Document:

EX-4.1

Exhibit 4.1

Execution Copy

 

SERIES 2008-5 SUPPLEMENT

Dated as of June 12, 2008

to

POOLING AND SERVICING AGREEMENT

Dated as of May 16, 1996,

as amended and restated as of January 1, 2006

$909,091,000

 

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

Series 2008-5

 

among

AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION II

AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION III LLC

AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION IV LLC

as Transferors

AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC.

as Servicer

and

THE BANK OF NEW YORK

as Trustee

on behalf of the Series 2008-5 Certificateholders

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page
	ARTICLE I Creation of the Series 2008-5 Certificates

	 	 	1	 
	Section 1.01. Designation

	 	 	1	 
	ARTICLE II Definitions

	 	 	2	 
	Section 2.01. Definitions

	 	 	2	 
	ARTICLE III Servicing Fee

	 	 	14	 
	Section 3.01. Servicing Compensation

	 	 	14	 
	ARTICLE IV Rights of Series 2008-5 Certificateholders and
Allocation and Application of Collections

	 	 	15	 
	Section 4.01. Collections and Allocations

	 	 	15	 
	Section 4.02. Determination of Monthly Interest

	 	 	17	 
	Section 4.03. Principal Funding Account; Controlled Accumulation Period

	 	 	18	 
	Section 4.04. Required Amount

	 	 	20	 
	Section 4.05. Application of Class A Available Funds, Class B Available
Funds, Collateral Available Funds and Available Principal Collections

	 	 	21	 
	Section 4.06. Defaulted Amounts; Investor Charge-Offs

	 	 	22	 
	Section 4.07. Excess Spread; Excess Finance Charge Collections

	 	 	24	 
	Section 4.08. Reallocated Principal Collections

	 	 	25	 
	Section 4.09. Excess Finance Charge Collections

	 	 	25	 
	Section 4.10. Reallocated Investor Finance Charge Collections

	 	 	26	 
	Section 4.11. Shared Principal Collections

	 	 	27	 
	Section 4.12. Reserve Account

	 	 	27	 
	Section 4.13. Investment Instructions

	 	 	28	 
	Section 4.14. Determination of LIBOR

	 	 	29	 
	ARTICLE V Distributions and Reports to Series 2008-5 Certificateholders

	 	 	30	 
	Section 5.01. Distributions

	 	 	30	 
	Section 5.02. Reports and Statements to Series 2008-5 Certificateholders

	 	 	31	 
	ARTICLE VI Pay-Out Events

	 	 	31	 
	Section 6.01. Pay-Out Events

	 	 	31	 
	ARTICLE VII Optional Repurchase; Series Termination

	 	 	33	 
	Section 7.01. Optional Repurchase

	 	 	33	 
	Section 7.02. Series Termination

	 	 	33	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 
	 	 	 	Page
	ARTICLE VIII Final Distributions

	 	 	34	 	
	Section 8.01. Sale of Receivables or Certificateholders’ Interest pursuant to
Section 2.06 or 10.01 of the
Agreement and Section 7.01 or 7.02 of this Supplement

	 	 	34	 	
	Section 8.02. Distribution of Proceeds of Sale, Disposition or Liquidation of the
Receivables pursuant to Section 9.01 of the Agreement

	 	 	35	 	
	ARTICLE IX Miscellaneous Provisions

	 	 	36	 	
	Section 9.01. Ratification of Agreement

	 	 	36	 	
	Section 9.02. Counterparts

	 	 	36	 	
	Section 9.03. Governing Law

	 	 	36	 	
	Section 9.04. [Reserved]

	 	 	36	 	
	Section 9.05. [Reserved]

	 	 	36	 	
	Section 9.06. Uncertificated Securities

	 	 	36	 	
	Section 9.07. Transfers of the Collateral Interest

	 	 	36	 	

-ii-

 

SERIES 2008-5 SUPPLEMENT, dated as of June 12, 2008 (the
“Supplement”), among AMERICAN EXPRESS RECEIVABLES FINANCING
CORPORATION II, a Delaware corporation, AMERICAN EXPRESS RECEIVABLES
FINANCING CORPORATION III LLC, a Delaware limited liability company,
and AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION IV LLC, a
Delaware limited liability company, as Transferors, AMERICAN EXPRESS
TRAVEL RELATED SERVICES COMPANY, INC., a New York corporation, as
Servicer, and THE BANK OF NEW YORK, a banking corporation organized
and existing under the laws of the State of New York, not in its
individual capacity, but solely as Trustee.

     Pursuant to the Pooling and Servicing Agreement, dated as of May 16, 1996, as amended and
restated as of January 1, 2006 (as amended and restated and as otherwise amended and supplemented,
the “Agreement”), among the Transferors, the Servicer and the Trustee, the AMERICAN EXPRESS
CREDIT ACCOUNT MASTER TRUST (the “Trust”) has been created. Section 6.03 of the Agreement
provides that the Transferors may from time to time direct the Trustee to authenticate one or more
new Series of Investor Certificates representing fractional undivided interests in the Trust. The
Principal Terms of any new Series are to be set forth in a Supplement to the Agreement.

     Pursuant to this Supplement, the Transferors and the Trustee shall create a new Series of
Investor Certificates and specify the Principal Terms thereof.

ARTICLE I

Creation of the Series 2008-5 Certificates

     Section 1.01. Designation.

     (a) There is hereby created a Series of Investor Certificates to be issued pursuant to the
Agreement and this Supplement to be known as “American Express Credit Account Master Trust, Series
2008-5.” The Series 2008-5 Certificates shall be issued in two Classes, the first of which shall
be known as the “Class A Series 2008-5 Floating Rate Asset Backed Certificates” and the second of
which shall be known as the “Class B Series 2008-5 Floating Rate Asset Backed Certificates.” In
addition, there is hereby created a third Class of uncertificated interests in the Trust which
shall be known as the “Collateral Interest, Series 2008-5” and which shall be deemed to be
“Investor Certificates” for all purposes under the Agreement and this Supplement other than for
purposes of the definition of the term “Tax Opinion” in Section 1.01 of the Agreement. The
Collateral Interest shall be considered a Class of Series 2008-5 for all purposes of the Agreement
and this Supplement, including for purposes of voting concerning the liquidation of the Trust
pursuant to Section 9.01 of the Agreement. The Collateral Interest Holder shall be deemed to be
the Series Enhancer for all purposes under the Agreement and this Supplement.

     (b) Series 2008-5 shall be included in Group II and shall be a Principal Sharing Series.
Series 2008-5 shall be an Excess Allocation Series. Series 2008-5 shall not be subordinated to any
other Series. Notwithstanding any provision in the Agreement or in this Supplement to the
contrary, the first Distribution Date with respect to Series 2008-5 shall be the July 2008
Distribution Date and the first Monthly Period shall begin on and include the Closing Date and end
on and include June 24, 2008.

     (c) Except as expressly provided herein, (i) the provisions of Article VI and Article XII of
the Agreement relating to the registration, authentication, delivery, presentation, cancellation
and surrender of Registered Certificates shall not be applicable to the Collateral Interest, and
(ii) the

1

 

provisions of Section 3.07 of the Agreement shall not cause the Collateral Interest to be
treated as debt for federal, state and local income and franchise tax purposes, but rather the
Transferors intend, and together with the Collateral Interest Holder, agree to treat the Collateral
Interest for federal, state and local income and franchise tax purposes as representing an equity
interest in the assets of the Trust.

ARTICLE II

Definitions

     Section 2.01. Definitions.

     (a) Whenever used in this Supplement, the following words and phrases shall have the following
meanings, and the definitions of such terms are applicable to the singular as well as the plural
forms of such terms and the masculine as well as the feminine and neuter genders of such terms.

     “Additional Interest” means, with respect to any Distribution Date, the Class A
Additional Interest, the Class B Additional Interest and the Collateral Additional Interest for
such Distribution Date.

     “Adjusted Invested Amount” shall mean, with respect to any date of determination, an
amount equal to the Invested Amount less the Principal Funding Account Balance on such date of
determination.

     “Assignee” shall have the meaning specified in subsection 9.07(a).

     “Available Principal Collections” shall mean, with respect to any Monthly Period, an
amount equal to the sum of (a) (i) an amount equal to the
Principal Allocation Percentage of Series  2008-5 Allocable Principal Collections received during such Monthly Period minus (ii) the
amount of Reallocated Principal Collections with respect to such Monthly Period which pursuant to
Section 4.08 are required to fund the Required Amount for the related Distribution Date, (b) any
Shared Principal Collections with respect to other Series that are allocated to Series 2008-5 in
accordance with Section 4.04 of the Agreement and Section 4.11 of this Supplement, and (c) any
other amounts which pursuant to Section 4.05 or 4.07 of this Supplement are to be treated as
Available Principal Collections with respect to the related Distribution Date.

     “Available Reserve Account Amount” shall mean, with respect to any Distribution Date,
the lesser of (a) the amount on deposit in the Reserve Account on such date (before giving effect
to any deposit to be made to the Reserve Account on such date) and (b) the Required Reserve Account
Amount.

     “Base Rate” shall mean, with respect to any Monthly Period, the annualized percentage
equivalent of a fraction, the numerator of which is equal to the sum of the Class A Monthly
Interest, the Class B Monthly Interest (calculated as if the Class B Invested Amount equals the
outstanding principal balance of the Class B Certificates), the Collateral Minimum Monthly Interest
and the Monthly Servicing Fee with respect to the related Distribution Date and the denominator of
which is the Invested Amount as of the last day of the preceding Monthly Period.

     “Class A Additional Interest” shall have the meaning specified in subsection 4.02(a).

     “Class A Adjusted Invested Amount” shall mean, with respect to any date of
determination, an amount equal to the Class A Invested Amount less the Principal Funding Account
Balance (but not in excess of the Class A Invested Amount) on such date.

2

 

     “Class A Available Funds” shall mean, with respect to any Monthly Period, an amount
equal to the sum of (a) if such Monthly Period relates to a Distribution Date with respect to the
Controlled Accumulation Period, the Class A Floating Percentage of Principal Funding Account
Investment Proceeds, if any, with respect to such Distribution Date, (b) the Class A Floating
Percentage of the Reallocated Investor Finance Charge Collections and (c) the amount of funds, if
any, to be withdrawn from the Reserve Account which, pursuant to subsection 4.12(d), are required
to be included in Class A Available Funds with respect to such Distribution Date.

     “Class A Certificate Rate” shall mean, for any Interest Accrual Period with respect to
the Class A Certificates, a per annum rate equal to LIBOR plus 0.80%.

     “Class A Certificateholder” shall mean the Person in whose name a Class A Certificate
is registered in the Certificate Register.

     “Class A Certificates” shall mean any one of the Certificates executed by the
Transferors and authenticated by or on behalf of the Trustee, substantially in the form of
Exhibit A-l.

     “Class A Floating Percentage” shall mean, with respect to any Monthly Period, the
percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of
which is equal to the Class A Adjusted Invested Amount as of the close of business on the last day
of the preceding Monthly Period and the denominator of which is equal to the Adjusted Invested
Amount as of such day; provided, however, that with respect to the first Monthly Period, the Class
A Floating Percentage shall mean the percentage equivalent of a fraction, the numerator of which is
the Class A Initial Invested Amount and the denominator of which is the Initial Invested Amount.

     “Class A Initial Invested Amount” shall mean $800,000,000.

     “Class A Interest Shortfall” shall have the meaning specified in subsection 4.02(a).

     “Class A Invested Amount” shall mean, on any date of determination, an amount equal to
(a) the Class A Initial Invested Amount, minus (b) the aggregate amount of principal payments made
to the Class A Certificateholders on or prior to such date, minus (c) the excess, if any, of (i)
the aggregate amount of Class A Investor Charge-Offs for all prior Distribution Dates over (ii)
Class A Investor Charge-Offs reimbursed pursuant to subsection 4.07(b) prior to such date.

     “Class A Investor Charge-Offs” shall have the meaning specified in subsection 4.06(a).

     “Class A Investor Default Amount” shall mean, with respect to each Distribution Date,
an amount equal to the product of (i) the Investor Default Amount for such Distribution Date and
(ii) the Class A Floating Percentage for such Monthly Period.

     “Class A Monthly Interest” shall have the meaning specified in subsection 4.02(a).

     “Class A Principal Percentage” shall mean, with respect to any Monthly Period (i)
during the Revolving Period, the percentage equivalent (which percentage shall never exceed 100%)
of a fraction, the numerator of which is the Class A Invested Amount as of the last day of the
immediately
preceding Monthly Period and the denominator of which is the Invested Amount as of such day
and (ii) during the Controlled Accumulation Period, the Early Amortization Period or any Partial
Amortization Period, the percentage equivalent (which percentage shall never exceed 100%) of a
fraction, the numerator of which is the Class A Invested Amount as of the close of business on the
date on which the Revolving Period shall have terminated and the denominator of which is the
Invested Amount as of the close of business on the date on which the Revolving Period shall have
terminated; provided, however, that with respect to the first Monthly Period, the Class A Principal
Percentage shall mean the percentage

3

 

equivalent of a fraction, the numerator of which is the Class
A Initial Invested Amount and denominator of which is the Initial Invested Amount.

     “Class A Required Amount” shall have the meaning specified in subsection 4.04(a).

     “Class A Servicing Fee” shall have the meaning specified in Section 3.01.

     “Class B Additional Interest” shall have the meaning specified in subsection 4.02(b).

     “Class B Adjusted Invested Amount” shall mean, with respect to any date of
determination, an amount equal to the Class B Invested Amount less the positive difference, if any,
between the Principal Funding Account Balance and the Class A Invested Amount on such date.

     “Class B Available Funds” shall mean, with respect to any Monthly Period, an amount
equal to the sum of (a) the Class B Floating Percentage of the Reallocated Investor Finance Charge
Collections and (b) if such Monthly Period relates to a Distribution Date with respect to the
Controlled Accumulation Period, the Class B Floating Percentage of the Principal Funding Account
Investment Proceeds, if any, with respect to such Distribution Date.

     “Class B Certificate Rate” shall mean, for any Interest Accrual Period with respect to
the Class B Certificates, a per annum rate equal to LIBOR plus 2.15%; provided, however, that the
Transferors may adjust the Class B Certificate Rate from time to time only upon the satisfaction of
the Rate Adjustment Conditions.

     “Class B Certificateholder” shall mean the Person in whose name a Class B Certificate
is registered in the Certificate Register.

     “Class B Certificates” shall mean any one of the Certificates executed by the
Transferors and authenticated by or on behalf of the Trustee, substantially in the form of
Exhibit A-2.

     “Class B Floating Percentage” shall mean, with respect to any Monthly Period, the
percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of
which is equal to the Class B Adjusted Invested Amount as of the close of business on the last day
of the preceding Monthly Period and the denominator of which is equal to the Adjusted Invested
Amount as of the close of business on such day; provided, however, that with respect to the first
Monthly Period, the Class B Floating Percentage shall mean the percentage equivalent of a fraction,
the numerator of which is the Class B Initial Invested Amount and the denominator of which is the
Initial Invested Amount.

     “Class B Initial Invested Amount” shall mean $50,000,000.

     “Class B Interest Shortfall” shall have the meaning specified in subsection 4.02(b).

     “Class B Invested Amount” shall mean, on any date of determination, an amount equal to
(a) the Class B Initial Invested Amount, minus (b) the aggregate amount of principal payments made
to the Class B Certificateholders prior to such date, minus (c) the aggregate amount of Class B
Investor Charge-Offs for all prior Distribution Dates, minus (d) the amount of Reallocated
Principal Collections allocated on all prior Distribution Dates pursuant to subsection 4.08(a)
(excluding any Reallocated Principal Collections that have resulted in a reduction in the
Collateral Invested Amount pursuant to Section 4.08), minus (e) an amount equal to the amount by
which the Class B Invested Amount has been reduced on all prior Distribution Dates pursuant to
subsection 4.06(a) and plus (f) the amount of Excess Spread and Excess Finance Charge Collections
allocated and available on all prior Distribution Dates pursuant to subsection 4.07(e) for the
purpose of reimbursing amounts deducted pursuant to the foregoing

4

 

clauses (c), (d) and (e);
provided, however, that the Class B Invested Amount may not be reduced below zero.

     “Class B Investor Charge-Offs” shall have the meaning specified in subsection 4.06(b).

     “Class B Investor Default Amount” shall mean, with respect to each Distribution Date,
an amount equal to the product of (i) the Investor Default Amount for such Distribution Date and
(ii) the Class B Floating Percentage for such Monthly Period.

     “Class B Monthly Interest” shall have the meaning specified in subsection 4.02(b).

     “Class B Principal Percentage” shall mean, with respect to any Monthly Period, (i)
during the Revolving Period, the percentage equivalent (which percentage shall never exceed 100%)
of a fraction, the numerator of which is the Class B Invested Amount as of the last day of the
immediately preceding Monthly Period and the denominator of which is the Invested Amount as of such
day and (ii) during the Controlled Accumulation Period, the Early Amortization Period or any
Partial Amortization Period, the percentage equivalent (which percentage shall never exceed 100%)
of a fraction, the numerator of which is the Class B Invested Amount as of the close of business on
the date on which the Revolving Period shall have terminated and the denominator of which is the
Invested Amount as of the close of business on the date on which the Revolving Period shall have
terminated; provided, however, that with respect to the first Monthly Period, the Class B Principal
Percentage shall mean the percentage equivalent of a fraction, the numerator of which is the Class
B Initial Invested Amount and the denominator of which is the Initial Invested Amount.

     “Class B Required Amount” shall have the meaning set forth in subsection 4.04(b).

     “Class B Servicing Fee” shall have the meaning specified in Section 3.01.

     “Closing Date” shall mean June 12, 2008; provided that, for purposes of determining
the date on which the first Monthly Period begins, the Closing Date shall be deemed to be the close
of business on the last day of the seventh billing cycle applicable to the Accounts ending in May
2008.

     “Collateral Additional Interest” shall have the meaning specified in subsection
4.02(c).

     “Collateral Available Funds” shall mean with respect to any Distribution Date, the
Collateral Floating Percentage of Reallocated Investor Finance Charge Collections with respect to
the preceding Monthly Period.

     “Collateral Charge-Offs” shall have the meaning specified in subsection 4.06(c).

     “Collateral Default Amount” shall mean, with respect to any Distribution Date, the
product of the Investor Default Amount for such Distribution Date and the Collateral Floating
Percentage.

     “Collateral Floating Percentage” shall mean, with respect to any Distribution Date,
the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator
of which is equal to the Collateral Invested Amount as of the close of business on the last day of
the preceding Monthly Period and the denominator of which is the Adjusted Invested Amount as of the
close of business on such last day; provided, however, that with respect to the first Monthly
Period, the Collateral Floating Percentage shall mean the percentage equivalent of a fraction, the
numerator of which is the Collateral Initial Invested Amount and the denominator of which is the
Initial Invested Amount.

     “Collateral Initial Invested Amount” shall mean $59,091,000.

5

 

     “Collateral Interest” shall mean a fractional undivided interest in the Trust which
shall consist of the right to receive, (i) to the extent necessary to make the required payments to
the Collateral Interest Holder under this Supplement, the portion of Collections allocable thereto
under the Agreement and this Supplement and funds on deposit in the Collection Account allocable
thereto pursuant to the Agreement and this Supplement and (ii) amounts available for payment to the
Collateral Interest Holder pursuant to subsections 4.07(k), 4.12(e), 4.12(f), 8.01(b), 8.02(a) and
8.02(b) or any other provision of this Supplement.

     “Collateral Interest Holder” shall mean the entity so designated in the Transfer
Agreement.

     “Collateral Interest Shortfall” shall have the meaning specified in subsection
4.02(c).

     “Collateral Invested Amount” shall mean, when used with respect to any date, an amount
equal to (a) the Collateral Initial Invested Amount, minus (b) the aggregate amount of principal
payments made to the Collateral Interest Holder prior to such date, minus (c) the aggregate amount
of Collateral Charge-Offs for all prior Distribution Dates pursuant to subsection 4.06(c), minus
(d) the aggregate amount of Reallocated Principal Collections allocated on all prior Distribution
Dates pursuant to Section 4.08 allocable to the Collateral Invested Amount, minus (e) an amount
equal to the amount by which the Collateral Invested Amount has been reduced on all prior
Distribution Dates pursuant to subsections 4.06(a) and (b), and plus (f) the amount allocated and
available on all prior Distribution Dates pursuant to subsection 4.07(i), for the purpose of
reimbursing amounts deducted pursuant to the foregoing clauses (c), (d) and (e); provided, however,
that the Collateral Invested Amount may not be reduced below zero.

     “Collateral Minimum Interest Rate” shall mean the rate specified in the Transfer
Agreement; provided that for purposes of this Supplement, such rate shall not exceed LIBOR plus
3.80% per annum.

     “Collateral Minimum Monthly Interest” shall have the meaning specified in subsection
4.02(c).

     “Collateral Principal Percentage” shall mean, with respect to any Monthly Period, (i)
during the Revolving Period, the percentage equivalent (which percentage shall never exceed 100%)
of a fraction, the numerator of which is the Collateral Invested Amount as of the last day of the
immediately preceding Monthly Period and the denominator of which is the Invested Amount as of such
day and (ii) during the Controlled Accumulation Period, the Early Amortization Period or any
Partial Amortization Period, the percentage equivalent (which percentage shall never exceed 100%)
of a fraction, the
numerator of which is the Collateral Invested Amount as of the close of business on the date
on which the Revolving Period shall have terminated and the denominator of which is the Invested
Amount as of the close of business on the date on which the Revolving Period shall have terminated;
provided, however, that with respect to the first Monthly Period, the Collateral Principal
Percentage shall mean the percentage equivalent of a fraction, the numerator of which is the
Collateral Initial Invested Amount and the denominator of which is the Initial Invested Amount.

     “Collateral Servicing Fee” shall have the meaning set forth in Section 3.01.

     “Controlled Accumulation Amount” shall mean, for any Distribution Date with respect to
the Controlled Accumulation Period, $70,833,333.34; provided, however, that, if the Controlled
Accumulation Period Length is determined to be less than 12 months, the Controlled Accumulation
Amount for each Distribution Date with respect to the Controlled Accumulation Period will be equal
to (i) the product of (x) the sum of the Class A Initial Invested Amount and the Class B Initial
Invested Amount and (y) the Controlled Accumulation Period Factor for the related Monthly Period
divided by (ii) the Required Accumulation Factor Number.

6

 

     “Controlled Accumulation Period” shall mean, unless a Pay-Out Event shall have
occurred prior thereto, the period commencing at the close of business on the last day of the July
2012 Monthly Period or such later date as is determined in accordance with subsection 4.03(c) and
ending on the first to occur of (a) the commencement of the Early Amortization Period, (b) the
payment in full of the Invested Amount and (c) the Expected Final Payment Date.

     “Controlled Accumulation Period Factor” shall mean, for each Monthly Period, a
fraction, the numerator of which is equal to the sum of the series invested amounts as of the last
day of the prior Monthly Period of all outstanding Series, and the denominator of which is equal to
the sum (without duplication) of (a) the Series Invested Amount as of the last day of the prior
Monthly Period, (b) the series invested amounts as of the last day of the prior Monthly Period of
all outstanding Series (other than Series 2008-5) that are not expected to be in their revolving
periods, and (c) the series invested amounts as of the last day of the prior Monthly Period of all
other outstanding Series that are not Principal Sharing Series and are in their revolving periods.

     “Controlled Accumulation Period Length” has the meaning specified in subsection
4.03(c).

     “Controlled Deposit Amount” shall mean, for any Distribution Date with respect to the
Controlled Accumulation Period, an amount equal to the sum of the Controlled Accumulation Amount
for such Distribution Date and any Deficit Controlled Accumulation Amount for the immediately
preceding Distribution Date.

     “Covered Amount” shall mean, for any Distribution Date with respect to the Controlled
Accumulation Period or the first Special Payment Date, if such Special Payment Date occurs prior to
the date the Class A Invested Amount is paid in full, an amount equal to the sum of (x) with
respect to the Class A Certificates, the product of (i) the Class A Certificate Rate, (ii) a
fraction, the numerator of which is the actual number of days from and including the prior
Distribution Date to but excluding the then current Distribution Date and the denominator of which
is 360 and, (iii) the Principal Funding Account Balance, if any, as of the preceding Distribution
Date that is allocable to the principal of the Class A Certificates and (y) with respect to the
Class B Certificates, the product of (i) the Class B Certificate Rate, (ii) a fraction, the
numerator of which is the actual number of days from and including the prior Distribution Date to
but excluding the then current Distribution Date and the denominator of which is 360
and (iii) the Principal Funding Account Balance, if any, as of the preceding Distribution Date
that is allocable to the principal of the Class B Certificates.

     “Deficit Controlled Accumulation Amount” shall mean (a) on the first Distribution Date
with respect to the Controlled Accumulation Period, the excess, if any, of the Controlled
Accumulation Amount for such Distribution Date over the amount deposited in the Principal Funding
Account on such Distribution Date and (b) on each subsequent Distribution Date with respect to the
Controlled Accumulation Period, the excess, if any, of the Controlled Deposit Amount for such
subsequent Distribution Date over the amount deposited in the Principal Funding Account on such
subsequent Distribution Date.

     “Distribution Date” shall mean July 15, 2008, and the 15th day of each calendar month
thereafter, or if such 15th day is not a Business Day, the next succeeding Business Day.

     “Early Amortization Period” shall mean the period commencing at the close of business
on the Business Day immediately preceding the day on which a Pay-Out Event with respect to Series
2008-5 is deemed to have occurred, and ending on the first to occur of (i) the payment in full of
the Invested Amount or (ii) the Series 2008-5 Termination Date.

7

 

     “Excess Finance Charge Collections” shall mean collections of Finance Charge
Receivables and certain other amounts allocable to the Certificateholders’ Interest of any Excess
Allocation Series in excess of the amounts necessary to make required payments with respect to such
series (including payments to the provider of any related Series Enhancement) that are payable out
of collections of Finance Charge Receivables.

     “Excess Spread” shall mean, with respect to any Distribution Date, the sum of the
amounts, if any, specified pursuant to subsections 4.05(a)(iv), 4.05(b)(iii) and 4.05(c)(ii) with
respect to such Distribution Date.

     “Expected Final Payment Date” shall mean the August 2013 Distribution Date.

     “Finance Charge Shortfall” shall have the meaning specified in Section 4.09.

     “Floating Allocation Percentage” shall mean, with respect to any Monthly Period, the
percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of
which is the Adjusted Invested Amount as of the last day of the preceding Monthly Period (or with
respect to the first Monthly Period, the Initial Invested Amount) and the denominator of which is
the product of (x) the Series 2008-5 Allocation Percentage with respect to such Monthly Period and
(y) the sum of (i) the total amount of Principal Receivables in the Trust as of such day (or with
respect to the first Monthly Period, the total amount of Principal Receivables in the Trust on the
Closing Date) and (ii) the principal amount on deposit in the Special Funding Account as of such
last day (or with respect to the first Monthly Period, as of the Closing Date); provided, however,
that with respect to any Monthly Period in which an Addition Date for an Aggregate Addition or a
Removal Date occurs the amount in (y)(i) above shall be (1) the aggregate amount of Principal
Receivables in the Trust at the end of the day on the last day of the prior Monthly Period for the
period from and including the first day of such Monthly Period to but excluding the related
Addition Date or Removal Date and (2) the aggregate amount of Principal Receivables in the Trust at
the end of the day on the related Addition Date or Removal Date for the period from and including
the related Addition Date or Removal Date to and including the last day of such Monthly Period.

     “Group II” shall mean Series 2008-5 and each other Series specified in the related
Supplement to be included in Group II.

     “Group II Investor Additional Amounts” shall mean, with respect to any Distribution
Date, the sum of (a) Series 2008-5 Additional Amounts for such Distribution Date and (b) for all
other Series included in Group II, the sum of (i) the aggregate net amount by which the Invested
Amounts of such Series have been reduced as a result of investor charge-offs, subordination of
principal collections and funding the investor default amounts in respect of any Class or Series
Enhancement interests of such Series as of such Distribution Date and (ii) if the applicable
Supplements so provide, the aggregate unpaid amount of interest at the applicable certificate rates
that has accrued on the amounts described in the preceding clause (i) for such Distribution Date.

     “Group II Investor Default Amount” shall mean, with respect to any Distribution Date,
the sum of (a) the Investor Default Amount for such Distribution Date and (b) the aggregate amount
of the investor default amounts for all other Series included in Group II for such Distribution
Date.

     “Group II Investor Finance Charge Collections” shall mean, with respect to any
Distribution Date, the sum of (a) Investor Finance Charge Collections for such Distribution Date
and (b) the aggregate amount of the investor finance charge collections for all other Series
included in Group II for such Distribution Date.

8

 

     “Group II Investor Monthly Fees” shall mean with respect to any Distribution Date, the
sum of (a) Series 2008-5 Monthly Fees for such Distribution Date and (b) the aggregate amount of
the servicing fees, investor fees, fees payable to any Series Enhancer and any other similar fees,
which are payable out of reallocated investor finance charge collections pursuant to the related
Supplements, for all other Series included in Group II for such Distribution Date.

     “Group II Investor Monthly Interest” shall mean, with respect to any Distribution
Date, the sum of (a) Series 2008-5 Monthly Interest for such Distribution Date and (b) the
aggregate amount of monthly interest, including overdue monthly interest and interest on such
overdue monthly interest, if such amounts are payable out of reallocated investor finance charge
collections pursuant to the related Supplements, for all other Series included in Group II for such
Distribution Date.

     “Initial Invested Amount” shall mean $909,091,000.

     “Interest Accrual Period” shall mean, with respect to any Distribution Date, the
period (a) from and including the Distribution Date immediately preceding such Distribution Date
(or, in the case of the first Distribution Date, from and including the Closing Date) and (b) to
but excluding such Distribution Date.

     “Invested Amount” shall mean, as of any date of determination, an amount equal to the
sum of (a) the Class A Invested Amount as of such date, (b) the Class B Invested Amount as of such
date and (c) the Collateral Invested Amount as of such date.

     “Investment Letter” shall have the meaning specified in subsection 9.07(a).

     “Investor Charge-Offs” shall mean Class A Investor Charge-Offs, Class B Investor
Charge-Offs and Collateral Charge-Offs.

     “Investor Default Amount” shall mean, with respect to any Distribution Date, an amount
equal to the product of (a) the Series 2008-5 Allocable Defaulted Amount for the related Monthly
Period and (b) the Floating Allocation Percentage for such Monthly Period.

     “Investor Finance Charge Collections” shall mean with respect to any Distribution
Date, an amount equal to the product of (a) the Floating Allocation Percentage for the related
Monthly Period and (b) Series 2008-5 Allocable Finance Charge Collections deposited in the
Collection Account for the related Monthly Period.

     “LIBOR” shall mean, for any Interest Accrual Period, a per annum interest rate
determined by the Trustee for such Interest Accrual Period in accordance with the provisions of
Section 4.14.

     “LIBOR Determination Date” shall mean June 10, 2008 for the period from and including
the Closing Date to but excluding July 15, 2008, and for every other Interest Accrual Period, the
second London Business Day prior to the commencement of such Interest Accrual Period.

     “London Business Day” shall mean any day on which dealings in deposits in United
States dollars are transacted in the London interbank market.

     “Monthly Interest” means, with respect to any Distribution Date, the Class A Monthly
Interest, the Class B Monthly Interest and the Collateral Minimum Monthly Interest for such
Distribution Date.

9

 

     “Monthly Receivables Percentage” shall mean, for any day, the percentage equivalent of
a fraction, the numerator of which is an amount equal to the sum of the aggregate amount of
Principal Receivables outstanding in the Trust attributable to the Transferor or Account Owner with
respect to which an Insolvency Event or a Transfer Restriction Event has occurred, and the
denominator of which is an amount equal to the sum of the aggregate amount of Principal Receivables
outstanding in the Trust, in each as of the last day of the immediately preceding Monthly Period.

     “Monthly Servicing Fee” shall have the meaning specified in subsection 3.01.

     “Pay-Out Event” shall mean any Pay-Out Event specified in Section 6.01.

     “Permitted Assignee” shall mean any Person who, if it were the Collateral Interest
Holder or a holder of an interest in the Trust, as applicable, would not cause the Trust to be
taxable as a publicly traded partnership for federal income tax purposes.

     “Principal Allocation Percentage” shall mean, with respect to any day during a Monthly
Period, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the
numerator of which is (a) during the Revolving Period, the Series Adjusted Invested Amount for
Series 2008-5 as of the last day of the immediately preceding Monthly Period (or, in the case of
the first Monthly Period, the Initial Invested Amount) and (b) during the Controlled Accumulation
Period, the Early Amortization Period or any Partial Amortization Period, the Series Adjusted
Invested Amount for Series 2008-5 as of the close of business on the date on which the Revolving
Period shall have terminated and the denominator of which is the product of (x) the sum of (i) the
total amount of Principal Receivables in the Trust as of the last day of the immediately preceding
Monthly Period (or with respect to the first Monthly Period, the total amount of Principal
Receivables in the Trust as of the Closing Date) and (ii) the principal amount on deposit in the
Special Funding Account as of such last day (or with
respect to the first Monthly Period, the Closing Date) and (y) the Series 2008-5 Allocation
Percentage as of the last day of the immediately preceding Monthly Period; provided, however, that
with respect to any Monthly Period in which an Addition Date for an Aggregate Addition or a Removal
Date occurs the amount in (x)(i) above shall be (1) the aggregate amount of Principal Receivables
in the Trust at the end of the day on the last day of the prior Monthly Period for the period from
and including the first day of such Monthly Period to but excluding the related Addition Date or
Removal Date and (2) the aggregate amount of Principal Receivables in the Trust at the end of the
day on the related Addition Date or Removal Date for the period from and including the related
Addition Date or Removal Date to and including the last day of such Monthly Period; and provided
further, that if after the commencement of the Controlled Accumulation Period a Pay-Out Event
occurs with respect to another Series that was designated in the Supplement therefor as a Series
that is a “Paired Series” with respect to Series 2008-5, the Transferors may, by written notice
delivered to the Trustee and the Servicer, designate a different numerator for the foregoing
fraction, provided that (x) such numerator is not less than the Adjusted Invested Amount as of the
last day of the revolving period for such Paired Series, (y) the Transferors shall have received
written notice from each Rating Agency that the Rating Agency Condition has been satisfied with
respect to such designation and shall have delivered copies of each such written notice to the
Servicer and the Trustee and (z) each Transferor shall have delivered to the Trustee an Officer’s
Certificate of such Transferor to the effect that, based on the facts known to such officer at such
time, in the reasonable belief of such Transferor, such designation will not cause a Pay-Out Event
or an event that, after the giving of notice or the lapse of time, would constitute a Pay-Out
Event, to occur with respect to Series 2008-5.

     “Principal Funding Account” shall have the meaning specified in subsection 4.03(a)(i).

     “Principal Funding Account Balance” shall mean, with respect to any date of
determination during the Controlled Accumulation Period, the principal amount, if any, on deposit
in the Principal Funding Account on such date of determination.

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     “Principal Funding Account Investment Proceeds” shall have the meaning specified in
subsection 4.03(a)(ii).

     “Principal Funding Account Investment Shortfall” shall mean, with respect to each
Distribution Date during the Controlled Accumulation Period, the amount, if any, by which the
Principal Funding Account Investment Proceeds are less than the Covered Amount.

     “Rate Adjustment Conditions” shall mean, with respect to any modification of the Class
B Certificate Rate by the Transferors, (i) the Transferors shall provide written notice to the
Trustee of the modified Class B Certificate Rate no later than two Business Days prior to the date
on which such modified rate is to become effective; (ii) the modified Class B Certificate Rate
shall not exceed a per annum rate equal to LIBOR plus 2.15%, (iii) the Class B Certificate Rate
shall not be modified more than two times during any Interest Accrual Period; (iv) the Transferors
shall certify in the related notice that the modified Class B Certificate Rate is a fixed rate or a
“qualified floating rate” (within the meaning of Treasury Regulations section 1.1275-5) otherwise
meeting such relevant requirements as would cause the Class B Certificates to constitute variable
rate debt instruments (within the meaning of Treasury Regulations section 1.1275-5, including
without limitation paragraph (a)(4) thereof) and determined under procedures consistent with those
applicable to reset bonds (as described in Treasury Regulations section 1.1275-5(f)) such that, in
either case, the fair market value of the Class B Certificates will be the Class B Invested Amount;
(v) the Transferors shall certify in the related notice that the Class B Certificates have not been
previously sold by TRS or any of its Affiliates (including, without limitation, within the meaning
of Affiliate, solely for purposes of this clause (v), any Person related to TRS within
the meaning of sections 267(b) or 707(b)(1) of the Internal Revenue Code) to a Person who is
not TRS or any of its Affiliates; (vi) the Transferors shall provide to the Trustee an Opinion of
Counsel to the effect that such modification shall not adversely affect the status of the Class B
Certificates as debt for federal income tax purposes; (vii) if the modified Class B Certificate
Rate is a fixed rate or a rate based on an index other than LIBOR, the Transferors shall provide
two days’ notice of such modified rate to the Rating Agencies; and (viii) if the modified Class B
Certificate Rate is a fixed rate or a rate based on an index other than LIBOR, the Transferors
shall certify in the related notice to the Trustee that the Rating Agencies have been notified
pursuant to clause (vii) above.

     “Reallocated Investor Finance Charge Collections” shall mean that portion of Group II
Investor Finance Charge Collections allocated to Series 2008-5 pursuant to Section 4.10.

     “Reallocated Principal Collections” shall mean, with respect to any Monthly Period,
the product of (a) the Series 2008-5 Allocable Principal Collections deposited in the Collection
Account for such Monthly Period and (b) the sum of the Class B Principal Percentage and the
Collateral Principal Percentage.

     “Reassignment Amount” shall mean, with respect to any Distribution Date, after giving
effect to any deposits and distributions otherwise to be made on such Distribution Date, the sum of
(i) the Adjusted Invested Amount on such Distribution Date, plus (ii) Monthly Interest for such
Distribution Date and any Monthly Interest previously due but not distributed to the Series 2008-5
Certificateholders on a prior Distribution Date, plus (iii) the amount of Additional Interest, if
any, for such Distribution Date and any Additional Interest previously due but not distributed to
the Series 2008-5 Certificateholders on a prior Distribution Date.

     “Reference Banks” shall mean four 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

11

 

lowest monthly principal payment rate on the Accounts, expressed as a decimal, for the three
months preceding the date of such calculation.

     “Required Amount” shall mean, with respect to any Monthly Period, the sum of the Class
A Required Amount and the Class B Required Amount.

     “Required Reserve Account Amount” shall mean, with respect to any Distribution Date on
or after the Reserve Account Funding Date, an amount equal to (1) 0.50% of the Class A Invested
Amount as of the preceding Distribution Date (after giving effect to all changes therein on such
date) or (2) any other percentage (which may be 0%) of the Class A Invested Amount designated by
the Transferors, provided that if such percentage is less than the percentage specified in clause
(1) above, the Transferors shall have received the prior written consent of the Collateral Interest
Holder and written notice from each Rating Agency that the Rating Agency Condition shall have been
satisfied with respect to such designation and shall have delivered copies of each such written
notice to the Servicer and the Trustee.

     “Reserve Account” shall have the meaning specified in subsection 4.12(a).

     “Reserve Account Funding Date” shall mean the Distribution Date which occurs not later
than the earliest of (a) the Distribution Date with respect to the Monthly Period that commences
not later
than three months prior to the Distribution Date with respect to the first Monthly Period in
the Controlled Accumulation Period, (b) in the event that the average Excess Spread Percentage for
any three consecutive Monthly Periods ending in the August 2011 Monthly Period or any Monthly
Period thereafter is less than 2%, the Distribution Date with respect to such Monthly Period, (c)
in the event that the average Excess Spread Percentage for any three consecutive Monthly Periods
ending in the February 2012 Monthly Period or any Monthly Period thereafter is less than 3%, the
Distribution Date with respect to such Monthly Period and (d) such earlier Distribution Date as the
Transferors may determine by written notice to the Trustee and the Servicer. For this purpose, the
“Excess Spread Percentage” for any Monthly Period shall be equal to the Series Adjusted
Portfolio Yield for such Monthly Period minus the Base Rate for such Monthly Period.

     “Reserve Account Surplus” shall mean, as of any date of determination, the amount, if
any, by which the amount on deposit in the Reserve Account exceeds the Required Reserve Account
Amount.

     “Reserve Draw Amount” shall have the meaning specified in subsection 4.12(c).

     “Reuters Screen LIBOR01 Page” shall mean the display page currently designated as page
LIBOR01 on the Reuters Screen (or such other page as may replace that page on that service for the
purpose of displaying comparable rates or prices).

     “Revolving Period” shall mean the period beginning at the close of business on the
Series Cut-Off Date and ending on the earlier of (a) the close of business on the day immediately
preceding the day the Controlled Accumulation Period commences and (b) the close of business on the
day immediately preceding the day the Early Amortization Period commences.

     “Series Adjusted Portfolio Yield” shall mean, with respect to any Monthly Period, the
annualized percentage equivalent of a fraction, (A) the numerator of which is equal to (a)
Reallocated Investor Finance Charge Collections with respect to such Monthly Period, plus (b) the
amount of any Principal Funding Account Investment Proceeds for the related Distribution Date, plus
(c) provided that each Rating Agency has consented in writing to the inclusion thereof in
calculating the Series Adjusted Portfolio Yield, any Excess Finance Charge Collections that are
allocated to Series 2008-5 with respect to such Monthly Period, plus (d) the amount of funds, if
any, withdrawn from the Reserve Account which

12

 

pursuant to subsection 4.12(d) are required to be deposited into the Collection Account and
included as Class A Available Funds for the Distribution Date with respect to such Monthly Period,
minus (e) the Investor Default Amount for the Distribution Date with respect to such Monthly
Period, and (B) the denominator of which is the Invested Amount as of the last day of the preceding
Monthly Period.

     “Series Cut-Off Date” shall mean the close of business on June 12, 2008.

     “Series 2008-5” shall mean the Series of Certificates the terms of which are specified
in this Supplement.

     “Series 2008-5 Additional Amounts” shall mean, with respect to any Distribution Date,
the sum of the amounts determined pursuant to subsections 4.07(b), (e) and (i) for such
Distribution Date.

     “Series 2008-5 Allocable Defaulted Amount” shall mean the Series Allocable Defaulted
Amount with respect to Series 2008-5.

     “Series 2008-5 Allocable Finance Charge Collections” shall mean the Series Allocable
Finance Charge Collections with respect to Series 2008-5.

     “Series 2008-5 Allocable Principal Collections” shall mean the Series Allocable
Principal Collections with respect to Series 2008-5.

     “Series 2008-5 Allocation Percentage” shall mean the Series Allocation Percentage with
respect to Series 2008-5.

     “Series 2008-5 Certificate” shall mean a Class A Certificate or a Class B Certificate
or the Collateral Interest.

     “Series 2008-5 Certificateholder” shall mean a Class A Certificateholder or a Class B
Certificateholder or the Collateral Interest Holder.

     “Series 2008-5 Certificateholders’ Interest” shall mean the Certificateholders’
Interest for Series 2008-5, including the Collateral Interest.

     “Series 2008-5 Monthly Fees” shall mean, with respect to any Distribution Date, the
amount determined pursuant to subsections 4.05(a)(ii), (b)(ii) and (c)(i) and subsection 4.07(g).

     “Series 2008-5 Monthly Interest” shall mean the amounts determined pursuant to
subsections 4.02(a), (b) and (c).

     “Series 2008-5 Principal Shortfall” shall have the meaning specified in Section 4.11.

     “Series 2008-5 Termination Date” shall mean the March 2016 Distribution Date.

     “Series Invested Amount” shall mean the Initial Invested Amount.

     “Series Required Transferor Amount” shall mean an amount equal to 7% of the Invested
Amount.

     “Servicing Base Amount” shall have the meaning specified in Section 3.01.

     “Servicing Fee Rate” shall mean 2.0% per annum.

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     “Special Payment Date” shall mean each Distribution Date with respect to the Early
Amortization Period.

     “Transfer” shall have the meaning specified in subsection 9.07(a).

     “Transfer Agreement” shall mean the Transfer and Administration Agreement, dated as of
June 12, 2008, among RFC II, RFC III and RFC IV, as transferors, TRS, as administrator, and the
American Express Credit Account Secured Note Trust 2008-5, as issuer, as the same may be amended,
supplemented or otherwise modified from time to time.

     “Transferor Percentage” shall mean 100% minus (a) the Floating Allocation Percentage,
when used at any time with respect to Finance Charge Receivables and Defaulted Receivables, or (b)
the Principal Allocation Percentage, when used at any time with respect to Principal Receivables.

     (b) Notwithstanding anything to the contrary in this Supplement or the Agreement, the term
“Rating Agency” shall mean, whenever used in this Supplement or the Agreement with respect
to Series 2008-5, Moody’s and Standard & Poor’s. As used in this Supplement and in the Agreement
with respect to Series 2008-5, “highest investment category” shall mean (i) in the case of Standard
& Poor’s, AAA or A-1+, as applicable and (ii) in the case of Moody’s, Aaa or P-1, as applicable.

     (c) Each capitalized term defined herein shall relate to the Series 2008-5 Certificates and no
other Series of Certificates issued by the Trust, unless the context otherwise requires. All
capitalized terms used herein and not otherwise defined herein have the meanings ascribed to them
in the Agreement. In the event that any term or provision contained herein shall conflict with or
be inconsistent with any term or provision contained in the Agreement, the terms and provisions of
this Supplement shall govern.

     (d) The words “hereof,” “herein” and “hereunder” and words of similar import when used in this
Supplement shall refer to this Supplement as a whole and not to any particular provision of this
Supplement; references to any Article, subsection, Section or Exhibit are references to Articles,
subsections, Sections and Exhibits in or to this Supplement unless otherwise specified; and the
term “including” means “including without limitation.”

ARTICLE III

Servicing Fee

     Section 3.01. Servicing Compensation. The share of the Servicing Fee allocable to the
Series 2008-5 Certificateholders with respect to any Distribution Date (the
“Monthly Servicing Fee”) shall be equal to one-twelfth of the product of (a) the Servicing
Fee Rate and (b) (i) the Adjusted Invested Amount as of the last day of the Monthly Period
preceding such Distribution Date minus (ii) the product of the amount, if any, on deposit in the
Special Funding Account as of the last day of the Monthly Period preceding such Distribution Date
and the Series 2008-5 Allocation Percentage with respect to such Monthly Period (the amount
calculated pursuant to this clause (b) is referred to as the “Servicing Base Amount”). The
share of the Monthly Servicing Fee allocable to the Class A Certificateholders with respect to any
Distribution Date (the “Class A Servicing Fee”) shall be equal to one-twelfth of the
product of (a) the Class A Floating Percentage, (b) the Servicing Fee Rate and (c) the Servicing
Base Amount. The share of the Monthly Servicing Fee allocable to the Class B Certificateholders
with respect to any Distribution Date (the “Class B Servicing Fee”) shall be equal to
one-twelfth of the product of (a) the Class B Floating Percentage, (b) the Servicing Fee Rate and
(c) the Servicing Base Amount. The share of the Monthly Servicing Fee allocable to the Collateral
Interest with respect to any Distribution Date (the “Collateral Servicing Fee”) shall be
equal to one-twelfth of the product of the (a) Collateral Floating Percentage, (b) the Servicing
Fee Rate and (c) the Servicing Base

14

 

Amount. The remainder of the Servicing Fee shall be paid by the Holders of the Transferor
Certificates or the investor certificateholders of other Series (as provided in the related
Supplements) and in no event shall the Trust, the Trustee or the Series 2008-5 Certificateholders
be liable for the share of the Servicing Fee to be paid by the Holders of the Transferor
Certificates or the investor certificateholders of any other Series. To the extent that the Class
A Servicing Fee, the Class B Servicing Fee and the Collateral Servicing Fee are not paid in full
pursuant to the preceding provisions of this Section 3.01, and Sections 4.05 and 4.07, they shall
be paid by the Holders of the Transferor Certificates.

ARTICLE IV

Rights of Series 2008-5 Certificateholders and

Allocation and Application of Collections

     Section 4.01. Collections and Allocations.

     (a) Allocations. Collections of Finance Charge Receivables and Principal Receivables
and Defaulted Receivables allocated to Series 2008-5 pursuant to Article IV of the Agreement (and,
as described herein, Collections of Finance Charge Receivables reallocated from other Series in
Group II) shall be allocated and distributed or reallocated as set forth in this Article.

     (b) Payments to the Transferor. The Servicer shall on each Deposit Date withdraw from
the Collection Account and pay to the Holders of the Transferor Certificates the following amounts:

     (i) an amount equal to the Transferor Percentage for the related Monthly Period
of Series 2008-5 Allocable Finance Charge Collections to the extent such amount is
deposited in the Collection Account; and

     (ii) an amount equal to the Transferor Percentage for the related Monthly
Period of Series 2008-5 Allocable Principal Collections deposited in the Collection
Account, if the Transferor Amount (determined after giving effect to any Principal
Receivables transferred to the Trust on such Deposit Date) exceeds zero.

     The withdrawals to be made from the Collection Account pursuant to this subsection 4.01(b) do
not apply to deposits into the Collection Account that do not represent Collections, including
payment of the purchase price for the Certificateholders’ Interest pursuant to Section 2.06 or
10.01 of the Agreement, payment of the purchase price for the Series 2008-5 Certificateholders’
Interest pursuant to Section 7.01 of this Supplement and proceeds from the sale, disposition or
liquidation of Receivables pursuant to Section 9.01 or 12.02 of the Agreement.

     (c) Allocations to the Series 2008-5 Certificateholders. The Servicer shall, prior to
the close of business on each Deposit Date, allocate to the Series 2008-5 Certificateholders the
following amounts as set forth below:

     (i) Allocations of Finance Charge Collections. The Servicer shall
allocate to the Series 2008-5 Certificateholders and retain in the Collection
Account for application as provided herein an amount equal to the product of (A) the
Floating Allocation Percentage and (B) the Series 2008-5 Allocation Percentage and
(C) the aggregate amount of Collections of Finance Charge Receivables deposited in
the Collection Account on such Deposit Date.

     (ii) Allocations of Principal Collections. The Servicer shall allocate
to the Series 2008-5 Certificateholders the following amounts as set forth below:

15

 

     (x) Allocations During the Revolving Period. During the
Revolving Period (A) an amount equal to the product of (I) the sum of the
Class B Principal Percentage and the Collateral Principal Percentage and
(II) the Principal Allocation Percentage and (III) the Series 2008-5
Allocation Percentage and (IV) the aggregate amount of Collections of
Principal Receivables deposited in the Collection Account on such Deposit
Date, shall be allocated to the Series 2008-5 Certificateholders and
retained in the Collection Account until applied as provided herein and (B)
an amount equal to the product of (I) the Class A Principal Percentage and
(II) the Principal Allocation Percentage and (III) the Series 2008-5
Allocation Percentage and (IV) the aggregate amount of Collections of
Principal Receivables deposited in the Collection Account on such Deposit
Date shall be allocated to the Series 2008-5 Certificateholders and first,
if any other Principal Sharing Series is outstanding and in its amortization
period or accumulation period, retained in the Collection Account for
application, to the extent necessary, as Shared Principal Collections on the
related Distribution Date, and second paid to the Holders of the Transferor
Certificates; provided, however, that such amount to be paid to the Holders
of the Transferor Certificates on any Deposit Date shall be paid to such
Holders only if the Transferor Amount on such Deposit Date is greater than
the Required Transferor Amount (after giving effect to all Principal
Receivables transferred to the Trust on such day) and otherwise shall be
deposited in the Special Funding Account.

     (y) Allocations During the Controlled Accumulation Period.
During the Controlled Accumulation Period (A) an amount equal to the product
of (I) the sum of the Class B Principal Percentage and the Collateral
Principal Percentage and (II) the Principal Allocation Percentage and (III)
the Series 2008-5 Allocation Percentage and (IV) the aggregate amount of
Collections of Principal Receivables deposited in the Collection Account on
such Deposit Date, shall be allocated to the Series 2008-5
Certificateholders and retained in the Collection Account until applied as
provided herein and (B) an amount equal to the product of (I) the Class A
Principal Percentage and (II) the Principal Allocation Percentage and (III)
the Series 2008-5 Allocation Percentage and (IV) the aggregate amount of
Collections of Principal Receivables deposited in the Collection Account on
such Deposit Date (the product specified in this clause (B) for any such
date is hereinafter referred to as a “Percentage Allocation”) shall
be allocated to the Series 2008-5 Certificateholders and retained in the
Collection Account until applied as provided herein; provided, however, that
if the sum of such Percentage Allocation and all preceding Percentage
Allocations with respect to the same Monthly Period exceeds the Controlled
Deposit Amount during the Controlled Accumulation Period for the related
Distribution Date, then such excess shall not be treated as a Percentage
Allocation and shall be first, if any other Principal Sharing Series is
outstanding and in its amortization period or accumulation period, retained
in the Collection Account for application, to the extent necessary, as
Shared Principal Collections on the related Distribution Date, and second
paid to the Holders of the Transferor Certificates only if the Transferor
Amount on such Deposit Date is greater than the Required Transferor Amount
(after giving effect to all Principal Receivables transferred to the Trust
on such day) and otherwise shall be deposited in the Special Funding
Account.

     (z) Allocations During the Early Amortization Period. During
the Early Amortization Period, an amount equal to the product of (A) the
Principal Allocation Percentage and (B) the Series 2008-5 Allocation
Percentage and (C) the aggregate amount of Collections of Principal
Receivables deposited in the

16

 

Collection Account on such Deposit Date, shall be allocated to the
Series 2008-5 Certificateholders and retained in the Collection Account
until applied as provided herein; provided, however, that after the date on
which an amount of such Collections equal to the Adjusted Invested Amount
has been deposited into the Collection Account and allocated to the Series
2008-5 Certificateholders, the remainder that has not been so deposited and
allocated shall be first, if any other Principal Sharing Series is
outstanding and in its amortization period or accumulation period, retained
in the Collection Account for application, to the extent necessary, as
Shared Principal Collections on the related Distribution Date, and second
paid to the Holders of the Transferor Certificates only if the Transferor
Amount on such date is greater than the Required Transferor Amount (after
giving effect to all Principal Receivables transferred to the Trust on such
day) and otherwise shall be deposited in the Special Funding Account.

     Section 4.02. Determination of Monthly Interest.

     (a) The amount of monthly interest (“Class A Monthly Interest”) distributable from the
Collection Account with respect to the Class A Certificates on any Distribution Date shall be an
amount equal to the product of (i) a fraction, the numerator of which is the actual number of days
in the period from (and including) the immediately preceding Distribution Date (or in the case of
the first Distribution Date, the Closing Date) to (but excluding) such Distribution Date and the
denominator of which is 360, (ii) the Class A Certificate Rate for such Distribution Date and (iii)
the outstanding principal balance of the Class A Certificates as of close of business on the
immediately preceding Record Date.

     On the Determination Date preceding each Distribution Date, the Servicer shall determine the
excess, if any (the “Class A Interest Shortfall”), of (x) the Class A Monthly Interest for
such Distribution Date over (y) the aggregate amount of funds allocated and available to pay such
Class A Monthly Interest on such Distribution Date. If the Class A Interest Shortfall with respect
to any Distribution Date is greater than zero, on each subsequent Distribution Date until such
Class A Interest Shortfall is fully paid, an additional amount
(“Class A Additional Interest”) equal to the product of (i) a fraction, the numerator of
which is the actual number of days in the period from (and including) the immediately preceding
Distribution Date (or in the case of the first Distribution Date, the Closing Date) to (but
excluding) such Distribution Date and the denominator of which is 360, (ii) the sum of (x) the
Class A Certificate Rate and (y) 2.0% per annum and (iii) such Class A Interest Shortfall (or the
portion thereof which has not been paid to the Class A Certificateholders) shall be payable as
provided herein with respect to the Class A Certificates. Notwithstanding anything to the contrary
herein, Class A Additional Interest shall be payable or distributed to the Class A
Certificateholders only to the extent permitted by applicable law.

     (b) The amount of monthly interest (“Class B Monthly Interest”) distributable from the
Collection Account with respect to the Class B Certificates on any Distribution Date shall be an
amount equal to the product of (i) a fraction, the numerator of which is the actual number of days
in the period from (and including) the immediately preceding Distribution Date (or in the case of
the first Distribution Date, the Closing Date) to (but excluding) such Distribution Date and the
denominator of which is 360, (ii) the Class B Certificate Rate for such Distribution Date and (iii)
the Class B Invested Amount as of the close of business on the immediately preceding Record Date;
provided, however, that in the event the Class B Certificate Rate has been modified (as described
in the definition thereof) during the period from and including the preceding Distribution Date to
but excluding such Distribution Date, the rate described in (ii) above shall reflect a weighted
average rate calculated on the basis of the actual number of days each Class B Certificate Rate was
in effect during such period and a year of 360 days.

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     On the Determination Date preceding each Distribution Date, the Servicer shall determine the
excess, if any (the “Class B Interest Shortfall”), of (x) the Class B Monthly Interest for
such Distribution Date over (y) the aggregate amount of funds allocated and available to pay such
Class B Monthly Interest on such Distribution Date. If the Class B Interest Shortfall with respect
to any Distribution Date is greater than zero, on each subsequent Distribution Date until such
Class B Interest Shortfall is fully paid, an additional amount
(“Class B Additional Interest”) equal to the product of (i) a fraction, the numerator of
which is the actual number of days in the period from (and including) the immediately preceding
Distribution Date (or in the case of the first Distribution Date, the Closing Date) to (but
excluding) such Distribution Date and the denominator of which is 360, (ii) the sum of (x) the
Class B Certificate Rate and (y) 2.0% per annum and (iii) such Class B Interest Shortfall (or the
portion thereof which has not been paid to the Class B Certificateholders) shall be payable as
provided herein with respect to the Class B Certificates. Notwithstanding anything to the contrary
herein, Class B Additional Interest shall be payable or distributed to the Class B
Certificateholders only to the extent permitted by applicable law.

     (c) The amount of monthly interest (“Collateral Minimum Monthly Interest”)
distributable from the Collection Account with respect to the Collateral Invested Amount on any
Distribution Date 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 period from (and including) the immediately preceding
Distribution Date (or in the case of the first Distribution Date, the Closing Date) to (but
excluding) such Distribution Date and the denominator of which is 360 and (B) the Collateral
Minimum Interest Rate in effect with respect to the period from (and including) the immediately
preceding Distribution Date (or in the case of the first Distribution Date, the Closing Date) to
(but excluding) such Distribution Date, and (ii) the Collateral Initial Invested Amount less the
aggregate amount of principal payments distributed to the Collateral Interest Holder on all prior
Distribution Dates; provided, however, that in the event the Collateral Minimum Interest Rate has
been modified (as described in the definition thereof) during the period from (and including) the
immediately preceding Distribution Date (or in the case of the first Distribution Date, the Closing
Date) to (but excluding) such Distribution Date, the rate described in (i)(B) above shall reflect a
weighted average rate calculated on the basis of the actual number of days each Collateral Minimum
Interest Rate was in effect during such period and a year of 360 days.

     On the Determination Date preceding each Distribution Date, the Servicer shall determine an
amount (the “Collateral Interest Shortfall”) equal to (x) the aggregate Collateral Minimum
Monthly Interest for such Distribution Date minus (y) the aggregate amount of funds allocated and
available to pay such Collateral Minimum Monthly Interest on such Distribution Date. If the
Collateral Interest Shortfall with respect to any Distribution Date is greater than zero, on each
subsequent Distribution Date until such Collateral Interest Shortfall is fully paid, an additional
amount (“Collateral Additional Interest”) shall be payable as provided herein with respect
to the Collateral Invested Amount equal to the product of (i) (A) a fraction, the numerator of
which is the actual number of days in the period from (and including) the immediately preceding
Distribution Date to (but excluding) such Distribution Date and the denominator of which is 360 and
(B) the Collateral Minimum Interest Rate in effect during the period from (and including) the
immediately preceding Distribution Date to (but excluding) such Distribution Date, and (ii) such
Collateral Interest Shortfall (or the portion thereof which has not been paid to the Collateral
Interest Holder). Notwithstanding anything to the contrary herein, Collateral Additional Interest
shall be payable or distributed to the Collateral Interest Holder only to the extent permitted by
applicable law.

     Section 4.03. Principal Funding Account; Controlled Accumulation Period.

     (a) (i) The Servicer, for the benefit of the Series 2008-5 Certificateholders, shall establish
and maintain in the name of the Trustee, on behalf of the Trust, an Eligible Deposit Account (the
“Principal Funding Account”), bearing a designation clearly indicating that the funds
deposited therein

18

 

and the property credited thereto are held for the benefit of the Series 2008-5
Certificateholders. The Principal Funding Account shall initially be established with The Bank of
New York.

          (ii) At the written direction of the Servicer, funds on deposit in the Principal Funding
Account shall be invested by the Trustee in Eligible Investments selected by the Servicer. All
such Eligible Investments shall be held by the Trustee for the benefit of the Series 2008-5
Certificateholders; provided that on each Distribution Date all interest and other investment
income (net of losses and investment expenses) (“Principal Funding Account Investment
Proceeds”) on funds on deposit therein shall be applied as set forth in paragraph (iii) below.
Funds on deposit in the Principal Funding Account shall be invested in Eligible Investments that
will mature so that such funds will be available at the close of business on the Transfer Date
preceding the following Distribution Date. Unless the Servicer directs otherwise, funds deposited
in the Principal Funding Account on a Transfer Date (which immediately precedes a Distribution
Date) upon the maturity of any Eligible Investments are not required to be invested overnight. No
such Eligible Investment shall be disposed of prior to its maturity; provided, however, that the
Trustee shall sell, liquidate or dispose of any such Eligible Investment if, prior to the maturity
of such Eligible Investment, a default occurs in the payment of principal, interest or any other
amount with respect to such Eligible Investment; provided further, however, that the Servicer shall
deliver prompt written notice to the Trustee of any such default; and provided further that,
subject to Section 11.01 of the Agreement, the Trustee will not in any way be held liable by reason
of any insufficiency in such Principal Funding Account resulting from any loss on any Eligible
Investment included therein except for losses attributable to the Trustee’s failure to make
payments on such Eligible Investments issued by the Trustee, in its commercial capacity, in
accordance with their terms.

          (iii) On each Distribution Date with respect to the Controlled Accumulation Period, the
Servicer shall direct the Trustee in writing to withdraw from the Principal Funding Account and
deposit into the Collection Account all Principal Funding Account Investment Proceeds then on
deposit in the Principal Funding Account and such Principal Funding Account Investment Proceeds
shall be treated as a portion of Class A Available Funds and Class B Available Funds.

          (iv) Reinvested interest and other investment income on funds deposited in the Principal
Funding Account shall not be considered to be principal amounts on deposit therein for purposes of
this Supplement.

     (b) (i) The Trustee shall possess all right, title and interest in all funds and property from
time to time deposited in or credited to the Principal Funding Account and in all proceeds thereof.
The Principal Funding Account shall be under the sole dominion and control of the Trustee for the
benefit of the Series 2008-5 Certificateholders. If, at any time, the Principal Funding Account
ceases to be an Eligible Deposit Account, the Trustee (or the Servicer on its behalf) shall within
10 Business Days (or such longer period, not to exceed 30 calendar days, as to which each Rating
Agency may consent) establish a new Principal Funding Account meeting the conditions specified in
paragraph (a)(i) above as an Eligible Deposit Account and shall transfer any cash or any
investments to such new Principal Funding Account.

          (ii) Pursuant to the authority granted to the Servicer in subsection 3.01(b) of the Agreement,
the Servicer shall have the power to make withdrawals and payments or to instruct the Trustee to
make withdrawals and payments from the Principal Funding Account for the purposes of carrying out
the Servicer’s or Trustee’s duties hereunder. Pursuant to the authority granted to the Paying
Agent in Section 5.01 of this Supplement and Section 6.07 of the Agreement, the Paying Agent shall
have the power to withdraw funds from the Principal Funding Account for the purpose of making
distributions to the Series 2008-5 Certificateholders.

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     (c) The Controlled Accumulation Period is scheduled to commence at the close of business on
the last day of the July 2012 Monthly Period; provided, however, that if the Controlled
Accumulation Period Length (which shall be determined as described below) is less than 12 months,
the date on which the Controlled Accumulation Period actually commences will be delayed to the
close of business on the last day of the month preceding the month that is the number of months
prior to the Expected Final Payment Date at least equal to the Controlled Accumulation Period
Length and, as a result, the number of Monthly Periods in the Controlled Accumulation Period will
at least equal the Controlled Accumulation Period Length. On the Determination Date immediately
preceding the July 2012 Distribution Date, and on each Determination Date thereafter that occurs
prior to the Determination Date occurring in the Monthly Period in which the Controlled
Accumulation Period commences, the Servicer will determine the
“Controlled Accumulation Period Length” which will equal the number of months such that the
sum of the Controlled 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 Controlled
Accumulation Period Length shall not be less than one month. Notwithstanding the foregoing, if the
Controlled Accumulation Period Length shall have been determined to be less than 12 months and,
after the date on which such determination is made, a Pay-Out Event or Reinvestment Event (as those
terms are defined in the Supplement for such Series) shall occur with respect to any outstanding
Principal Sharing Series other than Series 2008-5, the Controlled Accumulation Period will commence
on the earlier of (i) the first day of the Monthly Period immediately succeeding the date that such
Pay-Out Event or Reinvestment Event shall have occurred with respect to such Series and (ii) the
date on which the Controlled Accumulation Period is then scheduled to commence.

     Section 4.04. Required Amount.

     (a) With respect to each Distribution Date, on the related Determination Date, the Servicer
shall determine the amount (the “Class A Required Amount”), if any, by which (x) the sum of
(i) Class A Monthly Interest for such Distribution Date, (ii) any Class A Monthly Interest
previously due but not paid to the Class A Certificateholders on a prior Distribution Date, (iii)
any Class A Additional Interest for such Distribution Date and (iv) any Class A Additional Interest
previously due but not paid to the Class A Certificateholders on a prior Distribution Date, (v) if
TRS or an Affiliate of TRS is no longer the Servicer, the Class A Servicing Fee for such
Distribution Date, (vi) if TRS or an Affiliate of TRS is no longer the Servicer, any Class A
Servicing Fee previously due but not paid to the Servicer, and (vii) the Class A Investor Default
Amount, if any, for such Distribution Date exceeds (y) the Class A Available Funds. In the event
that the difference between (x) the Class A Required Amount for such Distribution Date and (y) the
amount of Excess Spread and Excess Finance Charge Collections applied with respect thereto pursuant
to subsection 4.07(a) on such Distribution Date is greater than zero, the Servicer shall give
written notice to the Transferors and the Trustee of such excess Class A Required Amount on the
date of computation.

     (b) With respect to each Distribution Date, on the related Determination Date, the Servicer
shall determine the amount (the “Class B Required Amount”), if any, equal to the sum of (x)
the amount, if any, by which (A) the sum of (i) Class B Monthly Interest for such Distribution
Date, (ii) any Class B Monthly Interest previously due but not paid to the Class B
Certificateholders, (iii) Class B Additional Interest, if any, for such Distribution Date, (iv) any
Class B Additional Interest previously due but not paid to the Class B Certificateholders on a
prior Distribution Date, (v) if TRS or an Affiliate of TRS is no longer the Servicer, the Class B
Servicing Fee for such Distribution Date and (vi) if TRS or an Affiliate of TRS is no longer the
Servicer, any Class B Servicing Fee previously due but not paid to the Servicer exceeds (B) the
Class B Available Funds and (y) the Class B Investor Default Amount for such Distribution Date. In
the event that the difference between (x) the Class B Required Amount for such Distribution Date
and (y) the amount of Excess Spread and Excess Finance Charge Collections applied with respect
thereto pursuant to subsection 4.07(d) on such Distribution Date is greater than zero, the Servicer
shall give written notice to the Transferors and the Trustee of such excess Class B Required Amount
on the date of computation.

20

 

     Section 4.05. Application of Class A Available Funds, Class B Available
Funds, Collateral Available Funds and Available Principal Collections. The Servicer shall
apply, or shall cause the Trustee to apply by written instruction to the Trustee substantially in
the form of Exhibit B, on each Distribution Date, Class A Available Funds, Class B Available Funds,
Collateral Available Funds and Available Principal Collections on deposit in the Collection Account
with respect to such Distribution Date to make the following distributions:

     (a) On each Distribution Date, an amount equal to the Class A Available Funds with respect to
such Distribution Date will be distributed or deposited in the following priority:

     (i) an amount equal to Class A Monthly Interest for such Distribution Date,
plus the amount of any Class A Monthly Interest previously due but not distributed
to Class A Certificateholders on a prior Distribution Date, plus the amount of any
Class A Additional Interest for such Distribution Date and any Class A Additional
Interest previously due but not distributed to Class A Certificateholders on a prior
Distribution Date, shall be distributed to the Paying Agent for payment to the Class
A Certificateholders;

     (ii) if TRS or an Affiliate of TRS is no longer the Servicer, an amount equal
to the Class A Servicing Fee for such Distribution Date, plus the amount of any
Class A Servicing Fee previously due but not distributed to the Servicer on a prior
Distribution Date, shall be distributed to the Servicer;

     (iii) an amount equal to the Class A Investor Default Amount for such
Distribution Date shall be treated as a portion of Available Principal Collections
for such Distribution Date; and

     (iv) the balance, if any, shall constitute Excess Spread and shall be allocated
and distributed or deposited as set forth in Section 4.07.

     (b) On each Distribution Date, an amount equal to the Class B Available Funds with respect to
such Distribution Date will be distributed or deposited in the following priority:

     (i) an amount equal to Class B Monthly Interest for such Distribution Date,
plus the amount of any Class B Monthly Interest previously due but not distributed
to Class B Certificateholders on a prior Distribution Date, plus the amount of any
Class B Additional Interest for such Distribution Date and any Class B Additional
Interest previously due but not distributed to Class B Certificateholders on a prior
Distribution Date, shall be distributed to the Paying Agent for payment to the Class
B Certificateholders;

     (ii) if TRS or an Affiliate of TRS is no longer the Servicer, an amount equal
to the Class B Servicing Fee for such Distribution Date, plus the amount of any
Class B Servicing Fee previously due but not distributed to the Servicer on a prior
Distribution Date, shall be distributed to the Servicer; and

     (iii) the balance, if any, shall constitute Excess Spread and shall be
allocated and distributed or deposited as set forth in Section 4.07.

     (c) On each Distribution Date, an amount equal to the Collateral Available Funds with respect
to such Distribution Date will be distributed or deposited in the following priority:

21

 

     (i) if TRS or an Affiliate of TRS is no longer the Servicer, an amount equal to
the Collateral Servicing Fee for such Distribution Date, plus the amount of any
Collateral Servicing Fee previously due but not distributed to the Servicer on a
prior Distribution Date, shall be distributed to the Servicer; and

     (ii) the balance, if any, shall constitute Excess Spread and shall be allocated
and distributed or deposited as set forth in Section 4.07.

     (d) On each Distribution Date with respect to the Revolving Period, an amount equal to the
Available Principal Collections deposited in the Collection Account for the related Monthly Period
shall be treated as Shared Principal Collections and applied in accordance with Section 4.04 of the
Agreement.

     (e) On each Distribution Date with respect to the Controlled Accumulation Period, an amount
equal to the Available Principal Collections deposited in the Collection Account for the related
Monthly Period shall be distributed in the following order of priority:

     (i) an amount equal to the lesser of (x) the Controlled Deposit Amount and (y)
the sum of the Class A Adjusted Invested Amount and the Class B Adjusted Invested
Amount shall be deposited in the Principal Funding Account;

     (ii) for each Distribution Date beginning on the Distribution Date on which the
Class B Invested Amount shall have been paid in full, an amount up to the Collateral
Invested Amount shall be distributed to the Collateral Interest Holder; and

     (iii) the balance of such Available Principal Collections shall be treated as
Shared Principal Collections and applied in accordance with Section 4.04 of the
Agreement.

     (f) On each Distribution Date with respect to the Early Amortization Period, an amount equal
to Available Principal Collections deposited in the Collection Account for the related Monthly
Period shall be distributed or deposited in the following order of priority:

     (i) an amount up to the Class A Adjusted Invested Amount on such Distribution
Date shall be deposited in the Principal Funding Account for distribution to the
Class A Certificateholders;

     (ii) for each Distribution Date beginning on the Distribution Date on which the
Class A Invested Amount is paid in full, an amount up to the Class B Adjusted
Invested Amount on such Distribution Date shall be deposited in the Principal
Funding Account for distribution to the Class B Certificateholders;

     (iii) for each Distribution Date beginning on the Distribution Date on which
the Class B Invested Amount is paid in full, an amount up to the Collateral Invested
Amount on such Distribution Date shall be distributed to the Collateral Interest
Holder; and

     (iv) for each Distribution Date, after giving effect to paragraphs (i), (ii)
and (iii) above, an amount equal to the balance, if any, of such Available Principal
Collections will be treated as Shared Principal Collections and applied in
accordance with Section 4.04 of the Agreement.

     Section 4.06. Defaulted Amounts; Investor Charge-Offs.

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     (a) On each Determination Date, the Servicer shall calculate the Class A Investor Default
Amount, if any, for the related Distribution Date. If, on any Distribution Date, the Class A
Required Amount for the related Monthly Period exceeds the sum of (x) the amount of Reallocated
Principal Collections allocated to Series 2008-5 with respect to such Monthly Period and (y) the
amount of Excess Spread and the Excess Finance Charge Collections allocable to Series 2008-5 with
respect to such Monthly Period, the Collateral Invested Amount, if any, will be reduced by the
amount of such excess, but not by more than the Class A Investor Default Amount for such
Distribution Date. In the event that such reduction would cause the Collateral Invested Amount to
be a negative number, the Collateral Invested Amount will be reduced to zero and the Class B
Invested Amount shall be reduced by the amount by which the Collateral Invested Amount would have
been reduced below zero, but not by more than the excess, if any, of the Class A Investor Default
Amount for such Distribution Date over the amount of such reduction, if any, of the Collateral
Invested Amount with respect to such Distribution Date. In the event that such reduction would
cause the Class B Invested Amount to be a negative number, the Class B Invested Amount shall be
reduced to zero, and the Class A Invested Amount shall be reduced by the amount by which the Class
B Invested Amount would have been reduced below zero, but not by more than the excess, if any, of
the Class A Investor Default Amount for such Distribution Date over the aggregate amount of the
reductions, if any, of the Collateral Invested Amount and the Class B Invested Amount for such
Distribution Date (a “Class A Investor Charge-Off”). Class A Investor Charge-Offs shall
thereafter be reimbursed and the Class A Invested Amount increased (but not by an amount in excess
of the aggregate unreimbursed Class A Investor Charge-Offs) on any Distribution Date by the amount
of Excess Spread and Excess Finance Charge Collections allocated and available for that purpose
pursuant to subsection 4.07(b). References to “negative numbers” above shall be determined without
regard to the requirement that the Invested Amount of a Class not be reduced below zero.

     (b) On each Determination Date, the Servicer shall calculate the Class B Investor Default
Amount, if any, for the related Distribution Date. If, on any Distribution Date, the Class B
Required Amount for such Distribution Date exceeds the sum of (x) the amount of Excess Spread and
Excess Finance Charge Collections allocated to Series 2008-5 with respect to the related Monthly
Period which are allocated and available to pay such amount pursuant to subsection 4.07(d) and (y)
the Reallocated Principal Collections allocable to the Collateral Interest and not required to pay
the Class A Required Amount with respect to such Distribution Date, then the Collateral Invested
Amount shall be reduced by the amount of such excess. In the event that such reduction would cause
the Collateral Invested Amount to be a negative number, the Collateral Invested Amount shall be
reduced to zero, and the Class B Invested Amount shall be reduced by the amount by which the
Collateral Invested Amount would have been reduced below zero, but not by more than the excess, if
any, of the Class B Investor Default Amount for such Distribution Date over the amount of such
reduction, if any, of the Collateral Invested Amount with respect to such Distribution Date (a
“Class B Investor Charge-Off”). Class B Investor Charge-Offs shall thereafter be
reimbursed and the Class B Invested Amount increased (but not by an amount in excess of the
aggregate unreimbursed Class B Investor Charge-Offs) on any Distribution Date by the amount of
Excess Spread and Excess Finance Charge Collections allocated and available for that purpose
pursuant to subsection 4.07(e). References to “negative numbers” above shall be determined without
regard to the requirement that the Invested Amount of a Class not be reduced below zero.

     (c) On each Determination Date, the Servicer shall calculate the Collateral Default Amount.
If on any Distribution Date the Collateral Default Amount for the previous Monthly Period exceeds
the amount of Excess Spread and Excess Finance Charge Collections allocated to Series 2008-5 with
respect to the related Monthly Period which are allocated and available to pay such amount pursuant
to subsection 4.07(h), the Collateral Invested Amount will be reduced by the amount of such excess
but not by more than the lesser of the Collateral Default Amount and the Collateral Invested Amount
for such Distribution Date (a “Collateral Charge-Off”). The Collateral Invested Amount
will be reimbursed after any reduction pursuant to this Section 4.06 on any Distribution Date by
the amount of Excess Spread and Excess Finance Charge Collections allocated and available on such
Distribution date for that purpose as described under subsection 4.07(i).

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     Section 4.07. Excess Spread; Excess Finance Charge Collections. The Servicer shall
apply, or shall cause the Trustee to apply by written instruction to the Trustee substantially in
the form of Exhibit B, on each Distribution Date, Excess Spread and Excess Finance Charge
Collections allocated to Series 2008-5 with respect to the related Monthly Period, to make the
following distributions or deposits in the following order of priority:

     (a) an amount equal to the Class A Required Amount, if any, with respect to such Distribution
Date shall be distributed by the Trustee to fund the Class A Required Amount in accordance with,
and in the priority set forth in, subsections 4.05(a)(i), (ii) and (iii);

     (b) an amount equal to the aggregate amount of Class A Investor Charge-Offs which have not
been previously reimbursed shall be treated as a portion of Available Principal Collections for
such Distribution Date;

     (c) an amount equal to interest on the aggregate outstanding principal balance of the Class B
Certificates not otherwise distributed to the Class B Certificateholders pursuant to Section
4.05(b)(i), at a rate per annum equal to the Class B Certificate Rate, shall be distributed to the
Class B Certificateholders, except that interest previously due but not paid will accrue interest
at a rate per annum equal to the Class B Certificate Rate plus 2% per annum;

     (d) an amount equal to the Class B Required Amount, if any, with respect to such Distribution
Date will be (i) used to fund the Class B Required Amount and be applied in accordance with
subsections 4.05(b)(i) and 4.05(b)(ii), and then (ii) an amount up to the Class B Investor Default
Amount will be treated and applied as Available Principal Collections for such Distribution Date;

     (e) an amount equal to the aggregate amount by which the Class B Invested Amount has been
reduced pursuant to clauses (c), (d) and (e) of the definition of “Class B Invested Amount” in
Section 2.01 of this Supplement (but not in excess of the aggregate amount of such reductions which
have not been previously reimbursed) shall be treated as a portion of Available Principal
Collections for such Distribution Date;

     (f) an amount equal to Collateral Minimum Monthly Interest for such Distribution Date, plus
the amount of any Collateral Minimum Monthly Interest previously due but not distributed to the
Collateral Interest Holder on a prior Distribution Date, plus the amount of any Collateral
Additional Interest for such Distribution Date and any Collateral Additional Interest previously
due but not distributed to the Collateral Interest Holder on a prior Distribution Date, shall be
distributed to the Collateral Interest Holder;

     (g) an amount equal to the Monthly Servicing Fee for such Distribution Date that has not been
paid to the Servicer and any Monthly Servicing Fee due but not paid to the Servicer on a prior
Distribution Date shall be paid to the Servicer;

     (h) an amount equal to the Collateral Default Amount, if any, for such Distribution Date shall
be treated as a portion of Available Principal Collections for such Distribution Date;

     (i) an amount equal to the aggregate amount by which the Collateral Invested Amount has been
reduced pursuant to clauses (c), (d) and (e) of the definition of “Collateral Invested Amount” (but
not in excess of the aggregate amount of such reductions which have not been previously reimbursed)
shall be treated as a portion of Available Principal Collections for such Distribution Date;

     (j) on each Distribution Date from and after the Reserve Account Funding Date, but prior to
the date on which the Reserve Account terminates pursuant to subsection 4.12(f), an amount up to

24

 

the excess, if any, of the Required Reserve Account Amount over the Available Reserve Account
Amount shall be deposited into the Reserve Account; and

     (k) the balance, if any, will be distributed to the Collateral Interest Holder.

     Section 4.08. Reallocated Principal Collections. On each Distribution Date, the
Servicer shall apply, or shall cause the Trustee to apply by written instruction to the Trustee
substantially in the form of Exhibit B, Reallocated Principal Collections with respect to such
Distribution Date, to make the following distributions or deposits in the following order of
priority

     (a) an amount equal to the excess, if any, of (i) the Class A Required Amount, if any, with
respect to such Distribution Date over (ii) the amount of Excess Spread and Excess Finance Charge
Collections allocated to Series 2008-5 with respect to the related Monthly Period shall be
distributed by the Trustee to fund any deficiency pursuant to and in the priority set forth in
subsections 4.05(a)(i), (ii) and (iii); and

     (b) an amount equal to the excess, if any, of (i) the Class B Required Amount, if any, with
respect to such Distribution Date over (ii) the amount of Excess Spread and Excess Finance Charge
Collections allocated and available to the Class B Certificates pursuant to subsections 4.07(c) and
(d) on such Distribution Date shall be applied first to fund any deficiency pursuant to subsections
4.05(b)(i) and (ii) and then to fund any deficiency pursuant to and in the priority set forth in
subsections 4.07(c) and (d).

     All Reallocated Principal Collections with respect to the Collateral Invested Amount shall be
applied prior to applying any such Reallocated Principal Collections with respect to the Class B
Invested Amount. Only Reallocated Principal Collections with respect to the Collateral Invested
Amount shall be applied pursuant to clause (b) above.

     On each Distribution Date, the Collateral Invested Amount shall be reduced by the amount of
Reallocated Principal Collections for such Distribution Date. In the event that such reduction
would cause the Collateral Invested Amount (after giving effect to any Collateral Charge-Offs for
such Distribution Date) to be a negative number, the Collateral Invested Amount (after giving
effect to any Collateral Charge-Offs for such Distribution Date) shall be reduced to zero and the
Class B Invested Amount shall be reduced by the amount by which the Collateral Invested Amount
would have been reduced below zero. In the event that the reallocation of Reallocated Principal
Collections would cause the Class B Invested Amount (after giving effect to any Class B Investor
Charge-Offs for such Distribution Date) to be a negative number on any Distribution Date,
Reallocated Principal Collections shall be reallocated on such Distribution Date in an aggregate
amount not to exceed the amount which would cause the Class B Invested Amount (after giving effect
to any Class B Investor Charge-Offs for such Distribution Date) to be reduced to zero. References
to “negative numbers” above shall be determined without regard to the requirement that the Invested
Amount of a Class not be reduced below zero.

     Section 4.09. Excess Finance Charge Collections. Series 2008-5 shall be an Excess
Allocation Series. Subject to Section 4.05 of the Agreement, Excess Finance Charge Collections
with respect to the Excess Allocation Series for any Distribution Date will be allocated to Series
2008-5 in an amount equal to the product of (x) the aggregate amount of Excess Finance Charge
Collections with respect to all the Excess Allocation Series for such Distribution Date and (y) a
fraction, the numerator of which is the Finance Charge Shortfall for Series 2008-5 for such
Distribution Date and the denominator of which is the aggregate amount of Finance Charge Shortfalls
for all the Excess Allocation Series for such Distribution Date. The
“Finance Charge Shortfall” for Series 2008-5 for any Distribution Date will be equal to the
excess, if any, of (a) the full amount required to be paid, without duplication, pursuant to
subsections 4.05(a), 4.05(b) and 4.05(c) and subsections 4.07(a) through (j) on such Distribution
Date and the full amount required to be paid, without duplication, pursuant to subsection
3.02(a)(iii) of the Transfer

25

 

Agreement on the related Payment Date (as such term is defined in the Transfer Agreement) over
(b) the sum of (i) the Reallocated Investor Finance Charge Collections, (ii) if such Monthly Period
relates to a Distribution Date with respect to the Controlled Accumulation Period or Early
Amortization Period, the amount of Principal Funding Account Investment Proceeds, if any, with
respect to such Distribution Date and (iii) the amount of funds, if any, to be withdrawn from the
Reserve Account which, pursuant to subsection 4.12(d), are required to be included in Class A
Available Funds with respect to such Distribution Date. The amount of Excess Finance Charge
Collections for Series 2008-5 for any Distribution Date shall be specified in subsection 3.02(a)(v)
of the Transfer Agreement. On each Distribution Date, the Trustee shall deposit into the
Collection Account for application in accordance with Section 4.05 of the Agreement the aggregate
amount of Excess Finance Charge Collections received by the Trustee pursuant to the Transfer
Agreement on such date.

     Section 4.10. Reallocated Investor Finance Charge Collections.

     (a) That portion of Group II Investor Finance Charge Collections for any Distribution Date
equal to the amount of Reallocated Investor Finance Charge Collections for such Distribution Date
will be allocated to Series 2008-5 and will be distributed as set forth in this Supplement.

     (b) Reallocated Investor Finance Charge Collections with respect to any Distribution Date
shall equal the sum of (i) the aggregate amount of Series 2008-5 Monthly Interest, Investor Default
Amount, Series 2008-5 Monthly Fees and Series 2008-5 Additional Amounts for such Distribution Date
and (ii) that portion of excess Group II Investor Finance Charge Collections to be included in
Reallocated Investor Finance Charge Collections pursuant to subsection (c) hereof; provided,
however, that if the amount of Group II Investor Finance Charge Collections for such Distribution
Date is less than the sum of (w) Group II Investor Monthly Interest, (x) Group II Investor Default
Amount, (y) Group II Investor Monthly Fees and (z) Group II Investor Additional Amounts, then
Reallocated Investor Finance Charge Collections shall equal the sum of the following amounts for
such Distribution Date:

     (A) The product of (I) Group II Investor Finance Charge Collections (up to the
amount of Group II Investor Monthly Interest) and (II) a fraction, the numerator of
which is Series 2008-5 Monthly Interest and the denominator of which is Group II
Investor Monthly Interest;

     (B) the product of (I) Group II Investor Finance Charge Collections less the
amount of Group II Investor Monthly Interest (up to the Group II Investor Default
Amount) and (II) a fraction, the numerator of which is the Investor Default Amount
and the denominator of which is the Group II Investor Default Amount;

     (C) the product of (I) Group II Investor Finance Charge Collections less the
amount of Group II Investor Monthly Interest and the Group II Investor Default
Amount (up to Group II Investor Monthly Fees) and (II) a fraction, the numerator of
which is Series 2008-5 Monthly Fees and the denominator of which is Group II
Investor Monthly Fees; and

     (D) the product of (I) Group II Investor Finance Charge Collections less the
sum of (i) Group II Investor Monthly Interest, (ii) the Group II Investor Default
Amount and (iii) Group II Investor Monthly Fees and (II) a fraction, the numerator
of which is Series 2008-5 Additional Amounts and the denominator of which is Group
II Investor Additional Amounts.

     (c) If the amount of Group II Investor Finance Charge Collections for such Distribution Date
exceeds the sum of (i) Group II Investor Monthly Interest, (ii) Group II Investor Default Amount,
(iii) Group II Investor Monthly Fees and (iv) Group II Investor Additional Amounts, then

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Reallocated Investor Finance Charge Collections for such Distribution Date shall include an
amount equal to the product of (x) the amount of such excess and (y) a fraction, the numerator of
which is the Invested Amount as of the last day of the second preceding Monthly Period (or, for
Series 2008-5 only, with respect to the first Distribution Date, as of the Closing Date) and the
denominator of which is the sum of such Invested Amount and the aggregate invested amounts for all
other Series included in Group II as of such last day (or, for Series 2008-5 only, with respect to
the first Distribution Date, as of the Closing Date).

     Section 4.11. Shared Principal Collections. Subject to Section 4.04 of the Agreement,
Shared Principal Collections for any Distribution Date will be allocated to Series 2008-5 in an
amount equal to the product of (x) the aggregate amount of Shared Principal Collections with
respect to all Principal Sharing Series for such Distribution Date and (y) a fraction, the
numerator of which is the Series 2008-5 Principal Shortfall for such Distribution Date and the
denominator of which is the aggregate amount of Principal Shortfalls for all the Series which are
Principal Sharing Series for such Distribution Date. The
“Series 2008-5 Principal Shortfall” will be equal to (a) for any Distribution Date with
respect to the Revolving Period, zero, (b) for any Distribution Date with respect to the Controlled
Accumulation Period, the excess, if any, of the Controlled Deposit Amount with respect to such
Distribution Date over the amount of Available Principal Collections for such Distribution Date
(excluding any portion thereof attributable to Shared Principal Collections), and (c) for any
Distribution Date with respect to the Early Amortization Period, the excess, if any, of the
Invested Amount over the amount of Available Principal Collections for such Distribution Date
(excluding any portion thereof attributable to Shared Principal Collections).

     Section 4.12. Reserve Account.

     (a) The Servicer shall establish and maintain, in the name of the Trustee, on behalf of the
Trust, for the benefit of the Series 2008-5 Certificateholders, an Eligible Deposit Account (the
“Reserve Account”) bearing a designation clearly indicating that the funds deposited
therein and the property credited thereto are held for the benefit of the Series 2008-5
Certificateholders. The Reserve Account shall initially be established with The Bank of New York.
The Trustee shall possess all right, title and interest in all funds and property from time to time
deposited in or credited to the Reserve Account and in all proceeds thereof. The Reserve Account
shall be under the sole dominion and control of the Trustee for the benefit of the Series 2008-5
Certificateholders. If at any time the Reserve Account ceases to be an Eligible Deposit Account,
the Trustee (or the Servicer on its behalf) shall within 10 Business Days (or such longer period,
not to exceed 30 calendar days, as to which each Rating Agency shall consent) establish a new
Reserve Account meeting the conditions specified above as an Eligible Deposit Account, and shall
transfer any cash or any investments to such new Reserve Account. The Trustee, at the direction of
the Servicer, shall (i) make withdrawals from the Reserve Account from time to time in an amount up
to the Available Reserve Account Amount at such time, for the purposes set forth in this
Supplement, and (ii) on each Distribution Date (from and after the Reserve Account Funding Date)
prior to the termination of the Reserve Account make a deposit into the Reserve Account in the
amount specified in, and otherwise in accordance with, subsection 4.07(j).

     (b) Funds on deposit in the Reserve Account shall be invested at the written direction of the
Servicer by the Trustee in Eligible Investments. Funds on deposit in the Reserve Account on any
Transfer Date, after giving effect to any withdrawals from the Reserve Account on such Transfer
Date, shall be invested in such investments that will mature so that such funds will be available
for withdrawal on or prior to the following Transfer Date. No such Eligible Investment shall be
disposed of prior to its maturity; provided, however, that the Trustee shall sell, liquidate or
dispose of any such Eligible Investment if, prior to the maturity of such Eligible Investment, a
default occurs in the payment of principal, interest or any other amount with respect to such
Eligible Investment; provided further, however, that the Servicer shall deliver prompt written
notice to the Trustee of any such default; and provided further that, subject to Section 11.01 of
the Agreement, the Trustee will not in any way be held

27

 

liable by reason of any insufficiency in such Reserve Account resulting from any loss on any
Eligible Investment included therein except for losses attributable to the Trustee’s failure to
make payments on such Eligible Investments issued by the Trustee, in its commercial capacity, in
accordance with their terms. On each Distribution Date, all interest and earnings (net of losses
and investment expenses) accrued since the preceding Distribution Date on funds on deposit in the
Reserve Account shall be retained in the Reserve Account (to the extent that the Available Reserve
Account Amount is less than the Required Reserve Account Amount) and the balance, if any, shall be
deposited in the Collection Account and treated as collections of Finance Charge Receivables
allocable to Series 2008-5. For purposes of determining the availability of funds or the balance
in the Reserve Account for any reason under this Supplement, except as otherwise provided in the
preceding sentence, investment earnings on such funds shall be deemed not to be available or on
deposit.

     (c) On the Determination Date preceding each Distribution Date with respect to the Controlled
Accumulation Period and the first Special Payment Date, the Servicer shall calculate the
“Reserve Draw Amount” which shall be equal to the excess, if any, of the Covered Amount
with respect to such Distribution Date or Special Payment Date over the Principal Funding Account
Investment Proceeds with respect to such Distribution Date or Special Payment Date; provided, that
such amount will be reduced to the extent that funds otherwise would be available for deposit in
the Reserve Account under subsection 4.07(j) with respect to such Distribution Date or Special
Payment Date.

     (d) In the event that for any Distribution Date the Reserve Draw Amount is greater than zero,
the Reserve Draw Amount, up to the Available Reserve Account Amount, shall be withdrawn from the
Reserve Account on the related Transfer Date by the Trustee (acting in accordance with the
instructions of the Servicer), deposited into the Collection Account and included in Class A
Available Funds for such Distribution Date.

     (e) In the event that the Reserve Account Surplus on any Distribution Date, after giving
effect to all deposits to and withdrawals from the Reserve Account with respect to such
Distribution Date, is greater than zero, the Trustee, acting in accordance with the written
instructions of the Servicer, shall withdraw from the Reserve Account, and distribute to the
Collateral Interest Holder, an amount equal to such Reserve Account Surplus.

     (f) Upon the earliest to occur of (i) the day on which the Invested Amount is paid in full to
the Series 2008-5 Certificateholders, (ii) if the Controlled Accumulation Period has not commenced,
the occurrence of a Pay-Out Event with respect to Series 2008-5, (iii) if the Controlled
Accumulation Period has commenced, the earlier of the first Special Payment Date and the Expected
Final Payment Date and (iv) the termination of the Trust pursuant to the Agreement, the Trustee,
acting in accordance with the instructions of the Servicer, after the prior payment of all amounts
owing to the Class A Certificateholders which are payable from the Reserve Account as provided
herein, shall withdraw from the Reserve Account and pay to the Collateral Interest Holder all
amounts, if any, on deposit in the Reserve Account and the Reserve Account shall be deemed to have
terminated for purposes of this Supplement.

     Section 4.13. Investment Instructions.

     (a) Any investment instructions required to be given to the Trustee pursuant to the terms
hereof must be given to the Trustee no later than 10:30 a.m. (New York City time) on the date such
investment is to be made. In the event the Trustee receives such investment instruction later than
such time, the Trustee may, but shall have no obligation to, make such investment. In the event
the Trustee is unable to make an investment required in an investment instruction received by the
Trustee after 10:30 a.m. (New York City time) on such day, such investment shall be made by the
Trustee on the next succeeding Business Day. In no event shall the Trustee be liable for any
investment not made pursuant to

28

 

investment instructions received after 10:30 a.m. (New York City time) on the day such
investment is requested to be made.

     (b) The Trustee shall hold each Eligible Investment that constitutes investment property
through a securities intermediary, which securities intermediary shall agree with the Trustee that
(i) such investment property at all times shall be credited to a securities account of the Trustee,
(ii) all property credited to such securities account shall be treated as a financial asset, (iii)
such securities intermediary shall treat the Trustee as entitled to exercise the rights that
comprise each financial asset credited to such securities account, (iv) such securities
intermediary shall comply with entitlement orders originated by the Trustee without the further
consent of any other person or entity, (v) such securities intermediary shall not agree with any
person or entity other than the Trustee to comply with entitlement orders originated by any person
or entity other than the Trustee, (vi) such securities account and all property credited thereto
shall not be subject to any lien, security interest, right of set-off, or encumbrance in favor of
such securities intermediary or anyone claiming through such securities intermediary (other than
the Trustee), (vii) such agreement between such securities intermediary and the Trustee shall be
governed by the laws of the State of New York, and (viii) such securities intermediary’s
jurisdiction for purposes of the Uniform Commercial Code shall be the State of New York. The
Trustee shall maintain possession of each other Eligible Investment in the State of New York,
separate and apart from all other property held by the Trustee. Notwithstanding any other provision
of this Supplement, the Trustee shall not hold any Eligible Investment through an agent except as
expressly permitted by this Section 4.13(b). Each term used in this Section 4.13(b) and defined in
the New York Uniform Commercial Code shall have the meaning set forth in the New York Uniform
Commercial Code.

     Section 4.14. Determination of LIBOR.

     (a) On each LIBOR Determination Date, the Trustee will determine LIBOR for the related
Interest Accrual Period, which shall be the rate for deposits in United States dollars for a period
equal to one month (commencing on the first day of such Interest Accrual Period) that appears on
Reuters Screen LIBOR01 Page as of 11:00 a.m., London time, on such date. Upon such determination,
the Trustee shall notify the Servicer of LIBOR for such LIBOR Determination Date. If such rate
does not appear on Reuters Screen LIBOR01 Page, the rate for the LIBOR Determination Date will be
determined on the basis of the rates at which deposits in United States dollars 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 for a period equal to one month (commencing on the first day of such Interest
Accrual Period). The Servicer will request the principal London office of each of the Reference
Banks to provide a quotation of its rate. If at least two such quotations are provided, the rate
for that LIBOR Determination Date will be the arithmetic mean of the quotations. If fewer than two
quotations are provided as requested, the rate 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 for a period equal to one month (commencing on the first day of such
Interest Accrual Period). If the banks selected by the Servicer are not quoting rates as provided
in the immediately preceding sentence, LIBOR for such Interest Accrual Period will be LIBOR in
effect for the immediately preceding Interest Accrual Period.

     (b) The Servicer shall determine, and promptly notify the Transferors and the Trustee of, the
Class A Certificate Rate and the Class B Certificate Rate for the applicable Interest Accrual
Period. The Class A Certificate Rate and Class B Certificate Rate applicable to the then current
and the immediately preceding Interest Accrual Periods may be obtained by any Investor
Certificateholder by telephoning the Trustee at its Corporate Trust Office at (212) 815-6258.

     (c) On each LIBOR Determination Date prior to 3:00 p.m., New York City time, the Trustee shall
send to the Transferors and the Servicer by facsimile, notification of LIBOR for the following
Interest Accrual Period.

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ARTICLE V

Distributions and Reports to

Series 2008-5 Certificateholders

     Section 5.01. Distributions.

     (a) On each Distribution Date, the Paying Agent shall distribute to each Class A
Certificateholder of record on the related Record Date (other than as provided in Section 12.02 of
the Agreement) such Class A Certificateholder’s pro rata share of the amounts held by the Paying
Agent that are allocated and available on such Distribution Date to pay interest on the Class A
Certificates pursuant to this Supplement.

     (b) On each Special Payment Date and on the Expected Final Payment Date, the Paying Agent
shall distribute (in accordance with the Certificate delivered by the Servicer pursuant to Section
3.04(b) of the Agreement) to each Class A Certificateholder of record on the related Record Date
(other than as provided in Section 12.02 of the Agreement) such Class A Certificateholder’s pro
rata share of the amounts on deposit in the Principal Funding Account or otherwise held by the
Paying Agent that are allocated and available on such date to pay principal of the Class A
Certificates pursuant to this Supplement up to a maximum amount on any such date equal to the Class
A Invested Amount on such date (unless there has been an optional repurchase of the Series 2008-5
Certificateholders’ Interest pursuant to Section 10.01 of the Agreement, in which event the
foregoing limitation will not apply).

     (c) On each Distribution Date, the Paying Agent shall distribute (in accordance with the
Certificate delivered by the Servicer pursuant to Section 3.04(b) of the Agreement) to each Class B
Certificateholder of record on the related Record Date (other than as provided in Section 12.02 of
the Agreement) such Class B Certificateholder’s pro rata share of the amounts held by the Paying
Agent that are allocated and available on such Distribution Date to pay interest on the Class B
Certificates pursuant to this Supplement.

     (d) On each Special Payment Date, and on the Expected Final Payment Date, the Paying Agent
shall distribute (in accordance with the Certificate delivered by the Servicer pursuant to Section
3.04(b) of the Agreement) to each Class B Certificateholder of record on the related Record Date
(other than as provided in Section 12.02 of the Agreement) such Class B Certificateholder’s pro
rata share of the amounts on deposit in the Principal Funding Account or otherwise held by the
Paying Agent that are allocated and available on such date to pay principal of the Class B
Certificates pursuant to this Supplement up to a maximum amount on any such date equal to the Class
B Invested Amount on such date (unless there has been an optional repurchase of the Series 2008-5
Certificateholders’ Interest pursuant to Section 10.01 of the Agreement, in which event the
foregoing limitation will not apply).

     (e) On each Distribution Date, the Trustee shall distribute to the Collateral Interest Holder
the aggregate amount payable to the Collateral Interest Holder pursuant to Sections 4.05, 4.07,
4.12, 8.01 and 8.02 to the Collateral Interest Holder’s account, as specified in writing by the
Collateral Interest Holder, in immediately available funds.

     (f) The distributions to be made pursuant to this Section 5.01 are subject to the provisions
of Sections 2.06, 9.02, 10.01 and 12.02 of the Agreement and Sections 8.01 and 8.02 of this
Supplement.

     (g) Except as provided in Section 12.02 of the Agreement with respect to a final distribution,
distributions to Series 2008-5 Certificateholders hereunder shall be made by check mailed to each
Series 2008-5 Certificateholder at such Series 2008-5 Certificateholder’s address appearing in the
Certificate Register without presentation or surrender of any Series 2008-5 Certificate or the
making of

30

 

any notation thereon; provided, however, that with respect to Series 2008-5 Certificates
registered in the name of a Clearing Agency, such distributions shall be made to such Clearing
Agency in immediately available funds.

     (h) The distributions to be made pursuant to this Section 5.01 are to be made pursuant to the
written instructions of the Servicer substantially in the form of Exhibit B.

     Section 5.02. Reports and Statements to Series 2008-5 Certificateholders.

     (a) On each Distribution Date, the Paying Agent, on behalf of the Trustee, shall forward to
each Series 2008-5 Certificateholder a statement substantially in the form of Exhibit C-1
to this Supplement prepared by the Servicer and delivered to the Paying Agent.

     (b) Not later than each Determination Date, the Servicer shall deliver to the Trustee, the
Paying Agent, the Transferors, each Rating Agency and the Collateral Interest Holder (i) a
statement substantially in the form of Exhibit C-1 to this Supplement prepared by the Servicer and
(ii) a certificate of a Servicing Officer substantially in the form of Exhibit D.

     (c) A copy of each statement or certificate provided pursuant to paragraph (a) or (b) may be
obtained by any Series 2008-5 Certificateholder or any Certificate Owner thereof by a request in
writing to the Servicer.

     (d) On or before January 31 of each calendar year, beginning with calendar year 2009, the
Paying Agent, on behalf of the Trustee, shall furnish or cause to be furnished to each Person who
at any time during the preceding calendar year was a Series 2008-5 Certificateholder, a statement
substantially in the form of Exhibit C-2 to this Supplement prepared by the Servicer for
such calendar year or the applicable portion thereof during which such Person was a Series 2008-5
Certificateholder, together with other information as is required to be provided by an issuer of
indebtedness under the Code. Such obligation of the Servicer shall be deemed to have been
satisfied to the extent that substantially comparable information shall be provided by the Paying
Agent pursuant to any requirements of the Code as from time to time in effect.

ARTICLE VI

Pay-Out Events

     Section 6.01. Pay-Out Events. If any one of the following events shall occur with
respect to the Series 2008-5 Certificates:

     (a) the occurrence of an Insolvency Event relating to any Transferor or other holder of the
Original Transferor Certificate;

     (b) the Trust becomes an investment company within the meaning of the Investment Company Act;

     (c) failure on the part of any Transferor (i) to make any payment or deposit required by the
terms of the Agreement or this Supplement on or before the date occurring five Business Days after
the date such payment or deposit is required to be made therein or herein or (ii) duly to observe
or perform any other covenants or agreements of the Transferors set forth in the Agreement or this
Supplement, which failure has a material adverse effect on the Series 2008-5 Certificateholders
and which continues unremedied for a period of 60 days after the date on which written notice of
such failure, requiring the same to be remedied, shall have been given to such Transferor by the
Trustee, or to the Transferors and the Trustee by any Holder of the Series 2008-5 Certificates;

31

 

     (d) any representation or warranty made by any Transferor in the Agreement or this Supplement,
or any information contained in a computer file or microfiche list required to be delivered by any
Transferor pursuant to Section 2.01 or subsection 2.08(f) of the Agreement shall prove to have been
incorrect in any material respect when made or when delivered, which continues to be incorrect in
any material respect for a period of 60 days after the date on which written notice of such
failure, requiring the same to be remedied, shall have been given to such Transferor by the
Trustee, or to such Transferor and the Trustee by any Holder of the Series 2008-5 Certificates and
as a result of which the interests of the Series 2008-5 Certificateholders are materially and
adversely affected for such period; provided, however, that a Pay-Out Event pursuant to this
subsection 6.01(d) shall not be deemed to have occurred hereunder if a Transferor has accepted
reassignment of the related Receivable, or all of such Receivables, if applicable, during such
period (or such longer period not to exceed an additional 60 days as the Trustee may specify) in
accordance with the provisions of the Agreement;

     (e) a failure by a Transferor to convey Receivables in Additional Accounts or Participation
Interests to the Trust within five Business Days after the day on which it is required to convey
such Receivables or Participation Interests pursuant to subsection 2.09(a) of the Agreement;

     (f) any Servicer Default which would have an Adverse Effect shall occur;

     (g) the average Series Adjusted Portfolio Yield for any three consecutive Monthly Periods is
reduced to a rate which is less than the average of the Base Rates for such period;

     (h) the Class A Invested Amount, the Class B Invested Amount or the Collateral Invested Amount
shall not be paid in full on the Expected Final Payment Date;

     (i) a Transfer Restriction Event shall occur;

     (j) the occurrence of an Insolvency Event as defined in the Receivables Purchase Agreement
relating to any Account Owner; or

     (k) a Transfer Restriction Event as defined in the Receivables Purchase Agreements shall occur
between an Account Owner and the related Transferor;

then, (A) in the case of any event described in subparagraph (c), (d) or (f), after the applicable
grace period, if any, set forth in such subparagraphs, either the Trustee or the Investor
Certificateholders of this Series evidencing more than 50% of the aggregate unpaid principal amount
of the Investor Certificates of this Series by notice then given in writing to the Transferors and
the Servicer (and to the Trustee if given by the Investor Certificateholders of this Series) may
declare that a Pay-Out Event has occurred with respect to this Series as of the date of such
notice; (B) in the case of any event described in subparagraph (b), (e), (g) or (h), a Pay-Out
Event shall occur with respect to this Series without any notice or other action on the part of the
Trustee or the Investor Certificateholders of this Series immediately upon the occurrence of such
event; and (C) in the case of any event described in subparagraph (a), (i), (j) or (k), a Pay-Out
Event shall occur with respect to this Series without any notice or other action on the part of the
Trustee or the Investor Certificateholders of this Series immediately upon the occurrence of such
event (or, in the case of clause (y) below, immediately following the expiration of the 60-day
grace period), but only to the extent that (x) as of the date of such event, the average of the
Monthly Receivables Percentage for the immediately preceding three Monthly Periods is equal to or
greater than 10% or (y) as of the date of such event, the average of the Monthly Receivables
Percentage for the immediately preceding three Monthly Periods is less than 10%, and within 60 days
following the occurrence of the related Insolvency Event or Transfer Restriction Event, the
aggregate amount of Principal Receivables outstanding in the Trust does not at least equal the
Required Minimum Principal Balance (without giving effect to Principal Receivables attributable to
the Transferor or the Account Owner with respect to which the Insolvency Event or the Transfer
Restriction Event has occurred).

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ARTICLE VII

Optional Repurchase; Series Termination

          Section 7.01. Optional Repurchase.

          (a) So long as a Transferor is the Servicer or an Affiliate of the Servicer, on any day
occurring on or after the date on which the Invested Amount is reduced to 5% or less of the Initial
Invested Amount, such Transferor shall have the option to purchase the Series 2008-5
Certificateholders’ Interest, at a purchase price equal to (i) if such day is a Distribution Date,
the Reassignment Amount for such Distribution Date or (ii) if such day is not a Distribution Date,
the Reassignment Amount for the Distribution Date following such day. If, on the date on which a
Transferor exercises such option, the long-term unsecured debt obligations of such Transferor
purchasing the Series 2008-5 Certificateholders’ Interest is not rated at least in the third
highest rating category by the Rating Agency, such Transferor shall deliver to the Trustee, with a
copy to the Rating Agency, an Officer’s Certificate of such Transferor which shall have attached to
it the relevant fraudulent conveyance statute, if any, and set forth the factual basis for a
conclusion that the exercise of such optional repurchase would not constitute a fraudulent
conveyance of such Transferor.

          (b) The Transferors shall give the Servicer and the Trustee at least 30 days prior written
notice of the date on which the Transferors intend to exercise such purchase option. Not later
than 12:00 noon, New York City time, on such day the Transferors shall deposit the Reassignment
Amount into the Collection Account in immediately available funds. Such purchase option is subject
to payment in full of the Reassignment Amount. Following the deposit of the Reassignment Amount
into the Collection Amount in accordance with the foregoing, the Invested Amount for Series 2008-5
shall be reduced to zero and the Series 2008-5 Certificateholders shall have no further interest in
the Receivables. The Reassignment Amount shall be distributed as set forth in subsection 8.01(b).

          Section 7.02. Series Termination.

          (a) If, on the January 2016 Distribution Date, the Invested Amount (after giving effect to all
changes therein on such date) would be greater than zero, the Servicer, on behalf of the Trustee,
shall, within the 40-day period which begins on such Distribution Date, solicit bids for the sale
of Principal Receivables and the related Finance Charge Receivables (or interests therein) in an
amount equal to the Invested Amount at the close of business on the last day of the Monthly Period
preceding the Series 2008-5 Termination Date (after giving effect to all distributions required to
be made on the Series 2008-5 Termination Date, except pursuant to this Section 7.02). Such bids
shall require that such sale shall (subject to subsection 7.02(b)) occur on the Series 2008-5
Termination Date. No Transferor, any Affiliate thereof, any agent thereof or any other party
consolidated with such Transferor for purposes of United States generally accepted accounting
principles shall be entitled to participate in such bidding process or to purchase the Receivables;
provided, however, that, to the extent the Collateral Interest Holder is not a
Transferor, an Affiliate thereof, an agent thereof or any other party consolidated with a
Transferor for purposes of United States generally accepted accounting principles, the Collateral
Interest Holder may participate in such bidding process.

          (b) The Servicer, on behalf of the Trustee, shall sell such Receivables (or interests therein)
on the Series 2008-5 Termination Date to the bidder who made the highest cash purchase offer. The
proceeds of any such sale shall be treated as Collections on the Receivables allocated to the
Series 2008-5 Certificateholders pursuant to the Agreement and this Supplement; provided, however,
that the Servicer shall determine conclusively the amount of such proceeds which are allocable to
Finance Charge Receivables and the amount of such proceeds which are allocable to Principal
Receivables. During the period from the January 2016 Distribution Date to the Series 2008-5
Termination Date, the Servicer shall

33

 

continue to collect payments on the Receivables and allocate and deposit such Collections in
accordance with the provisions of the Agreement and the Supplements.

ARTICLE VIII

Final Distributions

          Section 8.01.  Sale of Receivables or Certificateholders’ Interest pursuant to Section
2.06 or 10.01 of the Agreement and Section 7.01 or 7.02 of this Supplement.

(a) (i) The amount to be paid by the Transferors with respect to Series 2008-5 in
connection with a reassignment of Receivables to the Transferors pursuant to Section
2.06 of the Agreement shall equal the Reassignment Amount for the first Distribution
Date following the Monthly Period in which the reassignment obligation arises under
the Agreement.

     (ii) The amount to be paid by the Transferors with respect to Series 2008-5 in
connection with a repurchase of the Certificateholders’ Interest pursuant to Section
10.01 of the Agreement shall equal the sum of (x) the Reassignment Amount for the
Distribution Date of such repurchase and (y) the sum of (A) the excess, if any, of
(I) a price equivalent to the average of bids quoted on the Record Date preceding
the date of repurchase or, if not a Business Day, on the next succeeding Business
Day by at least two recognized dealers selected by the Trustee for the purchase by
such dealers of a security which is similar to the Class A Certificates with a
remaining maturity approximately equal to the remaining maturity of the Class A
Certificates and rated by each Rating Agency in the rating category originally
assigned to the Class A Certificates over (II) the portion of the Reassignment
Amount attributable to the Class A Certificates and (B) the excess, if any, of (I) a
price equivalent to the average of bids quoted on such Record Date, or if not a
Business Day, on the next succeeding Business Day by at least two recognized dealers
selected by the Trustee for the purchase by such dealers of a security which is
similar to the Class B Certificates with a remaining maturity approximately equal to
the remaining maturity of the Class B Certificates and rated by each Rating Agency
in the rating category originally assigned to the Class B Certificates over (II) the
portion of the Reassignment Amount attributable to the Class B Certificates.

          (b) With respect to the Reassignment Amount deposited into the Collection Account pursuant to
Section 7.01 or any amounts allocable to the Series 2008-5 Certificateholders’ Interest deposited
into the Collection Account pursuant to Section 7.02, the Trustee shall, in accordance with the
written direction of the Servicer, not later than 12:00 noon, New York City time, on the related
Distribution Date, make deposits or distributions of the following amounts (in the priority set
forth below and, in each case after giving effect to any deposits and distributions otherwise to be
made on such date) in immediately available funds: (i) (x) the Class A Invested Amount on such
Distribution Date will be distributed to the Paying Agent for payment to the Class A
Certificateholders and (y) an amount equal to the sum of (A) Class A Monthly Interest for such
Distribution Date, (B) any Class A Monthly Interest previously due but not distributed to the Class
A Certificateholders on a prior Distribution Date and (C) the amount of Class A Additional
Interest, if any, for such Distribution Date and any Class A Additional Interest previously due but
not distributed to the Class A Certificateholders on any prior Distribution Date, will be
distributed to the Paying Agent for payment to the Class A Certificateholders, (ii) (x) the Class B
Invested Amount on such Distribution Date will be distributed to the Paying Agent for payment to
the Class B Certificateholders and (y) an amount equal to the sum of (A) Class B Monthly Interest
for such Distribution Date, (B) any Class B Monthly Interest previously due but not distributed to
the Class B Certificateholders on a prior Distribution Date and (C) the amount of Class B
Additional Interest, if any, for such Distribution Date and any Class B Additional Interest
previously due but not distributed to the

34

 

Class B Certificateholders on any prior Distribution Date, will be distributed to the Paying
Agent for payment to the Class B Certificateholders and (iii) the balance, if any, will be
distributed to the Collateral Interest Holder.

          (c) Notwithstanding anything to the contrary in this Supplement or the Agreement, all amounts
distributed to the Paying Agent pursuant to subsection 8.01(b) for payment to the Series 2008-5
Certificateholders shall be deemed distributed in full to the Series 2008-5 Certificateholders on
the date on which such funds are distributed to the Paying Agent pursuant to this Section and shall
be deemed to be a final distribution pursuant to Section 12.02 of the Agreement.

          Section 8.02. Distribution of Proceeds of Sale, Disposition or Liquidation of the
Receivables pursuant to Section 9.01 of the Agreement.

          (a) Not later than 12:00 noon, New York City time, on the Distribution Date following the date
on which the Insolvency Proceeds are deposited into the Collection Account pursuant to subsection
9.01(b) of the Agreement, the Trustee shall in accordance with the written direction of the
Servicer (in the following priority and, in each case, after giving effect to any deposits and
distributions otherwise to be made on such Distribution Date) (i) deduct an amount equal to the
Class A Invested Amount on such Distribution Date from the portion of the Insolvency Proceeds
allocated to Series 2008-5 Allocable Principal Collections and distribute such amount to the Paying
Agent for payment to the Class A Certificateholders, provided that the amount of such distribution
shall not exceed the product of (x) the portion of the Insolvency Proceeds allocated to Series
2008-5 Allocable Principal Collections and (y) the Principal Allocation Percentage with respect to
the related Monthly Period, (ii) deduct an amount equal to the Class B Invested Amount on such
Distribution Date from the portion of the Insolvency Proceeds allocated to Series 2008-5 Allocable
Principal Collections and distribute such amount to the Paying Agent for payment to the Class B
Certificateholders, provided that the amount of such distribution shall not exceed (x) the product
of (A) the portion of such Insolvency Proceeds allocated to Series 2008-5 Allocable Principal
Collections and (B) the Principal Allocation Percentage with respect to the related Monthly Period
minus (y) the amount distributed to the Paying Agent pursuant to clause (i) of this sentence and
(iii) distribute the remaining amount of the Insolvency Proceeds to the Collateral Interest Holder.

          (b) Not later than 12:00 noon, New York City time, on such Distribution Date, the Trustee
shall in accordance with the written direction of the Servicer (in the following priority and, in
each case, after giving effect to any deposits and distributions otherwise to be made on such
Distribution Date) (i) deduct an amount equal to the sum of (w) Class A Monthly Interest for such
Distribution Date, (x) any Class A Monthly Interest previously due but not distributed to the Class
A Certificateholders on a prior Distribution Date and (y) the amount of Class A Additional
Interest, if any, for such Distribution Date and any Class A Additional Interest previously due but
not distributed to the Class A Certificateholders on a prior Distribution Date from the portion of
the Insolvency Proceeds allocated to Collections of Finance Charge Receivables and distribute such
amount to the Paying Agent for payment to the Class A Certificateholders, provided that the amount
of such distribution shall not exceed the product of (x) the portion of the Insolvency Proceeds
allocated to Series 2008-5 Allocable Finance Charge Collections, (y) the Floating Allocation
Percentage with respect to the related Monthly Period and (z) the Class A Floating Percentage with
respect to such Monthly Period and (ii) deduct an amount equal to the sum of (w) Class B Monthly
Interest for such Distribution Date, (x) Class B Monthly Interest previously due but not
distributed to the Class B Certificateholders on a prior Distribution Date and (y) the amount of
Class B Additional Interest, if any, for such Distribution Date and any Class B Additional Interest
previously due but not distributed to the Class B Certificateholders on a prior Distribution Date
from the portion of the Insolvency Proceeds allocated to Series 2008-5 Allocable Finance Charge
Collections and distribute such amount to the Paying Agent for payment to the Class B
Certificateholders, provided that the amount of such distribution shall not exceed the product of
(x) the portion of the Insolvency Proceeds allocated to Series 2008-5 Allocable Finance Charge
Collections, (y) the Floating

35

 

Allocation Percentage with respect to the related Monthly Period and (z) the Class B Floating
Percentage with respect to such Monthly Period. To the extent that the product of (A) the portion
of the Insolvency Proceeds allocated to Series 2008-5 Allocable Finance Charge Collections and (B)
the Floating Allocation Percentage with respect to the related Monthly Period exceeds the aggregate
amount distributed to the Paying Agent pursuant to the preceding sentence, the excess shall be
distributed to the Collateral Interest Holder.

          (c) Notwithstanding anything to the contrary in this Supplement or the Agreement, all amounts
distributed to the Paying Agent pursuant to this Section for payment to the Series 2008-5
Certificateholders shall be distributed in full to the Series 2008-5 Certificateholders on the date
on which funds are distributed to the Paying Agent pursuant to this Section and shall be deemed to
be a final distribution pursuant to Section 12.02 of the Agreement.

ARTICLE IX

Miscellaneous Provisions

          Section 9.01. Ratification of Agreement. As supplemented by this Supplement, the
Agreement is in all respects ratified and confirmed and the Agreement as so supplemented by this
Supplement shall be read, taken and construed as one and the same instrument.

          Section 9.02. Counterparts. This Supplement may be executed in two or more
counterparts, and by different parties on separate counterparts, each of which shall be an
original, but all of which shall constitute one and the same instrument.

          Section 9.03. Governing Law. THIS SUPPLEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, 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 9.04. [Reserved].

          Section 9.05. [Reserved].

          Section 9.06. Uncertificated Securities. The Collateral Interest shall be delivered
in uncertificated form.

          Section 9.07. Transfers of the Collateral Interest.

          (a) Unless otherwise consented to by the Transferors, no portion of the Collateral Interest or
any interest therein may be sold, conveyed, assigned, hypothecated, pledged, participated,
exchanged or otherwise transferred (each, a “Transfer”) except in accordance with this
Section 9.07 and only to a Permitted Assignee. Any attempted or purported transfer, assignment,
exchange, conveyance, pledge, hypothecation or grant other than to a Permitted Assignee shall be
void. Unless otherwise consented to by the Transferors, no portion of the Collateral Interest or
any interest therein may be Transferred to any Person (each such Person acquiring the Collateral
Interest or any interest therein, an “Assignee”) unless such Assignee shall have executed
and delivered to the Transferors on or before the effective date of any Transfer a letter
substantially in the form attached hereto as Exhibit E (an “Investment Letter”),
executed by such Assignee, with respect to the related Transfer to such Assignee of all or a
portion of the Collateral Interest.

36

 

     (b) Each Assignee will certify that the Collateral Interest or the interest therein purchased
by such Assignee will be acquired for investment only and not with a view to any public
distribution thereof, and that such Assignee will not offer to sell or otherwise dispose of the
Collateral Interest or any interest therein so acquired by it in violation of any of the
registration requirements of the Securities Act, or any applicable state or other securities laws.
Each Assignee will acknowledge and agree that (i) it has no right to require the Transferors to
register under the Securities Act or any other securities law the Collateral Interest or the
interest therein to be acquired by the Assignee and (ii) the sale of the Collateral Interest is not
being made by means of the prospectus prepared in connection with the sale of the Series 2008-5
Certificates. Each Assignee will agree with the Transferors that: (a) such Assignee will deliver
to the Transferors an Investment Letter and (b) all of the statements made by such Assignee in its
Investment Letter shall be true and correct as of the date made.

     (c) No portion of the Collateral Interest or any interest therein may be Transferred, and each
Assignee will certify that it is not, (a) an “employee benefit plan” (as defined in Section 3(3) of
ERISA and subject to Title I of ERISA), (b) any “plan” (as defined in and subject to Section 4975
of the Code) including individual retirement accounts and Keogh plans, or (c) any other entity
whose underlying assets include “plan assets” (within the meaning of U.S. Department of Labor
Regulation Section 2510.3-101, 29 C.F.R. § 2510.3-101, as modified by Section 3(42) of ERISA) by
reason of a plan’s investment in the entity, including, without limitation, an insurance company
general account.

[The signature page follows this page.]

37

 

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

	 	 	 	 	 
	 	AMERICAN EXPRESS RECEIVABLES

       FINANCING CORPORATION II, 

       as a Transferor

 	 
	 	By:  	/s/ Maureen Ryan	 
	 	 	Name:  	Maureen Ryan    	 
	 	 	Title:  	President 	 
	 
	 	AMERICAN EXPRESS RECEIVABLES

       FINANCING CORPORATION III LLC, 

       as a Transferor

 	 
	 	By:  	/s/ Catherine M. Hogan	 
	 	 	Name:  	Catherine M. Hogan    	 
	 	 	Title:  	President 	 
	 
	 	AMERICAN EXPRESS RECEIVABLES

       FINANCING CORPORATION IV LLC, 

       as a Transferor

 	 
	 	By:  	/s/ Robert Radle	 
	 	 	Name:  	Robert Radle    	 
	 	 	Title:  	President 	 
	 
	 	AMERICAN EXPRESS TRAVEL RELATED 

       SERVICES COMPANY, INC., 

       as the Servicer

 	 
	 	By:  	/s/ David L. Yowan	 
	 	 	Name:  	David L. Yowan 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	THE BANK OF NEW YORK,

       as Trustee

 	 
	 	By:  	/s/ Catherine L. Cerilles	 
	 	 	Name:  	Catherine L. Cerilles    	 
	 	 	Title:  	Vice President 	 
	 

[Signature page — Series 2008-5 Supplement]

 

 

					
	 	 	 	 	 
	 
	 	FORM OF CLASS A CERTIFICATE
	 	EXHIBIT A-1

			
	 	 	 
	REGISTERED
	 	$                    1/
	 	 	 
	No. R-                    
	 	CUSIP No. 02582JFG0

          Unless this Class A Certificate is presented by an authorized representative of The Depository
Trust Company, a New York corporation (“DTC”), to American Express Receivables Financing
Corporation II, American Express Receivables Financing Corporation III LLC, American Express
Receivables Financing Corporation IV LLC or their agent for registration of transfer, exchange or
payment, and any certificate issued is registered in the name of Cede & Co. or in such other name
as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered
owner hereof, Cede & Co., has an interest herein.

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

SERIES 2008-5

CLASS A FLOATING RATE ASSET BACKED CERTIFICATE

Expected Final Payment Date:

The August 2013 Distribution Date

Each $100,000 minimum denomination represents a

1/8,000ths undivided interest

in Class A of the

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST, SERIES 2008-5

Evidencing an undivided interest in certain assets of a trust, the corpus of which consists
primarily of an interest in receivables generated from time to time in the ordinary course of
business in a portfolio of credit and charge accounts serviced by

AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC.,

and other assets and interests constituting Trust Assets under the Pooling and Servicing Agreement
referred to below.

(Not an interest in or obligation of American Express Travel Related Services Company, Inc.,
American Express Centurion Bank, American Express Bank, FSB, American Express Receivables Financing
Corporation II, American Express Receivables Financing Corporation III LLC, American Express
Receivables Financing Corporation IV LLC or any of their respective affiliates)

 

			
	1 /	 	Denominations of $100,000 and integral multiples of
$1,000 in excess thereof.

(Series
2008-5 Supplement)

 

 

This certifies that CEDE & CO. (the “Class A Certificateholder”) is the registered owner of
a fractional undivided interest in certain assets of a trust (the “Trust”) created pursuant
to the Pooling and Servicing Agreement, dated as of May 16, 1996, as amended and restated as of
January 1, 2006 (as amended and restated and as otherwise amended and supplemented, the
“Agreement”), as supplemented by the Series 2008-5 Supplement, dated as of June 12, 2008
(as amended and supplemented, the “Supplement”), among American Express Receivables
Financing Corporation II, American Express Receivables Financing Corporation III LLC and American
Express Receivables Financing Corporation IV LLC, as transferors (together, the
“Transferors”), American Express Travel Related Services Company, Inc., as servicer, and
The Bank of New York, a New York banking corporation, as trustee (the “Trustee”). The
corpus of the Trust consists of (i) the Transferors’ ownership interest in a portfolio of
receivables (the “Receivables”) existing in credit and charge accounts identified under the
Agreement from time to time (the “Accounts”), (ii) all Receivables generated under the
Accounts from time to time thereafter, (iii) funds collected or to be collected from cardmembers in
respect of the Receivables, (iv) all funds which are from time to time on deposit in the Collection
Account, the Special Funding Account and any other Series Accounts and (v) all other assets and
interests constituting the Trust. The Holder of this Certificate is entitled to the benefits of
the subordination of the Class B Certificates and the Collateral Interest to the extent provided in
the Supplement. Although a summary of certain provisions of the Agreement and the Supplement is
set forth below and in the Summary of Terms and Conditions attached hereto and made a part hereof,
this Class A Certificate does not purport to summarize the Agreement and the Supplement and
reference is made to the Agreement and the Supplement for information with respect to the
interests, rights, benefits, obligations, proceeds and duties evidenced hereby and the rights,
duties and obligations of the Trustee. A copy of the Agreement and the Supplement (without
schedules) may be requested from the Trustee by writing to the Trustee at the Corporate Trust
Office. To the extent not defined herein, the capitalized terms used herein have the meanings
ascribed to them in the Agreement or the Supplement, as applicable.

          This Class A Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement and the Supplement, to which Agreement and Supplement, each as amended
and supplemented from time to time, the Class A Certificateholder by virtue of the acceptance
hereof assents and is bound.

          It is the intent of the Transferors and the Class A Certificateholder that, for federal, state
and local income and franchise tax purposes, the Class A Certificates will qualify as indebtedness
of the Transferors secured by the Receivables. The Class A Certificateholder, by the acceptance of
this Class A Certificate, agrees to treat this Class A Certificate for federal, state and local
income and franchise tax purposes as debt of the Transferors.

          In general, payments of principal with respect to the Class A Certificates are limited to the
Class A Invested Amount, which may be less than the unpaid principal balance of the Class A
Certificates. The Expected Final Payment Date is the August 2013 Distribution Date, but principal
with respect to the Class A Certificates may be paid earlier or later under certain circumstances
described in the Agreement and the Supplement. If for one or more months during the Controlled
Accumulation Period there are not sufficient funds to pay the Controlled Deposit Amount, then to
the extent that excess funds are not available on subsequent Distribution Dates with respect to the
Controlled Accumulation Period to make up for such shortfalls, the final payment of principal of
the Class A Certificates will occur later than the Expected Final Payment Date.

          Unless the certificate of authentication hereon has been executed by or on behalf of the
Trustee, by manual signature, this Class A Certificate shall not be entitled to any benefit under
the Agreement or the Supplement or be valid for any purpose.

A-1-2

 

 

          IN WITNESS WHEREOF, the Transferors have caused this Class A Certificate to be duly executed.

	 	 	 	 	 
	 	AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION II

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION
III LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION IV
LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated: June 12, 2008

A-1-3

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the American Express Credit Account Master Trust Series 2008-5 Class A Certificates
described in the within-mentioned Agreement and Supplement.

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,

as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	or	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	as Authenticating Agent

for the Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Signatory	 	 

A-1-4

 

 

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

SERIES 2008-5

CLASS A FLOATING RATE ASSET BACKED CERTIFICATE

Summary of Terms and Conditions

     The Receivables consist of Principal Receivables which arise generally from the purchase of
goods and services and amounts advanced to cardmembers as cash advances and Finance Charge
Receivables. This Class A Certificate is one of a Series of Certificates entitled American Express
Credit Account Master Trust, Series 2008-5 (the “Series 2008-5 Certificates”), and one of a
class thereof entitled Class A Series 2008-5 Floating Rate Asset Backed Certificates (the
“Class A Certificates”), each of which represents a fractional, undivided interest in
certain assets of the Trust. The assets of the Trust are allocated in part to the investor
certificateholders of all outstanding Series (the “Certificateholders’ Interest”) with the
remainder allocated to the Holders of the Transferor Certificates. The aggregate interest
represented by the Class A Certificates at any time in the Principal Receivables in the Trust shall
not exceed an amount equal to the Class A Invested Amount at such time. The Class A Initial
Invested Amount is $800,000,000. The Class A Invested Amount on any date will be an amount equal
to (a) the Class A Initial Invested Amount, minus (b) the aggregate amount of principal payments
made to the Class A Certificateholder on or prior to such date, minus (c) the excess, if any, of
the aggregate amount of Class A Investor Charge-Offs for all prior Distribution Dates over Class A
Investor Charge-Offs reimbursed pursuant to subsection 4.07(b) of the Supplement prior to such
date.

     Subject to the terms and conditions of the Agreement, the Transferors may, from time to time,
direct the Trustee, on behalf of the Trust, to issue one or more new Series of Investor
Certificates, which will represent fractional, undivided interests in certain of the Trust Assets.

     On each Distribution Date, the Paying Agent shall distribute to each Class A Certificateholder
of record on the last day of the preceding calendar month (each a “Record Date”) such Class
A Certificateholder’s pro rata share of such amounts (including amounts on deposit in the
Collection Account and Principal Funding Account) as are payable to the Class A Certificateholder
pursuant to the Agreement and the Supplement. Distributions with respect to this Class A
Certificate will be made by the Paying Agent by check mailed to the address of the Class A
Certificateholder of record appearing in the Certificate Register without the presentation or
surrender of this Class A Certificate or the making of any notation thereon (except for the final
distribution in respect of this Class A Certificate) except that with respect to Class A
Certificates registered in the name of Cede & Co., the nominee for The Depository Trust Company,
distributions will be made in the form of immediately available funds. Final payment of this Class
A Certificate will be made only upon presentation and surrender of this Class A Certificate at the
office or agency specified in the notice of final distribution delivered by the Trustee to the
Series 2008-5 Certificateholders in accordance with the Agreement and the Supplement.

     On any day occurring on or after the day on which the Invested Amount is reduced to 5% or less
of the Initial Invested Amount, the Transferors have the option to repurchase the Series 2008-5
Certificateholders’ Interest in the Trust. The repurchase price will be equal to (a) if such day
is a Distribution Date, the Reassignment Amount for such Distribution Date or (b) if such day is
not a Distribution Date, the Reassignment Amount for the Distribution Date following such day.
Following the deposit of the Reassignment Amount in the Collection Account, Series 2008-5
Certificateholders will not have any interest in the Receivables and the Series 2008-5 Certificates
will represent only the right to receive such Reassignment Amount.

A-1-5 

 

     This Class A Certificate does not represent an obligation of, or an interest in, the
Transferors or the Servicer or any affiliate of any of them and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other governmental agency or instrumentality. This
Class A Certificate is limited in right of payment to certain Collections with respect to the
Receivables (and certain other amounts), all as more specifically set forth hereinabove and in the
Agreement and the Supplement.

     The Class A Certificates are issuable only in minimum denominations of $100,000 and integral
multiples of $1,000. The transfer of this Class A Certificate shall be registered in the
Certificate Register upon surrender of this Class A Certificate for registration of transfer at any
office or agency maintained by the Transfer Agent and Registrar accompanied by a written instrument
of transfer, in a form satisfactory to the Trustee or the Transfer Agent and Registrar, duly
executed by the Class A Certificateholder or such Class A Certificateholder’s attorney, and duly
authorized in writing with such signature guaranteed, and thereupon one or more new Class A
Certificates of authorized denominations and for the same aggregate fractional undivided interest
will be issued to the designated transferee or transferees.

     As provided in the Agreement and subject to certain limitations therein set forth, Class A
Certificates are exchangeable for new Class A Certificates evidencing like aggregate fractional,
undivided interests as requested by the Class A Certificateholder surrendering such Class A
Certificates. No service charge may be imposed for any such exchange but the Servicer or Transfer
Agent and Registrar may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection therewith.

     The Servicer, the Transferors, the Trustee, the Paying Agent and the Transfer Agent and
Registrar and any agent of any of them, may treat the person in whose name this Class A Certificate
is registered as the owner hereof for all purposes, and none of the Servicer, the Transferors, the
Trustee, the Paying Agent, the Transfer Agent and Registrar, or any agent of any of them, shall be
affected by notice to the contrary except in certain circumstances described in the Agreement.

     THIS CLASS A CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK, 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.

A-1-6 

 

ASSIGNMENT

Social Security or other identifying number of assignee                                                             
         

     FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto 

	 	 	 
	 

(name and address of assignee)
	 	 

the within certificate and all rights thereunder, and hereby irrevocably constitutes and appoints
                    , attorney, to transfer said certificate on the
books kept for registration thereof, with full power of substitution in the premises.

			
	 	 	 
	Dated:                     
	 	                                         2/

	 	 	 	 	 
	 

	 	Signature Guaranteed:	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

 

			
	2 /	 	NOTE: The signature to this assignment must correspond
with the name of the registered owner as it appears on the face of the within
Certificate in every particular, without alteration, enlargement or any change
whatsoever.

A-1-7 

 

	 	 	 
	FORM
OF CLASS B CERTIFICATE

	 	EXHIBIT A-2

THIS CLASS B CERTIFICATE MAY NOT BE ACQUIRED BY OR FOR THE ACCOUNT OF PERSONS INVESTING ASSETS OF A
BENEFIT PLAN (AS DEFINED BELOW) OR AN INDIVIDUAL RETIREMENT ACCOUNT OTHER THAN BY INSURANCE
COMPANIES INVESTING ASSETS SOLELY OF THEIR GENERAL ACCOUNTS.

			
	 	 	 
	REGISTERED
	 	$                    3 /
	 	 	 
	No. R-                    
	 	CUSIP No. 02582JFH8

     Unless this Class B Certificate is presented by an authorized representative of The Depository
Trust Company, a New York corporation (“DTC”), to American Express Receivables Financing
Corporation II, American Express Receivables Financing Corporation III LLC, American Express
Receivables Financing Corporation IV LLC or their agent for registration of transfer, exchange or
payment, and any certificate issued is registered in the name of Cede & Co. or in such other name
as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered
owner hereof, Cede & Co., has an interest herein.

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

SERIES 2008-5

CLASS B FLOATING RATE ASSET BACKED CERTIFICATE

Expected Final Payment Date:

The August 2013 Distribution Date

Each $100,000 minimum denomination represents a

1/500ths undivided interest

in Class B of the

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST, SERIES 2008-5

Evidencing an undivided interest in certain assets of a trust, the corpus of which consists
primarily of an interest in receivables generated from time to time in the ordinary course of
business in a portfolio of credit and charge accounts serviced by

AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC.,

and other assets and interests constituting Trust Assets under the Pooling and Servicing Agreement
referred to below.

     (Not an interest in or obligation of American Express Travel Related Services Company, Inc.,
American Express Centurion Bank, American Express Bank, FSB, American Express Receivables

 

			
	3 /	 	Denominations of $100,000 and integral multiples of
$1,000 in excess thereof.

(Series
2008-5 Supplement)

 

 

Financing Corporation II, American Express Receivables Financing Corporation III LLC, American Express Receivables Financing Corporation IV LLC or any of their respective affiliates)

This certifies that CEDE & CO. (the “Class B Certificateholder”) is the registered owner of
a fractional, undivided interest in certain assets of a trust (the “Trust”) created
pursuant to the Pooling and Servicing Agreement, dated as of May 16, 1996, as amended and restated
as of January 1, 2006 (as amended and restated and otherwise amended and supplemented, the
“Agreement”), as supplemented by the Series 2008-5 Supplement, dated as of June 12, 2008
(as amended and supplemented, the “Supplement”), among American Express Receivables
Financing Corporation II, American Express Receivables Financing Corporation III LLC and American
Express Receivables Financing Corporation IV LLC, as transferors (together, the
“Transferors”), American Express Travel Related Services Company, Inc., as servicer, and
The Bank of New York, a New York banking corporation, as trustee (the “Trustee”). The
corpus of the Trust consists of (i) the Transferors’ ownership interest in a portfolio of
receivables (the “Receivables”) existing in credit and charge accounts identified under the
Agreement from time to time (the “Accounts”), (ii) all Receivables generated under the
Accounts from time to time thereafter, (iii) funds collected or to be collected from cardmembers in
respect of the Receivables, (iv) all funds which are from time to time on deposit in the Collection
Account, the Special Funding Account, and any other Series Accounts and (v) all other assets and
interests constituting the Trust. Although a summary of certain provisions of the Agreement and
the Supplement is set forth below and in the Summary of Terms and Conditions attached hereto and
made a part hereof, this Class B Certificate does not purport to summarize the Agreement and the
Supplement and reference is made to the Agreement and the Supplement for information with respect
to the interests, rights, benefits, obligations, proceeds and duties evidenced hereby and the
rights, duties and obligations of the Trustee. A copy of the Agreement and the Supplement (without
schedules) may be requested from the Trustee by writing to the Trustee at the Corporate Trust
Office. To the extent not defined herein, the capitalized terms used herein have the meanings
ascribed to them in the Agreement or the Supplement, as applicable.

     This Class B Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement and the Supplement, to which Agreement and Supplement, each as amended
and supplemented from time to time, the Class B Certificateholder by virtue of the acceptance
hereof assents and is bound.

     No Class B Certificate may be acquired by or for the account of any employee benefit plan,
trust or account, including an individual retirement account, that is subject to the Employee
Retirement Income Security Act of 1974, as amended, or that is described in Section 4975(e)(1) of
the Internal Revenue Code of 1986, as amended, or an entity whose underlying assets include plan
assets by reason of a plan’s investment in such entity (a “Benefit Plan”), unless (i) such acquirer
or holder is an insurance company, (ii) the source of funds used to acquire or hold such
Certificate (or interest therein) is an “insurance company general account” (as defined in U.S.
Department of Labor Prohibited Transaction Class Exemption (“PTCE”) 95-60), and (iii) the
conditions set forth in Sections I and III of PTCE 95-60 have been satisfied. By acquiring any
interest in this Class B Certificate, each applicable Certificate Owner shall be deemed to have
represented and warranted either (i) that it is not a Benefit Plan and is not acting for the
account of any Benefit Plan or (ii) that (1) it is an insurance company, (2) the source of funds
used to acquire or hold an interest in such Certificate is an “insurance company general account”
(as such term is defined in PTCE 95-60), and (3) the conditions set forth in Sections I and III of
PTCE 95-60 have been satisfied.

     THIS CLASS B CERTIFICATE IS SUBORDINATED TO THE EXTENT NECESSARY TO FUND PAYMENTS ON THE CLASS
A CERTIFICATES TO THE EXTENT SPECIFIED IN THE SUPPLEMENT.

A-2-2 

 

     It is the intent of the Transferors and the Class B Certificateholder that, for federal, state
and local income and franchise tax purposes, the Class B Certificates will qualify as indebtedness
of the Transferors secured by the Receivables. The Class B Certificateholder, by the acceptance of
this Class B Certificate, agrees to treat this Class B Certificate for federal, state and local
income and franchise tax purposes as debt of the Transferors.

     In general, payments of principal with respect to the Class B Certificates are limited to the
Class B Invested Amount, which may be less than the unpaid principal balance of the Class B
Certificates. The Expected Final Payment Date is the August 2013 Distribution Date, but principal
with respect to the Class B Certificates may be paid earlier or later under certain circumstances
described in the Agreement and the Supplement. If for one or more months during the Controlled
Accumulation Period there are not sufficient funds to pay the Controlled Deposit Amount, then to
the extent that excess funds are not available on subsequent Distribution Dates with respect to the
Controlled Accumulation Period to make up for such shortfalls, the final payment of principal of
the Class B Certificates will occur later than the Expected Final Payment Date.

     Unless the certificate of authentication hereon has been executed by or on behalf of the
Trustee, by manual signature, this Class B Certificate shall not be entitled to any benefit under
the Agreement or the Supplement or be valid for any purpose.

A-2-3 

 

     IN WITNESS WHEREOF, the Transferors have caused this Class B Certificate to be duly executed.

	 	 	 	 	 
	 	AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION II

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION III LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION IV LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated: June 12, 2008

A-2-4 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the American Express Credit Account Master Trust Series 2008-5 Class B
Certificates described in the within mentioned Agreement and Supplement.

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,	 	 
	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 
	 
	 	 	 	 	 	 
	 

	 	or	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

as Authenticating Agent

for the Trustee
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 

A-2-5 

 

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

SERIES 2008-5

CLASS B FLOATING RATE ASSET BACKED CERTIFICATE

Summary of Terms and Conditions

     The Receivables consist of Principal Receivables which arise generally from the purchase of
goods and services and amounts advanced to cardmembers as cash advances and Finance Charge
Receivables. This Class B Certificate is one of a Series of Certificates entitled American Express
Credit Account Master Trust, Series 2008-5 (the “Series 2008-5 Certificates”), and one of a
class thereof entitled Class B Series 2008-5 Floating Rate Asset Backed Certificates (the
“Class B Certificates”), each of which represents a fractional, undivided interest in
certain assets of the Trust. The assets of the Trust are allocated in part to the investor
certificateholders of all outstanding Series (the “Certificateholders’ Interest”) with the
remainder allocated to the Holders of the Transferor Certificates. The aggregate interest
represented by the Class B Certificates at any time in the Principal Receivables in the Trust shall
not exceed an amount equal to the Class B Invested Amount at such time. The Class B Initial
Invested Amount is $50,000,000. The Class B Invested Amount on any date will be an amount equal to
(a) the Class B Initial Invested Amount, minus (b) the aggregate amount of principal payments made
to the Class B Certificateholder on or prior to such date, minus (c) the excess, if any, of the
aggregate amount of Class B Investor Charge-Offs for all prior Distribution Dates over Class B
Investor Charge-Offs reimbursed, minus (d) the amount of Reallocated Principal Collections
allocated on all prior Distribution Dates pursuant to subsection 4.08(a) of the Supplement
(excluding any Reallocated Principal Collections that have resulted in a reduction in the
Collateral Invested Amount pursuant to Section 4.08), minus (e) an amount equal to the amount by
which the Class B Invested Amount has been reduced to cover the Class A Investor Default Amount on
all prior Distribution Dates, and plus (f) the amount of Excess Spread and Excess Finance Charge
Collections allocated to Series 2008-5 and applied on all prior Distribution Dates for the purpose
of reimbursing amounts deducted pursuant to the foregoing clauses (c), (d) and (e); provided,
however, that the Class B Invested Amount may not be reduced below zero.

     Subject to the terms and conditions of the Agreement, the Transferors may, from time to time,
direct the Trustee, on behalf of the Trust, to issue one or more new Series of Investor
Certificates, which will represent fractional, undivided interests in certain of the Trust Assets.

     On each Distribution Date, the Paying Agent shall distribute to each Class B Certificateholder
of record on the last day of the preceding calendar month (each a “Record Date”) such Class
B Certificateholder’s pro rata share of such amounts (including amounts on deposit in the
Collection Account and Principal Funding Account) as are payable to the Class B Certificateholder
pursuant to the Agreement and the Supplement. Distributions with respect to this Class B
Certificate will be made by the Paying Agent by check mailed to the address of the Class B
Certificateholder of record appearing in the Certificate Register without the presentation or
surrender of this Class B Certificate or the making of any notation thereon (except for the final
distribution in respect of this Class B Certificate) except that with respect to Class B
Certificates registered in the name of Cede & Co., the nominee for The Depository Trust Company,
distributions will be made in the form of immediately available funds. Final payment of this Class
B Certificate will be made only upon presentation and surrender of this Class B Certificate at the
office or agency specified in the notice of final distribution delivered by the Trustee to the
Series 2008-5 Certificateholders in accordance with the Agreement and the Supplement.

     On any day occurring on or after the day on which the Invested Amount is reduced to 5% or less
of the Initial Invested Amount, the Transferors have the option to repurchase the Series 2008-5

A-2-6 

 

Certificateholders’ Interest in the Trust. The repurchase price will be equal to (a) if such
day is a Distribution Date, the Reassignment Amount for such Distribution Date or (b) if such day
is not a Distribution Date, the Reassignment Amount for the Distribution Date next following such
day. Following the deposit of the Reassignment Amount in the Collection Account, Series 2008-5
Certificateholders will not have any interest in the Receivables and the Series 2008-5 Certificates
will represent only the right to receive such Reassignment Amount.

     This Class B Certificate does not represent an obligation of, or an interest in, the
Transferors or the Servicer or any affiliate of any of them and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other governmental agency or instrumentality. This
Class B Certificate is limited in right of payment to certain Collections with respect to the
Receivables (and certain other amounts), all as more specifically set forth hereinabove and in the
Agreement and the Supplement.

     The Class B Certificates are issuable only in minimum denominations of $100,000 and integral
multiples of $1,000. The transfer of this Class B Certificate shall be registered in the
Certificate Register upon surrender of this Class B Certificate for registration of transfer at any
office or agency maintained by the Transfer Agent and Registrar accompanied by a written instrument
of transfer, in a form satisfactory to the Trustee or the Transfer Agent and Registrar, duly
executed by the Class B Certificateholder or such Class B Certificateholder’s attorney, and duly
authorized in writing with such signature guaranteed, and thereupon one or more new Class B
Certificates of authorized denominations and for the same aggregate fractional undivided interest
will be issued to the designated transferee or transferees.

     As provided in the Agreement and subject to certain limitations therein set forth, Class B
Certificates are exchangeable for new Class B Certificates evidencing like aggregate fractional
undivided interests as requested by the Class B Certificateholder surrendering such Class B
Certificates. No service charge may be imposed for any such exchange but the Servicer or Transfer
Agent and Registrar may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection therewith.

     The Servicer, the Transferors, the Trustee, the Paying Agent and the Transfer Agent and
Registrar and any agent of any of them, may treat the person in whose name this Class B Certificate
is registered as the owner hereof for all purposes, and none of the Servicer, the Transferors, the
Trustee, the Paying Agent, the Transfer Agent and Registrar, or any agent of any of them, shall be
affected by notice to the contrary except in certain circumstances described in the Agreement.

     THIS CLASS B CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK, 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.

A-2-7 

 

ASSIGNMENT

Social Security or other identifying number of assignee   
                                      

          FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
                           
                               
             
         

(name and address of assignee)

the within certificate and all rights thereunder, and hereby irrevocably constitutes and appoints
                                        , attorney, to transfer said certificate on the
books kept for registration thereof, with full power of substitution in the premises.

	 	 	 	 	 
	Dated:          
           	 	     
            
           
          
           
   4/
	 
	 	 	 	 
	 

	 	    Signature Guaranteed:	 	 
	 
	 

	 	 	 	 

 

			
	4 /	 	NOTE: The signature to this assignment must correspond
with the name of the registered owner as it appears on the face of the within
Certificate in every particular, without alteration, enlargement or any change
whatsoever.

A-2-8

 

EXHIBIT B

FORM OF MONTHLY PAYMENT INSTRUCTIONS AND

NOTIFICATION TO THE TRUSTEE

 

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

SERIES 2008-5

 

          The undersigned, a duly authorized representative of American Express Travel Related Services
Company, Inc. (“TRS”), as Servicer pursuant to the Pooling and Servicing Agreement, dated
as of May 16, 1996, as amended and restated as of January 1, 2006 (as amended and restated and as
otherwise amended and supplemented, the “Pooling and Servicing Agreement”), among TRS,
American Express Receivables Financing Corporation II, American Express Receivables Financing
Corporation III LLC and American Express Receivables Financing Corporation IV LLC, as transferors
(together, the “Transferors”), and The Bank of New York, as trustee (the
“Trustee”), does hereby certify as follows:

          1. Capitalized terms used in this Certificate have their respective meanings set forth in the
Pooling and Servicing Agreement or the Series 2008-5 Supplement, dated as of June 12, 2008, among
TRS, the Transferors and the Trustee (as amended and supplemented, the “Supplement”), as
applicable.

          2. TRS is the Servicer.

          3. The undersigned is a Servicing Officer.

I. INSTRUCTION TO MAKE A WITHDRAWAL

          Pursuant to subsections 4.05(a), (b) and (c), the Servicer does hereby instruct the Trustee
(i) to make withdrawals from the Collection Account on
               ,        , which date is a Distribution Date under the Supplement, in the aggregate amounts
(equal to the Class A Available Funds, Class B Available Funds and Collateral Available Funds,
respectively) as set forth below in respect of the following amounts and (ii) to apply the proceeds
of such withdrawals in accordance with subsections 4.05(a), (b) and (c):

          With respect to the Class A Certificates,

	 	 	 	 	 
	A) Pursuant to subsection 4.05(a)(i):
	 	 	 	 
	 
	 	 	 	 
	(1) Interest at the Class A
Certificate Rate for the related Interest
Accrual Period on the Class A Invested Amount
	 	$	          	 
	 
	 	 	 	 
	 
	 	 	 	 
	(2) Class A Monthly
Interest previously
due but not paid
	 	$	 	 
	 
	 	 	 	 

B-1 

 

	 	 	 	 	 
	(3) Class A Additional
Interest and any Class A Additional Interest
due but not paid
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	B) Pursuant to subsection 4.05(a)(ii):
	 	 	 	 
	 
	 	 	 	 
	(1) The Class A Servicing
Fee for the preceding Monthly Period, if
applicable
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(2) Accrued and unpaid
Class A Servicing Fees, if applicable
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	C) Pursuant to subsection 4.05(a)(iii):
	 	 	 	 
	 
	 	 	 	 
	(1) Class A Investor
Default Amount for the preceding Monthly Period
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	With respect to the Class B Certificates,
	 	 	 	 
	 
	 	 	 	 
	A) Pursuant to subsection 4.05(b)(i):
	 	 	 	 
	 
	 	 	 	 
	(1) Interest at the Class B
Certificate Rate for the related Interest
Accrual Period on the Class B Invested Amount
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(2) Class B Monthly
Interest previously due but not paid
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(3) Class B Additional
Interest and any Class B Additional Interest
previously due but not paid
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	B) Pursuant to subsection 4.05(b)(ii):
	 	 	 	 
	 
	 	 	 	 
	(1) The Class B Servicing
Fee for the preceding Monthly Period, if
applicable
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(2) Accrued and unpaid
Class B Servicing Fees, if applicable
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	With respect to the Collateral Interest
	 	 	 	 
	 
	 	 	 	 
	A) Pursuant to subsection 4.05(c)(i):
	 	 	 	 
	 
	 	 	 	 
	(1) The Collateral
Servicing Fee for the preceding Monthly Period,
if applicable
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(2) Accrued and unpaid
Collateral Servicing Fees, if applicable
	 	$	 	 
	 
	 	 	 	 

          Pursuant to subsections 4.05(d), (e) and (f), the Servicer hereby instructs the Trustee (i) to
make withdrawals from the Collection Account on                , which date is a
Distribution Date under the Supplement, in the aggregate amounts (equal to the Available Principal
Collections) as set

B-2 

 

forth below in respect of the following amounts and (ii) to apply the proceeds of such
withdrawals in accordance with subsections 4.05(d), (e) and (f):

	 	 	 	 	 	 	 
	A) Pursuant to subsection 4.05(d):
	 	 	 	 
	 	 	 
	 	 	 	 
	 	(1)	Amount to be treated as
Shared Principal Collections
	 	$	          	 
	 	 	 
	 	 	 	 
	 	 	 
	 	 	 	 
	B) Pursuant to subsection 4.05(e):
	 	 	 	 
	 	 	 
	 	 	 	 
	 	(1)	The lesser of the
Controlled Deposit Amount and the sum of the
Class A Adjusted Invested Amount and the Class
B Adjusted Invested Amount deposited in the
Principal Funding Account
	 	$	 	 
	 	 	 
	 	 	 	 
	 	 	 
	 	 	 	 
	 	(2)	After the Class B
Invested Amount is paid in full, the amount
paid to the Collateral Interest Holder (up to
the Collateral Invested Amount)
	 	$	 	 
	 	 	 
	 	 	 	 
	 	 	 
	 	 	 	 
	 	(3)	Prior to the date the
Class B Invested Amount is paid in full, amount
to be treated as Shared Principal Collections
	 	$	 	 
	 	 	 
	 	 	 	 
	 	 	 
	 	 	 	 
	C) Pursuant to subsection 4.05(f):
	 	 	 	 
	 	 	 
	 	 	 	 
	 	(1)	An amount up to the
Class A Adjusted Invested Amount deposited in
the Principal Funding Account
	 	$	 	 
	 	 	 
	 	 	 	 
	 	 	 
	 	 	 	 
	 	(2)	On and after the
Distribution Date on which the Class A Invested
Amount is paid in full, an amount up to the
Class B Invested Amount deposited in the
Principal Funding Account
	 	$	 	 
	 	 	 
	 	 	 	 
	 	 	 
	 	 	 	 
	 	(3)	On and after the
Distribution Date on which the Class B Invested
Amount is paid in full, an amount up to the
Collateral Invested Amount distributed to the
Collateral Interest Holder
	 	$	 	 
	 	 	 
	 	 	 	 

          Pursuant to Section 4.07, the Servicer does hereby instruct the Trustee to apply on
               , which is a Distribution Date under the Supplement, any Excess Spread
and Excess Finance Charge Collections allocated to Series 2008-5 as follows:

	 	 	 	 	 
	A) Pursuant to subsection 4.07(a):
	 	 	 	 
	 
	 	 	 	 
	Class A Required Amount applied in the priority set
forth in subsections 4.05(a)(i), (ii) and (iii)
	 	$	          	 
	 
	 	 	 	 
	 
	 	 	 	 
	B) Pursuant to subsection 4.07(b):
	 	 	 	 

B-3 

 

	 	 	 	 	 
	Aggregate amount of Class A Investor Charge-Offs not
previously reimbursed allocated to Available
Principal Collections
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	C) Pursuant to subsection 4.07(c):
	 	 	 	 
	 
	 	 	 	 
	Class B Required Amount applied in the priority set
forth in subsections 4.05(b)(i)
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	D) Pursuant to subsection 4.07(d):
	 	 	 	 
	 
	 	 	 	 
	Interest accrued on aggregate outstanding principal
balance of the Class B Certificates not otherwise
distributed to Class B Certificateholders pursuant
to Section 4.07(c)
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	E) Pursuant to subsection 4.07(d):
	 	 	 	 
	 
	 	 	 	 
	Amount (up to the Class B Investor Default) to be
applied as Available Principal Collections
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	F) Pursuant to subsection 4.07(e):
	 	 	 	 
	 
	 	 	 	 
	The amount by which the Class B Invested Amount has
been reduced pursuant to clauses (c), (d) and (e) of
the definition thereof allocated to Available
Principal Collections
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	G) Pursuant to subsection 4.07(f):
	 	 	 	 
	 
	 	 	 	 
	(1) Collateral Minimum Monthly Interest
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(2) Collateral Minimum
Monthly Interest previously due but not paid
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	(3) Collateral Additional
Interest and any Collateral Additional Interest
previously due and not paid
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	H) Pursuant to subsection 4.07(g):
	 	 	 	 
	 
	 	 	 	 
	Monthly Servicing Fee for such Distribution Date
that has not been paid to the Servicer and any
Monthly Servicing Fee previously due but not paid to
the Servicer
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	I) Pursuant to subsection 4.07(h):
	 	 	 	 
	 
	 	 	 	 
	Collateral Default Amount allocated to Available
Principal Collections
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	J) Pursuant to subsection 4.07(i):
	 	 	 	 

B-4 

 

	 	 	 	 	 
	The amount by which the Collateral Invested Amount
has been reduced pursuant to clauses (c), (d) and
(e) of the definition thereof allocated to Available
Principal Collections
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	K) Pursuant to subsection 4.07(j):
	 	 	 	 
	 
	 	 	 	 
	The excess of the Required Reserve Account Amount
over the Available Reserve Amount deposited into the
Reserve Account
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	L) Pursuant to subsection 4.07(k):
	 	 	 	 
	 
	 	 	 	 
	Amount distributed to the Collateral Interest Holder
	 	$	 	 
	 
	 	 	 	 

          Pursuant to Section 4.08, the Servicer does hereby instruct the Trustee to apply on
               , which is a Distribution Date under the Pooling and Servicing
Agreement, $                of Reallocated Principal Collections to fund any
deficiencies in the Required Amount after applying Class A Available Funds, Class B Available
Funds, Excess Spread and Excess Finance Charge Collections thereto.

II. INSTRUCTION TO MAKE CERTAIN PAYMENTS

          Pursuant to Section 5.01 of the Series Supplement, the Servicer does hereby instruct the
Trustee to pay in accordance with Section 5.01 from the Interest Funding Account or the Principal
Funding Account, as applicable, on                , which date is a Payment Date under
the Supplement, the following amounts as set forth below:

	 	 	 	 	 
	A) Pursuant to subsection 5.01(a):
	 	 	 	 
	 
	 	 	 	 
	Interest to be distributed to Class A
Certificateholders
	 	$	          	 
	 
	 	 	 	 
	 
	 	 	 	 
	B) Pursuant to subsection 5.01(b):
	 	 	 	 
	 
	 	 	 	 
	On the Expected Final Payment Date or a Special
Payment Date, principal to be distributed to the
Class A Certificateholders
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	C) Pursuant to subsection 5.01(c):
	 	 	 	 
	 
	 	 	 	 
	Interest to be distributed to Class B
Certificateholders
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	D) Pursuant to subsection 5.01(d):
	 	 	 	 
	 
	 	 	 	 
	On the Expected Final Payment Date or a Special
Payment Date, on or after the date Class A Invested
Amount is paid in full, principal to be distributed
to the Class B Certificateholders
	 	$	          	 
	 
	 	 	 	 
	 
	 	 	 	 
	E) Pursuant to subsection 5.01(e):
	 	 	 	 

B-5 

 

	 	 	 	 	 
	Aggregate amount to be distributed to the Collateral Interest Holder
	 	$	          	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	III. ACCRUED AND UNPAID AMOUNTS
	 	 	 	 

          After giving effect to the withdrawals and transfers to be made in accordance with this
notice, the following amounts will be accrued and unpaid with respect to all Monthly Periods
preceding the current calendar month.

	 	 	 	 	 
	1. Subsection 4.06(a):
	 	 	 	 
	 
	 	 	 	 
	The aggregate amount of all unreimbursed Class A
Investor Charge-Offs
	 	$	          	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	2. Subsection 4.06(a), (b) and 4.08(a):
	 	 	 	 
	 
	 	 	 	 
	The aggregate amount by which the Class B Invested
Amount has been reduced pursuant to clauses (c), (d)
and (e) of the definition thereof
	 	$	          	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	3. Subsection 4.06(a), (b), (c) and
4.08(a) and (b):
	 	 	 	 
	 
	 	 	 	 
	The aggregate amount by which the Collateral
Invested Amount has been reduced pursuant to clauses
(c), (d) and (e) of the definition thereof
	 	$	 	 
	 
	 	 	 	 	 

          IN WITNESS WHEREOF, the undersigned has duly executed this Certificate this      
day of                ,      .

	 	 	 	 	 
	 	AMERICAN EXPRESS TRAVEL RELATED

SERVICES COMPANY, INC., as Servicer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

B-6 

 

	 	 	 	 	 

EXHIBIT C-1

FORM OF MONTHLY STATEMENT

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

SERIES 2008-5

	 	 	 	 	 
	A) Information regarding distributions on
the Distribution Date in respect of the Class A
Certificates per $1,000 original certificate principal
amount
	 	 	 	 
	 
	 	 	 	 
	(1) The total amount of
the distribution
	 	$	          	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	(2) The amount of the
distribution in respect of Class A Monthly
Interest
	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	(3) The amount of the
distribution in respect of Class A Outstanding
Monthly Interest
	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	(4) The amount of the
distribution in respect of Class A Additional
Interest
	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	(5) The amount of the
distribution in respect of principal of the
Class A Certificates
	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	B) Class A Investor Charge-Offs and
Reimbursement of Class A Investor Charge-Offs
	 	 	 	 
	 
	 	 	 	 
	(1) The total amount of
Class A Investor Charge-Offs
	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	(2) The amount of Class A
Investor Charge-Offs per $1,000 original
certificate principal amount
	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	(3) The total amount
reimbursed in respect of Class A Investor
Charge-Offs
	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	(4) The amount reimbursed
in respect of Class A Investor Charge-Offs per
$1,000 original certificate principal amount
	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	(5) The amount, if any, by
which the outstanding principal balance of the
Class A Certificates exceeds the Class A
Invested Amount after giving effect to all
transactions on such Distribution Date
	 	$	 	 
	 
	 	 	 	 	 

C-1-1 

 

	 	 	 	 	 
	C) Information regarding distributions in
respect of the Class B Certificates, per $1,000
original certificate principal amount
	 	 	 	 
	 
	 	 	 	 
	(1) The total amount of
the distribution in respect of Class B
Certificates
	 	$	          	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	(2) The amount of the
distribution in respect of Class B Monthly
Interest
	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	(3) The amount of the
distribution in respect of Class B Outstanding
Monthly Interest
	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	(4) The amount of the
distribution in respect of Class B Additional
Interest
	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	(5) The amount of the
distribution in respect of principal of the
Class B Certificates
	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	D) Amount of reductions in Class B
Invested Amount pursuant to clauses (c), (d), and (e)
of the definition of Class B Invested Amount on such
Distribution Date
	 	 	 	 
	 
	 	 	 	 
	(1) The amount of
reductions in Class B Invested Amount pursuant
to clauses (c), (d) and (e) of the definition
of Class B Invested Amount
	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	(2) The amount of the
reductions in the Class B Invested Amount per
$1,000 original certificate principal amount
	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	(3) The total amount
reimbursed in respect of such reductions in
the Class B Invested Amount
	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	(4) The amount reimbursed
in respect of such reductions in the Class B
Invested Amount, per $1,000 original
certificate principal amount
	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	(5) The amount, if any, by
which the outstanding principal balance of the
Class B Certificates exceeds the Class B
Invested Amount after giving effect to all
transactions on such Distribution Date
	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	E) Information regarding distributions on
the Distribution Date to the Collateral Interest Holder
	 	 	 	 
	 
	 	 	 	 
	(1) The total amount
distributed to the Collateral Interest Holder
	 	$	 	 
	 
	 	 	 	 	 

C-1-2 

 

	 	 	 	 	 
	(2) The amount of the
distribution in respect of Collateral Minimum
Monthly Interest
	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	(3) The amount of the
distribution in respect of Collateral
Additional Interest
	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	(4) The amount distributed
to the Collateral Interest Holder in respect
of principal on the Collateral Invested Amount
	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	(5) The amount of the
distribution to the Collateral Interest Holder
in respect of remaining Excess Spread $
	 	 	 	 
	 
	 	 	 	 
	F) Amount of reductions in Collateral
Invested Amount pursuant to clauses (c), (d), and (e)
of the definition of Collateral Invested Amount
	 	 	 	 
	 
	 	 	 	 
	(1) The amount of
reductions in the Collateral Invested Amount
pursuant to clauses (c), (d) and (e) of the
definition of Collateral Invested Amount
	 	$	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 
	(2) The total amount
reimbursed in respect of such reductions in
the Collateral Invested Amount
	 	$	 	 
	 
	 	 	 	 	 

C-1-3 

 

	 	 	 	 	 
	 	 	TRUST	 
	 	 	TOTALS	 
	TRUST ACTIVITY
	 	 	 	 
	Record Date
	 	 	 	 
	 
	 	 	 	 
	Number of days in Monthly Period
	 	 	 	 
	 
	 	 	 	 
	Beginning Number of Accounts
	 	 	 	 
	 
	 	 	 	 
	Beginning Principal Receivable Balance, including any
Addition or Removal of Principal Receivables during the
Monthly Period
	 	$	 	 
	 
	 	 	 	 
	a.      Addition of the Principal Receivables
	 	$	 	 
	 
	 	 	 	 
	b.      Removal of the Principal Receivables
	 	$	 	 
	 
	 	 	 	 
	Special Funding Account Balance
	 	$	 	 
	 
	 	 	 	 
	Beginning Total Principal Balance
	 	$	 	 
	 
	 	 	 	 
	Finance Charge Collections (excluding Recoveries)
	 	$	 	 
	 
	 	 	 	 
	Recoveries
	 	$	 	 
	 
	 	 	 	 
	Total Collections of Finance Charge Receivables
	 	$	 	 
	 
	 	 	 	 
	Total Collections of Principal Receivables
	 	$	 	 
	 
	 	 	 	 
	Monthly Payment Rate
	 	 	   	%
	 
	 	 	 	 
	Defaulted Amount
	 	$	 	 
	 
	 	 	 	 
	Annualized Default Rate
	 	 	   	%
	 
	 	 	 	 
	Trust Portfolio Yield
	 	 	   	%
	 
	 	 	 	 
	New Principal Receivables
	 	$	 	 
	 
	 	 	 	 
	Ending Number of Accounts
	 	 	 	 
	 
	 	 	 	 
	Ending Principal Receivables Balance
	 	$	 	 
	 
	 	 	 	 
	Ending Required Minimum Principal Balance
	 	$	 	 
	 
	 	 	 	 
	Ending Transferor Amount
	 	$	 	 
	 
	 	 	 	 
	Ending Special Funding Account Balance
	 	$	 	 
	 
	 	 	 	 
	Ending Total Principal Balance
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	SERIES ALLOCATIONS
	 	 	 	 
	Group Number
	 	 	 	 
	 
	 	 	 	 
	Invested Amount
	 	$	 	 
	 
	 	 	 	 
	Adjusted Invested Amount
	 	$	 	 
	 
	 	 	 	 
	Principal Funding Account Balance
	 	$	 	 
	 
	 	 	 	 
	Series Required Transferor Amount
	 	$	 	 
	 
	 	 	 	 
	Series Allocation Percentage
	 	 	    	%
	 
	 	 	 	 
	Series Allocable Finance Charge Collections
	 	$	 	 
	 
	 	 	 	 
	Series Allocable Recoveries
	 	$	 	 
	 
	 	 	 	 
	Series Allocable Principal Collections
	 	$	 	 
	 
	 	 	 	 
	Series Allocable Defaulted Amount
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	GROUP ALLOCATIONS
	 	 	 	 
	Group Number
	 	 	 	 
	 
	 	 	 	 
	Invested Amount
	 	$	 	 
	 
	 	 	 	 
	Investor Finance Charge Collections
	 	$	 	 
	 
	 	 	 	 
	Investor Monthly Interest
	 	$	 	 
	 
	 	 	 	 
	Investor Default Amount
	 	$	 	 
	 
	 	 	 	 

C-1-4

 

	 	 	 	 	 
	 	 	TRUST	 
	 	 	TOTALS	 
	Investor Monthly Fees
	 	$	 	 
	 
	 	 	 	 
	Investor Additional Amounts
	 	$	 	 
	 
	 	 	 	 
	Total
	 	$	 	 
	 
	 	 	 	 
	Reallocated Investor Finance Charge Collections
	 	$	 	 
	 
	 	 	 	 
	Investment Funding Account Proceeds
	 	$	 	 
	 
	 	 	 	 
	Available Excess
	 	$	 	 
	 
	 	 	 	 
	Group Investor Finance Charge Collections
	 	$	 	 
	 
	 	 	 	 
	Group Expenses
	 	$	 	 
	 
	 	 	 	 
	Group Reallocable Investor Finance Charge Collections
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	TRUST PERFORMANCE
	 	 	 	 
	Delinquencies
	 	 	 	 
	               31-60 Days Delinquent
	 	 	 	 
	 
	 	 	 	 
	               61-90 Days Delinquent
	 	 	 	 
	 
	 	 	 	 
	               90+ Days Delinquent
	 	 	 	 
	 
	 	 	 	 
	               Total 30+ Days
Delinquent
	 	 	 	 
	 
	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	TOTAL	 	 	 	 
	 	 	SERIES	 	 	INVESTOR	 	 	TRANSFERORS’	 
	INVESTOR/TRANSFEROR ALLOCATIONS	 	ALLOCATIONS	 	 	INTEREST	 	 	INTEREST	 
	Beginning Invested
Amount/Transferor Amount
	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Beginning Adjusted
Invested Amount
	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Floating Allocation
Percentage
	 	 	 	%	 	 	 	%	 	 	 	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Principal Allocation
Percentage
	 	 	 	%	 	 	 	%	 	 	 	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Collections of Finance
Charge Receivables
	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Collections of Principal
Receivables
	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Defaulted Amount
	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Ending Invested
Amount/Transferor Amount
	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

C-1-5

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	COLLATERAL	 	 	 	 
	MONTHLY PERIOD FUNDING REQUIREMENTS	 	CLASS A	 	 	CLASS B	 	 	INTEREST	 	 	TOTAL	 
	Principal Funding Account
Balance
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Investment Proceeds for
Monthly Period
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve Account Opening
Balance
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve Account Deposit
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve Draw Amount
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve Account Surplus
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve Account Closing
Balance
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	LIBOR Determination Date
Coupon (____ /____/ ____ to
____ /____ /____)
	 	 	 	%	 	 	 	%	 	 	 	%	 	 	 	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Monthly Interest Due
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Outstanding Monthly
Interest Due
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Additional Interest Due
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Interest Due
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Investor Default Amount
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Investor Monthly Fees Due
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Investor Additional
Amounts Due
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Due
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reallocated Investor
Finance Charge Collections
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Interest and Principal
Funding Investment
Proceeds
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Interest on Reserve Account
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Series Adjusted Portfolio
Yield
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	   	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Base Rate
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Excess Spread Percentage
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 
		 	 	 	 	 	 	 	 	 	COLLATERAL	 	 	 	 
	CERTIFICATES - BALANCES AND DISTRIBUTIONS	 	CLASS A	 	 	CLASS B	 	 	INTEREST	 	 	TOTAL	 
	Beginning Certificates
Balance
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Distributions of Interest
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Deposits to the Principal
Funding Account
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Distributions of Principal
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Distributions
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ending Certificates Balance
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

C-1-6

 

	 	 	 	 	 
	APPLICATION OF REALLOCATED INVESTOR FINANCE CHARGE COLLECTIONS
	 	 	 	 
	1. CLASS A AVAILABLE FUNDS
	 	 	 	 
	a. Class A Monthly Interest
	 	$	 	 
	 
	 	 	 	 
	b. Class A Outstanding Monthly Interest
	 	$	 	 
	 
	 	 	 	 
	c. Class A Additional Interest
	 	$	 	 
	 
	 	 	 	 
	d. Class A Investor Default Amount (treated as
Available Principal Collections)
	 	$	 	 
	 
	 	 	 	 
	e. Excess Spread
	 	$	 	 
	 
	 	 	 	 
	2. CLASS B AVAILABLE FUNDS
	 	 	 	 
	a. Class B Monthly Interest
	 	$	 	 
	 
	 	 	 	 
	b. Class B Outstanding Monthly Interest
	 	$	 	 
	 
	 	 	 	 
	c. Class B Additional Interest
	 	$	 	 
	 
	 	 	 	 
	d. Excess Spread
	 	$	 	 
	 
	 	 	 	 
	3. COLLATERAL AVAILABLE FUNDS
	 	 	 	 
	a. Excess Spread
	 	$	 	 
	 
	 	 	 	 
	4. TOTAL EXCESS SPREAD
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	REALLOCATED PRINCIPAL COLLECTIONS
	 	 	 	 
	1. Principal Allocation Percentage
	 	 	 	%
	 
	 	 	 	 
	2. Series 2008-5 Allocable Principal Collections
	 	$	 	 
	 
	 	 	 	 
	3. Principal Allocation Percentage of Series
2008-5 Allocable Principal Collections
	 	$	 	 
	 
	 	 	 	 
	4. Reallocated Principal Collections Required to fund the
Required Amount
	 	$	 	 
	 
	 	 	 	 
	5. Item 3 minus Item 4
	 	$	 	 
	 
	 	 	 	 
	6. Shared Principal Collections from other Series allocated to
Series 2008-5
	 	$	 	 
	 
	 	 	 	 
	7. Other amounts treated as Available Principal Collections
	 	$	 	 
	 
	 	 	 	 
	8. Available Principal Collections (total of items 5, 6 and 7)
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	APPLICATION OF AVAILABLE PRINCIPAL COLLECTIONS DURING REVOLVING PERIOD
	1. Collateral Invested Amount
	 	$	 	 
	 
	 	 	 	 
	2. Required Collateral Invested Amount
	 	$	 	 
	 
	 	 	 	 
	3. Excess of Collateral Invested Amount over Required Collateral
Invested Amount
	 	$	 	 
	 
	 	 	 	 
	4. Treated as Shared Principal Collections
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	APPLICATION OF PRINCIPAL COLLECTIONS DURING ACCUMULATION OR AMORTIZATION PERIOD
	1. Principal Funding Account
	 	$	 	 
	 
	 	 	 	 
	2. Excess of Collateral Invested Amount over Required Collateral
Invested Amount
	 	$	 	 
	 
	 	 	 	 

C-1-7

 

	 	 	 	 	 
	3. Distribution of Principal
	 	$	 	 
	 
	 	 	 	 
	4. Treated as Shared Principal Collections
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	APPLICATION OF EXCESS SPREAD AND EXCESS FINANCE CHARGE COLLECTIONS ALLOCATED TO 
SERIES
2008-5
	1. Excess Spread
	 	$	 	 
	 
	 	 	 	 
	2. Excess Finance Charge Collections
	 	$	 	 
	 
	 	 	 	 
	3. Applied to fund Class A Required Amount
	 	$	 	 
	 
	 	 	 	 
	4. Class A Investor Charge-Offs treated as Available Principal
Collections
	 	$	 	 
	 
	 	 	 	 
	5. Applied to fund overdue Class B Interest
	 	$	 	 
	 
	 	 	 	 
	6. Applied to fund Class B Required Amount
	 	$	 	 
	 
	 	 	 	 
	7. Reduction of Class B Invested Amount treated as Available
Principal Collections
	 	$	 	 
	 
	 	 	 	 
	8. Applied to Collateral Minimum Monthly Interest
	 	$	 	 
	 
	 	 	 	 
	9. Applied to unpaid Monthly Servicing Fee
	 	$	 	 
	 
	 	 	 	 
	10. Collateral Default Amount treated as Available Principal
Collections
	 	$	 	 
	 
	 	 	 	 
	11. Reduction of Collateral Invested Amount treated as Available
Principal Collections
	 	$	 	 
	 
	 	 	 	 
	12. Deposited to Reserve Account
	 	$	 	 
	 
	 	 	 	 
	13. Remaining Excess Spread distributed to Collateral Interest
Holder(s)
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	YIELD AND BASE RATE
	 	 	 	 
	1. Base Rate
	 	 	 	 
	               Current Monthly Period
	 	 	   	%
	 
	 	 	 	 
	               Prior Monthly Period
	 	 	   	%
	 
	 	 	 	 
	               Second Prior Monthly Period
	 	 	   	%
	 
	 	 	 	 
	2. Three Month Average Base Rate
	 	 	     	%
	 
	 	 	 	 
	3. Series Adjusted Portfolio
Yield
	 	 	 	 
	               Current Monthly Period
	 	 	   	%
	 
	 	 	 	 
	               Prior Monthly Period
	 	 	   	%
	 
	 	 	 	 
	               Second Prior Monthly Period
	 	 	 	%
	 
	 	 	 	 
	4. Three Month average
Series Adjusted Portfolio
Yield
	 	 	 	%
	 
	 	 	 	 

C-1-8

 

	 	 	 	 	 
	5. Is the 3 month average
Series Adjusted Portfolio
Yield more than the 3 month
average Base Rate?
	 	[Yes/No]

C-1-9

 

EXHIBIT C-2

FORM OF ANNUAL PAYMENT INFORMATION

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

SERIES 2008-5

FOR THE YEAR ENDED DECEMBER 31, 200[___]

     The undersigned, a duly authorized representative of American Express Travel Related Services
Company, Inc. (“TRS”), as Servicer pursuant to the Pooling and Servicing Agreement, dated as of May
16, 1996, as amended and restated as of January 1, 2006 (as amended and restated and as otherwise
amended and supplemented, the “Pooling and Servicing Agreement”), among TRS, American Express
Receivable Financing Corporation II, American Express Receivable Financing Corporation III LLC and
American Express Receivable Financing Corporation IV LLC, as transferors (together, the
“Transferors”) and The Bank of New York, as trustee (the “Trustee”), does hereby certify as
follows:

     Capitalized terms used in this Certificate have their respective meanings set forth in the
Pooling and Servicing Agreement or the Series 2008-5 Supplement, dated as of June 12, 2008, among
TRS, the Transferors and the Trustee (as amended and supplemented, the “Supplement”), as
applicable.

     Pursuant to Section 5.01 of the Series Supplement, the Servicer instructed the Trustee to pay
in accordance with Section 5.01 from the Interest Funding Account or the Principal Funding Account,
as applicable, the following aggregate amounts during the year ended December 31, 200[_]:

	 	 	 	 	 	 	 
	A)	 	Pursuant to subsection 5.01(a):
	 	 	 	 
	 	 	 
	 	 	 	 
	 	 	Interest distributed to Class A Certificateholders
	 	 $	 	 
	 	 	 
	 	 	 	 
	 	 	 
	 	 	 	 
	B)	 	Pursuant to subsection 5.01(b):
	 	 	 	 
	 	 	 
	 	 	 	 
	 	 	On the Expected Final Payment Date or a Special
Payment Date, if applicable, principal distributed
to the Class A Certificateholders
	 	$	 	 
	 	 	 
	 	 	 	 
	 	 	 
	 	 	 	 
	C)	 	Pursuant to subsection 5.01(c):
	 	 	 	 
	 	 	 
	 	 	 	 
	 	 	Interest distributed to Class B Certificateholders
	 	$	 	 
	 	 	 
	 	 	 	 
	 	 	 
	 	 	 	 
	D)	 	Pursuant to subsection 5.01(d):
	 	 	 	 
	 	 	 
	 	 	 	 
	 	 	On the Expected Final Payment Date or a Special
Payment Date, if applicable, on or after the date
Class A Invested Amount is paid in full, principal
distributed to the Class B Certificateholders
	 	$	 	 
	 	 	 
	 	 	 	 
	 	 	 
	 	 	 	 
	E)	 	Pursuant to subsection 5.01(e):
	 	 	 	 
	 	 	 
	 	 	 	 
	 	 	Aggregate amount distributed to the Collateral
Interest Holder in respect of interest
	 	$	 	 
	 	 	 
	 	 	 	 

C-2-1

 

	 	 	 	 	 	 	 
	Aggregate amount distributed to the Collateral
Interest Holder in respect of principal
	 	$	 	 
	 	 	 
	 	 	 	 

IN WITNESS WHEREOF, the undersigned has duly executed this Certificate this [___] day of January,
200[___].

	 	 	 	 	 
	 	AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY,
INC., 
as Servicer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

C-2-2

 

	 	 	 	 	 

EXHIBIT D

FORM OF MONTHLY SERVICER’S CERTIFICATE

AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC.

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

          The undersigned, a duly authorized representative of American Express Travel Related Services
Company, Inc., as Servicer (“TRS”), pursuant to the Pooling and Servicing Agreement, dated
as of May 16, 1996, as amended and restated as of January 1, 2006 (as amended and restated and as
otherwise amended and supplemented, the “Agreement”), as supplemented by the Series
Supplements (as amended and supplemented, the “Series Supplements”), among TRS, as
Servicer, American Express Receivables Financing Corporation II, American Express Receivables
Financing Corporation III LLC and American Express Receivables Financing Corporation IV LLC, as
Transferors, and The Bank of New York, as Trustee, does hereby certify as follows:

          1. Capitalized terms used in this Certificate have their respective meanings as set forth in
the Agreement or the Series Supplement, as applicable.

          2. TRS is, as of the date hereof, the Servicer under the Agreement.

          3. The undersigned is a Servicing Officer.

          4. This
Certificate relates to the Distribution Date occurring on
                     ___, 200___ and covers
activity from
                    
___, 200___ through                      ___, 200 ___.

          5. As of the date hereof, to the best knowledge of the undersigned, the Servicer has performed
in all material respects all its obligations under the Agreement through the Monthly Period
preceding such Distribution Date [or, if there has been a default in the performance of any such
obligation, set forth in detail the (i) nature of such default, (ii) the action taken by the
Servicer, if any, to remedy such default and (iii) the current status of each such default; if
applicable, insert “None”].

          6. As of the date hereof, to the best knowledge of the undersigned, no Pay Out Event occurred
on or prior to such Distribution Date.

          IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Certificate this ___ day of                     , 20___.

	 	 	 	 	 
	 	AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY,
INC.,

as Servicer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

D-1

 

	 	 	 	 	 

EXHIBIT E

FORM OF INVESTMENT LETTER

[Date]

	 	 	 	 	 
	 

	 	Re:
	 	American Express Credit Account Master Trust; 

Purchases of Series 2008-5 Collateral Interest

Ladies and Gentlemen:

          This letter (the “Investment Letter”) is delivered by the undersigned (the “Purchaser”)
pursuant to Section 9.07 of the Series 2008-5 Supplement, dated as of June 12, 2008 (the “Series
Supplement”) to the Pooling and Servicing Agreement, dated as of May 16, 1996, as amended and
restated as of January 1, 2006 (as amended and restated and as otherwise amended and supplemented,
the “Agreement”), each among The Bank of New York, as Trustee, American Express Receivables
Financing Corporation II, American Express Receivables Financing Corporation III LLC and American
Express Receivables Financing Corporation IV LLC, as Transferors, and American Express Travel
Related Services Company, Inc., as Servicer. Capitalized terms used herein without definition
shall have the meanings set forth in the Agreement. The Purchaser represents to and agrees with
the Transferors as follows:

	 	(a)	 	The Purchaser has such knowledge and experience in financial
and business matters as to be capable of evaluating the merits and risks of its
investment in the Collateral Interest and is able to bear the economic risk of
such investment.
	 
	 	(b)	 	The Purchaser is an “accredited investor,” as defined in Rule
501, promulgated by the Securities and Exchange Commission (the “Commission”)
under the Securities Act of 1933, as amended (the “Securities Act”), or is a
sophisticated institutional investor. The Purchaser understands that the
offering and sale of the Collateral Interest has not been and will not be
registered under the Securities Act and has not and will not be registered or
qualified under any applicable “Blue Sky” law, and that the offering and sale
of the Collateral Interest has not been reviewed by, passed on or submitted to
any federal or state agency or commission, securities exchange or other
regulatory body.
	 
	 	(c)	 	The Purchaser is acquiring an interest in the Collateral
Interest without a view to any distribution, resale or other transfer thereof
except, with respect to any Collateral Interest or any interest or
participation therein, as contemplated in the following sentence. The
Purchaser will not resell or otherwise transfer any interest or participation
in the Collateral Interest, except in accordance with Section 9.07 of the
Series Supplement and (i) in a transaction exempt from the registration
requirements of the Securities Act and applicable state securities or “blue
sky” laws; (ii) to a Transferor or any affiliate of a Transferor; or (iii) to a
person who the Purchaser reasonably believes is a qualified institutional buyer
(within the meaning thereof in Rule 144A under the Securities Act) that is
aware that the resale or other transfer is being made in reliance upon Rule
144A. In connection therewith, the Purchaser hereby agrees that it will not
resell or otherwise transfer the Collateral Interest or any interest therein
unless the purchaser thereof provides to the addressee hereof a letter
substantially in the form hereof.

E-1

 

	 	(d)	 	No portion of the Collateral Interest or any interest therein
may be Transferred, and each Assignee will certify that it is not, (a) an
“employee benefit plan” (as defined in Section 3(3) of ERISA), including
governmental plans and church plans, (b) any “plan” (as defined in Section
4975(e)(1) of the Code) including individual retirement accounts and Keogh
plans, or (c) any other entity whose underlying assets include “plan assets”
(within the meaning of Department of Labor Regulation Section 2510.3-101, 29
C.F.R. § 2510.3-101 or otherwise under ERISA) by reason of a plan’s investment
in the entity, including, without limitation, an insurance company general
account.
	 
	 	(e)	 	This Investment Letter has been duly executed and delivered and
constitutes the legal, valid and binding obligation of the Purchaser,
enforceable against the Purchaser in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws or equitable principles affecting the enforcement of
creditors’ rights generally and general principles of equity.

	 	 	 	 	 
	 	Very truly yours,

[NAME OF PURCHASER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	AGREED TO AS OF THE DATE FIRST ABOVE
WRITTEN:	 	 
	 
	 	 	 	 
	AMERICAN EXPRESS RECEIVABLES FINANCING
CORPORATION II, 

as Transferor	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	AMERICAN EXPRESS RECEIVABLES FINANCING
CORPORATION III LLC, 

as Transferor	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	AMERICAN EXPRESS RECEIVABLES FINANCING
CORPORATION IV LLC, 

as Transferor	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

E-2exv10w1

Exhibit 10.1

THE MEN’S WEARHOUSE, INC.

1996 LONG-TERM INCENTIVE PLAN

(As Amended and Restated

Effective April 1, 2008)

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Section	 
	 
	 	 	 	 
	ARTICLE I — ESTABLISHMENT, PURPOSE AND DURATION
	 	 	 	 
	 
	 	 	 	 
	Establishment
	 	 	1.1	 
	Purpose of the Plan
	 	 	1.2	 
	Duration of Authority to Make Grants Under the Plan
	 	 	1.3	 
	 
	 	 	 	 
	ARTICLE II — DEFINITIONS
	 	 	 	 
	 
	 	 	 	 
	Affiliate
	 	 	2.1	 
	Award
	 	 	2.2	 
	Award Agreement
	 	 	2.3	 
	Board
	 	 	2.4	 
	Cash-Based Award
	 	 	2.5	 
	Code
	 	 	2.6	 
	Committee
	 	 	2.7	 
	Company
	 	 	2.8	 
	Corporate Change
	 	 	2.9	 
	Covered Employee
	 	 	2.10	 
	Deferred Stock Unit
	 	 	2.11	 
	Deferred Stock Unit Award
	 	 	2.12	 
	Disability
	 	 	2.13	 
	Dividend Equivalent
	 	 	2.14	 
	Effective Date
	 	 	2.15	 
	Employee
	 	 	2.16	 
	Exchange Act
	 	 	2.17	 
	Fair Market Value
	 	 	2.18	 
	Fiscal Year
	 	 	2.19	 
	Freestanding SAR
	 	 	2.20	 
	Holder
	 	 	2.21	 
	Incentive Stock Option or ISO
	 	 	2.22	 
	Mature Shares
	 	 	2.23	 
	Minimum Statutory Tax Withholding Obligation
	 	 	2.24	 
	Nonqualified Stock Option or NQSO
	 	 	2.25	 
	Option
	 	 	2.26	 
	Optionee
	 	 	2.27	 
	Option Price
	 	 	2.28	 
	Option Agreement
	 	 	2.29	 
	Other Stock-Based Award
	 	 	2.30	 
	Parent Corporation
	 	 	2.31	 
	Performance-Based Award
	 	 	2.32	 
	Performance-Based Compensation
	 	 	2.33	 
	Performance Goals
	 	 	2.34	 
	Performance Period
	 	 	2.35	 
	Performance Stock Award
	 	 	2.36	 
	Performance Unit Award
	 	 	2.37	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Section	 
	 
	 	 	 	 
	Period of Restriction
	 	 	2.38	 
	Plan
	 	 	2.39	 
	Restricted Stock
	 	 	2.40	 
	Restricted Stock Award
	 	 	2.41	 
	Retirement
	 	 	2.42	 
	Section 409A
	 	 	2.43	 
	Stock Appreciation Right or SAR
	 	 	2.44	 
	Stock
	 	 	2.45	 
	Subsidiary Corporation
	 	 	2.46	 
	Substantial Risk of Forfeiture
	 	 	2.47	 
	Tandem SAR
	 	 	2.48	 
	Ten Percent Stockholder
	 	 	2.49	 
	Termination of Employment
	 	 	2.50	 
	TMW Group
	 	 	2.51	 
	 
	 	 	 	 
	ARTICLE III — ELIGIBILITY AND PARTICIPATION
	 	 	 	 
	 
	 	 	 	 
	Eligibility
	 	 	3.1	 
	Participation
	 	 	3.2	 
	 
	 	 	 	 
	ARTICLE IV — GENERAL PROVISIONS RELATING TO AWARDS
	 	 	 	 
	 
	 	 	 	 
	Authority to Grant Awards
	 	 	4.1	 
	Dedicated Shares; Maximum Awards
	 	 	4.2	 
	Shares That Count Against Limit
	 	 	4.3	 
	Non-Transferability
	 	 	4.4	 
	Requirements of Law
	 	 	4.5	 
	Changes in the Company’s Capital Structure
	 	 	4.6	 
	Election Under Section 83(b) of the Code
	 	 	4.7	 
	Forfeiture for Cause
	 	 	4.8	 
	Forfeiture Events
	 	 	4.9	 
	Award Agreements
	 	 	4.10	 
	Amendment of Award Agreements
	 	 	4.11	 
	Rights as Stockholder
	 	 	4.12	 
	Issuance of Shares of Stock
	 	 	4.13	 
	Restrictions on Stock Received
	 	 	4.14	 
	Compliance With Section 409A
	 	 	4.15	 
	Source of Shares Deliverable Under Awards
	 	 	4.16	 
	 
	 	 	 	 
	ARTICLE V — OPTIONS
	 	 	 	 
	 
	 	 	 	 
	Authority to Grant Options
	 	 	5.1	 
	Type of Options Available
	 	 	5.2	 
	Option Agreement
	 	 	5.3	 
	Option Price
	 	 	5.4	 
	Duration of Options
	 	 	5.5	 

-ii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Section	 
	 
	 	 	 	 
	Amount Exercisable
	 	 	5.6	 
	Exercise of Options
	 	 	5.7	 
	Transferability of Options
	 	 	5.8	 
	Notification of Disqualifying Disposition
	 	 	5.9	 
	No Rights as Stockholder
	 	 	5.10	 
	$100,000 Limitation on Incentive Stock Options
	 	 	5.11	 
	 
	 	 	 	 
	ARTICLE VI — STOCK APPRECIATION RIGHTS
	 	 	 	 
	 
	 	 	 	 
	Authority to Grant Stock Appreciation Rights Awards
	 	 	6.1	 
	Type of Stock Appreciation Rights Available
	 	 	6.2	 
	General Terms
	 	 	6.3	 
	Stock Appreciation Right Agreement
	 	 	6.4	 
	Term of Stock Appreciation Rights
	 	 	6.5	 
	Exercise of Freestanding SARs
	 	 	6.6	 
	Exercise of Tandem SARs
	 	 	6.7	 
	Payment of SAR Amount
	 	 	6.8	 
	Termination of Employment
	 	 	6.9	 
	Nontransferability of SARs
	 	 	6.10	 
	No Rights as Stockholder
	 	 	6.11	 
	Restrictions on Stock Received
	 	 	6.12	 
	 
	 	 	 	 
	ARTICLE VII — RESTRICTED STOCK AWARDS
	 	 	 	 
	 
	 	 	 	 
	Restricted Stock Awards
	 	 	7.1	 
	Restricted Stock Award Agreement
	 	 	7.2	 
	Holder’s Rights as Stockholder
	 	 	7.3	 
	 
	 	 	 	 
	ARTICLE VIII — DEFERRED STOCK UNIT AWARDS
	 	 	 	 
	 
	 	 	 	 
	Authority to Grant Deferred Stock Unit Awards
	 	 	8.1	 
	Deferred Stock Unit Awards
	 	 	8.2	 
	Deferred Stock Unit Award Agreement
	 	 	8.3	 
	Dividend Equivalents
	 	 	8.4	 
	Form of Payment Under Deferred Stock Unit Award
	 	 	8.5	 
	Time of Payment Under Deferred Stock Unit Award
	 	 	8.6	 
	Holder’s Rights as Stockholder
	 	 	8.7	 
	 
	 	 	 	 
	ARTICLE IX — PERFORMANCE STOCK AND PERFORMANCE UNIT AWARDS
	 	 	 	 
	 
	 	 	 	 
	Authority to Grant Performance Stock and Performance Unit Awards
	 	 	9.1	 
	Time of Payment Under Performance Unit Award
	 	 	9.2	 
	Holder’s Rights as Stockholder With Respect to a Performance Stock Award
	 	 	9.3	 
	Increases Prohibited
	 	 	9.4	 
	Stockholder Approval
	 	 	9.5	 
	Dividend Equivalents
	 	 	9.6	 

-iii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Section	 
	 
	 	 	 	 
	ARTICLE X — CASH-BASED AWARDS AND OTHER STOCK-BASED AWARDS
	 	 	 	 
	 
	 	 	 	 
	Authority to Grant Cash-Based Awards
	 	 	10.1	 
	Authority to Grant Other Stock-Based Awards
	 	 	10.2	 
	Value of Cash-Based Awards and Other Stock-Based Awards
	 	 	10.3	 
	Payment of Cash-Based Awards and Other Stock-Based Awards
	 	 	10.4	 
	Termination of Employment
	 	 	10.5	 
	Nontransferability
	 	 	10.6	 
	 
	 	 	 	 
	ARTICLE XI — SUBSTITUTION AWARDS
	 	 	 	 
	 
	 	 	 	 
	ARTICLE XII — ADMINISTRATION
	 	 	 	 
	 
	 	 	 	 
	Awards
	 	 	12.1	 
	Authority of the Committee
	 	 	12.2	 
	Decisions Binding
	 	 	12.3	 
	No Liability
	 	 	12.4	 
	 
	 	 	 	 
	ARTICLE XIII — AMENDMENT OR TERMINATION OF PLAN
	 	 	 	 
	 
	 	 	 	 
	Amendment, Modification, Suspension, and Termination
	 	 	13.1	 
	Awards Previously Granted
	 	 	13.2	 
	 
	 	 	 	 
	ARTICLE XIV — MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	Unfunded Plan/No Establishment of a Trust Fund
	 	 	14.1	 
	No Employment Obligation
	 	 	14.2	 
	Tax Withholding
	 	 	14.3	 
	Written Agreement
	 	 	14.4	 
	Indemnification of the Committee
	 	 	14.5	 
	Gender and Number
	 	 	14.6	 
	Severability
	 	 	14.7	 
	Headings
	 	 	14.8	 
	Other Compensation Plans
	 	 	14.9	 
	Other Awards
	 	 	14.10	 
	Successors
	 	 	14.11	 
	Law Limitations/Governmental Approvals
	 	 	14.12	 
	Delivery of Title
	 	 	14.13	 
	Inability to Obtain Authority
	 	 	14.14	 
	Investment Representations
	 	 	14.15	 
	Persons Residing Outside of the United States
	 	 	14.16	 
	No Fractional Shares
	 	 	14.17	 
	Arbitration of Disputes
	 	 	14.18	 
	Governing Law
	 	 	14.19	 

-iv-

 

THE MEN’S WEARHOUSE, INC.

1996 LONG-TERM INCENTIVE PLAN

(As Amended and Restated Effective April 1, 2008)

WITNESSETH:

     WHEREAS, effective March 29, 2004, The Men’s Wearhouse, Inc. (the “Company”) amended and
restated The Men’s Wearhouse, Inc. 1996 Long-Term Incentive Plan (the “Plan”) for the benefit of
key employees of the Company and affiliates of the Company;

     WHEREAS, the Company desires to restate the limitations set forth in the Plan on the number of
shares of stock available for awards granted or paid in shares of stock to reflect the
three-for-two stock split effected by the Company through the payment of a 50 percent stock
dividend to shareholders of record as of May 31, 2005; and

     WHEREAS, the Company desires to amend and restate the Plan on behalf of itself and on behalf
of the other adopting entities;

     NOW THEREFORE, the Plan is hereby amended and restated in its entirety as follows, effective
as of April 1, 2008, except insofar as an earlier effective date is expressly specified.

 

 

ARTICLE I

ESTABLISHMENT, PURPOSE AND DURATION

     1.1 Establishment. The Company hereby amends and restates in its entirety as set forth in
this document the Company’s incentive compensation plan originally named “The Men’s Wearhouse, Inc.
1996 Stock Option Plan,” which was subsequently renamed “The Men’s Wearhouse, Inc. 1996 Long-Term
Incentive Plan.” The Plan, as amended and restated, permits the grant of Options (both Incentive
Stock Options and Nonqualified Stock Options), Stock Appreciation Rights, Restricted Stock,
Deferred Stock Units, Performance Stock Awards, Performance Units, Cash-Based Awards, and Other
Stock-Based Awards. The amendment and restatement of the Plan became effective on March 29, 2004,
the date the amendment and restatement of the Plan was approved by the Board, which date was within
one year of the date the amendment and restatement of the Plan was approved by the holders of at
least a majority of the outstanding shares of voting stock of the Company at a meeting of the
stockholders of the Company (the “Effective Date”), and shall remain in effect as provided in
Section 1.3.

     1.2 Purpose of the Plan. The purpose of the Plan is to reward certain corporate officers and
other employees of the Company and its Affiliates (collectively, the “TMW Group”) by enabling them
to acquire shares of common stock of the Company and to receive other compensation based on the
increase in value of the common stock of the Company or certain other performance measures. The
Plan is intended to advance the best interests of the Company, its Affiliates and its stockholders
by providing those persons who have substantial responsibility for the management and growth of the
TMW Group with additional performance incentives and an opportunity to obtain or increase their
proprietary interest in the Company, thereby encouraging them to continue in their employment with
the TMW Group.

     1.3 Duration of Authority to Make Grants Under the Plan. The Plan shall continue indefinitely
until it is terminated pursuant to Section 13.1. No Awards may be granted under the Plan on or
after the tenth anniversary of the Effective Date. The applicable provisions of the Plan will
continue in effect with respect to an Award granted under the Plan for as long as such Award
remains outstanding.

 

 

ARTICLE II

DEFINITIONS

     The words and phrases defined in this Article shall have the meaning set out below throughout
the Plan, unless the context in which any such word or phrase appears reasonably requires a
broader, narrower or different meaning.

     2.1 “Affiliate” means any corporation, partnership, limited liability company or association,
trust or other entity or organization which, directly or indirectly, controls, is controlled by, or
is under common control with, the Company. For purposes of the preceding sentence, “control”
(including, with correlative meanings, the terms “controlled by” and “under common control with”),
as used with respect to any entity or organization, shall mean the possession, directly or
indirectly, of the power (a) to vote more than 50 percent (50%) of the securities having ordinary
voting power for the election of directors of the controlled entity or organization, or (ii) to
direct or cause the direction of the management and policies of the controlled entity or
organization, whether through the ownership of voting securities or by contract or otherwise.

     2.2 “Award” means, individually or collectively, a grant under the Plan of Incentive Stock
Options, Nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock, Deferred Stock
Units, Performance Stock Awards, Performance Units, Cash-Based Awards, and Other Stock-Based
Awards, in each case subject to the terms and provisions of the Plan.

     2.3 “Award Agreement” means an agreement that sets forth the terms and conditions applicable
to an Award granted under the Plan.

     2.4 “Board” means the board of directors of the Company.

     2.5 “Cash-Based Award” means an Award granted to a Holder pursuant to Article X.

     2.6 “Code” means the United States Internal Revenue Code of 1986, as amended from time to
time.

     2.7 “Committee” means a committee of at least two persons, who are members of the Compensation
Committee of the Board and are appointed by the Compensation Committee of the Board, or, to the
extent it chooses to operate as the Committee, the Compensation Committee of the Board. Each
member of the Committee in respect of his or her participation in any decision with respect to an
Award that is intended to satisfy the requirements of section 162(m) of the Code must satisfy the
requirements of “outside director” status within the meaning of section 162(m) of the Code;
provided, however, that the failure to satisfy such requirement shall not affect the validity of
the action of any committee otherwise duly authorized and acting in the matter. As to Awards,
grants or other transactions that are authorized by the Committee and that are intended to be
exempt under Rule 16b-3, the requirements of Rule 16b-3(d)(1) with respect to committee action must
also be satisfied.

     2.8 “Company” means The Men’s Wearhouse, Inc., a Texas corporation, or any successor (by
reincorporation, merger or otherwise).

II-1

 

     2.9 “Corporate Change” shall have the meaning ascribed to that term in Section 4.6(c).

     2.10 “Covered Employee” means a Holder who is a “covered employee,” as defined in section
162(m) of the Code and the regulations promulgated thereunder, or any successor statute.

     2.11 “Deferred Stock Unit” means a unit credited to a Holder’s ledger account maintained by
the Company pursuant to Article VIII.

     2.12 “Deferred Stock Unit Award” means an Award granted pursuant to Article VIII.

     2.13 “Disability” means, effective for awards issued under the Plan that are earned and vested
on or after January 1, 2005, as determined by the Committee in its discretion exercised in good
faith, (a) in the case of an Award that is exempt from the application of the requirements of
Section 409A, a physical or mental condition of the Holder that would entitle him to payment of
disability income payments under the Company’s long-term disability insurance policy or plan for
employees as then in effect; or in the event that the Holder is not covered, for whatever reason,
under the Company’s long-term disability insurance policy or plan for employees or in the event the
Company does not maintain such a long-term disability insurance policy, “Disability” means a
permanent and total disability as defined in section 22(e)(3) of the Code and (b) in the case of an
Award that is not exempt from the application of the requirements of Section 409A, (i) the Holder
is unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months, or (ii) the Holder is, by reason of any
medically determinable physical or mental impairment that can be expected to result in death or can
be expected to last for a continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than three months under an accident and health plan
covering employees of the Company. A determination of Disability may be made by a physician
selected or approved by the Committee and, in this respect, the Holder shall submit to an
examination by such physician upon request by the Committee.

     2.14 Dividend Equivalent” means a payment equivalent in amount to dividends paid to the
Company’s stockholders.

     2.15 “Effective Date” shall have the meaning ascribed to that term in Section 1.1.

     2.16 “Employee” means (a) a person employed by the Company or any Affiliate as a common law
employee or (b) a person who has agreed to become a common law employee of the Company or any
Affiliate and is expected to become such within six (6) months from the date of a determination
made for purposes of the Plan.

     2.17 “Exchange Act” means the United States Securities Exchange Act of 1934, as amended from
time to time.

     2.18 “Fair Market Value” of the Stock as of any particular date means,

     (a) if the Stock is traded on a stock exchange,

II-2

 

     (i) and if the Stock is traded on that date, the closing sale price of the
Stock on that date; or

     (ii) and if the Stock is not traded on that date, the closing sale price of the
Stock on the last trading date immediately preceding that date;

as reported on the principal securities exchange on which the Stock is traded; or

     (b) if the Stock is traded in the over-the-counter market,

     (i) and if the Stock is traded on that date, the average between the high bid
and low asked price on that date; or

     (ii) and if the Stock is not traded on that date, the average between the high
bid and low asked price on the last trading date immediately preceding that date;

as reported in such over-the-counter market; provided, however, that (x) if the Stock is not
so traded, or (y) if, in the discretion of the Committee, another means of determining the
fair market value of a share of Stock at such date shall be necessary or advisable, the
Committee may provide for another means for determining such fair market value that complies
with the requirements of Section 409A.

     2.19 “Fiscal Year” means the Company’s fiscal year.

     2.20 “Freestanding SAR” means a SAR that is granted pursuant to Article VI independently of
any Option.

     2.21 “Holder” means a person who has been granted an Award or any person who is entitled to
receive shares of Stock (and/or cash in the case of a Stock Appreciation Right) under an Award.

     2.22 “Incentive Stock Option” or “ISO” means an option which is intended, as evidenced by its
designation, as an incentive stock option within the meaning of section 422 of the Code, the award
of which contains such provisions (including but not limited to the receipt of stockholder approval
of the Plan, if the Award is made prior to such approval) and is made under such circumstances and
to such persons as may be necessary to comply with that section.

     2.23 “Mature Shares” means shares of Stock that the Holder has held for at least six months.

     2.24 “Minimum Statutory Tax Withholding Obligation” means, with respect to an Award, the
amount the Company or an Affiliate is required to withhold for federal, state and local taxes based
upon the applicable minimum statutory withholding rates required by the relevant tax authorities.

     2.25 “Nonqualified Stock Option” or “NQSO” means an Option that is designated as a
nonqualified stock option. Any Option granted hereunder that is not designated as an incentive

II-3

 

stock option shall be deemed to be designated a nonqualified stock option under the Plan and not an
incentive stock option under the Code.

     2.26 “Option” means an Incentive Stock Option or a Nonqualified Stock Option granted pursuant
to Article V.

     2.27 “Optionee” means a person who is granted an Option under the Plan.

     2.28 “Option Price” shall have the meaning ascribed to that term in Section 5.4.

     2.29 “Option Agreement” means a written contract setting forth the terms and conditions of an
Option.

     2.30 “Other Stock-Based Award” means an equity-based or equity-related Award not otherwise
described by the terms and provisions of the Plan that is granted pursuant to Article X.

     2.31 “Parent Corporation” means any corporation (other than the Company) in an unbroken chain
of corporations ending with the Company if, at the time of the action or transaction, each of the
corporations other than the Company owns stock possessing 50 percent or more of the total combined
voting power of all classes of stock in one of the other corporations in the chain.

     2.32 “Performance-Based Award” means a Performance Stock Award, a Performance Unit, or a
Cash-Based Award granted to a Holder under which the fulfillment of performance goals determines
the degree of payout or vesting.

     2.33 “Performance-Based Compensation” means compensation under an Award that satisfies the
requirements of section 162(m) of the Code for deductibility of remuneration paid to Covered
Employees.

     2.34 “Performance Goals” means one or more of the criteria described in Article IX on which
the performance goals applicable to an Award are based.

     2.35 “Performance Period” means the period of time during which the performance goals
applicable to a Performance-Based Award must be met.

     2.36 “Performance Stock Award” means an Award designated as a performance stock award granted
to a Holder pursuant to Article IX.

     2.37 “Performance Unit Award” means an Award designated as a performance unit award granted to
a Holder pursuant to Article IX.

     2.38 “Period of Restriction” means the period during which Restricted Stock is subject to a
substantial risk of forfeiture (based on the passage of time, the achievement of Performance Goals,
or upon the occurrence of other events as determined by the Committee, in its discretion), as
provided in Article VII.

II-4

 

     2.39 “Plan” means The Men’s Wearhouse, Inc. 1996 Long-Term Incentive Plan, as set forth in
this document and as it may be amended from time to time.

     2.40 “Restricted Stock” means shares of restricted Stock issued or granted under the Plan
pursuant to Article VII.

     2.41 “Restricted Stock Award” means an authorization by the Committee to issue or transfer
Restricted Stock to a Holder.

     2.42 “Retirement” means retirement in accordance with the terms of a retirement plan that is
qualified under section 401(a) of the Code and maintained by the Company or an Affiliate in which
the Holder is a participant.

     2.43 “Section 409A” means section 409A of the Code and Department of Treasury rules and
regulations issued thereunder.

     2.44 “Stock Appreciation Right” or “SAR” means any stock appreciation right granted pursuant
to Article VI of the Plan.

     2.45 “Stock” means the common stock of the Company, $.01 par value per share (or such other
par value as may be designated by act of the Company’s stockholders).

     2.46 “Subsidiary Corporation” means any corporation (other than the Company) in an unbroken
chain of corporations beginning with the Company if, at the time of the action or transaction, each
of the corporations other than the last corporation in an unbroken chain owns stock possessing 50
percent or more of the total combined voting power of all classes of stock in one of the other
corporations in the chain.

     2.47 “Substantial Risk of Forfeiture” shall have the meaning ascribed to that term in Section
409A.

     2.48 “Tandem SAR” means a SAR that is granted in connection with a related Option pursuant to
Article VI, the exercise of which shall require forfeiture of the right to purchase a share of the
Stock under the related Option (and when a share of the Stock is purchased under the Option, the
Tandem SAR shall similarly be canceled).

     2.49 “Ten Percent Stockholder” means an individual who, at the time the Option is granted,
owns stock possessing more than ten percent (10%) of the total combined voting power of all classes
of stock or series of the Company or of any Parent Corporation or Subsidiary Corporation. An
individual shall be considered as owning the stock owned, directly or indirectly, by or for his brothers and sisters (whether by the whole or half blood), spouse,
ancestors and lineal descendants; and stock owned, directly or indirectly, by or for a corporation,
partnership, estate or trust, shall be considered as being owned proportionately by or for its
stockholders, partners or beneficiaries.

     2.50 “Termination of Employment” means, in the case of an Award other than an Incentive Stock
Option, the termination of the Award recipient’s employment relationship with the Company and all
Affiliates. “Termination of Employment” means, in the case of an Incentive

II-5

 

Stock Option, the termination of the Optionee’s employment relationship with all of the Company, any Parent
Corporation, any Subsidiary Corporation and any parent or subsidiary corporation (within the
meaning of section 422(a)(2) of the Code) of any such corporation that issues or assumes an
Incentive Stock Option in a transaction to which section 424(a) of the Code applies.

     2.51 “TMW Group” shall have the meaning ascribed to that term in Section 1.2.

II-6

 

ARTICLE III

ELIGIBILITY AND PARTICIPATION

     3.1 Eligibility. The persons who are eligible to receive Awards under the Plan are key
Employees who have substantial responsibility for or involvement with the management and growth of
one or more members of the TMW Group; provided that George Zimmer and James Zimmer shall not be
eligible to participate in the Plan. However, only those persons who are, on the dates of grant,
key employees of the Company or any Parent Corporation or Subsidiary Corporation are eligible for
grants of Incentive Stock Options under the Plan.

     3.2 Participation. Subject to the terms and provisions of the Plan, the Committee may, from
time to time, select from all eligible Employees those persons to whom Awards shall be granted and
shall determine the nature and amount of each Award.

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ARTICLE IV

GENERAL PROVISIONS RELATING TO AWARDS

     4.1 Authority to Grant Awards. The Committee may grant Awards to those key Employees as the
Committee shall from time to time determine, under the terms and conditions of the Plan. Subject
only to any applicable limitations set out in the Plan, the number of shares of Stock or other
value to be covered by any Award to be granted under the Plan shall be as determined by the
Committee in its sole discretion.

     4.2 Dedicated Shares; Maximum Awards. The aggregate number of shares of Stock with respect to
which Awards may be granted under the Plan is 2,775,000. The aggregate number of shares of Stock
with respect to which Incentive Stock Options may be granted under the Plan is 2,775,000. The
aggregate number of shares of Stock with respect to which Nonqualified Stock Options may be granted
under the Plan is 2,775,000. The aggregate number of shares of Stock with respect to which Stock
Appreciation Rights may be granted under the Plan is 2,775,000. The aggregate number of shares of
Stock with respect to which Restricted Stock Awards may be granted under the Plan is 1,387,500 The
aggregate number of shares of Stock with respect to which Performance Stock Awards may be granted
under the Plan is 1,387,500. The maximum number of shares of Stock with respect to which Incentive
Stock Options may be granted to an Employee during a Fiscal Year is 900,000. The maximum number of
shares of Stock with respect to which Nonqualified Stock Options may be granted to an Employee or
Director during a Fiscal Year is 900,000. The maximum number of shares of Stock with respect to
which Stock Appreciation Rights may be granted to an Employee or Director during a Fiscal Year is
900,000. The maximum number of shares of Stock with respect to which Restricted Stock Awards may
be granted to an Employee or Director during a Fiscal Year is 675,000. The maximum amount with
respect to which Deferred Stock Unit Awards may be granted to an Employee or Director during a
Fiscal Year may not exceed in value the Fair Market Value of 675,000 shares of Stock determined as
of the date of grant. The maximum number of shares of Stock with respect to which Performance
Stock Awards may be granted to an Employee or Director during a Fiscal Year is 675,000. The
maximum number of shares of Stock with respect to which Performance Unit Awards may be granted to
an Employee or Director during a Fiscal Year is 675,000. The maximum number of shares of Stock
with respect to which Other Stock-Based Awards may be granted to an Employee during a Fiscal Year
is 675,000. The maximum aggregate amount with respect to which Cash-Based Awards may be awarded or
credited to an Employee or Director during a Fiscal Year may not exceed in value $3,000,000
determined as of the date of grant. The maximum aggregate amount with respect to which Performance
Unit Awards may be awarded or credited to an Employee or Director during a Fiscal Year may not
exceed in value $3,000,000 determined as of the date of grant. Each of the foregoing numerical
limits stated in this Section 4.2 shall be subject to adjustment in accordance with the provisions
of Section 4.6. The number of shares of Stock stated in this Section 4.2 shall also be increased
by such number of shares of Stock as become subject to substitute Awards granted pursuant to
Article XI; provided, however, that such increase shall be conditioned upon the approval of the
stockholders of the Company to the extent stockholder approval is required by law or applicable
stock exchange rules.

IV-1

 

     4.3 Shares That Count Against Limit.

     (a) If any outstanding Award expires or terminates for any reason, is settled in cash
in lieu of shares of Stock or any Award is surrendered, the shares of Stock allocable to the
unexercised portion of that Award may again be subject to an Award granted under the Plan.

     (b) If shares of Stock are withheld from payment of an Award to satisfy tax obligations
with respect to the Award, such shares of Stock will not count against the aggregate number
of shares of Stock with respect to which Awards may be granted under the Plan. If a Stock
Appreciation Right is exercised, only the number of shares of Stock actually issued shall be
charged against the maximum number of shares of Stock that may be delivered pursuant to
Awards under the Plan.

     4.4 Non-Transferability. Except as specified in the applicable Award Agreement or in a
domestic relations court order, an Award shall not be transferable by the Holder (whether for
consideration or otherwise) other than by will or under the laws of descent and distribution, and
shall be exercisable, during the Holder’s lifetime, only by him or her. Any attempted assignment
of an Award in violation of this Section 4.4 shall be null and void. In the discretion of the
Committee, any attempt to transfer an Award other than under the terms of the Plan and the
applicable Award Agreement may terminate the Award. No ISO granted under the Plan may be sold,
transferred, pledged, assigned or otherwise alienated or hypothecated, other than by will or by the
laws of descent and distribution. Further, all ISOs granted to an Employee under the Plan shall be
exercisable during his or her lifetime only by the Employee, and after that time, by the Employee’s
heirs or estate.

     4.5 Requirements of Law. The Company shall not be required to sell or issue any shares of
Stock under any Award if issuing those shares of Stock would constitute or result in a violation by
the Holder or the Company of any provision of any law, statute or regulation of any governmental
authority. Specifically, in connection with any applicable statute or regulation relating to the
registration of securities, upon exercise of any Option or pursuant to any other Award, the Company
shall not be required to issue any shares of Stock unless the Committee has received evidence
satisfactory to it to the effect that the Holder will not transfer the shares of Stock except in
accordance with applicable law, including receipt of an opinion of counsel satisfactory to the
Company to the effect that any proposed transfer complies with applicable law. The determination
by the Committee on this matter shall be final, binding and conclusive. The Company may, but shall
in no event be obligated to, register any shares of Stock covered by the Plan pursuant to
applicable securities laws of any country or any political subdivision. In the event the shares of
Stock issuable on exercise of an Option or pursuant to any other Award are not registered, the
Company may imprint on the certificate evidencing the shares of Stock any legend that counsel for
the Company considers necessary or advisable to comply with applicable law, or, should the shares
of Stock be represented by book or electronic entry rather than a certificate, the Company may take
such steps to restrict transfer of the shares of Stock as counsel for the Company considers
necessary or advisable to comply with applicable law. The Company shall not be obligated to take
any other affirmative action in order to cause or enable the exercise of an Option or any other
Award, or the issuance of shares of Stock pursuant thereto, to comply with any law or regulation of
any governmental authority.

IV-2

 

     4.6 Changes in the Company’s Capital Structure.

     (a) The existence of outstanding Awards shall not affect in any way the right or power
of the Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company’s capital structure or
its business, any merger or consolidation of the Company, any issue of bonds, debentures,
preferred or prior preference shares ahead of or affecting the Stock or Stock rights, the
dissolution or liquidation of the Company, any sale or transfer of all or any part of its
assets or business or any other corporate act or proceeding, whether of a similar character
or otherwise.

     (b) If the Company shall effect a subdivision or consolidation of Stock or other
capital readjustment, the payment of a Stock dividend, or other increase or reduction of the
number of shares of Stock outstanding, without receiving compensation therefor in money,
services or property, then (1) the number, class or series and per share price of Stock
subject to outstanding Options or other Awards under the Plan shall be appropriately
adjusted (subject to the restriction in Section 4.11 prohibiting repricing) in such a manner
as to entitle a Holder to receive upon exercise of an Option or other Award, for the same
aggregate cash consideration, the equivalent total number and class or series of Stock the
Holder would have received had the Holder exercised his or her Option or other Award in full
immediately prior to the event requiring the adjustment, and (2) the number and class or
series of Stock then reserved to be issued under the Plan shall be adjusted by substituting
for the total number and class or series of Stock then reserved, that number and class or
series of Stock that would have been received by the owner of an equal number of outstanding shares of Stock of each class or series of Stock as the result of the event requiring the
adjustment.

     (c) If while unexercised Options or other Awards remain outstanding under the Plan (1)
the Company shall not be the surviving entity in any merger, consolidation or other
reorganization (or survives only as a subsidiary of an entity other than an entity that was
wholly-owned by the Company immediately prior to such merger, consolidation or other
reorganization), (2) the Company sells, leases or exchanges or agrees to sell, lease or
exchange all or substantially all of its assets to any other person or entity (other than an
entity wholly-owned by the Company), (3) the Company is to be dissolved or (4) the Company
is a party to any other corporate transaction (as defined under section 424(a) of the Code
and applicable Department of Treasury regulations) that is not described in clauses (1), (2)
or (3) of this sentence (each such event is referred to herein as a “Corporate Change”),
then, except as otherwise provided in an Award Agreement or another agreement between the
Holder and the Company (provided that such exceptions shall not apply in the case of a
reincorporation merger), or as a result of the Committee’s effectuation of one or more of
the alternatives described below, there shall be no acceleration of the time at which any
Award then outstanding may be exercised, and no later than ten days after the approval by
the stockholders of the Company of such Corporate Change, the Committee, acting in its sole
and absolute discretion without the consent or approval of any Holder, shall act to effect
one or more of the following alternatives, which may vary among individual Holders and which
may vary among Awards held by any individual Holder (provided that, with respect to a
reincorporation

IV-3

 

merger in which Holders of the Company’s ordinary shares will receive one ordinary
share of the successor corporation for each ordinary share of the Company, none of such
alternatives shall apply and, without Committee action, each Award shall automatically
convert into a similar award of the successor corporation exercisable for the same number of
ordinary shares of the successor as the Award was exercisable for ordinary shares of Stock
of the Company):

     (1) accelerate the time at which some or all of the Awards then
outstanding may be exercised so that such Awards may be exercised in full
for a limited period of time on or before a specified date (before or after
such Corporate Change) fixed by the Committee, after which specified date
all such Awards that remain unexercised and all rights of Holders thereunder
shall terminate;

     (2) require the mandatory surrender to the Company by all or selected
Holders of some or all of the then outstanding Awards held by such Holders
(irrespective of whether such Awards are then exercisable under the
provisions of the Plan or the applicable Award Agreement evidencing such
Award) as of a date, before or after such Corporate Change, specified by the
Committee, in which event the Committee shall thereupon cancel such Award
and the Company shall pay to each such Holder an amount of cash per share
equal to the excess, if any, of the per share price offered to stockholders
of the Company in connection with such Corporate Change over the exercise
prices under such Award for such shares;

     (3) with respect to all or selected Holders, have some or all of their
then outstanding Awards (whether vested or unvested) assumed or have a new
award of a similar nature substituted for some or all of their then
outstanding Awards under the Plan (whether vested or unvested) by an entity
which is a party to the transaction resulting in such Corporate Change and
which is then employing such Holder or which is affiliated or associated
with such Holder in the same or a substantially similar manner as the
Company prior to the Corporate Change, or a parent or subsidiary of such
entity, provided that (A) such assumption or substitution is on a basis
where the excess of the aggregate fair market value of the Stock subject to
the Award immediately after the assumption or substitution over the
aggregate exercise price of such Stock is equal to the excess of the
aggregate fair market value of all Stock subject to the Award immediately
before such assumption or substitution over the aggregate exercise price of
such Stock, and (B) the assumed rights under such existing Award or the
substituted rights under such new Award, as the case may be, will have the
same terms and conditions as the rights under the existing Award assumed or
substituted for, as the case may be;

     (4) provide that the number and class or series of Stock covered by an
Award (whether vested or unvested) theretofore granted

IV-4

 

shall be adjusted so that such Award when exercised shall thereafter
cover the number and class or series of Stock or other securities or
property (including, without limitation, cash) to which the Holder would
have been entitled pursuant to the terms of the agreement or plan relating
to such Corporate Change if, immediately prior to such Corporate Change, the
Holder had been the holder of record of the number of shares of Stock then
covered by such Award; or

     (5) make such adjustments to Awards then outstanding as the Committee
deems appropriate to reflect such Corporate Change (provided, however, that
the Committee may determine in its sole and absolute discretion that no such
adjustment is necessary).

     In effecting one or more of the alternatives set out in paragraphs (3), (4) or (5)
immediately above, and except as otherwise may be provided in an Award Agreement, the
Committee, in its sole and absolute discretion and without the consent or approval of any
Holder, may accelerate the time at which some or all Awards then outstanding may be
exercised.

     (d) In the event of changes in the outstanding Stock by reason of recapitalizations,
reorganizations, mergers, consolidations, combinations, exchanges or other relevant changes
in capitalization occurring after the date of the grant of any Award and not otherwise
provided for by this Section 4.6, any outstanding Award and any Award Agreement evidencing
such Award shall be subject to adjustment by the Committee in its sole and absolute
discretion as to the number and price of Stock or other consideration subject to such Award.
In the event of any such change in the outstanding Stock, the aggregate number of shares of
Stock available under the Plan may be appropriately adjusted by the Committee, whose
determination shall be conclusive.

     (e) After a merger of one or more corporations into the Company or after a
consolidation of the Company and one or more corporations in which the Company shall be the
surviving corporation, each Holder shall be entitled to have his Restricted Stock
appropriately adjusted based on the manner in which the shares of Stock were adjusted under
the terms of the agreement of merger or consolidation.

     (f) The issuance by the Company of stock of any class or series, or securities
convertible into, or exchangeable for, stock of any class or series, for cash or property,
or for labor or services either upon direct sale or upon the exercise of rights or warrants
to subscribe for them, or upon conversion or exchange of stock or obligations of the Company
convertible into, or exchangeable for, stock or other securities, shall not affect, and no
adjustment by reason of such issuance shall be made with respect to, the number, class or
series, or price of shares of Stock then subject to outstanding Options or other Awards.

     4.7 Election Under Section 83(b) of the Code. No Holder shall exercise the election permitted
under section 83(b) of the Code with respect to any Award without the prior written approval of the
Chief Financial Officer of the Company. Any Holder who makes an election

IV-5

 

under section 83(b) of the Code with respect to any Award without the prior written approval
of the Chief Financial Officer of the Company may, in the discretion of the Committee, forfeit any
or all Awards granted to him or her under the Plan.

     4.8 Forfeiture for Cause. Notwithstanding any other provision of the Plan or an Award
Agreement, if the Committee finds by a majority vote that a Holder, before or after his Termination
of Employment (a) committed a fraud, embezzlement, theft, felony or an act of dishonesty in the
course of his employment by the Company or an Affiliate which conduct damaged the Company or an
Affiliate, (b) disclosed trade secrets of the Company or an Affiliate, or (c) violated the terms of
any non-competition, non-disclosure or similar agreement with respect to the Company or any
Affiliate to which the Holder is a party, then as of the date the Committee makes its finding some
or all Awards awarded to the Holder (including vested Awards that have been exercised, vested
Awards that have not been exercised and Awards that have not yet vested), as determined by the
Committee in its sole discretion, and all net proceeds realized with respect to any such Awards,
will be forfeited to the Company on such terms as determined by the Committee. The findings and
decision of the Committee with respect to such matter, including those regarding the acts of the
Holder and the damage done to the Company, will be final for all purposes. No decision of the
Committee, however, will affect the finality of the discharge of the individual by the Company or
an Affiliate.

     4.9 Forfeiture Events. The Committee may specify in an Award Agreement that the Holder’s
rights, payments, and benefits with respect to an Award shall be subject to reduction,
cancellation, forfeiture, or recoupment upon the occurrence of certain specified events, in
addition to any otherwise applicable vesting or performance conditions of an Award. Such events
may include, but shall not be limited to, Termination of Employment for cause, termination of the
Holder’s provision of services to the Company or its Affiliates, violation of material policies of
the TMW Group, breach of noncompetition, confidentiality, or other restrictive covenants that may
apply to the Holder, or other conduct by the Holder that is detrimental to the business or
reputation of the TMW Group.

     4.10 Award Agreements. Each Award shall be embodied in a written Award Agreement that shall
be subject to the terms and conditions of the Plan. The Award Agreement shall be signed by an
executive officer of the Company, other than the Holder, on behalf of the Company, and may be
signed by the Holder to the extent required by the Committee. The Award Agreement may specify the
effect of a change in control of the Company on the Award. The Award Agreement may contain any
other provisions that the Committee in its discretion shall deem advisable which are not
inconsistent with the terms and provisions of the Plan.

     4.11 Amendments of Award Agreements. The terms of any outstanding Award under the Plan may be
amended from time to time by the Committee in its discretion in any manner that it deems
appropriate and that is consistent with the terms of the Plan. However, no such amendment shall
adversely affect in a material manner any right of a Holder without his or her written consent.
Except as specified in Section 4.6(c), the Committee may not directly or indirectly lower the
exercise price of a previously granted Option or the grant price of a previously granted SAR.

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     4.12 Rights as Stockholder. A Holder shall not have any rights as a stockholder with respect
to Stock covered by an Option, a SAR, a DSU or a Performance Unit Award payable in Stock until the
date, if any, such Stock is issued by the Company; and, except as otherwise provided in Section
4.6, no adjustment for dividends, or otherwise, shall be made if the record date therefor is prior
to the date of issuance of such Stock.

     4.13 Issuance of Shares of Stock. Shares of Stock, when issued, may be represented by a
certificate or by book or electronic entry.

     4.14 Restrictions on Stock Received. The Committee may impose such conditions and/or
restrictions on any shares of Stock issued pursuant to an Award as it may deem advisable or
desirable. These restrictions may include, but shall not be limited to, a requirement that the
Holder hold the shares of Stock for a specified period of time.

     4.15 Compliance With Section 409A. Awards shall be designed, granted and administered in such
a manner that they are either exempt from the application of, or comply with, the requirements of
Section 409A. If the Committee determines that an Award, Award Agreement, payment, distribution,
deferral election, transaction, or any other action or arrangement contemplated by the provisions
of the Plan would, if undertaken, cause a Holder to become subject to additional taxes under
Section 409A, then unless the Committee specifically provides otherwise, such Award, Award
Agreement, payment, distribution, deferral election, transaction or other action or arrangement
shall not be given effect to the extent it causes such result and the related provisions of the
Plan and/or Award Agreement will be deemed modified, or, if necessary, suspended in order to comply
with the requirements of Section 409A to the extent determined appropriate by the Committee, in
each case without the consent of or notice to the Holder. The exercisability of an Option or a SAR
shall not be extended to the extent that such extension would subject the Holder to additional
taxes under Section 409A. This Section 4.15 is effective for awards issued under the Plan that are
earned and vested on or after January 1, 2005.

     4.16 Source of Shares Deliverable Under Awards. Any shares of Stock delivered pursuant to an
Award may consist, in whole or in part, of authorized and unissued shares of Stock or of treasury
shares of Stock.

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ARTICLE V

OPTIONS

     5.1 Authority to Grant Options. Subject to the terms and provisions of the Plan, the
Committee, at any time, and from time to time, may grant Options under the Plan to eligible persons
in such number and upon such terms as the Committee shall determine.

     5.2 Type of Options Available. Options granted under the Plan may be Incentive Stock Options
intended to satisfy the requirements of section 422 of the Code or Nonqualified Stock Options that
are not intended to satisfy the requirements of section 422 of the Code.

     5.3 Option Agreement. Each Option grant under the Plan shall be evidenced by an Option
Agreement that shall specify (a) whether the Option is intended to be an ISO or a NQSO, (b) the
Option Price, (c) the duration of the Option, (d) the number of shares of Stock to which the Option
pertains, (e) the exercise restrictions applicable to the Option, and (f) such other provisions as
the Committee shall determine that are not inconsistent with the terms and provisions of the Plan.
Notwithstanding the designation of an Option as an ISO in the applicable Option Agreement, to the
extent the limitations of section 422 of the Code are exceeded with respect to the Option, the
portion of the Option in excess of the limitation shall be treated as a NQSO. Effective for
Options granted under the Plan on or after January 1, 2005, an Option granted under the Plan may
not be granted with any Dividend Equivalents rights.

     5.4 Option Price. The price at which shares of Stock may be purchased under an Option (the
“Option Price”) shall not be less than 100 percent (100%) of the Fair Market Value of the shares of
Stock on the date the Option is granted. However, in the case of a Ten Percent Stockholder, the
Option Price for an Incentive Stock Option shall not be less than 110 percent (110%) of the Fair
Market Value of the shares of Stock on the date the Incentive Stock Option is granted. Subject to
the limitations set forth in the preceding sentences of this Section 5.4, the Committee shall
determine the Option Price for each grant of an Option under the Plan.

     5.5 Duration of Options. An Option shall not be exercisable after the earlier of (i) the
general term of the Option specified in Section 5.5(a), or (ii) the period of time specified herein
that follows the Optionee’s death, Disability, Retirement or other Termination of Employment.
Unless the Optionee’s applicable Option Agreement specifies otherwise, an Option shall not continue
to vest after the Optionee’s Termination of Employment for any reason other than the death or
Disability of the Optionee.

     (a) General Term of Option. Unless the Option Agreement specifies a shorter general
term, an Option shall expire on the tenth anniversary of the date the Option is granted.
Notwithstanding the foregoing, unless the Option Agreement specifies a shorter term, in the
case of an Incentive Stock Option granted to a Ten Percent Stockholder, the Option shall
expire on the fifth anniversary of the date the Option is granted.

     (b) Early Termination of Option Due to Termination of Employment Other Than for Death,
Disability or Retirement. Except as may be otherwise expressly provided by the Committee in
an Option Agreement, an Option shall terminate on the

V-1

 

earlier of (1) the date of the expiration of the general term of the Option or (2) the
date that is one day less than one month after the date of the Optionee’s Termination of
Employment, whether with or without cause, for any reason other than the death, Disability
or Retirement of the Optionee, during which period the Optionee shall be entitled to
exercise the Option in respect of the number of shares of Stock that the Optionee would have
been entitled to purchase had the Optionee exercised the Option on the date of such
Termination of Employment. The Committee shall determine whether an authorized leave of
absence, absence on military or government service, or any other absence from service shall
constitute a termination of the employment relationship between the Optionee and the Company
and all Affiliates. Notwithstanding the foregoing, in the case of an Incentive Stock
Option, if an Optionee has an authorized leave of absence from employment with the Company,
a Parent Corporation or a Subsidiary Corporation that exceeds 90 days and the Optionee’s
right to reemployment is not guaranteed by either statute or contract, the Optionee will be
deemed to incur a Termination of Employment on the 91st day of such leave.

     (c) Early Termination of Option Due to Death. Unless the Committee specifies otherwise
in the applicable Option Agreement, in the event of the Optionee’s Termination of Employment
due to death before the date of expiration of the general term of the Option, the Optionee’s
Option shall terminate on the earlier of the date of expiration of the general term of the
Option or the first anniversary of the date of the Optionee’s death, during which period the
Optionee’s executors or administrators or such persons to whom such Options were transferred
by will or by the laws of descent and distribution, shall be entitled to exercise the Option
in respect of the number of shares of Stock that the Optionee would have been entitled to
purchase had the Optionee exercised the Option on the date of his death.

     (d) Early Termination of Option Due to Disability. Unless the Committee specifies
otherwise in the applicable Option Agreement, in the event of the Termination of Employment
due to Disability before the date of the expiration of the general term of the Option, the
Optionee’s Option shall terminate on the earlier of the expiration of the general term of
the Option or the first anniversary of the date of the Termination of Employment due to
Disability, during which period the Optionee shall be entitled to exercise the Option in
respect of the number of shares of Stock that the Optionee would have been entitled to
purchase had the Optionee exercised the Option on the date of such Termination of
Employment.

     (e) Early Termination of Option Due to Retirement. Unless the Committee specifies
otherwise in the applicable Option Agreement, in the event of the Optionee’s Termination of
Employment due to Retirement before the date of the expiration of the general term of the
Option, the Optionee’s Option shall terminate on the earlier of the expiration of the
general term of the Option or the first anniversary of the date of the Termination of
Employment due to Retirement, during which period the Optionee shall be entitled to exercise
the Option in respect of the number of shares of Stock that the Optionee would have been
entitled to purchase had the Optionee exercised the Option on the date of such Termination
of Employment.

V-2

 

     After the death of the Optionee, the Optionee’s executors, administrators or any person or
persons to whom the Optionee’s Option may be transferred by will or by the laws of descent and
distribution, shall have the right, at any time prior to the termination of the Option to exercise
the Option, in respect to the number of all of the remaining unexercised and unexpired shares of
Stock subject to the Option.

     5.6 Amount Exercisable. Each Option may be exercised at the time, in the manner and subject
to the conditions the Committee specifies in the Option Agreement in its sole discretion. Unless
the Committee specifies otherwise in an applicable Option Agreement, an Option Agreement shall set
forth the following terms regarding the exercise of the Option covered by the Option Agreement:

     (a) No Option granted under the Plan may be exercised until an Optionee has completed
one year of continuous employment with the Company or any subsidiary of the Company
following the date of grant;

     (b) Beginning on the day after the first anniversary of the date of grant, an Option
may be exercised up to 1/3 of the shares subject to the Option;

     (c) After the expiration of each succeeding anniversary date of the date of grant, the
Option may be exercised up to an additional 1/3 of the shares initially subject to the
Option, so that after the expiration of the third anniversary of the date of grant, the
Option shall be exercisable in full;

     (d) To the extent not exercised, installments shall be cumulative and may be exercised
in whole or in part until the Option expires on the tenth anniversary of the date of grant.

     However, the Committee, in its discretion, may change the terms of exercise so that any Option
may be exercised so long as it is valid and outstanding from time to time in part or as a whole in
such manner and subject to such conditions as the Committee may set. In addition, the Committee,
in its discretion, may accelerate the time in which any outstanding Option may be exercised.
However, in no event shall any Option be exercisable on or after the tenth anniversary of the date
of the grant of the Option.

     5.7
Exercise of Options.

     (a) General Method of Exercise. Subject to the terms and provisions of the Plan and an
Optionee’s Option Agreement, Options may be exercised in whole or in part from time to time
by the delivery of written notice in the manner designated by the Committee stating (1) that
the Optionee wishes to exercise such option on the date such notice is so delivered, (2) the
number of shares of Stock with respect to which the Option is to be exercised and (3) the
address to which the certificate representing such shares of Stock should be mailed. Except
in the case of exercise by a third party broker as provided below, in order for the notice
to be effective the notice must be accompanied by payment of the Option Price and any
applicable tax withholding amounts which must be made at the time of exercise by any
combination of the following: (a) cash, certified check, bank draft or postal or express
money order for an amount equal to the Option

V-3

 

Price under the Option, (b) Mature Shares with a Fair Market Value on the date of
exercise equal to the Option Price under the Option (if approved in advance by the Committee
or an executive officer of the Company), (c) an election to make a cashless exercise through
a registered broker-dealer (if approved in advance by the Committee or an executive officer
of the Company) or (d) except as specified below, any other form of payment which is
acceptable to the Committee. If Mature Shares are used for payment by the Optionee, the
aggregate Fair Market Value of the shares of Stock tendered must be equal to or less than
the aggregate Option Price of the shares of Stock being purchased upon exercise of the
Option, and any difference must be paid by cash, certified check, bank draft or postal or
express money order payable to the order of the Company.

     If, at the time of receipt by the Company or its delegate of such written notice, (i)
the Company has unrestricted surplus in an amount not less than the Option Price of such
shares of Stock, (ii) all accrued cumulative preferential dividends and other current
preferential dividends on all outstanding shares of preferred stock of the Company have been
fully paid, (iii) the acquisition by the Company of its own shares of Stock for the purpose
of enabling such Optionee to exercise such Option is otherwise permitted by applicable law,
does not require any vote or consent of any stockholder of the Company and does not violate
the terms of any agreement to which the Company is a party or by which it is bound, and (iv)
there shall have been adopted, and there shall be in full force and effect, a resolution of
the Board authorizing the acquisition by the Company of its own shares of stock for such
purpose, then such Optionee may deliver to the Company, in payment of the Option Price of
the shares of Stock with respect to which such Option is exercised, (x) certificates
registered in the name of such Optionee that represent a number of shares of stock legally
and beneficially owned by such Optionee (free of all liens, claims and encumbrances of every
kind) and having a Fair Market Value on the date of receipt by the Company or its delegate
of such written notice that is not greater than the Option Price of the shares of Stock with
respect to which such Option is to be exercised, such certificates to be accompanied by
stock powers duly endorsed in blank by the record holder of the shares of Stock represented
by such certificates, with the signature of such record holder guaranteed by a national
banking association, and (y) if the Option Price of the shares of Stock with respect to
which such Option is to be exercised exceeds such Fair Market Value, a cashier’s check drawn
on a national banking association and payable to the order of the Company, in an amount, in
United States dollars, equal to the amount of such excess. Notwithstanding the provisions
of the immediately preceding sentence, the Committee, in its sole discretion, may refuse to
accept shares of Stock in payment of the Option Price of the shares of Stock with respect to
which such Option is to be exercised and, in that event, any certificates representing
shares of Stock that were received by the Company or its delegate with such written notice
shall be returned to such Optionee, together with notice by the Company or its delegate to
such Optionee of the refusal of the Committee to accept such shares of Stock. If, at the
expiration of seven business days after the delivery to such Optionee of such written notice
from the Company or its delegate, such Optionee shall not have delivered to the Company or
its delegate a cashier’s check drawn on a national banking association and payable to the
order of the Company in an amount, in United States dollars, equal to the Option Price of
the shares of Stock with respect to which such Option is to be exercised, such written

V-4

 

notice from the Optionee to the Company or its delegate shall be ineffective to
exercise such Option.

     Whenever an Option is exercised by exchanging shares of Stock owned by the Optionee,
the Optionee shall deliver to the Company or its delegate certificates registered in the
name of the Optionee representing a number of shares of Stock legally and beneficially owned
by the Optionee, free of all liens, claims, and encumbrances of every kind, accompanied by
stock powers duly endorsed in blank by the record holder of the shares represented by the
certificates, (with signature guaranteed by a commercial bank or trust company or by a
brokerage firm having a membership on a registered national stock exchange). The delivery
of certificates upon the exercise of Option is subject to the condition that the person
exercising the Option provide the Company with the information the Company might reasonably
request pertaining to exercise, sale or other disposition of an Option.

     (b) Issuance of Shares. Subject to Section 4.4 and Section 5.7(c), as promptly as
practicable after receipt of written notification and payment, in the form required by
Section 5.7(a), of an amount of money necessary to satisfy any withholding tax liability
that may result from the exercise of such Option, the Company shall deliver to the Optionee
certificates for the number of shares with respect to which the Option has been exercised,
issued in the Optionee’s name. Delivery of the shares shall be deemed effected for all
purposes when a stock transfer agent of the Company shall have deposited the certificates in
the United States mail, addressed to the Optionee, at the address specified by the Optionee.

     (c) Exercise Through Third-Party Broker. The Committee may permit an Optionee to elect
to pay the Option Price and any applicable tax withholding resulting from such exercise by
authorizing a third-party broker to sell all or a portion of the shares of Stock acquired
upon exercise of the Option and remit to the Company a sufficient portion of the sale
proceeds to pay the Option Price and any applicable tax withholding resulting from such
exercise.

     (d) Limitations on Exercise Alternatives. The Committee shall not permit an Optionee
to pay such Optionee’s Option Price upon the exercise of an Option by having the Company
reduce the number of shares of Stock that will be delivered pursuant to the exercise of the
Option. In addition, the Committee shall not permit an Optionee to pay such Optionee’s
Option Price upon the exercise of an Option by using shares of Stock other than Mature
Shares. An Option may not be exercised for a fraction of a share of Stock.

     5.8 Transferability of Options.

     (a) Incentive Stock Options. No ISO granted under the Plan may be sold, transferred,
pledged, assigned or otherwise alienated or hypothecated, other than by will or by the laws
of descent and distribution. Further, all ISOs granted to an Optionee under the Plan shall
be exercisable during his or her lifetime only by the Optionee, and after that time, by the
Optionee’s heirs or estate.

V-5

 

     (b) Nonqualified Stock Options. Except as otherwise provided in an Optionee’s Option
Agreement, no NQSO granted under the Plan may be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated, other than by will or by the laws of descent and
distribution. Further, except as otherwise provided in an Optionee’s Option Agreement, all
NQSOs granted to an Optionee under the Plan shall be exercisable during his or her lifetime
only by such Optionee.

     Any attempted assignment of an Option in violation of this Section 5.8 shall be null and void.

     5.9 Notification of Disqualifying Disposition. If any Optionee shall make any disposition of
shares of Stock issued pursuant to the exercise of an ISO under the circumstances described in
section 421(b) of the Code (relating to certain disqualifying dispositions), such Optionee shall
notify the Company of such disposition within ten (10) days thereof.

     5.10 No Rights as Stockholder. An Optionee shall not have any rights as a stockholder with
respect to Stock covered by an Option until the date a stock certificate for such Stock is issued
by the Company; and, except as otherwise provided in Section 4.6, no adjustment for dividends, or
otherwise, shall be made if the record date therefor is prior to the date of issuance of such
certificate.

     5.11 $100,000 Limitation on Incentive Stock Options. To the extent that the aggregate Fair
Market Value of Stock with respect to which Incentive Stock Options first become exercisable by a
Holder in any calendar year exceeds $100,000, taking into account both shares of Stock subject to
Incentive Stock Options under the Plan and Stock subject to incentive stock options under all other
plans of the Company, such Options shall be treated as Nonqualified Stock Options. For this
purpose, the “Fair Market Value” of the Stock subject to Options shall be determined as of the date
the Options were awarded. In reducing the number of Options treated as Incentive Stock Options to
meet the $100,000 limit, the most recently granted Options shall be reduced first. To the extent a
reduction of simultaneously granted Options is necessary to meet the $100,000 limit, the Committee
may, in the manner and to the extent permitted by law, designate which shares of Stock are to be
treated as shares acquired pursuant to the exercise of an Incentive Stock Option.

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ARTICLE VI

STOCK APPRECIATION RIGHTS

     6.1 Authority to Grant Stock Appreciation Rights Awards. Subject to the terms and provisions
of the Plan, the Committee, at any time, and from time to time, may grant Stock Appreciation Rights
under the Plan to eligible persons in such number and upon such terms as the Committee shall
determine. Subject to the terms and conditions of the Plan, the Committee shall have complete
discretion in determining the number of SARs granted to each Employee and, consistent with the
provisions of the Plan, in determining the terms and conditions pertaining to such SARs.

     6.2 Type of Stock Appreciation Rights Available. SARs granted under the Plan may be
Freestanding SARs, Tandem SARs or any combination of these forms of SARs.

     6.3 General Terms. Subject to the terms and conditions of the Plan, a SAR granted under the
Plan shall confer on the recipient a right to receive, upon exercise thereof, a cash amount equal
to the excess of (a) the Fair Market Value of one share of the Stock on the date of exercise over
(b) the grant price of the SAR, which shall not be less than 100 percent of the Fair Market Value
of one share of the Stock on the date of grant of the SAR and in no event less than par value of
one share of the Stock. The grant price of a Freestanding SAR shall not be less than the Fair
Market Value of a share of the Stock on the date of grant of the SAR. The grant price of a Tandem
SAR shall equal the Option Price of the Option which is related to the Tandem SAR. Effective for
SARs granted under the Plan on or after January 1, 2005, a SAR granted under the Plan may not be
granted with any Dividend Equivalents rights.

     6.4 Stock Appreciation Right Agreement. Each Award of SARs granted under the Plan shall be
evidenced by an Award Agreement that shall specify (a) whether the SAR is intended to be a
Freestanding SAR or a Tandem SAR, (b) the grant price of the SAR, (c) the term of the SAR, (d) the
vesting and termination provisions and (e) such other provisions as the Committee shall determine
that are not inconsistent with the terms and provisions of the Plan. The Committee may impose such
additional conditions or restrictions on the exercise of any SAR as it may deem appropriate.

     6.5 Term of Stock Appreciation Rights. The term of a SAR granted under the Plan shall be
determined by the Committee, in its sole discretion; provided that no SAR shall be exercisable on
or after the tenth anniversary date of its grant.

     6.6 Exercise of Freestanding SARs. Subject to the terms and provisions of the Plan and the
applicable Award Agreement, Freestanding SARs may be exercised in whole or in part from time to
time by the delivery of written notice in the manner designated by the Committee stating (a) that
the Holder wishes to exercise such SAR on the date such notice is so delivered, (b) the number of
shares of Stock with respect to which the SAR is to be exercised and (c) the address to which the
payment due under such SAR should be mailed. In accordance with applicable law, a Freestanding SAR
may be exercised upon whatever additional terms and conditions the Committee, in its sole
discretion, imposes.

VI-1

 

     6.7 Exercise of Tandem SARs.

     (a) Subject to the terms and provisions of the Plan and the applicable Award Agreement,
Tandem SARs may be exercised for all or part of the shares of Stock subject to the related
Option upon the surrender of the right to exercise the equivalent portion of the related
Option and by the delivery of written notice in the manner designated by the Committee
stating (a) that the Holder wishes to exercise such SAR on the date such notice is so
delivered, (b) the number of shares of Stock with respect to which the SAR is to be
exercised and (c) the address to which the payment due under such SAR should be mailed. A
Tandem SAR may be exercised only with respect to the shares of Stock for which its related
Option is then exercisable. In accordance with applicable law, a Tandem SAR may be
exercised upon whatever additional terms and conditions the Committee, in its sole
discretion, imposes.

     (b) Notwithstanding any other provision of the Plan to the contrary, with respect to a
Tandem SAR granted in connection with an ISO: (1) the Tandem SAR will expire no later than
the expiration of the underlying ISO; (2) the value of the payout with respect to the Tandem
SAR may be for no more than 100 percent (100%) of the excess of the Fair Market Value of the
shares of Stock subject to the underlying ISO at the time the Tandem SAR is exercised over
the Option Price of the underlying ISO; and (3) the Tandem SAR may be exercised only when
the Fair Market Value of the shares of Stock subject to the ISO exceeds the Option Price of
the ISO.

     6.8 Payment of SAR Amount. Upon the exercise of a SAR, an Employee shall be entitled to
receive payment from the Company in an amount determined by multiplying:

     (a) The excess of the Fair Market Value of a share of the Stock on the date of exercise
over the grant price of the SAR by

     (b) The number of shares of Stock with respect to which the SAR is exercised.

At the discretion of the Committee, the payment upon SAR exercise may be in cash, in Stock of
equivalent value, in some combination thereof or in any other manner approved by the Committee in
its sole discretion. The Committee’s determination regarding the form of SAR payout shall be set
forth in the Award Agreement pertaining to the grant of the SAR.

     6.9 Termination of Employment. Each Award Agreement shall set forth the extent to which the
grantee of a SAR shall have the right to exercise the SAR following the grantee’s Termination of
Employment. Such provisions shall be determined in the sole discretion of the Committee, may be
included in the Award Agreement entered into with the grantee, and need not be uniform among all
SARs issued pursuant to the Plan and may reflect distinctions based on the reasons for termination.

     6.10 Nontransferability of SARs. Except as otherwise provided in a Holder’s Award Agreement,
no SAR granted under the Plan may be sold, transferred, pledged, assigned or otherwise alienated or
hypothecated, other than by will or by the laws of descent and distribution. Further, except as
otherwise provided in a Holder’s Award Agreement, all SARs granted to a Holder under the Plan shall
be exercisable during his or her lifetime only by the

VI-2

 

Holder, and after that time, by the Holder’s heirs or estate. Any attempted assignment of a
SAR in violation of this Section 6.10 shall be null and void.

     6.11 No Rights as Stockholder. A grantee of a SAR award, as such, shall have no rights as a
stockholder.

     6.12 Restrictions on Stock Received. The Committee may impose such conditions and/or
restrictions on any shares of Stock received upon exercise of a SAR granted pursuant to the Plan as
it may deem advisable or desirable. These restrictions may include, but shall not be limited to, a
requirement that the Holder hold the shares of Stock received upon exercise of a SAR for a
specified period of time.

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ARTICLE VII

RESTRICTED STOCK AWARDS

     7.1 Restricted Stock Awards. Subject to the terms and conditions of the Plan, the Committee,
at any time, and from time to time, may make Awards of Restricted Stock to eligible persons in such
numbers and upon such terms as the Committee shall determine. The amount of, the vesting and the
transferability restrictions applicable to any Restricted Stock Award shall be determined by the
Committee in its sole discretion. If the Committee imposes vesting or transferability restrictions
on a Holder’s rights with respect to Restricted Stock, the Committee may issue such instructions to
the Company’s share transfer agent in connection therewith as it deems appropriate. The Committee
may also cause the certificate for shares of Stock issued pursuant to a Restricted Stock Award to
be imprinted with any legend which counsel for the Company considers advisable with respect to the
restrictions or, should the shares of Stock be represented by book or electronic entry rather than
a certificate, the Company may take such steps to restrict transfer of the shares of Stock as
counsel for the Company considers necessary or advisable to comply with applicable law.

     7.2 Restricted Stock Award Agreement. Each Restricted Stock Award shall be evidenced by an
Award Agreement that contains any vesting, transferability restrictions and other provisions not
inconsistent with the Plan as the Committee may specify.

     7.3 Holder’s Rights as Stockholder. Subject to the terms and conditions of the Plan, each
recipient of a Restricted Stock Award shall have all the rights of a stockholder with respect to
the shares of Restricted Stock included in the Restricted Stock Award during the Period of
Restriction established for the Restricted Stock Award. Dividends paid with respect to Restricted
Stock in cash or property other than shares of Stock or rights to acquire shares of Stock shall be
paid to the recipient of the Restricted Stock Award currently. Dividends paid in shares of Stock
or rights to acquire shares of Stock shall be added to and become a part of the Restricted Stock.
During the Period of Restriction, certificates representing the Restricted Stock shall be
registered in the recipient’s name and bear a restrictive legend to the effect that ownership of
such Restricted Stock, and the enjoyment of all rights appurtenant thereto, are subject to the
restrictions, terms, and conditions provided in the Plan and the applicable Restricted Stock Award
Agreement. Such certificates shall be deposited by the recipient with the Secretary of the Company
or such other officer of the Company as may be designated by the Committee, together with all stock
powers or other instruments of assignment, each endorsed in blank, which will permit transfer to
the Company of all or any portion of the Restricted Stock which shall be forfeited in accordance
with the Plan and the applicable Restricted Stock Award Agreement.

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ARTICLE VIII

DEFERRED STOCK UNIT AWARDS

     8.1 Authority to Grant Deferred Stock Unit Awards. Subject to the terms and provisions of the
Plan, the Committee, at any time, and from time to time, may grant Deferred Stock Units under the
Plan to eligible persons in such amounts and upon such terms as the Committee shall determine. The
amount of, the vesting and the transferability restrictions applicable to any Deferred Stock Unit
Award shall be determined by the Committee in its sole discretion. The Committee shall maintain a
bookkeeping ledger account which reflects the number of Deferred Stock Units credited under the
Plan for the benefit of a Holder.

     8.2 Deferred Stock Unit Awards. A Deferred Stock Unit shall be similar in nature to
Restricted Stock except that no shares of Stock are actually transferred to the Holder until a
later date specified in the applicable Award Agreement. Each Deferred Stock Unit shall have a
value equal to the Fair Market Value of a share of Stock.

     8.3 Deferred Stock Unit Award Agreement. Each Deferred Stock Unit Award shall be evidenced by
an Award Agreement that contains any Substantial Risk of Forfeiture, vesting, transferability
restrictions, form and time of payment provisions and other provisions not inconsistent with the
Plan as the Committee may specify.

     8.4 Dividend Equivalents. Effective for Deferred Stock Awards granted under the Plan on or
after January 1, 2005, an Award Agreement for a Deferred Stock Unit Award may specify that the
Holder shall be entitled to the payment of Dividend Equivalents under the Award.

     8.5 Form of Payment Under Deferred Stock Unit Award. Payment under a Deferred Stock Unit
Award shall be made in either cash or shares of Stock as specified in the applicable Award
Agreement.

     8.6 Time of Payment Under Deferred Stock Unit Award. A Holder’s payment under a Deferred
Stock Unit Award shall be made at such time as is specified in the applicable Award Agreement. The
Award Agreement shall specify that the payment will be made (a) by a date that is no later than the
date that is two and one-half (2 1/2) months after the end of the Fiscal Year in which the Deferred
Stock Unit Award payment is no longer subject to a Substantial Risk of Forfeiture or (b) at a time
that is permissible under Section 409A. This Section 8.6 is effective for awards issued under the
Plan that are earned and vested on or after January 1, 2005.

     8.7 Holder’s Rights as Stockholder. Each recipient of Deferred Stock Units shall have no
rights of a stockholder with respect to the Holder’s Deferred Stock Units. A Holder shall have no
voting rights with respect to any Deferred Stock Unit Awards.

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ARTICLE IX

PERFORMANCE STOCK AND PERFORMANCE UNIT AWARDS

     9.1 Authority to Grant Performance Stock and Performance Unit Awards. Subject to the terms
and provisions of the Plan, the Committee, at any time, and from time to time, may grant
Performance Stock and Performance Unit Awards under the Plan to eligible persons in such amounts
and upon such terms as the Committee shall determine. The amount of, the vesting and the
transferability restrictions applicable to any Performance Stock or Performance Unit Award shall be
based upon the attainment of such Performance Goals as the Committee may determine. A Performance
Goal for a particular Performance Stock or Performance Unit Award must be established by the
Committee prior to the earlier to occur of (a) 90 days after the commencement of the period of
service to which the Performance Goal relates or (b) the lapse of 25 percent of the period of
service, and in any event while the outcome is substantially uncertain. A Performance Goal must be
objective such that a third party having knowledge of the relevant facts could determine whether
the goal is met. Such a Performance Goal may be based on one or more business criteria that apply
to the Employee, one or more business units of the Company, or the Company as a whole, with
reference to one or more of the following: earnings per share, earnings per share growth, total
shareholder return, economic value added, cash return on capitalization, increased revenue, revenue
ratios (per employee or per customer), net income, stock price, market share, return on equity,
return on assets, return on capital, return on capital compared to cost of capital, return on
capital employed, return on invested capital, shareholder value, net cash flow, operating income,
earnings before interest and taxes, cash flow, cash flow from operations, cost reductions, cost
ratios (per employee or per customer), proceeds from dispositions, project completion time and
budget goals, net cash flow before financing activities, customer growth and total market value.
Goals may also be based on performance relative to a peer group of companies. Unless otherwise
stated, such a Performance Goal need not be based upon an increase or positive result under a
particular business criterion and could include, for example, maintaining the status quo or
limiting economic losses (measured, in each case, by reference to specific business criteria). In
interpreting Plan provisions applicable to Performance Goals and Performance Stock or Performance
Unit Awards, it is intended that the Plan will conform with the standards of section 162(m) of the
Code and Treasury Regulations § 1.162-27(e)(2)(i), and the Committee in establishing such goals and
interpreting the Plan shall be guided by such provisions. Prior to the payment of any compensation
based on the achievement of Performance Goals, the Committee must certify in writing that
applicable Performance Goals and any of the material terms thereof were, in fact, satisfied.
Subject to the foregoing provisions, the terms, conditions and limitations applicable to any
Performance Stock or Performance Unit Awards made pursuant to the Plan shall be determined by the
Committee. If the Committee imposes vesting or transferability restrictions on a recipient’s
rights with respect to Performance Stock or Performance Unit Awards, the Committee may issue such
instructions to the Company’s share transfer agent in connection therewith as it deems appropriate.
The Committee may also cause the certificate for shares of Stock issued pursuant to a Performance
Stock or Performance Unit Award to be imprinted with any legend which counsel for the Company
considers advisable with respect to the restrictions or, should the shares of Stock be represented
by book or electronic entry rather than a certificate, the Company may take such steps to restrict
transfer of the shares of Stock as counsel for the Company considers necessary or advisable to
comply with applicable law.

IX-1

 

     Each Performance Stock or Performance Unit Award shall be evidenced by an Award Agreement that
contains any vesting, transferability restrictions and other provisions not inconsistent with the
Plan as the Committee may specify.

     9.2 Time of Payment Under Performance Unit Award. A Holder’s payment under a Performance Unit
Award shall be made at such time as is specified in the applicable Award Agreement. The Award
Agreement shall specify that the payment will be made (a) by a date that is no later than the date
that is two and one-half (2 1/2) months after the end of the calendar year in which the Performance
Unit Award payment is no longer subject to a Substantial Risk of Forfeiture or (b) at a time that
is permissible under Section 409A. This Section 9.2 is effective for awards issued under the Plan
that are earned and vested on or after January 1, 2005.

     9.3 Holder’s Rights as Stockholder With Respect to a Performance Stock Award. Subject to the
terms and conditions of the Plan, each Holder of a Performance Stock Award shall have all the
rights of a stockholder with respect to the shares of Stock issued to the Holder pursuant to the
Award during any period in which such issued shares of Stock are subject to forfeiture and
restrictions on transfer, including without limitation, the right to vote such shares of Stock.

     9.4 Increases Prohibited. Neither the Committee nor the Board may increase the amount of
compensation payable under a Performance Stock Award or Performance Unit Award. If the time at
which a Performance Stock Award or Performance Unit Award will vest or be paid is accelerated for
any reason, the number of shares of Stock subject to, or the amount payable under, the Performance
Stock Award or Performance Unit Award shall be reduced pursuant to Department of Treasury
Regulation § 1.162-27(e)(2)(iii) to reasonably reflect the time value of money.

     9.5 Stockholder Approval. No payments of Stock or cash will be made pursuant to this Article
IX unless the stockholder approval requirements of Department of Treasury Regulation §
1.162-27(e)(4) are satisfied.

     9.6 Dividend Equivalents. Effective for Performance Unit Awards granted under the Plan on or
after January 1, 2005, an Award Agreement for a Performance Unit Award may specify that the Holder
shall be entitled to the payment of Dividend Equivalents under the Award.

IX-2

 

ARTICLE X

CASH-BASED AWARDS AND OTHER STOCK-BASED AWARDS

     10.1 Authority to Grant Cash-Based Awards. Subject to the terms and provisions of the Plan,
the Committee, at any time, and from time to time, may grant Cash-Based Awards under the Plan to
Employees in such amounts and upon such terms, including the achievement of specific performance
goals, as the Committee shall determine.

     10.2 Authority to Grant Other Stock-Based Awards. Subject to the terms and provisions of the
Plan, the Committee, at any time, and from time to time, may grant other types of equity-based or
equity-related Awards not otherwise described by the terms and provisions of the Plan (including
the grant or offer for sale of unrestricted shares of Stock) under the Plan to eligible persons in
such amounts and subject to such terms and conditions, as the Committee shall determine. Such
Awards may involve the transfer of actual shares of Stock to Holders, or payment in cash or
otherwise of amounts based on the value of shares of Stock and may include, without limitation,
Awards designed to comply with or take advantage of the applicable local laws of jurisdictions
other than the United States.

     10.3 Value of Cash-Based and Other Stock-Based Awards. Each Cash-Based Award shall specify a
payment amount or payment range as determined by the Committee. Each Other Stock-Based Award shall
be expressed in terms of shares of Stock or units based on shares of Stock, as determined by the
Committee. The Committee may establish performance goals in its discretion for Cash-Based Awards
and Other Stock-Based Awards. If the Committee exercises its discretion to establish performance
goals, the number and/or value of Cash-Based Awards or Other Stock-Based Awards that will be paid
out to the Holder will depend on the extent to which the performance goals are met.

     10.4 Payment of Cash-Based Awards and Other Stock-Based Awards. Payment, if any, with respect
to a Cash-Based Award or an Other Stock-Based Award shall be made in accordance with the terms of
the Award, in cash or shares of Stock as the Committee determines.

     10.5 Termination of Employment. The Committee shall determine the extent to which a grantee’s
rights with respect to Cash-Based Awards and Other Stock-Based Awards shall be affected by the
grantee’s Termination of Employment. Such provisions shall be determined in the sole discretion of
the Committee and need not be uniform among all Awards of Cash-Based Awards and Other Stock-Based
Awards issued pursuant to the Plan.

     10.6 Nontransferability. Except as otherwise determined by the Committee, neither Cash-Based
Awards nor Other Stock-Based Awards may be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by will or by the laws of descent and distribution. Further,
except as otherwise provided by the Committee, a Holder’s rights under the Plan, if exercisable,
shall be exercisable during his or her lifetime only by such Holder.

X-1

 

ARTICLE XI

SUBSTITUTION AWARDS

     Awards may be granted under the Plan from time to time in substitution for stock options and
other awards held by employees of other corporations who are about to become Employees, or whose
employer is about to become a parent or subsidiary corporation as contemplated in Section 3.1,
conditioned in the case of an Incentive Stock Option upon the employee becoming an employee of the
Company or a parent or subsidiary corporation of the Company, as the result of a merger of
consolidation of the Company with another corporation, or the acquisition by the Company of
substantially all the assets of another corporation, or the acquisition by the Company of at least
50 percent (50%) of the issued and outstanding stock of another corporation as the result of which
it becomes a subsidiary of the Company. The terms and conditions of the substitute Awards so
granted may vary from the terms and conditions set forth in the Plan to such extent as the Board at
the time of grant may deem appropriate to conform, in whole or in part, to the provisions of the
Award in substitution for which they are granted, but with respect to Options that are Incentive
Stock Options, no such variation shall be such as to affect the status of any such substitute
Option as an incentive stock option under section 422 of the Code.

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ARTICLE XII

ADMINISTRATION

     12.1 Awards. The Plan shall be administered by the Committee or, in the absence of the
Committee, the Plan shall be administered by the Board. The members of the Committee shall serve
at the discretion of the Board. The Committee shall have full and exclusive power and authority to
administer the Plan and to take all actions that the Plan expressly contemplates or are necessary
or appropriate in connection with the administration of the Plan with respect to Awards granted
under the Plan.

     12.2 Authority of the Committee. The Committee shall have full and exclusive power to
interpret and apply the terms and provisions of the Plan and Awards made under the Plan, and to
adopt such rules, regulations and guidelines for implementing the Plan as the Committee may deem
necessary or proper, all of which powers shall be exercised in the best interests of the Company
and in keeping with the objectives of the Plan. A majority of the members of the Committee shall
constitute a quorum for the transaction of business, and the vote of a majority of those members
present at any meeting shall decide any question brought before that meeting. Any decision or
determination reduced to writing and signed by a majority of the members shall be as effective as
if it had been made by a majority vote at a meeting properly called and held. All questions of
interpretation and application of the Plan, or as to Awards granted under the Plan, shall be
subject to the determination, which shall be final and binding, of a majority of the whole
Committee. When appropriate, the Plan shall be administered in order to qualify certain of the
Options granted hereunder as Incentive Stock Options. No member of the Committee shall be liable
for any act or omission of any other member of the Committee or for any act or omission on his own
part, including but not limited to the exercise of any power or discretion given to him under the
Plan, except those resulting from his own gross negligence or willful misconduct. In carrying out
its authority under the Plan, the Committee shall have full and final authority and discretion,
including but not limited to the following rights, powers and authorities, to:

     (a) determine the persons to whom and the time or times at which Awards will be made;

     (b) determine the number and exercise price of shares of Stock covered in each Award,
subject to the terms and provisions of the Plan;

     (c) determine the terms, provisions and conditions of each Award, which need not be
identical and need not match the default terms set forth in the Plan;

     (d) accelerate the time at which any outstanding Award will vest;

     (e) prescribe, amend and rescind rules and regulations relating to administration of
the Plan; and

     (f) make all other determinations and take all other actions deemed necessary,
appropriate or advisable for the proper administration of the Plan.

XII-1

 

     The Committee may make an Award to an individual who the Company expects to become an Employee
of the Company or any of its Affiliates within six (6) months after the date of grant of the Award,
with the Award being subject to and conditioned on the individual actually becoming an Employee
within that time period and subject to other terms and conditions as the Committee may establish.
The Committee may correct any defect or supply any omission or reconcile any inconsistency in the
Plan or in any Award to a Holder in the manner and to the extent the Committee deems necessary or
desirable to further the Plan’s objectives. Further, the Committee shall make all other
determinations that may be necessary or advisable for the administration of the Plan. As permitted
by law and the terms and provisions of the Plan, the Committee may delegate its authority as
identified in this Section 12.2.

     The actions of the Committee in exercising all of the rights, powers, and authorities set out
in this Article XII and all other Articles of the Plan, when performed in good faith and in its
sole judgment, shall be final, conclusive and binding on all persons. The Committee may employ
attorneys, consultants, accountants, agents, and other persons, any of whom may be an Employee, and
the Committee, the Company, and its officers and Board shall be entitled to rely upon the advice,
opinions, or valuations of any such persons.

     12.3 Decisions Binding. All determinations and decisions made by the Committee and the Board
pursuant to the provisions of the Plan and all related orders and resolutions of the Committee and
the Board shall be final, conclusive and binding on all persons, including the Company, its
stockholders, Employees, Holders and the estates and beneficiaries of Employees and Holders.

     12.4 No Liability. Under no circumstances shall the Company, the Board or the Committee incur
liability for any indirect, incidental, consequential or special damages (including lost profits)
of any form incurred by any person, whether or not foreseeable and regardless of the form of the
act in which such a claim may be brought, with respect to the Plan or the Company’s or the
Committee’s roles in connection with the Plan.

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ARTICLE XIII

AMENDMENT OR TERMINATION OF PLAN

     13.1 Amendment, Modification, Suspension, and Termination. Subject to Section 13.2 the
Committee may, at any time and from time to time, alter, amend, modify, suspend, or terminate the
Plan and any Award Agreement in whole or in part; provided, however, that, without the prior
approval of the Company’s stockholders and except as provided in Section 4.6, the Committee shall
not directly or indirectly lower the Option Price of a previously granted Option or the grant price
of a previously granted SAR issued under the Plan, and no amendment of the Plan shall be made
without stockholder approval if stockholder approval is required by applicable law or stock
exchange rules.

     13.2 Awards Previously Granted. Notwithstanding any other provision of the Plan to the
contrary, no termination, amendment, suspension, or modification of the Plan or an Award Agreement
shall adversely affect in any material way any Award previously granted under the Plan, without the
written consent of the Holder holding such Award.

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ARTICLE XIV

MISCELLANEOUS

     14.1 Unfunded Plan/No Establishment of a Trust Fund. Holders shall have no right, title, or
interest whatsoever in or to any investments that the Company or any of its Affiliates may make to
aid in meeting obligations under the Plan. Nothing contained in the Plan, and no action taken
pursuant to its provisions, shall create or be construed to create a trust of any kind, or a
fiduciary relationship between the Company and any Holder, beneficiary, legal representative, or
any other person. To the extent that any person acquires a right to receive payments from the
Company under the Plan, such right shall be no greater than the right of an unsecured general
creditor of the Company. All payments to be made hereunder shall be paid from the general funds of
the Company and no special or separate fund shall be established and no segregation of assets shall
be made to assure payment of such amounts, except as expressly set forth in the Plan. No property
shall be set aside nor shall a trust fund of any kind be established to secure the rights of any
Holder under the Plan. All Holders shall at all times rely solely upon the general credit of the
Company for the payment of any benefit which becomes payable under the Plan. The Plan is not
intended to be subject to the Employee Retirement Income Security Act of 1974, as amended.

     14.2 No Employment Obligation. The granting of any Award shall not constitute an employment
contract, express or implied, nor impose upon the Company or any Affiliate any obligation to employ
or continue to employ, or utilize the services of, any Holder. The right of the Company or any
Affiliate to terminate the employment of any person shall not be diminished or affected by reason
of the fact that an Award has been granted to him, and nothing in the Plan or an Award Agreement
shall interfere with or limit in any way the right of the Company or its Affiliates to terminate
any Holder’s employment at any time or for any reason not prohibited by law.

     14.3 Tax Withholding. The Company or any Affiliate shall be entitled to deduct from other
compensation payable to each Holder any sums required by federal, state or local tax law to be
withheld with respect to the vesting or exercise of an Award or lapse of restrictions on an Award.
In the alternative, the Company may require the Holder (or other person validly exercising the
Award) to pay such sums for taxes directly to the Company or any Affiliate in cash or by check
within ten days after the date of vesting, exercise or lapse of restrictions. In the discretion of
the Committee, and with the consent of the Holder, the Company may reduce the number of shares of
Stock issued to the Holder upon such Holder’s exercise of an Option to satisfy the tax withholding
obligations of the Company or an Affiliate; provided that the Fair Market Value of the shares of
Stock held back shall not exceed the Company’s or the Affiliate’s Minimum Statutory Withholding Tax
Obligations. The Committee may, in its discretion, permit a Holder to satisfy any Minimum
Statutory Withholding Tax Obligations arising upon the vesting of Award by delivering to the Holder
of the Award a reduced number of shares of Stock in the manner specified herein. If permitted by
the Committee and acceptable to the Holder, at the time of vesting of shares of under the Award,
the Company shall (a) calculate the amount of the Company’s or an Affiliate’s Minimum Statutory
Withholding Tax Obligations on the assumption that all such shares of Stock vested under the Award
are made available for delivery, (b) reduce the number of such shares of Stock made available for
delivery so that the Fair Market

XIV-1

 

Value of the shares of Stock withheld on the vesting date approximates the Company’s or an
Affiliate Minimum Statutory Withholding Tax Obligation and (c) in lieu of the withheld shares of
Stock, remit cash to the United States Treasury and/or other applicable governmental authorities,
on behalf of the Holder, in the amount of the Minimum Statutory Withholding Tax Obligations due.
The Company shall withhold only whole shares of Stock to satisfy its Minimum Statutory Withholding
Tax Obligations. Where the Fair Market Value of the withheld shares of Stock does not equal the
amount of the Minimum Statutory Withholding Tax Obligations, the Company shall withhold shares of
Stock with a Fair Market Value slightly less than the amount of its Minimum Statutory Withholding
Tax Obligation and the Holder must satisfy the remaining Minimum Statutory Withholding Tax
Obligation in some other manner permitted under this Section 14.3. The withheld shares of Stock
not made available for delivery by the Company shall be retained as treasury shares or will be
cancelled and, in either case, the Holder’s right, title and interest in such shares of Stock shall
terminate. The Company shall have no obligation upon vesting or exercise of any Award or lapse of
restrictions on an Award until the Company or an Affiliate has received payment sufficient to cover
the Minimum Statutory Withholding Tax Obligation with respect to that vesting, exercise or lapse of
restrictions. Neither the Company nor any Affiliate shall be obligated to advise a Holder of the
existence of the tax or the amount which it will be required to withhold.

     14.4 Written Agreement. Each Award shall be embodied in a written agreement or statement
which shall be subject to the terms and conditions of the Plan. The Award Agreement shall be
signed by a member of the Committee on behalf of the Committee and the Company or by an executive
officer of the Company, other than the Holder, on behalf of the Company, and may be signed by the
Holder to the extent required by the Committee. The Award Agreement may contain any other
provisions that the Committee in its discretion shall deem advisable which are not inconsistent
with the terms and provisions of the Plan.

     14.5 Indemnification of the Committee. The Company shall indemnify each present and future
member of the Committee against, and each member of the Committee shall be entitled without further
action on his or her part to indemnity from the Company for, all expenses (including attorney’s
fees, the amount of judgments and the amount of approved settlements made with a view to the
curtailment of costs of litigation, other than amounts paid to the Company itself) reasonably
incurred by such member in connection with or arising out of any action, suit or proceeding in
which such member may be involved by reason of such member being or having been a member of the
Committee, whether or not he or she continues to be a member of the Committee at the time of
incurring the expenses, including, without limitation, matters as to which such member shall be
finally adjudged in any action, suit or proceeding to have been negligent in the performance of
such member’s duty as a member of the Committee. However, this indemnity shall not include any
expenses incurred by any member of the Committee in respect of matters as to which such member
shall be finally adjudged in any action, suit or proceeding to have been guilty of gross negligence
or willful misconduct in the performance of his duty as a member of the Committee. In addition, no
right of indemnification under the Plan shall be available to or enforceable by any member of the
Committee unless, within 60 days after institution of any action, suit or proceeding, such member
shall have offered the Company, in writing, the opportunity to handle and defend same at its own
expense. This right of indemnification shall inure to the benefit of the heirs, executors or
administrators of each

XIV-2

 

member of the Committee and shall be in addition to all other rights to which a member of the
Committee may be entitled as a matter of law, contract or otherwise.

     14.6 Gender and Number. If the context requires, words of one gender when used in the Plan
shall include the other and words used in the singular or plural shall include the other.

     14.7 Severability. In the event any provision of the Plan shall be held illegal or invalid
for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and
the Plan shall be construed and enforced as if the illegal or invalid provision had not been
included.

     14.8 Headings. Headings of Articles and Sections are included for convenience of reference
only and do not constitute part of the Plan and shall not be used in construing the terms and
provisions of the Plan.

     14.9 Other Compensation Plans. The adoption of the Plan shall not affect any other option,
incentive or other compensation or benefit plans in effect for the Company or any Affiliate, nor
shall the Plan preclude the Company from establishing any other forms of incentive compensation
arrangements for Employees.

     14.10 Other Awards. The grant of an Award shall not confer upon the Holder the right to
receive any future or other Awards under the Plan, whether or not Awards may be granted to
similarly situated Holders, or the right to receive future Awards upon the same terms or conditions
as previously granted.

     14.11 Successors. All obligations of the Company under the Plan with respect to Awards
granted hereunder shall be binding on any successor to the Company, whether the existence of such
successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of
all or substantially all of the business and/or assets of the Company.

     14.12 Law Limitations/Governmental Approvals. The granting of Awards and the issuance of
shares of Stock under the Plan shall be subject to all applicable laws, rules, and regulations, and
to such approvals by any governmental agencies or national securities exchanges as may be required.

     14.13 Delivery of Title. The Company shall have no obligation to issue or deliver evidence of
title for shares of Stock issued under the Plan prior to:

     (a) obtaining any approvals from governmental agencies that the Company determines are
necessary or advisable; and

     (b) completion of any registration or other qualification of the Stock under any
applicable national or foreign law or ruling of any governmental body that the Company
determines to be necessary or advisable.

     14.14 Inability to Obtain Authority. The inability of the Company to obtain authority from
any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be
necessary to the lawful issuance and sale of any shares of Stock hereunder, shall

XIV-3

 

relieve the Company of any liability in respect of the failure to issue or sell such shares of
Stock as to which such requisite authority shall not have been obtained.

     14.15 Investment Representations. The Committee may require any person receiving Stock
pursuant to an Award under the Plan to represent and warrant in writing that the person is
acquiring the shares of Stock for investment and without any present intention to sell or
distribute such Stock.

     14.16 Persons Residing Outside of the United States. Notwithstanding any provision of the
Plan to the contrary, in order to comply with the laws in other countries in which the TMW Group
operates or has Employees, the Committee, in its sole discretion, shall have the power and
authority to:

     (a) determine which Affiliates shall be covered by the Plan;

     (b) determine which persons employed outside the United States are eligible to
participate in the Plan;

     (c) amend or vary the terms and provisions of the Plan and the terms and conditions of
any Award granted to persons who reside outside the United States;

     (d) establish subplans and modify exercise procedures and other terms and procedures to
the extent such actions may be necessary or advisable — any subplans and modifications to
Plan terms and procedures established under this Section 14.16 by the Committee shall be
attached to the Plan document as Appendices; and

     (e) take any action, before or after an Award is made, that it deems advisable to
obtain or comply with any necessary local government regulatory exemptions or approvals.

     Notwithstanding the above, the Committee may not take any actions hereunder, and no Awards
shall be granted, that would violate the Exchange Act, the Code, any securities law or governing
statute or any other applicable law.

     14.17 No Fractional Shares. No fractional shares of Stock shall be issued or delivered
pursuant to the Plan or any Award. The Committee shall determine whether cash, additional Awards,
or other property shall be issued or paid in lieu of fractional shares of Stock or whether such
fractional shares or any rights thereto shall be forfeited or otherwise eliminated.

     14.18 Arbitration of Disputes. Any controversy arising out of or relating to the Plan or an
Option Agreement shall be resolved by arbitration conducted pursuant to the arbitration rules of
the American Arbitration Association. The arbitration shall be final and binding on the parties.

     14.19 Governing Law. The provisions of the Plan and the rights of all persons claiming
thereunder shall be construed, administered and governed under the laws of the State of Texas.

XIV-4

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