict with or be
inconsistent with any term or provision contained in the AdvantaSeries Indenture
Supplement, the Master Indenture or the Transfer and Servicing Agreement, the terms and
provisions of this Terms Document shall be controlling;

 

 

          (7) each capitalized term defined herein shall relate only to the Class A(2005-A3) Notes and
no other Tranche of Notes issued by the Issuer; and

          (8) “including” and words of similar import will be deemed to be followed by “without
limitation.”

     “Accumulation Amount” shall mean, for any Payment Date occurring during the
Accumulation Period, $31,250,000; provided, however, that if the Accumulation
Period Length is determined to be less than 8 months pursuant to Section 2.04(b), the Accumulation
Amount for each Payment Date with respect to the Accumulation Period will be equal to (i) the
Outstanding Principal Balance of the Class A(2005-A3) Notes divided by (ii) the Accumulation Period
Length.

     “Accumulation Deposit Amount” means, for any Payment Date occurring during the
Accumulation Period, an amount equal to the sum of the Accumulation Amount for such Payment Date
and any existing Accumulation Shortfall.

     “Accumulation Period” shall mean, unless a Pay Out Event shall have occurred prior
thereto, the period commencing at the close of business on February 29, 2008, or such later date as
is determined in accordance with Section 2.04(b), and ending on the first to occur of (a) the
commencement of the Early Amortization Period, (b) the payment in full of the Outstanding Principal
Balance of the Class A(2005-A3) Notes and (c) the Class A(2005-A3) Final Maturity Date.

     “Accumulation Period Factor” shall mean, for the purpose of calculating the
Accumulation Period Length for the Class A(2005-A3) Notes, with respect to any Monthly Period, a
fraction, the numerator of which is equal to the sum of the initial invested amounts (or, if no
initial invested amount is defined in the applicable Indenture Supplement, then the initial
principal balance) of all outstanding Series, and the denominator of which is equal to the sum of
(a) the Initial Principal Balance of Class A(2005-A3) Notes, (b) the initial invested amounts (or,
if no initial invested amount is defined in the applicable Indenture Supplement, then the initial
principal balance) of all other Outstanding Classes and Tranches (without duplication) (other than
the AdvantaSeries Class A(2005-A3) Notes) which are not expected to be in their revolving periods,
and (c) the initial invested amounts (or, if no initial invested amount is defined in the
applicable Indenture Supplement, then the initial principal balance) of all other Outstanding
Classes and Tranches (without duplication) (other than the AdvantaSeries Class A(2005-A3) Notes)
which are not allocating Shared Principal Collections to other Series and are in their revolving
periods; provided, however, that this definition may be changed at any time if the
Rating Agency Condition is satisfied.

     “Accumulation Period Length” means the number of whole months such that the sum of the
Accumulation Period Factors for each month during such period will be equal to or greater than the
Required Accumulation Factor Number; provided, however, that the Accumulation
Period Length will not be determined to be less than one month; provided further,
however, that
the determination of the Accumulation Period Length may be changed at any time if the Rating
Agency Condition is satisfied.

 

 

     “Accumulation Shortfall” shall mean (a) on the first Payment Date during the
Accumulation Period, zero and (b) on each subsequent Payment Date during the Accumulation Period,
the excess, if any, of the Accumulation Deposit Amount for the previous Payment Date over the
amount deposited into the Principal Funding Account pursuant to Section 2.04(b) for the previous
Payment Date.

     “AdvantaSeries Indenture Supplement” means the AdvantaSeries Indenture Supplement
dated as of November 1, 2004, by and between the Issuer and the Indenture Trustee, as amended and
supplemented from time to time.

     “Class A(2005-A3) Final Maturity Date” means October 20, 2011.

     “Class A(2005-A3) Note” means any Note substantially in the form set forth in Exhibit
A-1 to the AdvantaSeries Indenture Supplement, designated therein as a Class A(2005-A3) Asset
Backed Note and duly executed and authenticated in accordance with the Master Indenture.

     “Class A(2005-A3) Noteholder” means a Person in whose name a Class A(2005-A3) Note is
registered in the Note Register.

     “Class A(2005-A3) Note Interest Rate” means a rate per annum equal to 4.70%.

     “Class A(2005-A3) Termination Date” means the earliest to occur of (a) the Principal
Payment Date on which the Outstanding Principal Balance of the Class A(2005-A3) Notes is paid in
full, (b) the Class A(2005-A3) Final Maturity Date and (c) the date on which the Master Indenture
is discharged and satisfied pursuant to Article XI thereof.

     “Closing Date” means October 26, 2005.

     “Expected Final Principal Payment Date” means November 20, 2008.

     “Initial Principal Balance” means $250,000,000.

     “Interest Payment Date” means the scheduled due date of any payment of interest on the
Class A(2005-A3) Notes, which shall be each Payment Date. The first Interest Payment Date shall be
November 21, 2005.

     “Master Indenture” means the Master Indenture dated as of August 1, 2000, by and
between the Issuer and the Indenture Trustee, as amended and supplemented from time to time.

     “Paying Agent” means Deutsche Bank Trust Company Americas.

     “Required Accumulation Factor Number” shall be equal to a fraction, rounded upwards to
the nearest whole number, the numerator of which is one and the denominator of which is equal to
the lowest monthly principal payment rate on the Accounts, expressed as a decimal, for
the twelve months preceding the date of such calculation; provided, however,
that this definition may be changed at any time if the Rating Agency Condition is satisfied.

 

 

     Section 1.02 Governing Law. THIS TERMS DOCUMENT WILL BE CONSTRUED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 OF THE GENERAL
OBLIGATION LAW, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 1.03 Counterparts. This Terms Document may be executed in any number of
counterparts, each of which so executed will be deemed to be an original, but all such counterparts
will together constitute but one and the same instrument.

     Section 1.04 Ratification of Master Indenture and AdvantaSeries Indenture Supplement.
As supplemented by this Terms Document, each of the Master Indenture and the AdvantaSeries
Indenture Supplement is in all respects ratified and confirmed and the Master Indenture as so
supplemented by the AdvantaSeries Indenture Supplement and this Terms Document shall be read, taken
and construed as one and the same instrument.

[END OF ARTICLE I]

 

 

ARTICLE II

The Class A(2005-A3) Asset Backed Notes

     Section 2.01 Creation and Designation. There is hereby created a tranche of Class A
Notes to be issued pursuant to the Master Indenture and the AdvantaSeries Indenture Supplement to
be known as the “AdvantaSeries Class A(2005-A3) Asset Backed Notes.”

     Section 2.02 Interest Payment. For each Interest Payment Date other than the first
Interest Payment Date, the amount of interest due and payable with respect to the Class A(2005-A3)
Notes shall be an amount equal to the product of (i) (A) a fraction, the numerator of which is
thirty (30) and the denominator of which is 360, multiplied by (B) the Class A(2005-A3) Note
Interest Rate, multiplied by (ii) the Outstanding Principal Balance of the Class A(2005-A3) Notes
determined as of the Record Date preceding the related Interest Payment Date. Any interest on the
Class A(2005-A3) Notes will be calculated on the basis of a 360-day year and twelve 30-day Interest
Periods. For the first Interest Payment Date, interest on the Class A(2005-A3) Notes will be
$783,333.33.

     Section 2.03 [Reserved].

     Section 2.04 Required Deposits of Available Principal Collections to the Principal Funding
Account; Payment of Principal. With respect to any Payment Date, the amount to be deposited in
the Principal Funding Sub-Account pursuant to Section 4.16 of the AdvantaSeries Indenture
Supplement will be the amount determined pursuant to clause (a), (b), (c) or (d) below for such
Payment Date, as applicable, or if more than one such clause is applicable, the highest amount
determined pursuant to any one of such clauses; provided, however, in no case shall
the amount required to be deposited exceed the Class A(2005-A3) Adjusted Invested Amount
(calculated immediately before giving effect to such deposit but after giving effect to any
Investor Charge-Offs and any reallocations of principal on such date).

     (a) Revolving Period. On each Payment Date during the Revolving Period, the required
deposit to the Principal Funding Sub-Account for the Class A(2005-A3) Notes will be zero.

     (b) Accumulation Period. On each Payment Date during the Accumulation Period, the
required deposit to the Principal Funding Sub-Account for the Class A(2005-A3) Notes will be the
Accumulation Deposit Amount for such Payment Date. The Accumulation Period is scheduled to
commence at the close of business on February 29, 2008, provided, however, that, if
the Accumulation Period Length is less than 8 months, the date on which the Accumulation Period
actually commences will be delayed to the close of business on the last day of the month prior to
the month that is the number of whole months prior to the Expected Final Principal Payment Date
which is at least equal to the Accumulation Period Length and, as a result, the
number of Monthly Periods in the Accumulation Period will at least equal the Accumulation
Period Length. On the Determination Date twelve (12) months prior to the Expected Final Principal
Payment Date and each Determination Date thereafter until the Accumulation Period begins, the
Servicer shall determine the Accumulation Period Length.

 

 

     (c) Early Amortization Period. On each Payment Date during an Early Amortization
Period, the required deposit to the Principal Funding Sub-Account for the Class A(2005-A3) Notes
will be the Adjusted Invested Amount for the Class A(2005-A3) Notes as of the close of business on
the last day of the preceding Monthly Period (after taking into account any reductions or increases
occurring on such date).

     (d) Coverage Funding of the Principal Funding Account of Senior Classes. If the
Transferor determines as of the end of the related Monthly Period that, after giving effect to all
allocations and payments with respect to that Monthly Period, the Coverage Funding Required Amount
of the Class A(2005-A3) Notes will be greater than zero, the required deposit to the Principal
Funding Sub-Account for the Class A(2005-A3) Notes will be the Coverage Funding Required Amount for
such Class A(2005-A3) Notes.

     (e) Distributions to Paying Agent. On each Principal Payment Date, the Indenture
Trustee, acting in accordance with written instructions from the Servicer, shall withdraw from the
Principal Funding Sub-Account for the Class A(2005-A3) Notes and distribute to the Paying Agent for
payment to the Class A(2005-A3) Noteholders the amounts deposited into the Principal Funding
Sub-Account for the Class A(2005-A3) Notes pursuant to this Section 2.04.

     Section 2.05 Holders’ Rights to Payments of Interest and Principal.

     (a) Any installment of interest or principal, if any, payable on any Class A(2005-A3) Note
which is punctually paid or duly provided for by the Issuer and the Indenture Trustee on the
applicable Interest Payment Date or Principal Payment Date shall be paid by the Paying Agent to the
Person in whose name such Class A(2005-A3) Note (or one or more Predecessor Notes) is registered on
the Record Date, by wire transfer of immediately available funds to such Person’s account as has
been designated by written instructions received by the Paying Agent from such Person not later
than the close of business on the third Business Day preceding the date of payment or, if no such
account has been so designated, by check mailed first-class, postage prepaid to such Person’s
address as it appears on the Note Register on such Record Date, except that with respect to Notes
registered on the Record Date in the name of the nominee of Cede & Co., payment shall be made by
wire transfer in immediately available funds to the account designated by such nominee.

     (b) The right of the Class A(2005-A3) Noteholders to receive payments from the Issuer will
terminate on the first Business Day following the Class A(2005-A3) Termination Date.

     Section 2.06 Cash Collateral Account. In accordance with Section 4.22(a) of the AdvantaSeries Indenture Supplement, on or prior
to the Closing Date, the Transferor shall deposit, cause to be deposited or maintain funds in the
Cash Collateral Account such that immediately after giving effect to the issuance of the Class
A(2005-A3) Notes, the amount on deposit in the Cash Collateral Account for the AdvantaSeries is at
least equal to the Required Cash Collateral Account Amount.

     Section 2.07 Spread Account. In accordance with Section 4.24(a) of the AdvantaSeries
Indenture Supplement, on or prior to the Closing Date, the Transferor shall deposit, cause to be

 

 

deposited or maintain funds in the Spread Account such that immediately after the issuance of the
Class A(2005-A3) Notes, the ratio of the amount on deposit in the Spread Account to the Required
Spread Account Amount is equal to or greater than the same ratio immediately preceding such
issuance.

     Section 2.08 Delivery and Payment for the Class A(2005-A3) Notes; Form and
Denomination.

     (a) The Issuer shall execute and issue, and the Indenture Trustee shall authenticate, the
Class A(2005-A3) Notes in accordance with Section 2.03 of the Master Indenture. The Indenture
Trustee shall deliver the Class A(2005-A3) Notes to or upon the order of the Issuer when so
authenticated. The Class A(2005-A3) Notes shall be Book-Entry Notes.

     (b) The Depository for the Class A(2005-A3) Notes shall be The Depository Trust Company, and
the Class A(2005-A3) Notes shall initially be registered in the name of Cede & Co., its nominee.

     (c) The Class A(2005-A3) Notes will be issued in minimum denominations of $5,000 and integral
multiples of $1,000 in excess of that amount.

     Section 2.09 Manner of Payment of Class A(2005-A3) Notes. Except as provided in
Section 11.02 of the Master Indenture with respect to a final distribution, distributions to Class
A(2005-A3) Noteholders hereunder shall be made by (i) check mailed to each Class A(2005-A3)
Noteholder (at such Noteholder’s address as it appears in the Note Register), except that with
respect to any Class A(2005-A3) Notes registered in the name of the nominee of a Clearing Agency,
such payment shall be made in immediately available funds and (ii) without presentation or
surrender of any Class A(2005-A3) Note or the making of any notation thereon.

     Section 2.10 Monthly Servicing Fee. In accordance with Section 3.01(a) of the
AdvantaSeries Indenture Supplement, with respect to the November 21, 2005 Payment Date, the
AdvantaSeries Monthly Servicing Fee allocated to the Class A(2005-A3) Notes shall be $69,444.45.

[END OF ARTICLE II]

 

 

     IN WITNESS WHEREOF, the undersigned have caused this Terms Document to be duly executed and
delivered by their respective duly authorized officers on the day and year first above written.

	 	 	 
	 

	 	WILMINGTON TRUST COMPANY,
	 

	 	          as Owner Trustee of
	 

	 	ADVANTA BUSINESS CARD MASTER TRUST
	 
	 	 
	 

	 	By:     /s/ Dorri E.Wolhar

Name: Dorri E.Wolhar

Title: Financial Services Officer
	 
	 	 
	 

	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,
	 

	 	          as Indenture Trustee
	 
	 	 
	 

	 	By:     /s/ Peter T. Becker

Name: Peter T. Becker

Title: Vice President

[Signature Page to Class A(2005-A3) Terms Document]

 

 

 

ADVANTA BUSINESS CARD MASTER TRUST

as Issuer

and

DEUTSCHE BANK TRUST COMPANY AMERICAS

as Indenture Trustee

CLASS D(2005-D2) TERMS DOCUMENT

dated as of October 26, 2005

to

ADVANTASERIES INDENTURE SUPPLEMENT

dated as of November 1, 2004

to

INDENTURE

dated as of August 1, 2000

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 

	 	 	 	Page

	 

	 	ARTICLE I	 	 	 	 
	 

	 	Definitions and Other Provisions of General Application	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.01

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	Section 1.02

	 	Governing Law
	 	 	4	 
	 
	 	 	 	 	 	 
	Section 1.03

	 	Counterparts
	 	 	4	 
	 
	 	 	 	 	 	 
	Section 1.04

	 	Ratification of Master Indenture and AdvantaSeries Indenture Supplement
	 	 	4	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE II	 	 	 	 
	 

	 	The Class D(2005-D2) Asset Backed Notes	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.01

	 	Creation and Designation
	 	 	5	 
	 
	 	 	 	 	 	 
	Section 2.02

	 	Interest Payment; Margin Percentage
	 	 	5	 
	 
	 	 	 	 	 	 
	Section 2.03

	 	Determination of One-Month LIBOR
	 	 	5	 
	 
	 	 	 	 	 	 
	Section 2.04

	 	Required Deposits of Available Principal Collections to the Principal
Funding Account; Payment of Principal
	 	 	6	 
	 
	 	 	 	 	 	 
	Section 2.05

	 	Holders’ Rights to Payments of Interest and Principal
	 	 	7	 
	 
	 	 	 	 	 	 
	Section 2.06

	 	Cash Collateral Account
	 	 	7	 
	 
	 	 	 	 	 	 
	Section 2.07

	 	Spread Account
	 	 	7	 
	 
	 	 	 	 	 	 
	Section 2.08

	 	Delivery and Payment for the Class
D(2005-D2) Notes; Form and Denomination
	 	 	7	 
	 
	 	 	 	 	 	 
	Section 2.09

	 	Manner of Payment of Class D(2005-D2) Notes
	 	 	8	 
	 
	 	 	 	 	 	 
	Section 2.10

	 	Monthly Servicing Fee
	 	 	8	 
	 
	 	 	 	 	 	 
	Section 2.11

	 	Additional Requirements for Registration of and Limitations on
Transfer and Exchange of Class D(2005-D2) Notes
	 	 	8	 

 

 

     CLASS D(2005-D2) TERMS DOCUMENT, dated as of October 26, 2005 (the “Terms Document”), between
WILMINGTON TRUST COMPANY, as Owner Trustee of ADVANTA BUSINESS CARD MASTER TRUST, a common law
trust organized and existing under the laws of the State of Delaware (herein, the “Issuer” or the
“Trust”), and DEUTSCHE BANK TRUST COMPANY AMERICAS (formerly known as Bankers Trust Company), a
banking corporation organized and existing under the laws of the State of New York, not in its
individual capacity, but solely as indenture trustee (herein, together with its successors in the
trusts thereunder as provided in the Master Indenture, the “Indenture Trustee”) under the Master
Indenture, dated as of August 1, 2000 (the “Indenture”) between the Issuer and the Indenture
Trustee. This Terms Document supplements the AdvantaSeries Indenture Supplement, dated as of
November 1, 2004 (the “AdvantaSeries Indenture Supplement”) between the Issuer and the Indenture
Trustee, which supplements the Indenture.

     Pursuant to this Terms Document, the Issuer shall create a new tranche of Class D Notes and
shall specify the principal terms thereof.

ARTICLE I

Definitions and Other Provisions of General Application

     Section 1.01 Definitions. For all purposes of this Terms Document, except as
otherwise expressly provided or unless the context otherwise requires:

               (1) the terms defined in this Article have the meanings assigned to them in this Article, and
include the plural as well as the singular;

               (2) all other terms used herein which are defined in the AdvantaSeries Indenture Supplement or
the Master Indenture, either directly or by reference therein, have the meanings assigned to them
therein;

               (3) all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles and, except as otherwise herein expressly
provided, the term “generally accepted accounting principles” with respect to any computation
required or permitted hereunder means such accounting principles as are generally accepted in the
United States of America at the date of such computation;

               (4) all references in this Terms Document to designated “Articles,” “Sections” and other
subdivisions are to the designated Articles, Sections and other subdivisions of this Terms
Document;

               (5) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to
this Terms Document as a whole and not to any particular Article, Section or other subdivision;

               (6) in the event that any term or provision contained herein shall conflict with or be
inconsistent with any term or provision contained in the AdvantaSeries
Indenture Supplement, the Master Indenture or the Transfer and Servicing Agreement, the terms
and provisions of this Terms Document shall be controlling;

 

 

               (7) each capitalized term defined herein shall relate only to the Class D(2005-D2) Notes and
no other Tranche of Notes issued by the Issuer; and

               (8) “including” and words of similar import will be deemed to be followed by “without
limitation.”

     “Accumulation Amount” shall mean, for any Payment Date occurring during the
Accumulation Period, $3,125,000; provided, however, that if the Accumulation Period Length is
determined to be less than 8 months pursuant to Section 2.04(b), the Accumulation Amount for each
Payment Date with respect to the Accumulation Period will be equal to (i) the Outstanding Principal
Balance of the Class D(2005-D2) Notes divided by (ii) the Accumulation Period Length.

     “Accumulation Deposit Amount” means, for any Payment Date occurring during the
Accumulation Period, an amount equal to the sum of the Accumulation Amount for such Payment Date
and any existing Accumulation Shortfall.

     “Accumulation Period” shall mean, unless a Pay Out Event shall have occurred prior
thereto, the period commencing at the close of business on July 31, 2008 or such later date as is
determined in accordance with Section 2.04(b), and ending on the first to occur of (a) the
commencement of the Early Amortization Period, (b) the payment in full of the Outstanding Principal
Balance of the Class D(2005-D2) Notes and (c) the Class D(2005-D2) Final Maturity Date.

     “Accumulation Period Factor” shall mean, for the purpose of calculating the
Accumulation Period Length for the Class D(2005-D2) Notes, with respect to any Monthly Period, a
fraction, the numerator of which is equal to the sum of the initial invested amounts (or, if no
initial invested amount is defined in the applicable Indenture Supplement, then the initial
principal balance) of all outstanding Series, and the denominator of which is equal to the sum of
(a) the Initial Principal Balance of Class D(2005-D2) Notes, (b) the initial invested amounts (or,
if no initial invested amount is defined in the applicable Indenture Supplement, then the initial
principal balance) of all other Outstanding Classes and Tranches (without duplication) (other than
the AdvantaSeries Class D(2005-D2) Notes) which are not expected to be in their revolving periods,
and (c) the initial invested amounts (or, if no initial invested amount is defined in the
applicable Indenture Supplement, then the initial principal balance) of all other Outstanding
Classes and Tranches (without duplication) (other than the AdvantaSeries Class D(2005-D2) Notes)
which are not allocating Shared Principal Collections to other Series and are in their revolving
periods; provided, however, that this definition may be changed at any time if the Rating Agency
Condition is satisfied.

     “Accumulation Period Length” means the number of whole months such that the sum of the
Accumulation Period Factors for each month during such period will be equal to or greater than the
Required Accumulation Factor Number; provided, however, that the Accumulation Period Length will
not be determined to be less than one month; provided further, however, that
the determination of the Accumulation Period Length may be changed at any time if the Rating
Agency Condition is satisfied.

 

 

     “Accumulation Shortfall” shall mean (a) on the first Payment Date during the
Accumulation Period, zero and (b) on each subsequent Payment Date during the Accumulation Period,
the excess, if any, of the Accumulation Deposit Amount for the previous Payment Date over the
amount deposited into the Principal Funding Account pursuant to Section 2.04(b) for the previous
Payment Date.

     “AdvantaSeries Indenture Supplement” means the AdvantaSeries Indenture Supplement
dated as of November 1, 2004, by and between the Issuer and the Indenture Trustee, as amended and
supplemented from time to time.

     “Class D(2005-D2) Final Maturity Date” means March 20, 2012.

     “Class D(2005-D2) Margin Percentage” means 2.00%, unless another percentage is
selected by the Transferor in accordance with Section 2.02(b).

     “Class D(2005-D2) Note” means any Note substantially in the form set forth in Exhibit
A-4 to the AdvantaSeries Indenture Supplement, designated therein as a Class D(2005-D2) Asset
Backed Note and duly executed and authenticated in accordance with the Master Indenture.

     “Class D(2005-D2) Noteholder” means a Person in whose name a Class D(2005-D2) Note is
registered in the Note Register.

     “Class D(2005-D2) Note Interest Rate” means a rate per annum equal to the sum of (a)
the Class D(2005-D2) Margin Percentage and (b) One-Month LIBOR as determined by the Indenture
Trustee on the related LIBOR Determination Date with respect to each Interest Period.

     “Class D(2005-D2) Termination Date” means the earliest to occur of (a) the Principal
Payment Date on which the Outstanding Principal Balance of the Class D(2005-D2) Notes is paid in
full, (b) the Class D(2005-D2) Final Maturity Date and (c) the date on which the Indenture is
discharged and satisfied pursuant to Article XI thereof.

     “Closing Date” means October 26, 2005.

     “Expected Final Principal Payment Date” means April 20, 2009.

     “Initial Principal Balance” means $25,000,000.

     “Interest Payment Date” means the scheduled due date of any payment of interest on the
Class D(2005-D2) Notes, which shall be each Payment Date. The first Interest Payment Date shall be
November 21, 2005.

     “LIBOR Determination Date” shall mean (1) with respect to the first Interest Payment
Date, (i) October 24, 2005 for the period from and including the Closing Date to but excluding
November 21, 2005 and (2) with respect to any Interest Payment Date after the first Interest
Payment Date, the second London Business Day prior to the commencement of the related Interest
Period.

 

 

     “London Business Day” means any Business Day on which dealings in deposits in United
States Dollars are transacted in the London interbank market.

     “Master Indenture” means the Master Indenture dated as of August 1, 2000, by and
between the Issuer and the Indenture Trustee, as amended and supplemented from time to time.

     “One-Month Index Maturity” means a maturity of one month commencing on the related
LIBOR Determination Date.

     “One-Month LIBOR” means, for any Interest Period, the London interbank offered rate
for one month United States dollar deposits determined by the Indenture Trustee on the LIBOR
Determination Date for such Interest Period in accordance with the provisions of Section 2.03.

     “Paying Agent” means Deutsche Bank Trust Company Americas.

     “Reference Banks” means three major banks in the London interbank market selected by
the Servicer.

     “Required Accumulation Factor Number” shall be equal to a fraction, rounded upwards to
the nearest whole number, the numerator of which is one and the denominator of which is equal to
the lowest monthly principal payment rate on the Accounts, expressed as a decimal, for the twelve
months preceding the date of such calculation; provided, however, that this definition may be
changed at any time if the Rating Agency Condition is satisfied.

     “Telerate Page 3750” means the display page currently so designated on the Moneyline
Telerate Service (or such other page as may replace that page on that service for the purpose of
displaying comparable rates or prices).

     Section 1.02 Governing Law. THIS TERMS DOCUMENT WILL BE CONSTRUED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 OF THE GENERAL
OBLIGATION LAW, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 1.03 Counterparts. This Terms Document may be executed in any number of
counterparts, each of which so executed will be deemed to be an original, but all such counterparts
will together constitute but one and the same instrument.

     Section 1.04 Ratification of Master Indenture and AdvantaSeries Indenture Supplement. As supplemented by this Terms Document, each of the Master Indenture and the AdvantaSeries
Indenture Supplement is in all respects ratified and confirmed and the Master Indenture as so
supplemented by the AdvantaSeries Indenture Supplement and this Terms Document shall be read, taken
and construed as one and the same instrument.

[END OF ARTICLE I]

 

 

ARTICLE II

The Class D(2005-D2) Asset Backed Notes

     Section 2.01 Creation and Designation. There is hereby created a tranche of Class D
Notes to be issued pursuant to the Master Indenture and the AdvantaSeries Indenture Supplement to
be known as the “AdvantaSeries Class D(2005-D2) Asset Backed Notes.”

     Section 2.02 Interest Payment; Margin Percentage.

     (a) For each Interest Payment Date, the amount of interest due and payable with respect to the
Class D(2005-D2) Notes shall be an amount equal to the product of (i)(A) a fraction, the numerator
of which is the actual number of days in the related Interest Period and the denominator of which
is 360, multiplied by (B) the Note Interest Rate in effect with respect to the related Interest
Period, multiplied by (ii) the Outstanding Principal Balance of the Class D(2005-D2) Notes
determined as of the Record Date preceding the related Interest Payment Date. Any interest on the
Class D(2005-D2) Notes will be calculated on the basis of the actual number of days in the related
Interest Period and a 360-day year.

     (b) The Transferor may change the Class D(2005-D2) Margin Percentage upon satisfaction of the
Rating Agency Condition and without the prior consent of any Noteholder, so long as all of the
Class D(2005-D2) Notes are held by the Transferor or an Affiliate of the Transferor; provided,
however, that the Class D Margin Percentage shall not exceed 2.00% at any time.

     Section 2.03 Determination of One-Month LIBOR.

     (a) On each LIBOR Determination Date, the Indenture Trustee shall determine One-Month LIBOR on
the basis of the rate for deposits in United States dollars having a One-Month Index Maturity
which appears on Telerate Page 3750 as of 11:00 a.m., London time, on such date. If such rate does
not appear on Telerate Page 3750, One-Month LIBOR for that LIBOR Determination Date shall be
determined on the basis of the rates at which deposits in United States dollars, having a One-Month
Index Maturity and in an amount of not less than $1,000,000, are offered by the Reference Banks at
approximately 11:00 a.m., London time, on that day to prime banks in the London interbank market.
The Indenture Trustee shall request the principal London office of each of the Reference Banks to
provide a quotation of its rate. If at least two
(2) such quotations are provided, One-Month LIBOR for that LIBOR Determination Date shall be
the arithmetic mean of the quotations. If fewer than two (2) quotations are provided as requested,
One-Month LIBOR for that LIBOR Determination Date will be the arithmetic mean of the rates quoted
by major banks in New York City, selected by the Servicer, at approximately 11:00 a.m., New York
City time, on that day for loans in United States dollars to leading European banks having a
One-Month Index Maturity and in an amount of not less than U.S. $1,000,000; provided, that, if the
banks selected by the Servicer are not quoting such rates, One-Month LIBOR in effect for the
applicable Interest Period will be the same as One-Month LIBOR for the immediately preceding
Interest Period.

     (b) The Note Interest Rate applicable to the then current and the immediately preceding
Interest Periods may be obtained by telephoning the Indenture Trustee at its corporate

 

 

trust office
at (800) 735-7777 or such other telephone number as shall be designated by the Indenture Trustee
for such purpose by prior written notice by the Indenture Trustee to each Noteholder from time to
time.

     (c) On each LIBOR Determination Date, the Indenture Trustee shall send to the Transferor, by
facsimile or electronic transmission, notification of One-Month LIBOR for the following Interest
Period.

     Section 2.04 Required Deposits of Available Principal Collections to the Principal Funding
Account; Payment of Principal. With respect to any Payment Date, the amount to be deposited in
the Principal Funding Sub-Account pursuant to Section 4.16 of the AdvantaSeries Indenture
Supplement will be the amount determined pursuant to clause (a), (b) or (c) below for such Payment
Date, as applicable, or if more than one such clause is applicable, the highest amount determined
pursuant to any one of such clauses; provided, however, in no case shall the amount required to be
deposited exceed the Class D(2005-D2) Adjusted Invested Amount (calculated immediately before
giving effect to such deposit but after giving effect to any Investor Charge-Offs and any
reallocations of principal on such date).

     (a) Revolving Period. On each Payment Date during the Revolving Period, the required
deposit to the Principal Funding Sub-Account for the Class D(2005-D2) Notes will be zero.

     (b) Accumulation Period. On each Payment Date during the Accumulation Period, the
required deposit to the Principal Funding Sub-Account for the Class D(2005-D2) Notes will be the
Accumulation Deposit Amount for such Payment Date. The Accumulation Period is scheduled to
commence at the close of business on July 31, 2008; provided, however, that, if the Accumulation
Period Length is less than 8 months, the date on which the Accumulation Period actually commences
will be delayed to the close of business on the last day of the month prior to the month that is
the number of whole months prior to the Expected Final Principal Payment Date which is at least
equal to the Accumulation Period Length and, as a result, the number of Monthly Periods in the
Accumulation Period will at least equal the Accumulation Period Length. On the Determination Date
twelve (12) months prior to the Expected Final Principal Payment
Date and each Determination Date thereafter until the Accumulation Period begins, the Servicer
shall determine the Accumulation Period Length.

     (c) Early Amortization Period. On each Payment Date during an Early Amortization
Period, the required deposit to the Principal Funding Sub-Account for the Class D(2005-D2) Notes
will be the Adjusted Invested Amount for the Class D(2005-D2) Notes as of the close of business on
the last day of the preceding Monthly Period (after taking into account any reductions or increases
occurring on such date).

     (d) Distributions to Paying Agent. On each Principal Payment Date, the Indenture
Trustee, acting in accordance with written instructions from the Servicer, shall withdraw from the
Principal Funding Sub-Account for the Class D(2005-D2) Notes and distribute to the Paying Agent for
payment to the Class D(2005-D2) Noteholders the amounts deposited into the Principal Funding
Sub-Account for the Class D(2005-D2) Notes pursuant to this Section 2.04.

 

 

     Section 2.05 Holders’ Rights to Payments of Interest and Principal.

     (a) Any installment of interest or principal, if any, payable on any Class D(2005-D2) Note
which is punctually paid or duly provided for by the Issuer and the Indenture Trustee on the
applicable Interest Payment Date or Principal Payment Date shall be paid by the Paying Agent to the
Person in whose name such Class D(2005-D2) Note (or one or more Predecessor Notes) is registered on
the Record Date, by wire transfer of immediately available funds to such Person’s account as has
been designated by written instructions received by the Paying Agent from such Person not later
than the close of business on the third Business Day preceding the date of payment or, if no such
account has been so designated, by check mailed first-class, postage prepaid to such Person’s
address as it appears on the Note Register on such Record Date, except that with respect to Notes
registered on the Record Date in the name of the nominee of Cede & Co., payment shall be made by
wire transfer in immediately available funds to the account designated by such nominee.

     (b) The right of the Class D(2005-D2) Noteholders to receive payments from the Issuer will
terminate on the first Business Day following the Class D(2005-D2) Termination Date.

     Section 2.06 Cash Collateral Account. In accordance with Section 4.22(a) of the
AdvantaSeries Indenture Supplement, on or prior to the Closing Date, the Transferor shall deposit,
cause to be deposited or maintain funds in the Cash Collateral Account such that immediately after
giving effect to the issuance of the Class D(2005-D2) Notes, the amount on deposit in the Cash
Collateral Account for the AdvantaSeries is at least equal to the Required Cash Collateral Account
Amount.

     Section 2.07 Spread Account. In accordance with Section 4.24(a) of the AdvantaSeries
Indenture Supplement, on or prior to the Closing Date, the Transferor shall deposit, cause to be
deposited or maintain funds in
the Spread Account such that immediately after the issuance of the Class D(2005-D2) Notes, the
ratio of the amount on deposit in the Spread Account to the Required Spread Account Amount is equal
to or greater than the same ratio immediately preceding such issuance.

     Section 2.08 Delivery and Payment for the Class D(2005-D2) Notes; Form and
Denomination.

     (a) The Issuer shall execute and issue, and the Indenture Trustee shall authenticate, the
Class D(2005-D2) Notes in accordance with Section 2.03 of the Master Indenture. The Indenture
Trustee shall deliver the Class D(2005-D2) Notes to or upon the order of the Issuer when so
authenticated. The Class D(2005-D2) Notes initially shall be Definitive Notes and not Book-Entry
Notes. Following the Closing Date, if the Transferor or an Affiliate of the Transferor holds the
Class D(2005-D2) Notes, upon written direction of the Transferor, the Class D(2005-D2) Notes may be
converted into Book-Entry Notes. Any such conversion to book-entry registration is conditioned
upon the delivery by the Transferor to the Issuer and the Indenture Trustee of a Tax Opinion with
respect to such conversion.

 

 

     (b) The Class D(2005-D2) Notes will be issued in minimum denominations of $500,000 and
integral multiples of that amount.

     Section 2.09 Manner of Payment of Class D(2005-D2) Notes. Except as provided in
Section 11.02 of the Master Indenture with respect to a final distribution, distributions to Class
D(2005-D2) Noteholders hereunder shall be made by (i) check mailed to each Class D(2005-D2)
Noteholder (at such Noteholder’s address as it appears in the Note Register), except that with
respect to any Class D(2005-D2) Notes registered in the name of the nominee of a Clearing Agency,
such payment shall be made in immediately available funds and (ii) without presentation or
surrender of any Class D(2005-D2) Note or the making of any notation thereon.

     Section 2.10 Monthly Servicing Fee. In accordance with Section 3.01(a) of the
AdvantaSeries Indenture Supplement, with respect to the November 21, 2005 Payment Date, the
AdvantaSeries Monthly Servicing Fee allocated to the Class D(2005-D2) Notes shall be $6,944.45.

     Section 2.11 Additional Requirements for Registration of and Limitations on Transfer and
Exchange of Class D(2005-D2) Notes.

     (a) Registration of transfer of the Class D(2005-D2) Notes shall be effected only if such
transfer is exempt from the registration requirements under the Securities Act. Each initial Class
D(2005-D2) Noteholder, other than the Transferor or an Affiliate of the Transferor, and each
subsequent transferee agrees with the Issuer, the Transferor and the Indenture Trustee that: (i)
such Class D(2005-D2) Noteholder or subsequent transferee, as the case may be, shall deliver,
at its expense, to the Transferor, the Servicer and the Indenture Trustee on or before the
acquisition of such Class D(2005-D2) Notes, an investment letter substantially in the form annexed
hereto as Exhibit A or such other form as the Issuer and the Transferor may determine, executed by
the initial Class D(2005-D2) Noteholder or such transferee, as the case may be, with respect to the
purchase by such Person of such Class D(2005-D2) Note and (ii) all of the statements made by such
Class D(2005-D2) Noteholder in its investment letter shall be true and correct as of the date made.
None of the Issuer, the Transferor, the Servicer, the Seller, the Indenture Trustee or the
Transfer Agent and Registrar is obligated to register or qualify the Class D(2005-D2) Notes under
the Securities Act or any other securities law or to take any action not otherwise required under
the Master Indenture or the Class D(2005-D2) Terms Document to permit the transfer of the Class
D(2005-D2) Notes without registration or qualification. Any Class D(2005-D2) Noteholder desiring
to effect a transfer of unregistered Class D(2005-D2) Notes shall, and does hereby agree to,
indemnify the Issuer, the Transferor (unless the transferor of the Class D(2005-D2) Notes is the
Transferor), the Servicer, the Seller, the Indenture Trustee and the Transfer Agent and Registrar
against any liability that may result if the transfer is not exempt from such registration or
qualification or is not made in accordance with such federal and state laws and no registration of
transfer shall be made until such letter is so delivered. If the Class D(2005-D2) Notes are
converted to Book-Entry Notes pursuant to Section 2.08(a), the Transferor, upon written notice to
the Issuer and the Indenture Trustee, may direct that the requirement of the delivery of an
investment letter upon a transfer of Class D(2005-D2) Notes be modified or rescinded.

 

 

     (b) Class D(2005-D2) Notes issued upon registration or transfer of, or Class D(2005-D2) Notes
issued in exchange for Class D(2005-D2) Notes shall bear the restrictive legends regarding
securities laws contained in the form of the Class D(2005-D2) Note attached as Exhibit A-4 to the
AdvantaSeries Indenture Supplement, unless, if the Transferor or an Affiliate of the Transferor is
still the holder of the Class D(2005-D2) Notes, the Transferor provides written direction to the
Issuer, the Servicer, the Indenture Trustee and the Transfer Agent and Registrar that it is
modifying such legend and provides to such Persons a copy of such legend as modified, and in all
other cases, the Issuer, the Transferor, the Servicer, the Indenture Trustee and the Transfer Agent
and Registrar receive an Opinion of Counsel, satisfactory to each of them, to the effect that such
legend may be removed or modified.

     (c) If so requested by the Transferor, the Indenture Trustee will make available to any
prospective purchaser of Class D(2005-D2) Notes who so requests, a copy of a letter provided to the
Indenture Trustee by or on behalf of the Transferor relating to the transferability of such
Tranche.

     (d) Any sale, conveyance, assignment, hypothecation, pledge, participation or other transfer
of the Class D(2005-D2) Notes by the Transferor or an Affiliate of the Transferor to a
non-affiliated third party is conditioned upon the delivery by the Transferor to the Issuer and the
Indenture Trustee of a Tax Opinion with respect to such sale, conveyance, assignment,
hypothecation, pledge, participation or other transfer.

[END OF ARTICLE II]

 

 

     IN WITNESS WHEREOF, the undersigned have caused this Terms Document to be duly executed and
delivered by their respective duly authorized officers on the day and year first above written.

	 	 	 
	 

	 	WILMINGTON TRUST COMPANY,
	 

	 	     as Owner Trustee of
	 

	 	ADVANTA BUSINESS CARD MASTER TRUST
	 
	 	 
	 

	 	By:      /s/ Dorri E. Wolhar
	 

	 	Name: Dorri E. Wolhar
	 

	 	Title: Financial Services Officer
	 
	 	 
	 

	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,
	 

	 	     as Indenture Trustee
	 
	 	 
	 

	 	By:      /s/ Peter T. Becker
	 

	 	Name: Peter T. Becker
	 

	 	Title: Vice President

[Signature Page to Class D(2005-D2) Terms Document]

 

 

EXHIBIT A

FORM OF INVESTMENT LETTER

INVESTMENT LETTER

[Date]

[Transferor]

[Servicer]

[Indenture Trustee]

			
	                     Re:	 	Purchase of Advanta Business Card Master Trust

AdvantaSeries, Class D(2005-D2) Asset Backed

Notes

Dear Sirs:

                    The undersigned proposes to purchase the AdvantaSeries Class D(2005-D2) Notes (the “Class
D(2005-D1 Notes”) identified below issued by Advanta Business Card Master Trust (the “Issuer”),
pursuant to (i) the AdvantaSeries Class D(2005-D2) Terms Document (the “Terms Document”), dated as
of October 26, 2005, between the Issuer and Deutsche Bank Trust Company Americas (formerly known as
Bankers Trust Company), as indenture trustee (the “Indenture Trustee), (ii) the AdvantaSeries
Indenture Supplement (the “Indenture Supplement”), dated as of November 1, 2004, among the Issuer,
Advanta Business Receivables Corp., as transferor (the “Transferor”), Advanta Bank Corp., as
servicer (the “Servicer”), and the Indenture Trustee and (iii) the Master Indenture (the “Master
Indenture”), dated as of August 1, 2000, among the Issuer, the Transferor, the Servicer and the
Indenture Trustee. Terms used and not otherwise defined herein shall have the respective meanings
given them in the Terms Document, the Indenture Supplement or the Master Indenture. In connection
with our proposed purchase of such notes we acknowledge, represent, warrant and agree that:

     1. the AdvantaSeries Class D(2005-D2) Notes have not been and will not be registered under the
Securities Act or any state or other applicable securities law and the Class D(2005-D2) Notes, or
any interest or participation therein, may not be offered, sold, pledged or otherwise transferred
unless registered pursuant to, or exempt from registration under, the Securities Act of 1933, as
amended (the “Securities Act”), and any other applicable securities laws;

     2. the Class D(2005-D2) Notes will be Reoffered, resold, pledged or otherwise transferred only
to a Person (a) which is the Transferor or an Affiliate of the Transferor, (b)(i) which we
reasonably believe is a “qualified institutional buyer” (“QIB”) (as defined in Rule 144A (“Rule
144A”) under the Securities Act of 1933, as amended (the “Securities Act”)) that

 

 

will be purchasing such Class D(2005-D2) Notes in compliance with Rule 144A for its own
account or for the account of a QIB, and (ii) which is made aware that such reoffer, resale, pledge
or other transfer is being made in reliance on Rule 144(A) or (c) which is an institutional
“Accredited Investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act);

     3. none of the Issuer, the Transferor, the Servicer, the Owner Trustee, the Indenture Trustee,
or any person representing any of them has made any representation to us with respect to the Issuer
or the offering or sale of any of the Class D(2005-D2) Notes, or any interest or participation
therein, other than [the information contained in the accompanying Private Placement Memorandum,
which has been delivered to us and upon which we are relying in making our investment decision with
respect to the Class D(2005-D2) Notes]. We have had access to such financial and other information
concerning the Issuer and the Class D(2005-D2) Notes as we have deemed necessary in connection with
our decision to purchase such notes;

     4. we have such knowledge and experience in financial and business matters as to be capable of
evaluating the merits and risks of an investment in the Class D(2005-D2) Notes, or any interest or
participation therein, and we (and any account for which we are purchasing under paragraph (6)
below) are able to bear the economic risk of an investment in the Class D(2005-D2) Notes;

     5. the Class D(2005-D2) Notes will bear a legend to the following effect:

     “THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAW. THE HOLDER HEREOF, BY
PURCHASING THIS NOTE, AGREES THAT THIS NOTE, OR ANY INTEREST OR PARTICIPATION HEREIN, MAY BE
REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND
OTHER APPLICABLE LAWS AND ONLY TO (A) THE TRANSFEROR OR AN AFFILIATE OF THE TRANSFEROR, (B)(I) TO
A PERSON WHICH THE HOLDER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” (“QIB”) (AS
DEFINED IN RULE 144A (“RULE 144A”) UNDER THE SECURITIES ACT) THAT WILL BE PURCHASING SUCH CLASS
D(2005-D2) NOTES, OR INTEREST OR PARTICIPATION THEREIN, IN COMPLIANCE WITH RULE 144A FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QIB, AND (II) WHICH IS MADE AWARE THAT SUCH REOFFER, RESALE, PLEDGE
OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144(A) OR (C) WHICH IS AN INSTITUTIONAL
“ACCREDITED INVESTOR” (AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT).
THIS NOTE WILL NOT BE ACCEPTED FOR REGISTRATION OF TRANSFER EXCEPT UPON PRESENTATION OF EVIDENCE
SATISFACTORY TO THE TRANSFER AGENT AND REGISTRAR THAT THE RESTRICTIONS ON TRANSFER SET FORTH IN THE
MASTER INDENTURE AND THE CLASS D(2005-D2) TERMS DOCUMENT HAVE BEEN COMPLIED WITH. THIS NOTE MAY NOT
BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS AND UNTIL THE REQUIREMENTS OF THE
MASTER INDENTURE AND THE CLASS D(2005-D2) TERMS DOCUMENT CONCERNING TRANSFER HAVE BEEN SATISFIED.
THE ADVANTASERIES CLASS D(2005-D2) NOTES ARE ALSO SUBJECT TO THE DELIVERY OF AN INVESTMENT LETTER.
RESTRICTIONS ON TRANSFER ARE SET FORTH IN

 

 

THE MASTER INDENTURE AND THE CLASS D(2005-D2) TERMS DOCUMENT, COPIES OF WHICH ARE AVAILABLE
FROM THE INDENTURE TRUSTEE.

     BEFORE PURCHASING THIS NOTE, PURCHASERS SHOULD CONSULT COUNSEL WITH RESPECT TO THE
AVAILABILITY AND CONDITIONS OF EXEMPTION FROM THE RESTRICTIONS ON RESALE OR TRANSFER. NEITHER THE
ISSUER NOR THE SELLER OF THIS NOTE HAS AGREED TO REGISTER THIS NOTE UNDER THE SECURITIES ACT, TO
QUALIFY THIS NOTE UNDER THE SECURITIES LAWS OF ANY STATE OR JURISDICTION OR TO PROVIDE REGISTRATION
RIGHTS TO ANY PURCHASER.

     AS SET FORTH HEREIN, THE OUTSTANDING PRINCIPAL BALANCE OF THIS NOTE AT ANY TIME MAY BE LESS
THAN THE AMOUNT SHOWN ON THE FACE HEREOF.”

     Any portion of this legend may be removed or modified if the Transferor, the Servicer and the
Indenture Trustee and the Transfer Agent and Registrar have received an Opinion of Counsel, in form
and substance satisfactory to them, to the effect that such paragraph may be removed or modified;

     6. we are acquiring the Class D(2005-D2) Notes, or any interest or participation therein, for
our own account or as a fiduciary or agent for one or more investor accounts for which we have sole
investment discretion with respect to each such account and for which we have full power to make
the acknowledgements, representations, warranties and agreements contained herein on behalf of each
of those accounts and not with a view to or for sale in connection with any distribution thereof in
violation of the Securities Act, subject to any requirements of law that the disposition of our
property or the property of such investor account or accounts be at all times within our or their
control and subject to our or their ability to resell those Class D(2005-D2) Notes, or any interest
or participation therein, as described herein and as provided in the Master Indenture and the Class
D(2005-D2) Terms Document;

     7. we will comply with all applicable federal and state securities laws, rules and regulations
in connection with any subsequent reoffer, resale, pledge or other transfer of the Class D(2005-D2)
Notes, or any interest or participation therein, by us;

     8. registration of transfer of any Class D(2005-D2) Note, or any interest or participation
therein, will require delivery of an investment letter and will otherwise be subject in all
respects to the restrictions applicable thereto contained in the Master Indenture and the Class
D(2005-D2) Terms Document;

     9. by our acceptance of the Class D(2005-D2) Notes, or any interest or participation therein,
we agree to treat the Class D(2005-D2) Notes for federal, state and local income and franchise tax
purposes as indebtedness of the Transferor and to take no action inconsistent therewith; and

     10. the Issuer, the Transferor, the Servicer, the Owner Trustee, the Indenture Trustee and
others will rely on the truth and accuracy of the foregoing representations, warranties and
covenants and we agree that if any of the foregoing representations, warranties and covenants

 

 

deemed to have been made by us are no longer accurate, we shall promptly notify the Issuer,
the Transferor, the Servicer, the Owner Trustee and the Indenture Trustee. We further agree to
indemnify the Issuer, the Transferor, the Servicer, the Owner Trustee, the Indenture Trustee and
the Transfer Agent and Registrar against any liability that may result if the transfer is not
exempt from registration or qualification or is not made in accordance with federal and state laws
and the requirements of the Master Indenture and the Class D(2005-D2) Terms Document.

	 	 	 
	 

	Very truly yours,
	 
	 	 
	 

	[NAME OF INVESTOR]
	 
	 	 
	 

	By:	 
	 

	 	 
	 

	Name:
	 

	Title:

ADVANTASERIES CLASS D(2005-D2) NOTES TO BE PURCHASED:

U.S.$[•] aggregate principal amount of AdvantaSeries Class D(2005-D2) Asset Backed NotesExhibit 10.1

    EXHIBIT
      10.1

      

      MASTER
        RESTRICTED STOCK AWARD AGREEMENT

      TERMS
        AND CONDITIONS

      

      (For
        Grants of Restricted Stock to

      Employees
        and Non-Employee Directors)

      

      This
        Master Restricted Stock Award Agreement (this “Master Agreement” or “Agreement”)
        is entered into between you (the “Participant” named below) and Cree, Inc., a
        corporation formed under the laws of the State of North Carolina (the
“Company”).

      

      This
        Agreement states the terms and conditions that govern shares of common stock
        of
        the Company (“Shares”) that the Company may from time to time grant to you
        subject to a risk of forfeiture and related restrictions for a specified
        period
        of time (“Restricted Stock”). Grants of Restricted Stock governed by this
        Agreement will be made under the Company’s 2004 Long-Term Incentive Compensation
        Plan (the “Plan”). The number of Shares and the vesting schedule applicable to
        each Restricted Stock Award will be stated in a Notice of Grant issued by
        the
        Company, the form of which is incorporated in this Agreement by reference.
        A
        Notice of Grant, together with the terms and conditions set forth in this
        Agreement and the Plan, constitute the entire agreement between you and the
        Company with respect to the Restricted Stock described in the Notice of
        Grant.

      

      Unless
        otherwise specified in a Notice of Grant or agreed to in writing by you and
        the
        Company, this Master Agreement will apply to all Restricted Stock granted
        to you
        under the Plan on and after the effective date stated below. This Agreement
        is
        subject to and will be construed in accordance with the Plan. Unless otherwise
        defined in this Agreement or a Notice of Grant, capitalized terms used in
        this
        Agreement and defined in the Plan will have the same meaning as defined in
        the
        Plan.

      

      Please
        indicate that you have read and agree to the terms and conditions of this
        Agreement by signing below and returning the signed copy to the Company at
        its
        principal offices in Durham, North Carolina. By your signature below, you
        agree
        to be bound by the provisions of this Agreement and the Plan and Notices
        of
        Grant applicable to Awards of Restricted Stock to which this Agreement applies.
        Upon receipt by the Company of a copy of this Agreement signed by you, this
        Agreement will be effective as of the first date on which the Company issued
        or
        issues Shares to you pursuant to a Restricted Stock Award. 

      

       

      

      
        	
                CREE,
                  INC.

              	 	
                PARTICIPANT:

              
	 	 	 	 	 
	
                By:

              	 	 	 	 
	 	
                [Name]

              	 	
                Signature

              	 
	 	
                [Title]

              	 	
                Print
                  Name:

              	 

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        
          Cree,
            Inc. Master Restricted Stock Award

          Agreement
            Terms and Conditions

          

        

      
        	1.  	
                Grants
                  of Awards.

              

      

      

      
        	 	
                (a)

              	
                Subject
                  to the terms and conditions contained in this
                  Agreement, the Notice of Grant applicable to the Award and the
                  Plan, the
                  Company may, from time to time in its discretion, grant you Restricted
                  Stock. 

              

      

      

      
        	 	
                (b)

              	
                The
                  Shares issued pursuant to an Award of Restricted Stock will be
                  registered
                  in your name. The Shares will be evidenced by one or more certificates
                  delivered to and deposited with the Secretary of the Company as
                  escrow
                  agent or, at the discretion of the Company, may be held in a restricted
                  book entry account in lieu of issuing a certificate or certificates.
                  Such
                  certificates or such book entry shares are to be held by the escrow
                  agent
                  until the Restricted Stock vests, at which time the escrow agent
                  will
                  release the vested Shares; provided, however, that a portion of
                  the Shares
                  may be surrendered in payment of required withholding taxes in
                  accordance
                  with Section 8(b) below, unless alternative procedures for the
                  payment of
                  required withholding taxes are established by the Company.
                  

              

      

      

      
        	2.  	
                Vesting.
                  Restricted Stock will vest in accordance with the schedule set
                  out on the
                  corresponding Notice of Grant. All Restricted Stock will become
                  fully
                  vested, to the extent not already vested, upon your Termination
                  of Service
                  on account of your death or
                  Disability.

              

      

       

      
        	3.  	
                Forfeiture
                  of Restricted Stock upon Termination of Service. Except as
                  otherwise provided in this Agreement or the Plan, upon your Termination
                  of
                  Service you will forfeit all Restricted Stock that is not vested
                  as of the
                  date of your Termination of Service.

              

      

      

      
        	4.  	
                Forfeiture
                  of Restricted Stock upon Section 83(b) Election. As
                  permitted under section 15.6 of the Plan, each grant of Restricted
                  Stock
                  is conditioned upon and subject to your not making an election
                  under
                  Section 83(b) of the Code with respect to such Restricted Stock.
                  If you
                  make an election under Section 83(b) of the Code with respect to
                  any
                  Restricted Stock, you will forfeit such Restricted
                  Stock.

              

      

      

      
        	5.  	
                Forfeiture
                  of Restricted Stock for Awards Not Timely Accepted. Each
                  grant of Restricted Stock is conditioned upon and subject to your
                  accepting the Award by signing and delivering to the Company the
                  corresponding Notice of Grant not later than the date specified
                  in such
                  Notice or, if no date is specified, not later than the first date
                  Shares
                  would otherwise vest pursuant to the Award. If the Company issues
                  Restricted Stock pursuant to an Award prior to your acceptance
                  of the
                  Award, and if you fail to accept the Award by signing and delivering
                  to
                  the Company the corresponding Notice of Grant within the time described
                  above, you will forfeit such Restricted
                  Stock.

              

      

      

      
        	6.  	
                Tolling
                  in the Event of Delayed Disability Determinations. If you
                  incur a Termination of Service and a determination as to whether
                  the
                  Termination of Service is on account of your Disability is outstanding
                  at
                  the time of the Termination of Service, the forfeiture of Restricted
                  Stock
                  which is not then vested will be tolled for the period beginning
                  on the
                  date of your Termination of Service and ending on the date on which
                  the
                  determination is made whether your Termination of Service was on
                  account
                  of your Disability. If it is determined that your Termination of
                  Service
                  occurred on account of your Disability, you will become fully vested
                  in
                  such Restricted Stock on the date on such determination. If it
                  is
                  determined that your Termination of Service did not occur on account
                  of
                  your Disability, then you will forfeit such Restricted Stock on
                  the date
                  of such determination.

              

      

      

      
        	7.  	
                Settlement
                  of Restricted Stock. As soon as administratively practicable
                  following the vesting of a portion of a Restricted Stock Award,
                  the
                  Company shall deliver to you (or, in the event of your death, to
                  your
                  estate or, if the Committee establishes a beneficiary designation
                  procedure pursuant to Section 11 of the Plan, to any beneficiary
                  that you
                  have designated pursuant to such procedure) one or more certificates
                  for
                  the vested Shares.

              

      

      
        
          
          

        

        
          -
            2
            -

          
            

          

        

        
          
          

          
            Cree,
              Inc. Master Restricted Stock Award

            Agreement
              Terms and Conditions

            

          

        

      

      

      
        	8.  	
                Responsibility
                  for Taxes. 

              

      

      

      
        	 	
                (a)

              	
                Regardless
                  of any action the Company takes with respect to
                  Tax-Related Items, you acknowledge that the ultimate liability
                  for
                  reporting and/or payment of all Tax-Related Items legally due by
                  or from
                  you is and remains your responsibility and that the Company (1) makes
                  no representations or undertakings regarding the treatment of any
                  Tax-Related Items in connection with any aspect of any Restricted
                  Stock,
                  including the grant, vesting or release of any Restricted Stock,
                  the
                  subsequent sale of Shares and the receipt of any dividends pursuant
                  to
                  Shares; and (2) does not commit to structure the terms of
                  the grant
                  or any aspect of Restricted Stock to reduce or eliminate your liability
                  for Tax-Related Items.

              

      

      

      
        	 	
                (b)

              	
                Prior
                  to vesting of Restricted Stock, you agree to pay or make adequate
                  arrangements satisfactory to the Company to satisfy all withholding
                  and
                  payment on account obligations of the Company related to such vesting.
                  If
                  permissible under applicable law, the Company shall satisfy this
                  condition
                  pursuant to the withholding of Shares consistent with the “Share
                  Withholding” provisions under section 13.2 of the Plan. The Company, in
                  its discretion, may authorize alternative arrangements, including,
                  if
                  permissible under applicable law, the Company’s selling or arranging for
                  sale Shares that you acquire under the Plan or allowing you to
                  deliver to
                  the Company already vested and owned Shares having a fair market
                  value
                  equal to the minimum amount required to be withheld. In any event,
                  to the
                  extent this condition is not otherwise satisfied, you authorize
                  your
                  Employer under the Plan to withhold all applicable Tax-Related
                  Items
                  legally payable by you from your wages or other cash compensation
                  paid to
                  you by the Employer and you agree to pay to your Employer the amount
                  of
                  any Tax-Related Items the Employer is required to withhold as a
                  result of
                  Restricted Stock awarded to you under the Plan that cannot be satisfied
                  by
                  the other means described above.

              

      

      

      
        	 	
                (c)

              	
                The
                  Company may refuse to honor the vesting of Restricted Stock and
                  refuse to release restrictions on the Shares if you fail to comply
                  with
                  your obligations in connection with the Tax-Related Items as described
                  in
                  this section.

      

      

      
        	9.  	
                Transfer
                  of Restricted Stock. Restricted Stock and any rights under
                  Restricted Stock may not be assigned, pledged as collateral or
                  otherwise
                  transferred, except as permitted by the Plan, nor may Restricted
                  Stock or
                  such rights be subject to attachment, execution or other judicial
                  process
                  until the Restricted Stock becomes vested pursuant to Section 2
                  above and
                  the corresponding Notice of Grant. In the event of any attempt
                  to assign,
                  pledge or otherwise dispose of Restricted Stock which is not then
                  vested,
                  or any rights under such Restricted Stock, except as permitted
                  by the
                  Plan, or in the event of the levy of any attachment, execution
                  or similar
                  judicial process upon the rights or interests with respect to Restricted
                  Stock which is not then vested, the Committee may in its discretion,
                  upon
                  notice to you, cause you to forfeit such Restricted
                  Stock.

              

      

      

      
        	10.  	
                Rights
                  Prior to Vesting of Shares of Restricted
                  Stock.

              

      

      

      
        	 	
                (a)

              	
                You
                  will have at all times all rights as a shareholder with respect
                  to your
                  Restricted Stock, including, but not limited to, voting rights
                  and rights
                  to receive dividends, except for the right to transfer the Restricted
                  Stock as set forth in Section 7 above; provided, however, that
                  any
                  dividends on such Restricted Stock will be automatically deferred
                  and
                  reinvested in additional Restricted Stock subject to the same restrictions
                  as the underlying Restricted Stock.

              

      

      

      
        	 	
                (b)

              	
                In
                  the event of a change in capitalization within the meaning of Section
                  4.3
                  of the Plan, the number and class of Shares or other securities
                  that you
                  are entitled to pursuant to this Agreement and a Notice of Grant
                  shall be
                  appropriately adjusted or changed as determined by the Committee
                  to
                  reflect the change in capitalization, provided that any such additional
                  Shares or additional or different shares of securities shall remain
                  subject to the restrictions in this Agreement and the applicable
                  Notice of
                  Grant. 

              

      

      
        
          
          

        

        
          -
            3
            -

          
            

          

        

        
          
          

          
            Cree,
              Inc. Master Restricted Stock Award

            Agreement
              Terms and Conditions

            

          

        

      

      

      
        	11.  	
                Definitions.
                  The following definitions apply under this
                  Agreement:

              

      

      

      
        	 	
                (a)

              	
                “Tax-Related
                  Items” means any or all income tax, social insurance tax, payroll tax,
                  payment on account or other tax-related withholding that may be
                  applicable
                  to Awards under this Agreement by law or regulation of any governmental
                  authority, whether federal, state or local, domestic or
                  foreign.

              

      

      

      
        	 	
                (b)

              	
                “Termination
                  of Service” means the discontinuance of your relationship with the Company
                  as an employee of the Company or other Employer or as a member
                  of the
                  board of directors of Cree, Inc. Except as determined otherwise
                  by the
                  Committee, you will not be deemed to have incurred a Termination
                  of
                  Service if the capacity in which you provide services to the Company
                  changes (for example, you change from being a non-employee director
                  to
                  being an employee) or if you transfer employment among the various
                  entities constituting the Employer, so long as there is no interruption
                  in
                  your provision of services to the Company or other Employer as
                  an employee
                  or as a non-employee member of the board of directors of Cree,
                  Inc. The
                  Committee, in its discretion, will determine whether you have incurred
                  a
                  Termination of Service. You will not be deemed to have incurred
                  a
                  Termination of Service during a period for which you are on military
                  leave, sick leave, or other leave of absence approved by the
                  Employer.

              

      

      

      
        	12.  	
                Provisions
                  of the Plan. The provisions of the Plan are
                  incorporated by reference in this Agreement as if set out in full
                  in this
                  Agreement. To the extent that any conflict may exist between any
                  other
                  provision of this Agreement and a provision of the Plan, the Plan
                  provision will control. All decisions of the Committee with respect
                  to the
                  interpretation, construction and application of the Plan or this
                  Agreement
                  shall be final, conclusive and binding upon you and the Company.
                  

              

      

      

      
        	13.  	
                Cancellation
                  and Rescission. If you engage in any Detrimental Activity
                  prior to or within one (1) year after vesting of any Shares of
                  Restricted
                  Stock, the Committee in its discretion may rescind the issuance
                  of such
                  Shares upon notice to you within two (2) years after such vesting.
                  In the
                  event of such rescission, you will be obligated to pay to the Company
                  the
                  amount of any gain realized from the Restricted Stock, in such
                  manner and
                  on such terms and conditions as the Company may require, and the
                  Company
                  will be entitled to set-off against the amount of any such gain
                  any amount
                  the Company or an Employer owes to you. For purposes of this section,
                  “Detrimental Activity” shall have the meaning defined in Section 14.4(b)
                  of the Plan.

              

      

      

      
        	14.  	
                Data
                  Privacy. By signing this Agreement, you explicitly and
                  unambiguously consent to the collection, use and transfer, in electronic
                  or other form, of your personal data as described below by and
                  among, as
                  applicable, your Employer, the Company and its subsidiaries and
                  affiliates
                  for the exclusive purpose of implementing, administering and managing
                  your
                  participation in the Plan.

              

      

      

      You
        understand that the Employer holds or may hold certain personal information
        about you, including, but not limited to, your name, home address and telephone
        number, date of birth, social insurance number or other identification number,
        salary, nationality, position title, any shares of stock or directorships
        held
        in the Company, details of all Restricted Stock or any other entitlement
        to
        Shares of stock awarded, canceled, exercised, vested, unvested or outstanding
        in
        your favor, for the purpose of implementing, administering and managing the
        Plan
        (“Data”). You understand that Data may be transferred to any third parties
        assisting in the implementation, administration and management of the Plan,
        that
        these recipients may be located in your country or elsewhere, and that the
        recipient’s country may have different data privacy laws and protections than
        your country. You understand that you may request a list with the names and
        addresses of any potential recipients of the Data by contacting the Company's
        Stock Plan Administrator. You authorize the recipients to receive, possess,
        use,
        retain and transfer the Data, in electronic or other form, for the purposes
        of
        implementing, administering and managing your participation in the Plan,
        including any requisite transfer of such Data as may be required to a broker
        or
        other third party with whom you may elect to deposit any Shares of stock
        acquired pursuant to this Agreement. You understand that Data will be held
        pursuant to this Agreement only as long as is necessary to implement, administer
        and manage your participation in the Plan. You understand that you may, at
        any
        time, view Data, request additional information about the storage and processing
        of Data, require any necessary amendments to Data or refuse or withdraw the
        consents above, in any case without cost, by contacting in writing the Company's
        Stock Plan Administrator. You acknowledge, however, that refusing or withdrawing
        your consent may affect your ability to participate in the Plan.

      
        
          
          

        

        
          -
            4
            -

          
            

          

        

        
          
          

          
            Cree,
              Inc. Master Restricted Stock Award

            Agreement
              Terms and Conditions

            

          

        

      

      

      
        	15.  	
                Language. If
                  you have received this Agreement or any other document related
                  to the Plan
                  translated into a language other than English and the translated
                  version
                  is different than the English version, the English version will
                  control.

              

      

       

      
        	16.  	
                Electronic
                  Delivery. The Company may, in its sole discretion, decide
                  to
                  deliver any documents related to the Restricted Stock granted under
                  this
                  Agreement by electronic means or to request your consent to participate
                  in
                  the Plan by electronic means. By signing this Agreement, you consent
                  to
                  receive such documents by electronic delivery and, if requested,
                  to agree
                  to participate in the Plan through an on-line or electronic system
                  established and maintained by the Company or another third party
                  designated by Company.

              

      

       

      
        	17.  	
                General.
                  

              

      

      

      
        	 	
                (a)

              	
                Nothing
                  in this Agreement will be construed as constituting a commitment,
                  agreement or understanding of any kind that the Company or any
                  other
                  Employer will continue your service relationship nor to limit or
                  restrict
                  either party’s right to terminate the service relationship.
                  

              

      

      

      
        	 	
                (b)

              	
                This
                  Agreement shall be binding upon and inure to the benefit of the
                  parties
                  and their respective successors and permitted assigns. You may
                  not assign
                  any rights under this Agreement without the written consent of
                  the
                  Company, which it may withhold in its sole discretion; any such
                  attempted
                  assignment without the Company's written consent shall be void.
                  The
                  Company may assign its rights under this Agreement at any time
                  upon notice
                  to you.

              

      

      

      
        	 	
                (c)

              	
                Notices
                  under this Agreement must be in writing and delivered either by
                  hand or by
                  certified mail (return receipt requested and first-class postage
                  prepaid),
                  in the case of the Company, addressed to its principal executive
                  offices
                  to the attention of the Stock Plan Administrator, and, in your
                  case, to
                  your address as shown on the Employer’s
                  records.

              

      

      

      
        	 	
                (d)

              	
                This
                  Agreement shall be governed by and construed in accordance with
                  the laws
                  of the State of North Carolina as if made and to be performed wholly
                  within such State.

              

      

      

      
        	 	
                (e)

              	
                No
                  amendment or modification of this Agreement shall be valid unless
                  the same
                  is in writing and signed by you and by an authorized officer of
                  the
                  Company. If any provision of this Agreement is held to be invalid
                  or
                  unenforceable, such determination shall not affect the other provisions
                  of
                  the Agreement and the Agreement shall be construed as if the invalid
                  or
                  unenforceable provision were omitted and a valid and enforceable
                  provision, as nearly comparable as possible, substituted in its
                  place.

              

      

      

      
        	 	
                (f)

              	
                This
                  Agreement, including the corresponding Notice(s) of Grant and the
                  Plan,
                  set forth all of the promises, agreements and understandings between
                  you
                  and Company relating to Restricted Stock Awards evidenced by this
                  Agreement. This Agreement, including the corresponding Notice of
                  Grant and
                  the Plan, supersede any and all prior agreements or understandings,
                  whether oral or written, with respect to the Restricted Stock Award
                  evidenced by this Agreement and such Notice, unless otherwise specified
                  in
                  the corresponding Notice of Grant.

              

      

      

      
        	 	
                (g)

              	
                Shares
                  issued pursuant to an award of Restricted Stock may be
                  subject to such stop-transfer orders and other restrictions as
                  the
                  Committee may deem advisable under applicable law or the rules
                  and
                  regulations of the Securities and Exchange Commission or any stock
                  exchange or trading system upon which the common stock of the Company
                  is
                  listed, and the Committee may cause a legend or legends to be placed
                  on
                  any such certificates or the stock records of the Company to make
                  appropriate reference to such
                  restrictions.

              

      

      

      
        	 	
                (h)

              	
                You
                  agree that any and all Restricted Stock issued to you pursuant
                  to the
                  Plan, even if later forfeited, serves as additional, valuable
                  consideration for your obligations, if any, undertaken in any existing
                  agreement between you and the Company and/or other Employer regarding
                  confidential information, noncompetition, nonsolicitation or similar
                  covenants.

              

      

      
        
          
          

        

        
          -
            5
            -

          
            

          

        

        
          
          

          
            Cree,
              Inc. Master Restricted Stock Award

            Agreement
              Terms and Conditions

            

          

        

      

      

      
        	 	
                (i)

              	
                You
                  acknowledge, represent and warrant to the Company, and agree with
                  the
                  Company, that (i) except for information provided in the Company’s filings
                  with the Securities and Exchange Commission and in the Company’s current
                  prospectus relating to the Plan, you have not relied and will not
                  rely
                  upon the Committee, the Company, an Employer or any employee or
                  agent of
                  the Company or an Employer in determining whether to accept Restricted
                  Stock, or in connection with any disposition of Shares obtained
                  pursuant
                  to a Restricted Stock Award, or with respect to any tax consequences
                  related to the grant of Restricted Stock or the disposition of
                  Shares
                  obtained pursuant to a Restricted Stock Award; and (ii) you will
                  seek from
                  your own professional advisors such investment, tax and other advice
                  as
                  you believe necessary.

              

      

      

      
        	 	
                (j)

              	
                You
                  acknowledge that you may incur a substantial tax liability as a
                  result of
                  vesting of Restricted Stock. You assume full responsibility for
                  all such
                  consequences and the filing of all tax returns and related elections
                  you
                  may be required or find desirable to file. If you are required
                  to make any
                  valuation of Shares obtained pursuant to a Restricted Stock Award
                  under
                  any federal, state or other applicable tax law, and if the valuation
                  affects any tax return or election of the Company or the Employer
                  or
                  affects the Company’s financial statement reporting, you agree that the
                  Company may determine the value and that you will observe any
                  determination so made by the Company in all tax returns
                  and elections
                  filed by you.

              

      

      

      
        	 	
                (k)

              	
                You
                  acknowledge that copies of the Plan and Plan prospectus are available
                  upon
                  written or telephonic request to the Company’s Stock Plan
                  Administrator.

              

      

      

      
        	18.  	
                Severability.
                  The provisions of this Agreement are severable and if any one or
                  more
                  provisions is determined to be illegal or otherwise unenforceable,
                  in
                  whole or in part, the remaining provisions shall nevertheless be
                  binding
                  and enforceable.

              

      

    

     

    
 

    
      
        
        

      

      
        -
          6
          -

        
          

        

      

      
        
        

      

    

     

     

    

      
        	 	
                 

                NOTICE
                  OF GRANT

                (Employee
                  - Restricted Stock Award)

              
	
                Company:

              	
                Participant:

              	 
	
                Cree,
                  Inc.

              	
                Award
                  Number:

              	 
	
                4600
                  Silicon Drive

              	
                Award
                  Plan:

              	
                2004
                  Long-Term Incentive Compensation Plan

              
	
                Durham,
                  NC 27703

              	
                Award
                  Type:

              	
                Restricted
                  Stock

              
	
                Tax
                  I.D. 56-1572719

              	
                Grant
                  Date:

              	 
	 	
                Number
                  Shares:

              	 
	 	
                Purchase
                  Price:

              	
                -
                  $0 -

              
	 	
                Restriction
                  Period:

              	
                Grant
                  Date through ______________

              
	 	
                Vesting
                  Schedule:

              	 
	 	 	 

      

     

    Dear
      Participant:

     

    I
      am
      pleased to inform you that Cree, Inc. (the “Company”) has awarded you
      ___________ shares of restricted stock (“Restricted Stock”) pursuant to the
      Cree, Inc. 2004 Long-Term Incentive Compensation Plan (the “Plan”) effective
      __________ (the “Grant Date”). The Award is governed by the Plan, terms of the
      Master Restricted Stock Award Agreement between you and the Company and this
      Notice of Grant.

     

    If
      not
      previously vested or forfeited, the Restricted Stock will vest in installments
      on the dates set out below provided you are then serving as an employee of
      the
      Company or a related Employer under the Plan or as a member of the Board of
      Directors of the Company: 

    

    [Vesting
      Schedule]

    

    If
      you
      incur a Termination of Service before the end of the Restriction Period, you
      will forfeit all Shares of Restricted Stock that are not then vested in
      accordance with your Master Restricted Stock Award Agreement, this Notice of
      Grant and the Plan.

     

    This
      Award and any other Awards granted under the Plan as of the Grant Date are
      intended to fulfill any and all agreements, obligations or promises, whether
      legally binding or not, previously made by the Company or any Employer under
      the
      Plan to grant you Restricted Stock. By signing below, you accept such Awards,
      along with all prior awards received by you, in full satisfaction of any such
      agreement, obligation or promise.

     

    This
      Award is subject to the condition that you sign and return this Notice of Grant,
      and the accompanying stock power, to the Company not later than
      __________________________.

     

     

    
      	 CREE,
              INC.	 	 Accepted and agreed
              to:
	 	 	 	 
	
              By:

            	 	 	 
	
            	
              [Name]

            	 	
              [Name]

            
	
            	
              [Title]

            	 	 

    

     

     

    
      
        
        

      

      
        -
          7
          -

        
          

        

      

      
        
        

      

    

     

     

     

    
      
        	 	
                 

                NOTICE
                  OF GRANT

                (Outside
                  Director - Restricted Stock Award)

              
	
                Company:

              	
                Participant:

              	 
	
                Cree,
                  Inc.

              	
                Award
                  Number:

              	 
	
                4600
                  Silicon Drive

              	
                Award
                  Plan:

              	
                2004
                  Long-Term Incentive Compensation Plan

              
	
                Durham,
                  NC 27703

              	
                Award
                  Type:

              	
                Restricted
                  Stock

              
	
                Tax
                  I.D. 56-1572719

              	
                Grant
                  Date:

              	 
	 	
                Number
                  Shares:

              	 
	 	
                Purchase
                  Price:

              	
                -
                  $0 -

              
	 	
                Restriction
                  Period:

              	
                Grant
                  Date through ______________

              
	 	
                Vesting
                  Schedule:

              	 
	 	 	 

      

       

      Dear
        ________________:

       

       

      I
        am
        pleased to inform you that Cree, Inc. (the “Company”) has awarded you
        ___________ shares of restricted stock (“Restricted Stock”) pursuant to the
        Cree, Inc. 2004 Long-Term Incentive Compensation Plan (the “Plan”) effective
        __________ (the “Grant Date”). The Award is governed by the Plan, terms of the
        Master Restricted Stock Award Agreement between you and the Company and this
        Notice of Grant. 

       

      If
        not
        previously vested or forfeited, the Restricted Stock will vest on _____________
        provided you are then serving as a member of the Board of Directors of the
        Company or as an employee of the Company or a related Employer under the
        Plan.
        If you incur a Termination of Service before the end of the Restriction Period,
        you will forfeit all Shares of Restricted Stock that are not then vested
        in
        accordance with your Master Restricted Stock Award Agreement, this Notice
        of
        Grant and the Plan.

       

      This
        Award and any other Awards granted under the Plan as of the Grant Date are
        intended to fulfill any and all agreements, obligations or promises, whether
        legally binding or not, previously made by the Company or any Employer under
        the
        Plan to grant you Restricted Stock. By signing below, you accept such Awards,
        along with all prior awards received by you, in full satisfaction of any
        such
        agreement, obligation or promise.

       

      This
        Award is subject to the condition that you sign and return this Notice of
        Grant,
        and the accompanying stock power, to the Company not later than
        __________________________.

       

       

      
         

        
          	
                   CREE,
                    INC.

                	 	 Accepted
                  and agreed to:
	 	 	 	 
	
                  By:

                	 	 	 
	
                	
                  [Name]

                	 	
                  [Name]

                
	
                	
                  [Title]

                	 	 

        

         

         

        
          
            
            

          

          
            -
              8
              -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}]]