Document:

<PAGE>

                                                                    EXHIBIT 10.1

================================================================================

                 PURCHASE, SALE AND SERVICING TRANSFER AGREEMENT

                                      AMONG

                                 CITIBANK, N.A.,

                       FEDERATED DEPARTMENT STORES, INC.,

                                    FDS BANK

                                       AND

                        PRIME II RECEIVABLES CORPORATION

                            DATED AS OF JUNE 1, 2005

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                    PAGE
                                                                                                    ----
<S>                                                                                                 <C>
RECITALS..................................................................................            1

ARTICLE I DEFINITIONS.....................................................................            2

         SECTION 1.1. Definitions of Certain Terms........................................            2
         SECTION 1.2. Interpretation......................................................           20

ARTICLE II FIRST CLOSING, PURCHASE, SALE AND ASSUMPTION...................................           21

         SECTION 2.1. Purchase and Sale of FDS Assets and the Prime Stock.................           21
         SECTION 2.2. Assumption of FDS Liabilities.......................................           21
         SECTION 2.3. FDS Purchase Price; FDS Purchase Price Adjustment...................           21
         SECTION 2.4. The First Closing...................................................           22

ARTICLE III SECOND CLOSING, PURCHASE, SALE AND ASSUMPTION.................................           23

         SECTION 3.1. Purchase and Sale of the GE/Macy's Assets...........................           23
         SECTION 3.2. Assumption of the GE/Macy's Liabilities.............................           23
         SECTION 3.3. GE/Macy's Purchase Price; GE/Macy's Purchase Price Adjustment.......           23
         SECTION 3.4. The Second Closing..................................................           24

ARTICLE IV THIRD CLOSING, PURCHASE, SALE AND ASSUMPTION...................................           25

         SECTION 4.1. Purchase and Sale of the May Assets.................................           25
         SECTION 4.2. Assumption of the May Liabilities...................................           25
         SECTION 4.3. May Purchase Price; May Purchase Price Adjustment...................           25
         SECTION 4.4. The Third Closing...................................................           26

ARTICLE V REPRESENTATIONS OF THE PARTIES..................................................           27

         SECTION 5.1. Representations of FDS..............................................           27
         SECTION 5.2. Representations of the Purchaser....................................           35
         SECTION 5.3. No Other Representations or Warranties; No Recourse.................           39

ARTICLE VI COVENANTS......................................................................           39

         SECTION 6.1. Conduct of Business.................................................           39
         SECTION 6.2. Certain Changes.....................................................           40
         SECTION 6.3. Access and Confidentiality..........................................           42
         SECTION 6.4. Reasonable Best Efforts; Other Filings..............................           43
         SECTION 6.5. Additional Instruments..............................................           45
         SECTION 6.6. Non-Solicitation....................................................           45
         SECTION 6.7. Credit Card Marks; Branding.........................................           45
         SECTION 6.8. Notice to Cardholders...............................................           46
         SECTION 6.9. Cooperation in Obtaining Approval and Consents......................           47
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                                  <C>
         SECTION 6.10. Post-Closing Access................................................           47
         SECTION 6.11. Cooperation in Litigation..........................................           47
         SECTION 6.12. Preservation of and Access to Books and Records....................           48
         SECTION 6.13. Bulk Sales Law.....................................................           48
         SECTION 6.14. CEBA Bank..........................................................           48
         SECTION 6.15. Third-Party Consents...............................................           49
         SECTION 6.16. May Portfolio......................................................           49
         SECTION 6.17. Interim Servicing..................................................           51
         SECTION 6.18. Securitization Matters.............................................           51

ARTICLE VII CONDITIONS TO EFFECT THE FIRST PURCHASE AND ASSUMPTION........................           51

         SECTION 7.1. Conditions to Each Party's Obligations..............................           51
         SECTION 7.2. Conditions to Obligations of the Purchaser..........................           52
         SECTION 7.3. Conditions to Obligations of the Sellers............................           53

ARTICLE VIII CONDITIONS TO EFFECT THE SECOND PURCHASE AND ASSUMPTION......................           54

         SECTION 8.1. Conditions to Each Party's Obligations..............................           54
         SECTION 8.2. Conditions to Obligations of the Purchaser..........................           55
         SECTION 8.3. Conditions to Obligations of FDS and FDS Bank.......................           55

ARTICLE IX CONDITIONS TO EFFECT THE THIRD PURCHASE AND ASSUMPTION.........................           56

         SECTION 9.1. Conditions to Each Party's Obligations..............................           56
         SECTION 9.2. Conditions to Obligations of the Purchaser..........................           57
         SECTION 9.3. Conditions to Obligations of FDS and FDS Bank.......................           57

ARTICLE X TERMINATION.....................................................................           58

         SECTION 10.1. Termination Prior to the First Closing.............................           58
         SECTION 10.2. Termination Prior to the Second Closing............................           58
         SECTION 10.3. Termination Prior to the Third Closing.............................           59
         SECTION 10.4. Effect of Termination..............................................           59

ARTICLE XI TAX MATTERS....................................................................           60

         SECTION 11.1. Cooperation........................................................           60
         SECTION 11.2. Tax Returns........................................................           60
         SECTION 11.3. Conveyance Taxes...................................................           60
         SECTION 11.4. Refunds............................................................           60
         SECTION 11.5. Tax Filing Obligations.............................................           60
         SECTION 11.6. Purchase Price Allocations; Section 338(h)(10) Election............           61
         SECTION 11.7. Straddle Periods...................................................           63
         SECTION 11.8. Tax Contests.......................................................           63
         SECTION 11.9. Payments...........................................................           64
         SECTION 11.10. Survival of Tax Indemnities.......................................           64
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>                                                                                                  <C>
         SECTION 11.11. FIRPTA Certificates...............................................           64
         SECTION 11.12. Tax Sharing Agreements............................................           64

ARTICLE XII SURVIVAL; INDEMNIFICATION.....................................................           64

         SECTION 12.1. Survival...........................................................           64
         SECTION 12.2. Indemnification by the Sellers.....................................           65
         SECTION 12.3. Indemnification by the Purchaser...................................           66
         SECTION 12.4. Notice, Settlements and Other Matters..............................           66

ARTICLE XIII MISCELLANEOUS................................................................           68

         SECTION 13.1. Notices............................................................           68
         SECTION 13.2. Expenses and Certain Post-Closing Matters..........................           70
         SECTION 13.3. Successors and Assigns.............................................           71
         SECTION 13.4. Entire Agreement; Amendment; Waiver................................           71
         SECTION 13.5. Counterparts.......................................................           71
         SECTION 13.6. Governing Law......................................................           71
         SECTION 13.7. Waiver of Jury Trial and Venue.....................................           72
         SECTION 13.8. Severability.......................................................           72
         SECTION 13.9. No Petition........................................................           72
         SECTION 13.10. Public Announcement...............................................           72
         SECTION 13.11. Third-Party Beneficiaries.........................................           72
         SECTION 13.12. Schedules.........................................................           73
</TABLE>

                                      iii
<PAGE>

                              SCHEDULES AND ANNEXES

Schedule 1.1(a)      Assigned Contracts
Schedule 1.1(b)(1)   Form of First Closing Statement
Schedule 1.1(b)(2)   Form of Second Closing Statement
Schedule 1.1(b)(3)   Form of Third Closing Statement
Schedule 1.1(c)(1)   Seller's Knowledge
Schedule 1.1(c)(2)   Purchaser's Knowledge
Schedule 1.1(d)      Form of Master File
Schedule 1.1(e)      Prime Securitization Bank Accounts
Schedule 1.1(f)      Prime Securitization Documents
Schedule 1.1(g)      Prime II Securitization Documents
Schedule 1.1(h)      Termination Fee
Schedule 5.1(c)      Governmental and Third Party Consents of the Sellers
Schedule 5.1(e)(2)   SEC Reports; Other Financial Information
Schedule 5.1(f)      Absence of Certain Changes
Schedule 5.1(h)      Litigation
Schedule 5.1(l)(4)   Accounts
Schedule 5.1(q)      Outstanding Liabilities of Prime
Schedule 5.1(r)      Intellectual Property
Schedule 5.2(c)      Governmental and Third Party Consents of the Purchaser
Schedule 6.16        May Portfolio Calculations and Procedures
Schedule 6.17        Interim Servicing Reports
Schedule 7.1         Requisite Third Party Consents
Schedule 9.2(b)      May Financial Information

Annex A              Program Agreement
Annex B              Form of First Instrument of Assignment and Assumption
Annex C              Form of Second Instrument of Assignment and Assumption
Annex D              Form of Third Instrument of Assignment and Assumption
Annex E              Summary of Terms of CEBA Equity Interests

                                       iv
<PAGE>

            PURCHASE, SALE AND SERVICING TRANSFER AGREEMENT, dated as of June 1,
2005 (this "Agreement"), among Federated Department Stores, Inc., a Delaware
corporation ("FDS"), FDS Bank, a federally-chartered stock savings bank ("FDS
Bank"), Prime II Receivables Corporation, a Delaware corporation ("Prime II"),
and Citibank, N.A., a national banking association (the "Purchaser").

                                    RECITALS

            WHEREAS, FDS is, among other things, (i) engaged in the business of
selling merchandise through retail stores and by other means and (ii) indirectly
through certain of its subsidiaries, including FDS Bank, engaged in the Business
(as defined herein);

            WHEREAS, the Prime Credit Card Master Trust (the "Prime Master
Trust") was formed pursuant to that certain Amended and Restated Pooling and
Servicing Agreement, dated as of December 15, 1992, as amended and/or
supplemented through the date of this Agreement and as it may be further amended
and/or supplemented through the First Closing Date (as defined herein) to the
extent permitted by this Agreement, including all series supplements thereto
(the "Prime Pooling and Servicing Agreement"), by and among Prime Receivables
Corporation, a Delaware corporation ("Prime"), as transferor, FDS Bank (as
successor to FDS National Bank), as servicer, and JPMorgan Chase Bank (formerly
known as The Chase Manhattan Bank and as successor to Chemical Bank), as
trustee;

            WHEREAS, the Prime Credit Card Master Trust II (the "Prime II Master
Trust") was formed pursuant to that certain Pooling and Servicing Agreement,
dated as of January 22, 1997, as amended and/or supplemented through the date of
this Agreement and as it may be further amended and/or supplemented through the
First Closing Date, including all series supplements thereto (the "Prime II
Pooling and Servicing Agreement"), by and among Prime II, as transferor, FDS
Bank (as successor to FDS National Bank), as servicer, and JPMorgan Chase Bank
(formerly known as The Chase Manhattan Bank), as trustee (the Prime Pooling and
Servicing Agreement and the Prime II Pooling and Servicing Agreement together
the "Pooling and Servicing Agreements");

            WHEREAS, pursuant to this Agreement, (i) the Sellers referred to
herein desire to sell or cause to be sold to the Purchaser, and the Purchaser
desires to purchase the Acquired Assets and Stock (as defined herein), including
the Accounts (as defined herein) and related credit card relationships from and
after the closing of such sale or sales, and to assume the Assumed Liabilities
(as defined herein) pursuant to the terms contained and in the manner described
herein, and (ii) the Purchaser desires to form a federally-chartered bank, which
will be a subsidiary of the Purchaser ("CEBA Bank") and assign to CEBA Bank the
Acquired Assets and Stock and cause CEBA Bank to assume the Assumed Liabilities
as more fully specified herein;

            WHEREAS, (i) on the date hereof, FDS, FDS Bank, FACS Group, Inc. and
the Purchaser are entering into a Program Agreement (the "Program Agreement") in
the form attached hereto as Annex A, to become effective as of the Effective
Date (as defined in the Program Agreement), that provides for, among other
things, the issuance of proprietary cards and co-branded credit cards, the
issuance of existing and new credit related products, the processing and
servicing of the related Accounts, and the conduct of related marketing
activities, and (ii) on

<PAGE>

or prior to the First Closing Date, the Purchaser shall assign all of its rights
and obligations under the Program Agreement to CEBA Bank.

            NOW, THEREFORE, in consideration of the premises, and of the mutual
representations and agreements contained in this Agreement, the parties agree as
follows:

                                   ARTICLE I
                                   DEFINITIONS

            SECTION 1.1. Definitions of Certain Terms.

                  (a) In this Agreement, the following terms are used with the
meanings assigned below:

            "Accounts" means the collective reference to the FDS Accounts, the
      GE/Macy's Accounts and the May Accounts.

            "Account Agreement" means an agreement (including related
      disclosure) between FDS Bank, GE Bank or May Bank, as the case may be, and
      a Person or Persons under which Accounts are established and Credit Cards
      are issued to or on behalf of such Person or Persons, as such agreement
      may be amended, modified or otherwise changed from time to time (including
      pursuant to change of terms notices or any debt cancellation agreements).

            "Acquired Assets and Stock" means the collective reference to the
      FDS Assets, the Prime Stock, the GE/Macy's Assets and the May Assets.

            "Affiliate" means, with respect to any Person, each Person that
      controls, is controlled by, or is under common control with, such Person.
      For purposes of this definition, "control" of a Person means the
      possession, directly or indirectly, of the power to direct or cause the
      direction of its management or policies, whether through the ownership of
      voting securities, by contract or otherwise. From and after the closing of
      the May Merger, for all purposes under this Agreement, May Co. and its
      Affiliates shall be considered Affiliates of the Sellers. Notwithstanding
      the foregoing, solely for purposes of this Agreement, and regardless of
      its characterization under applicable Requirements of Law or the Program
      Agreement, upon issuance to FDS Bank of the CEBA Equity Interests, CEBA
      Bank shall be deemed to be an Affiliate of the Purchaser and not an
      Affiliate of the Sellers from and after the First Closing.

            "Ancillary Agreements" means the Program Agreement, the First
      Instrument of Assignment and Assumption, the Second Instrument of
      Assignment and Assumption and the Third Instrument of Assignment and
      Assumption.

            "Ancillary Products" has the meaning set forth in the Program
      Agreement.

                                       2
<PAGE>

            "Applicable Order" means, with respect to any Person, a judgment,
      injunction, writ, decree or order of any Governmental Authority, in each
      case legally binding on that Person or on any material amount of its
      property.

            "Assigned Contracts" means the Contracts listed on Schedule 1.1(a).

            "Assumed Liabilities" means the collective reference to the FDS
      Liabilities, the GE/Macy's Liabilities and the May Liabilities.

            "Books and Records" means books, records, original documents, files,
      correspondence, books of account, Credit Card applications, customer
      service and collection records, billing tapes, month-end tapes, papers,
      statement forms, plastics, application forms and other data maintained by
      or on behalf of Sellers or any of their Affiliates, whether in hard copy
      or electronic format or any other form, including those relating to the
      Prime Master Trust, in each case to the extent within the Sellers' control
      and possession and primarily used in the Business, other than the FDS
      Cardholder List, the GE/Macy's Cardholder List, the May Cardholder List,
      the Master File and any of the foregoing relating principally to the
      Excluded Assets and other than Tax Returns or Tax work papers. For the
      avoidance of doubt, the term "Books and Records" does not include any FDS
      Shopper Data (to the extent not included in the Master File (and without
      limiting FDS's ownership of such FDS Shopper Data contained in the Master
      File)), FDS Systems (as defined in the Program Agreement) or any of the
      Sellers' minute books, stock ledgers, internal accounting records or other
      corporate records and documents.

            "Business" means the Credit Card business relating to the Acquired
      Assets and Stock conducted by FDS and its Subsidiaries and (to the extent
      of FDS's ability to control matters relating to the accounts under the
      GE/Macy's Program Agreement prior to the termination of the GE/Macy's
      Program Agreement) GE Bank and its Affiliates, including (A) the extension
      of credit to Cardholders, the servicing of the Accounts (including
      servicing under the Pooling and Servicing Agreements), billings,
      collections, processing of Account transactions, the administration of the
      Accounts and Gross Receivables (including the Securitization Receivables)
      and all aspects of the proprietary Credit Card program relating to the
      Accounts and (B) the offering of any Ancillary Products to Cardholders but
      excluding (i) the operations, systems and facilities of FACS Group, Inc.,
      (ii) all Employees, (iii) the Excluded Assets, and (iv) the May Business
      prior to the closing of the May Merger.

            "Business Day" means any day, other than a Saturday or Sunday, on
      which both FDS and the Purchaser are open for business at their respective
      U.S. headquarters.

            "Card Associations" means VISA U.S.A., Inc. and VISA International
      Inc.

            "Cardholder" means a Person or Persons to whom a Credit Card is or
      has been issued by FDS Bank or May Bank or is or has been issued by GE
      Bank in accordance with the GE/Macy's Program Agreement and in whose
      name(s) an Account, in connection with which the Credit Card may be used,
      has been established pursuant to an Account Agreement.

                                       3
<PAGE>

            "Charged Off Accounts" means, collectively, all Credit Card Accounts
      that (a) would constitute FDS Accounts, but for clause (ii) of the
      definition of FDS Accounts, (b) would constitute GE/Macy's Accounts but
      for clause (ii) of the definition of GE/Macy's Accounts, and (c) would
      constitute May Accounts but for clause (ii) of the definition of May
      Accounts.

            "Code" means the Internal Revenue Code of 1986, as amended.

            "Constituent Documents" means the articles of association, articles
      of incorporation, certificate of incorporation, by-laws and/or other
      organizational documents, as appropriate, of any Person.

            "Contract" means, with respect to any Person, any agreement,
      undertaking, contract, obligation, indenture, deed of trust or other
      instrument, document or agreement by which that Person, or any amount of
      its properties or assets, is bound and/or subject.

            "Credit Card" means a proprietary or co-branded card that may be
      used by the Cardholder or authorized user to purchase goods and services,
      obtain cash advances or convenience checks and/or transfer balances
      through open-end revolving credit, commonly known as a credit or charge
      card; provided that the term does not include: (i) any gift card; (ii) any
      debit card, smart card, stored value card, electronic or digital cash card
      or any other card that does not provide the holder thereof with the
      ability to obtain credit other than through an overdraft line or similar
      feature; (iii) any secured card, including any card secured by a lien on
      real or other property or by a deposit (other than any credit card issued
      in respect of any Prepaid Employee Account (as defined in the Program
      Agreement), which shall be deemed a Credit Card for purposes of this
      Agreement); or (iv) any card issued to the holder of a securities
      brokerage account that allows the holder to obtain credit through a margin
      account.

            "Credit Card Account" means any account under which a purchase, cash
      advance, credit transaction, convenience check or transfer balance may be
      or has been made by a Cardholder by means of a Credit Card, which is
      recorded as an Account on the computer system or internal processing
      system of FDS or any of its Subsidiaries, or any third party processor
      used by FDS or its Subsidiaries, and established pursuant to an Account
      Agreement.

            "Employees" means all current and former full-time and part-time
      employees of FDS and its Subsidiaries (whether or not on vacation,
      military leave, sick leave, maternity leave, disability or other leave of
      absence) who are employed principally in connection with the Business, in
      their capacity as such.

            "Estimated FDS Purchase Price" means the amount payable by the
      Purchaser on the First Closing Date in accordance with the Estimated First
      Closing Statement.

            "Estimated First Closing Statement" means a statement prepared by
      the Sellers, substantially in the form of Schedule 1.1(b)(1), showing in
      reasonable detail the calculation of the Estimated FDS Purchase Price,
      based on data available as of the fifth Business Day preceding the First
      Cut-Off Time.

                                       4
<PAGE>

            "Estimated GE/Macy's Purchase Price" means the amount payable by the
      Purchaser on the Second Closing Date in accordance with the Estimated
      Second Closing Statement.

            "Estimated May Purchase Price" means the amount payable by the
      Purchaser on the Third Closing Date in accordance with the Estimated Third
      Closing Statement or such other amount payable pursuant to Section 6.16.

            "Estimated Second Closing Statement" means a statement prepared by
      the Sellers, substantially in the form of Schedule 1.1(b)(2), in each case
      showing in reasonable detail the calculation of the Estimated GE/Macy's
      Purchase Price, based on data available as of the fifth Business Day
      preceding the Second Cut-Off Time.

            "Estimated Third Closing Statement" means a statement prepared by
      the Sellers, substantially in the form of Schedule 1.1(b)(3), or such
      other Schedule as may be prepared pursuant to Section 6.16, in each case
      showing in reasonable detail the calculation of the Estimated May Purchase
      Price, based on data available as of the fifth Business Day preceding the
      Third Cut-Off Time.

            "Excluded Assets" means the assets, properties and rights of the
      Sellers and their Affiliates, other than the FDS Assets, the GE/Macy's
      Assets and the May Assets, including the following:

                  (1) all rights under any Contracts other than (A) the Prime
            Securitization Documents, (B) the Account Agreements and (C) to the
            extent set forth in clause (9) of the definition of FDS Assets, the
            Assigned Contracts;

                  (2) all rights to receive Interchange Fees with respect to
            Account transactions occurring prior to the First Cut-Off Time in
            the case of the FDS Accounts, the Second Cut-Off Time in the case of
            the GE/Macy's Accounts or the Third Cut-Off Time in the case of the
            May Accounts;

                  (3) all cash and cash equivalents on hand and cash and cash
            equivalents in bank accounts maintained by the Sellers or any of
            their Affiliates, other than in the Prime Securitization Bank
            Accounts;

                  (4) all insurance policies maintained by or for the benefit of
            the Sellers or any of their Affiliates and all claims accrued
            thereunder;

                  (5) all Intellectual Property Rights (including the FDS
            Licensed Marks), other than Transferred Intellectual Property;

                  (6) all FDS Assets, GE/Macy's Assets and May Assets sold or
            otherwise disposed of, and FDS Assets, GE/Macy's Assets and May
            Assets otherwise becoming no longer a part of the Acquired Assets
            and Stock, in each case without violation of this Agreement;

                                       5
<PAGE>

                  (7) all assets relating to the employee benefit agreements,
            plans or other arrangements of the Sellers and their Subsidiaries;

                  (8) all rights, claims, credits or other rights to payment,
            causes of action, or rights of set-off against third parties, other
            than those referred to in clause (13) of the definition of FDS
            Assets, clause (10) of the definition GE/Macy's Assets, and clause
            (10) of the definition of May Assets;

                  (9) the Constituent Documents of FDS Bank and May Bank;

                  (10) all licenses, permits or other authorizations of any
            Governmental Authorities held or used by the Sellers and their
            Affiliates, whether or not related to or used in the Business;

                  (11) all interests in real property of the Sellers and their
            Affiliates, whether or not related to or used in the Business;

                  (12) all tangible personal property of the Sellers and their
            Affiliates, whether or not related to or used in the Business;

                  (13) all right, title and interest of the Sellers and their
            Affiliates in and to any and all other assets and properties, of any
            kind whatsoever, that are not used in the conduct of the Business;

                  (14) all FDS Shopper Data (whether or not any portion thereof
            is duplicated in the Transferred Intellectual Property (and without
            limiting the Purchaser's rights to the Transferred Intellectual
            Property pursuant to this Agreement and the Program Agreement));

                  (15) all current Taxes receivable, deferred Tax assets and
            prepaid Taxes, Tax payments due from Affiliates, and entitlements to
            refunds or credits for overpayment of Taxes, all to the extent set
            forth in Article XI;

                  (16) all Charged Off Accounts;

                  (17) all amounts owing to the Sellers from the Cardholders
            with respect to Charged Off Accounts; and

                  (18) all Interchange Fees relating to the Charged Off
            Accounts.

      Except in the case of any assets described in clause (15) above, the term
      "Excluded Assets" does not include any of the foregoing to the extent
      owned or held by Prime.

            "Excluded Liabilities" means Liabilities of the Sellers or their
      Affiliates (or any of their respective predecessors), or GE Bank or its
      Affiliates (or any of their respective predecessors) with respect to the
      GE/Macy's Assets, or May Co. or its Affiliates (or any of their respective
      predecessors) with respect to the May Assets, of any kind whatsoever,

                                       6
<PAGE>

      other than the Assumed Liabilities, whether presently in existence or
      arising hereafter, including:

                  (1) all Liabilities for Taxes (i) with respect to the FDS
            Assets, Prime, the Master Trusts or the Business for any period (or
            portion thereof, in the case of a Straddle Period) ending on or
            prior to the First Closing Date, (ii) with respect to the GE/Macy's
            Assets for any period (or portion thereof, in the case of a Straddle
            Period) ending on or prior to the Second Closing Date, and (iii)
            with respect to the May Assets for any period (or portion thereof,
            in the case of a Straddle Period) ending on or prior to the Third
            Closing Date;

                  (2) all Liabilities of the Sellers or their Affiliates
            relating to the Employees, or any current or former employees,
            officers or directors of the Sellers or their Affiliates;

                  (3) all Liabilities to the extent related to or arising from
            any Excluded Asset;

                  (4) all Liabilities (except for Taxes described in clause (1)
            above) related to, associated with or arising out of any action,
            claim, suit or proceeding or otherwise arising out of or relating to
            the operation of the Business or the FDS Assets prior to the First
            Closing, whether such action, claim, suit or proceeding is brought,
            or such Liability becomes payable, prior to, on or after the First
            Closing;

                  (5) all Liabilities (except for Taxes described in clause (1)
            above) related to, associated with or arising out of any action,
            claim, suit or proceeding or otherwise arising out of or relating to
            the operation of the GE/Macy's Assets prior to the Second Closing,
            whether such action, claim, suit or proceeding is brought, or such
            Liability becomes payable, prior to, on or after the Second Closing
            Date;

                  (6) all Liabilities (except for Taxes described in clause (1)
            above) related to, associated with or arising out of any action,
            claim, suit or proceeding or otherwise arising out of or relating to
            the operation of the May Assets prior to the Third Closing, whether
            such action, claim, suit or proceeding is brought, or such Liability
            becomes payable, prior to, on or after the Third Closing Date;

                  (7) all loan loss reserves maintained by the Sellers and their
            Affiliates in respect of (i) the Accounts and (ii) the amounts owing
            in respect thereof from Cardholders;

                  (8) all legal, accounting, brokerage and finder's fees, if
            any, or other fees and expenses incurred by any of the Sellers in
            connection with this Agreement or the consummation of the
            transactions contemplated hereby;

                  (9) all Liabilities related to, associated with or arising out
            of any employee benefit plans, programs, agreements or arrangements
            sponsored or maintained by the Sellers or their Affiliates, or with
            respect to which the Sellers or their Affiliates have any
            obligation; and

                                       7
<PAGE>

                  (10) all Liabilities from Loyalty Programs (as defined in the
            Program Agreement) arising out of all sales to Cardholders or
            authorized users of (i) Charged Off Accounts, (ii) FDS Accounts
            through the First Cut-Off Time Date, (iii) GE/Macy's Accounts
            through the Second Cut-Off Time Date, and (iv) May Accounts through
            the Third Cut-Off Time Date.

      Except in the case of Tax Liabilities described in clause (1) hereof and
      in the definition of Prime Excluded Taxes, the term "Excluded Liabilities"
      does not include any Liabilities of Prime.

            "Federal Funds Rate" means the offered rate as reported in The Wall
      Street Journal in the "Money Rates" section for reserves traded among
      commercial banks for overnight use in amounts of one million dollars
      ($1,000,000) or more or, if no such rate is published for a day, the rate
      published for the preceding Business Day, calculated on a daily basis
      based on a 365 day year.

            "FDS Account" means any Credit Card Account that exists and is owned
      by FDS or one of its Subsidiaries as of the First Cut-Off Time, other than
      (i) a GE/Macy's Account or a May Account and (ii) any Credit Card Account
      that, as of the First Cut-Off Time, has been (or should have been) charged
      off in accordance with the Sellers' standard policies and procedures as in
      effect on the date of this Agreement.

            "FDS Assets" means all right, title and interest of the Sellers in
      and to the following assets, properties and rights:

                  (1) the FDS Accounts;

                  (2) the Gross Receivables (other than Prime Securitization
            Receivables) on the FDS Accounts as of the First Cut-Off Time;

                  (3) all Interchange Fees relating to the FDS Accounts and
            payable with respect to transactions occurring after the First
            Cut-Off Time;

                  (4) the applications for FDS Accounts pending and
            solicitations for FDS Accounts outstanding;

                  (5) the Account Agreements for the FDS Accounts;

                  (6) the FDS Cardholder List;

                  (7) the portion of the Master File, as of the First Cut-Off
            Time, applicable to the FDS Accounts;

                  (8) the Prime Securitization Assets;

                  (9) all rights of the Sellers arising under the Assigned
            Contracts in respect of periods on or after the First Closing;

                                       8
<PAGE>

                  (10) the Books and Records (if any), other than Books and
            Records that relate principally to the GE/Macy's Accounts or the May
            Accounts;

                  (11) FDS Bank's ICA numbers and bank identification numbers
            (BINs);

                  (12) all inventories and other goods and supplies in stock and
            used or held for use by the Sellers and their Affiliates in
            connection with the FDS Accounts, including plastics, applications,
            and periodic statements; and

                  (13) all rights, claims, credits, causes of action or rights
            of set-off against third parties relating principally to the assets
            listed in clauses (1) through (12) above, in each case, arising upon
            or after the First Closing.

      The term "FDS Assets" does not include any of the foregoing to the extent
      owned or held by Prime.

            "FDS Cardholder List" means a list, as of the First Cut-Off Time, of
      the names, addresses, telephone numbers and taxpayer identification
      numbers and social security numbers of all Cardholders with respect to the
      FDS Accounts as and to the extent maintained by FDS or any of its
      Subsidiaries.

            "FDS Liabilities" means the following Liabilities of the Sellers:

                  (1) except for the obligations of Prime, which shall be
            retained by Prime and transferred pursuant to this Agreement
            together with the Prime Stock, all of the obligations of the
            Sellers, as servicer or in any other capacity, to the Prime Master
            Trust and under any Prime Securitization Documents;

                  (2) all obligations of the Sellers arising under the Assigned
            Contracts in respect of periods on or after the First Closing
            (excluding any obligations to the extent related to any breach or
            default by any Seller under any Assigned Contract occurring prior to
            the First Closing);

                  (3) all Liabilities for Taxes relating to the FDS Assets or
            the Business for any period (or portion thereof, in the case of a
            Straddle Period) beginning after the First Closing Date (other than
            any Liabilities for Taxes in respect of the GE/Macy's Assets or the
            May Assets);

                  (4) all Liabilities to the extent related to, associated with
            or arising out of the FDS Assets or the operation of the Business by
            the Purchaser and its Affiliates (other than with respect to the
            GE/Macy's Assets or the May Assets), in each case from and after the
            First Closing Date;

                  (5) from and after the First Closing, all obligations to FDS
            Account Cardholders in their capacity as such or to perform under
            Account Agreements for the FDS Accounts, including payment of credit
            balances (excluding any such

                                       9
<PAGE>

            obligations to the extent related to any breach or default by the
            Sellers prior to the First Closing);

                  (6) all fees, operating assessments and other charges relating
            to the FDS Accounts that are incurred or accrue on or after the
            First Closing Date (including fees, assessments and other charges of
            the Card Associations relating to the Accounts, but excluding
            (except as otherwise expressly provided in this Agreement) all
            obligations to the Card Associations arising out of or relating to
            the consummation of the transactions contemplated by this Agreement
            and the Ancillary Agreements); and

                  (7) all obligations of the Sellers to perform from and after
            the First Closing under the applicable by-laws, rules and
            regulations of the Card Associations with respect to the FDS
            Accounts.

      The term "FDS Liabilities" does not include any Liabilities of Prime.

            "FDS Licensed Marks" has the meaning set forth in the Program
      Agreement.

            "FDS Purchase Price" means the purchase price payable in accordance
      with the Final First Closing Statement, as finally determined in
      accordance with Section 2.3.

            "FDS Shopper Data" has the meaning set forth in the Program
      Agreement.

            "Final First Closing Statement" means a statement prepared by FDS
      substantially in the form of Schedule 1.1(b)(1), showing in reasonable
      detail FDS's calculation of the FDS Purchase Price, based on the data
      available as of the First Cut-Off Time.

            "Final Second Closing Statement" means a statement prepared by FDS,
      substantially in the form of Schedule 1.1(b)(2), showing in reasonable
      detail FDS's calculation of the GE/Macy's Purchase Price, based on the
      data available as of the Second Cut-Off Time.

            "Final Third Closing Statement" means a statement prepared by FDS,
      substantially in the form of Schedule 1.1(b)(3), or such other statement
      as may be prepared pursuant to Section 6.16, in each case, showing in
      reasonable detail FDS's calculation of the May Purchase Price, based on
      the data available as of the Third Cut-Off Time.

            "First Cut-Off Time" means 11:59 P.M. Eastern time on the Saturday
      immediately preceding the First Closing Date.

            "First Instrument of Assignment and Assumption" means the Instrument
      of Assignment and Assumption in the form attached as Annex B, to be
      entered into at the First Closing.

            "Fiscal Month" has the meaning set forth in the Program Agreement.

                                       10
<PAGE>

            "GAAP" means generally accepted accounting principles in the United
      States, consistently applied.

            "GE Bank" means GE Capital Consumer Card Co., an Ohio banking
      corporation.

            "GE/Macy's Account" means a Credit Card Account owned by GE Bank or
      one of its Affiliates as of the Second Cut-Off Time and governed by the
      GE/Macy's Program Agreement that exists as of the Second Cut-Off Time,
      other than (i) a May Account and (ii) any Credit Card Account that, as of
      the Second Cut-Off Time, has been (or should have been) charged off in
      accordance with the standard policies and procedures of GE Bank as in
      effect as of the date of this Agreement.

            "GE/Macy's Assets" means all right, title and interest of the
      Sellers in and to the following assets, properties and rights:

                  (1) the GE/Macy's Accounts;

                  (2) the Gross Receivables on the GE/Macy's Accounts as of the
            Second Cut-Off Time;

                  (3) all Interchange Fees relating to the GE/Macy's Accounts
            and payable with respect to transactions occurring after the Second
            Cut-Off Time;

                  (4) the applications for GE/Macy's Accounts pending and
            solicitations for GE/Macy's Accounts outstanding (if any);

                  (5) the Account Agreements for the GE/Macy's Accounts;

                  (6) the GE/Macy's Cardholder List;

                  (7) the portion of the Master File, as of the Second Cut-Off
            Time, applicable to the GE/Macy's Accounts;

                  (8) the Books and Records that relate to the GE/Macy's
            Accounts (if any);

                  (9) all inventories and other goods and supplies in stock and
            used or held for use by the Sellers and their Affiliates in
            connection with the GE/Macy's Accounts, including plastics,
            applications, and periodic statements; and

                  (10) all rights, claims, credits, causes of action or rights
            of set-off against third parties relating principally to the assets
            listed in clauses (1) through (9) above, in each case, arising upon
            or after the Second Closing.

            "GE/Macy's Cardholder List" means a list, as of the Second Cut-Off
      Time, of the names, addresses, telephone numbers and taxpayer
      identification numbers and social security numbers of all Cardholders with
      respect to the GE/Macy's Accounts as and to the extent maintained by FDS
      or any of its Subsidiaries.

                                       11
<PAGE>

            "GE/Macy's Liabilities" means the following Liabilities of the
      Sellers:

                  (1) all Liabilities for Taxes relating to the GE/Macy's Assets
            for any period (or portion thereof, in the case of a Straddle
            Period) beginning after the Second Closing Date;

                  (2) from and after the Second Closing, all obligations to
            GE/Macy's Account Cardholders in their capacity as such or to
            perform under Account Agreements for the GE/Macy's Accounts,
            including payment of credit balances (excluding any such obligations
            to the extent related to any breach or default by the Sellers or GE
            Bank prior to the Second Closing);

                  (3) all fees, operating assessments and other charges relating
            to the GE/Macy's Accounts that are incurred or accrue on or after
            the Second Closing Date (including fees, assessments and other
            charges of the Card Associations relating to the Accounts, but
            excluding (except as otherwise expressly provided in this Agreement)
            all obligations to the Card Associations arising out of or relating
            to the consummation of the transactions contemplated by this
            Agreement and the Ancillary Agreements);

                  (4) all obligations of the Sellers to perform from and after
            the Second Closing under the applicable by-laws, rules and
            regulations of the Card Associations with respect to the GE/Macy's
            Accounts; and

                  (5) all Liabilities to the extent related to, associated with
            or arising out of the GE/Macy's Assets or the operation of the
            Business by the Purchaser or its Affiliates with respect to the
            GE/Macy's Assets, in each case from and after the Second Closing.

            "GE/Macy's Program Agreement" means the Amended and Restated Credit
      Card Program Agreement, dated as of June 4, 1996, by and among GE Capital
      Consumer Card Co., FDS, and the other parties thereto, as amended,
      restated or otherwise modified from time to time.

            "GE/Macy's Purchase Price" means the purchase price payable in
      accordance with the Final Second Closing Statement, as finally determined
      in accordance with Section 3.3.

            "Governmental Authority" means any domestic or foreign governmental,
      regulatory or self-regulatory authority, agency, court, tribunal,
      commission or other governmental, regulatory or self-regulatory entity
      exercising legislative, judicial, regulatory or administrative functions.

            "Gross Receivables" means amounts owing (net of credit balances) to
      the Sellers from Cardholders with respect to Accounts (including
      outstanding loans, cash advances, balance consolidation receivables and
      other extensions of credit, accrued finance charges and late charges,
      whether or not posted, and any other accrued fees, charges and interest
      assessed on such Accounts, whether or not posted).

                                       12
<PAGE>

            "HSR Act" means the Hart-Scott-Rodino Antitrust Improvement Act of
      1976, as amended.

            "Intellectual Property Right" means any intellectual property right,
      including any trademark, service mark or other source indicator and all
      goodwill associated therewith, invention, patent, copyright, confidential
      or proprietary information (including trade secret and know-how) and any
      registration or application for registration of any of the foregoing.

            "Interchange Fees" means the fees paid or payable in connection with
      the exchange of credit card transactions between members of the applicable
      Card Association pursuant to the applicable by-laws, rules and regulations
      of such Card Association.

            "Knowledge" means, with respect to the Sellers, the actual knowledge
      of the persons named on Schedule 1.1(c)(1) hereto and, with respect to the
      Purchaser, the actual knowledge of the persons named on Schedule 1.1(c)(2)
      hereto, in each case after reasonable inquiry.

            "Liability" means any debt, liability, commitment, obligation, claim
      or cause of action of any kind whatsoever, whether due or to become due,
      known or unknown, accrued or fixed, absolute or contingent, or otherwise.

            "Lien" means, with respect to any property, any lien, security
      interest, mortgage, pledge, charge, encumbrance, adverse claim, reversion,
      reverter or restriction of any kind relating to that property, including
      the interest of a vendor or lessor under any conditional sale agreement,
      capital lease or other title retention agreement relating to such
      property.

            "Master File" means the master file maintained by FDS Bank and its
      Affiliates with respect to the Accounts, including identification and
      other customer data and Account information, the names and addresses of
      Cardholders with respect to the Accounts and any and all Account
      adjustments made by or on behalf of the Sellers in the form attached
      hereto as Schedule 1.1(d).

            "Master Trusts" means the collective reference to the Prime Master
      Trust and the Prime II Master Trust.

            "Material Adverse Effect" means:

                  (a) with respect to the Business (or the Acquired Assets and
      Stock), any change, event or effect that is materially adverse to the
      assets, the results of operations or financial condition of the Business
      (or the Acquired Assets and Stock), taken as a whole, excluding any effect
      or change attributable to or resulting from (1) economic, business or
      financial conditions generally or events affecting the credit card
      services or consumer credit business, the banking or financial services
      industry or the retail department store industry to the extent such events
      or conditions do not have a disproportionate effect on the Business (or
      the Acquired Assets and Stock) relative to other entities operating
      businesses similar to the Business (or the Acquired Assets and Stock), (2)
      financial market conditions, including interest rates or changes therein,
      (3)

                                       13
<PAGE>

      changes in laws, GAAP or regulatory accounting principles, (4) any action,
      omission, change, effect, circumstance or condition contemplated by this
      Agreement, or attributable to the signing and announcement of this
      Agreement with the Purchaser or the transactions contemplated by this
      Agreement and the Ancillary Agreements, or (5) any actions or omissions
      required by the terms of this Agreement or the Ancillary Agreements or any
      action taken or not taken at the request or direction of the other party
      or parties hereto; and/or

                  (b) with respect to the Sellers or the Purchaser, a material
      impairment of the ability of the relevant Person or Persons to perform its
      or their material obligations under this Agreement or the Ancillary
      Agreements on a timely basis.

            "May Account" means a Credit Card Account owned by FDS or a
      Subsidiary of FDS prior to the Third Closing and associated with a retail
      division of May Co. as conducted as of the closing of May Merger (or a
      successor to such business as conducted by FDS and its Subsidiaries
      following the May Merger) that exists as of the Third Cut-Off Time, other
      than any Credit Card Account that, as of the Third Cut-Off Time, has been
      (or should have been) charged off in accordance with May Bank's or the
      Sellers' standard policies and procedures as in effect on the date of this
      Agreement.

            "May Assets" means all right, title and interest of the Sellers in
      and to the following assets, properties and rights:

                  (1) the May Accounts;

                  (2) the Gross Receivables on the May Accounts as of the Third
            Cut-Off Time;

                  (3) all Interchange Fees relating to the May Accounts and
            payable with respect to transactions occurring after the Third
            Cut-Off Time;

                  (4) the applications for May Accounts pending and
            solicitations for May Accounts outstanding (if any);

                  (5) the Account Agreements for the May Accounts;

                  (6) the May Cardholder List;

                  (7) the portion of the Master File, as of the Third Cut-Off
            Time, applicable to the May Accounts;

                  (8) the Books and Records that relate to the May Accounts (if
            any);

                  (9) all inventories and other goods and supplies in stock and
            used or held for use by the Sellers and their Affiliates in
            connection with the May Accounts, including plastics, applications,
            and periodic statements; and

                                       14
<PAGE>

                  (10) all rights, claims, credits, causes of action or rights
            of set-off against third parties relating principally to the assets
            listed in clauses (1) through (9) above, in each case, arising upon
            or after the Third Closing.

            "May Bank" means May National Bank of Ohio.

            "May Cardholder List" means a list, as of the Third Cut-Off Time, of
      the names, addresses, telephone numbers and taxpayer identification
      numbers and social security numbers of all Cardholders with respect to the
      May Accounts as and to the extent maintained by FDS or any of its
      Subsidiaries.

            "May Co." means The May Department Stores Company, a Delaware
      corporation.

            "May Liabilities" means the following Liabilities of the Sellers:

                  (1) all Liabilities for Taxes relating to the May Assets for
            any period (or portion thereof, in the case of a Straddle Period)
            beginning after the Third Closing Date;

                  (2) from and after the Third Closing, all obligations to May
            Account Cardholders in their capacity as such or to perform under
            Account Agreements for the May Accounts, including payment of credit
            balances (excluding any such obligations to the extent related to
            any breach or default by the Sellers or its Affiliates prior to the
            Third Closing);

                  (3) all fees, operating assessments and other charges relating
            to the May Accounts that are incurred or accrue on or after the
            Third Closing Date (including fees, assessments and other charges of
            the Card Associations relating to the Accounts, but excluding
            (except as otherwise expressly provided in this Agreement) all
            obligations to the Card Associations arising out of or relating to
            the consummation of the transactions contemplated by this Agreement
            and the Ancillary Agreements);

                  (4) all obligations of the Sellers to perform from and after
            the Third Closing under the applicable by-laws, rules and
            regulations of the Card Associations with respect to the May
            Accounts; and

                  (5) all Liabilities to the extent related to, associated with
            or arising out of the May Assets or the operation of the Business by
            the Purchaser or its Affiliates with respect to the May Assets, in
            each case from and after the Third Closing.

            "May Merger" means the merger of May Co. with and into Milan
      Acquisition Corp., a Subsidiary of FDS, pursuant to the Agreement and Plan
      of Merger, dated as of February 27, 2005, by and among FDS, Milan
      Acquisition Corp. and May Co., as amended or otherwise modified from time
      to time.

                                       15
<PAGE>

            "May Purchase Price" means the purchase price payable in accordance
      with the Final Third Closing Statement, as finally determined in
      accordance with Section 3.3.

            "Permissible Liens" means Liens (i) for Taxes, assessments and other
      governmental charges or levies (1) not yet due or (2) which are being
      contested in good faith by appropriate action and as to which adequate
      reserves for contested amounts have been set aside in accordance with GAAP
      or (ii) created under the Securitization Documents.

            "Person" means any individual, corporation, business trust,
      partnership, association, limited liability company or similar
      organization, or any Governmental Authority.

            "Previously Disclosed" means, with respect to the Sellers or the
      Purchaser, information set forth in the Schedules, whether in response to
      an express informational requirement or as an exception to one or more
      specified representations or covenants.

            "Prime Excluded Taxes" means all:

                  (1) Taxes imposed on or payable by Prime as a result of the
            Section 338(h)(10) Election;

                  (2) Taxes imposed on any member of an affiliated,
            consolidated, combined or unitary group of which Prime is or was a
            member on or prior to the First Closing Date, including pursuant to
            Treasury Regulation Section 1.1502-6; and

                  (3) Taxes imposed on or payable by the Purchaser or any of its
            Affiliates (including Prime and the Prime Master Trust) as a result
            of (a) a breach of the representation set forth in Section 5.1(o)(2)
            that is not attributable to an action by the Purchaser or any of its
            Affiliates on or after the First Closing Date or (b) a breach by FDS
            of the covenant set forth in Section 11.6(a).

            "Prime Securitization Assets" means the collective reference to (i)
      any certificate or interest in the Prime Master Trust retained by FDS or
      any of its Subsidiaries; (ii) all right, title and interest of each of the
      Sellers in the Prime Securitization Bank Accounts; (iii) all right, title
      and interest of each of the Sellers in and to the Prime Securitization
      Receivables; and (iv) all other rights, title and interests of each of the
      Sellers and their Subsidiaries under each of the Prime Securitization
      Documents, in each case, other than the Prime Securitization Interests.

            "Prime Securitization Bank Accounts" means any spread account,
      reserve account, collection account, principal funding account or other
      similar accounts created pursuant to the Prime Securitization Documents,
      including the bank accounts listed on Schedule 1.1(e).

            "Prime Securitization Documents" means the Prime Pooling and
      Servicing Agreement and the other documents designated as such on Schedule
      1.1(f).

                                       16
<PAGE>

            "Prime Securitization Interests" means the interests in the Prime
      Securitization Assets held by Prime, including its interest in any
      transferor certificate or investor certificates retained or acquired by
      it, and the rights and obligations of Prime in its capacity as transferor
      under the Prime Securitization Documents.

            "Prime Securitization Receivables" means, as of any date, the Gross
      Receivables that have been transferred to the Prime Master Trust and that
      have not been reassigned to the transferor under the Prime Pooling and
      Servicing Agreement.

            "Prime Stock" means all of the outstanding shares of Prime Common
      Stock as of the First Closing Date.

            "Prime II Securitization Documents" means the Prime II Pooling and
      Servicing Agreement and the other documents designated as such on Schedule
      1.1(g).

            "Prime II Securitization Receivables" means, as of any date, the
      Gross Receivables that have been transferred to the Prime II Master Trust
      and that have not been reassigned to the transferor under the Prime II
      Pooling and Servicing Agreement.

            "Purchase Price" means the sum of the FDS Purchase Price, the
      GE/Macy's Purchase Price and the May Purchase Price.

            "Requirement of Law" means, with respect to any Person, any law,
      ordinance, statute, order, treaty, rule or regulation or determination of
      an arbitrator or of a Governmental Authority, in each case binding on that
      Person or its property.

            "Required Amendments and Confirmations" means all amendments to the
      Prime Securitization Documents in a form reasonably acceptable to the
      parties and the receipt of any consent required by any rating agency in
      order to consummate the transactions contemplated hereby without violation
      of the terms of any Prime Securitization Document.

            "Requisite Regulatory Approvals" means the consents, registrations,
      approvals, permits or authorizations designated as such in the Schedule
      5.1(c) with respect to the Sellers and Schedule 5.2(c) with respect to the
      Purchaser.

            "Second Cut-Off Time" means 11:59 P.M. Eastern time on the Saturday
      immediately preceding the Second Closing Date.

            "Second Instrument of Assignment and Assumption" means the
      Instrument of Assignment and Assumption in the form attached as Annex C,
      to be entered into at the Second Closing.

            "Securitization Documents" means the collective reference to the
      Prime Securitization Documents and the Prime II Securitization Documents.

            "Securitization Receivables" means, as of any date, the collective
      reference to the Prime Securitization Receivables and the Prime II
      Securitization Receivables.

                                       17
<PAGE>

            "Sellers" means the collective reference to FDS, FDS Bank and Prime
      II; provided that with respect to the Second Purchase and Assumption (and
      the obligations and conditions to be satisfied in connection therewith)
      and the Third Purchase and Assumption (and the obligations and conditions
      to be satisfied in connection therewith), the "Sellers" shall mean FDS and
      FDS Bank.

            "Servicer" means FDS, acting in its capacity as servicer, or any
      successor servicer, under and pursuant to the Prime Pooling and Servicing
      Agreement.

            "Servicer Default" has the meaning ascribed to such term in the
      Prime Pooling and Servicing Agreement.

            "Straddle Period" means any taxable period beginning on or before
      and ending after the First Closing Date, the Second Closing Date or the
      Third Closing Date, as applicable.

            "Subsidiary" when used with respect to any Person, means another
      Person, where an amount of the voting securities, or other voting
      ownership or voting partnership interests of the second Person sufficient
      to elect at least a majority of its board of directors or similar
      governing body (or if there are not such voting interests, fifty percent
      (50%) or more of the equity interest of which) is owned directly or
      indirectly by the first Person or by another Subsidiary of the first
      Person.

            "Tax Return" means any return, declaration, report or similar
      statement required to be filed with respect to any Taxes (including any
      attached schedules) including any information return, claim for refund,
      amended return and declaration of estimated Tax.

            "Taxes" means any income, alternative or add-on minimum tax, gross
      receipts, sales, use, transfer, gains, ad valorem, franchise, profits,
      license, withholding, payroll, employment, excise, severance, stamp,
      occupation, premium, property, environmental or windfall profit tax,
      custom, duty or other tax, governmental fee or other like assessment or
      charge, together with any interest or any penalty, addition to tax or
      additional amount imposed by any Governmental Authority responsible for
      the imposition of any such tax (domestic or foreign).

            "Termination Fee" means the amount designated as such on Schedule
      1.1(h).

            "Third Cut-Off Time" means 11:59 P.M. Eastern time on the Saturday
      immediately preceding the Third Closing Date.

            "Third Instrument of Assignment and Assumption" means the Instrument
      of Assignment and Assumption in the form attached as Annex D, to be
      entered into at the Third Closing.

            "Transferred Intellectual Property" means all rights to the FDS
      Cardholder List, the GE/Macy's Cardholder List, the May Cardholder List
      and the Master File (in each case, subject to the restrictions set forth
      in the Program Agreement).

                                       18
<PAGE>

                  (b) Each of the following terms is defined in the section of
      this Agreement set forth opposite such term:

<TABLE>
<CAPTION>
Term                                                                               Section
----                                                                              --------
<S>                                                                               <C>
Actions.................................................................           6.11(a)
Accountant..............................................................            2.3(c)
Adverse Development.....................................................            5.1(m)
Agreement...............................................................          Preamble
CEBA Bank...............................................................          Recitals
CEBA Capital Stock......................................................            5.2(n)
CEBA Equity Interests...................................................           6.14(c)
Confidentiality Agreements..............................................            6.3(c)
Credit Card Marks.......................................................               6.7
De Minimis Claim........................................................              12.2
Exchange Act............................................................            5.1(e)
FDS.....................................................................          Preamble
FDS Account Assets......................................................           11.6(b)
FDS Allocation Amount...................................................           11.6(b)
FDS Bank................................................................          Preamble
FDS Confidentiality Agreement...........................................            6.3(c)
First Closing...........................................................            2.4(a)
First Closing Allocation................................................           11.6(b)
First Closing Date......................................................            2.4(a)
First Purchase and Assumption...........................................            2.4(a)
Form 8023...............................................................           11.6(a)
GE/Macy's Account Assets................................................           11.6(d)
Indemnified Party.......................................................           12.4(a)
Indemnifying Party......................................................           12.4(a)
Interim Services........................................................              6.17
IRS.....................................................................           11.6(a)
Jones Day Opinion.......................................................           6.18(a)
Losses..................................................................              12.2
May Account Assets......................................................           11.6(e)
May Business............................................................            6.1(b)
May Confidentiality Agreement...........................................            6.3(c)
Minimum FDS Allocation..................................................           11.6(b)
Minimum GE/Macy's Allocation............................................           11.6(d)
Minimum May Allocation..................................................           11.6(e)
OCC.....................................................................           10.4(b)
Pooling and Servicing Agreements........................................          Recitals
Prime...................................................................          Recitals
Prime Allocation........................................................           11.6(c)
Prime Common Stock......................................................            5.1(q)
Prime Master Trust......................................................          Recitals
Prime Pooling and Servicing Agreement...................................          Recitals
Prime II................................................................          Preamble
</TABLE>

                                       19
<PAGE>

<TABLE>
<CAPTION>
Term                                                                              Section
----                                                                             ---------
<S>                                                                              <C>
Prime Stock Amount......................................................           11.6(b)
Prime II Master Trust...................................................          Recitals
Prime II Pooling and Servicing Agreement................................          Recitals
Program Agreement.......................................................          Recitals
Purchaser...............................................................          Preamble
SEC.....................................................................            5.1(e)
SEC Documents...........................................................            5.1(e)
Second Closing..........................................................            3.4(a)
Second Closing Allocation...............................................           11.6(d)
Second Closing Date.....................................................            3.4(a)
Second Purchase and Assumption..........................................            3.4(a)
Section 338(h)(10) Election.............................................           11.6(a)
Securities Act..........................................................            5.1(e)
Servicer Default or Termination.........................................            5.1(m)
Specified Assets........................................................         5.1(s)(1)
Tax Contest.............................................................              11.8
Third Closing...........................................................            4.4(a)
Third Closing Allocation................................................           11.6(e)
Third Closing Date......................................................            4.4(a)
Third Purchase and Assumption...........................................            4.4(a)
</TABLE>

            SECTION 1.2. Interpretation.

            (a) In this Agreement, unless the context otherwise requires,
references to:

                  (1) the Preamble or the Recitals, Sections, Annexes or
            Schedules refer to the Preamble or a Recital or Section of, or Annex
            or Schedule to, this Agreement;

                  (2) any Contract (including this Agreement) refer to the
            Contract as amended, modified, supplemented or replaced from time to
            time, in a manner permitted by this Agreement;

                  (3) any statute or regulation refer to the statute or
            regulation as amended, modified, supplemented or replaced from time
            to time (and, in the case of statutes, include any rules and
            regulations promulgated under the statute) and to any section of any
            statute or regulation include any successor to the section;

                  (4) any Governmental Authority include any successor to the
            Governmental Authority; and

                  (5) this Agreement are to this Agreement and the Schedules to
            it.

            (b) The table of contents and headings contained in this Agreement
are for reference purposes only and do not limit or otherwise affect any of the
provisions of this Agreement.

                                       20
<PAGE>

            (c) The references to "Second Closing and "Third Closing" and
similar terms are not intended to dictate the order in which the events referred
to using those terms must occur. The Third Closing may occur prior to the Second
Closing.

            (d) Whenever the word "include," "includes" or "including" is used
in this Agreement, it shall be deemed to be followed by the words "without
limitation."

            (e) This Agreement is the product of negotiation by the parties
having the assistance of counsel and other advisers. It is the intention of the
parties that this Agreement not be construed more strictly with regard to one
party than with regard to any other.

                                   ARTICLE II
                  FIRST CLOSING, PURCHASE, SALE AND ASSUMPTION

            SECTION 2.1. Purchase and Sale of FDS Assets and the Prime Stock. On
the terms and subject to the conditions of this Agreement, at the First Closing
and effective from and after the First Closing Date, the Sellers shall sell,
convey and assign (or cause their Subsidiaries to sell, convey and assign) to
the Purchaser, free and clear of all Liens, except Permissible Liens, and the
Purchaser shall purchase, the FDS Assets and the Prime Stock. Immediately
following receipt of the FDS Assets and the Prime Stock, the Purchaser shall
transfer, contribute or otherwise assign the FDS Assets and the Prime Stock to
CEBA Bank.

            SECTION 2.2. Assumption of FDS Liabilities. On the terms and subject
to the conditions of this Agreement, at the First Closing and effective from and
after the First Closing Date, the Purchaser shall assume, pay, defend, discharge
and perform as and when due the FDS Liabilities. Immediately following its
assumption of the FDS Liabilities, the Purchaser shall cause CEBA Bank to assume
the FDS Liabilities. The Excluded Liabilities shall be retained by the Sellers
and their Affiliates, as applicable. The GE/Macy's Liabilities shall be retained
by the Sellers and their Affiliates, as applicable, until the Second Closing.
The May Liabilities shall be retained by the Sellers and their Affiliates (or
May Co. and its Affiliates), as applicable, until the Third Closing.

            SECTION 2.3. FDS Purchase Price; FDS Purchase Price Adjustment.

            (a) On the second Business Day before the First Closing, FDS, on
behalf of the Sellers, shall deliver to the Purchaser the Estimated First
Closing Statement reflecting the Sellers' good faith calculation of the
Estimated FDS Purchase Price to be paid by the Purchaser at the First Closing.

            (b) Within forty-five (45) days after the First Closing, FDS, on
behalf of the Sellers, shall deliver to the Purchaser the Final First Closing
Statement prepared based on the information in the Master File, other than
information relating to the GE/Macy's Accounts, as of the First Cut-Off Time and
copies of the Master File, other than information relating to the GE/Macy's
Accounts, as of the First Cut-Off Time.

            (c) The Purchaser shall, within forty-five (45) days after receipt
of the Final First Closing Statement, advise the Sellers in writing and in
reasonable detail if it believes that the

                                       21
<PAGE>

Final First Closing Statement did not accurately reflect the items required to
be included therein in accordance with the provisions of this Agreement and
Schedule 1.1(b)(1) hereto, in each case stating in reasonable detail the basis
of its belief. In the event the Purchaser delivers such an objection, the
Sellers and the Purchaser shall attempt in good faith to resolve their
differences. In the event all differences are not resolved within sixty (60)
days following receipt of the Final First Closing Statement by the Purchaser,
then the issues remaining unresolved shall be determined by Deloitte Touche
Tohmatsu (the "Accountant"). The Accountant shall resolve all disputed items in
accordance with the provisions of this Agreement. In making its determination,
the Accountant may only consider those items and amounts as to which the
Purchaser and the Sellers have disagreed within the time periods and on the
grounds specified. The Accountant's determination shall be conclusive and
binding on the Purchaser and the Sellers absent manifest error. The fees of the
Accountant shall be shared by the Purchaser and the Sellers in proportion to the
relative differences between their respective calculations of the FDS Purchase
Price and the amount determined by the Accountant.

            (d) If the Estimated FDS Purchase Price exceeds the FDS Purchase
Price, then FDS, on behalf of the Sellers, shall, within five (5) Business Days
after the FDS Purchase Price has been finally determined pursuant to Section
2.3(c), pay such excess (plus the amount of interest on such excess calculated
in accordance with item 7 of the Estimated First Closing Statement) by wire
transfer of immediately available funds (in U.S. dollars) to the Purchaser,
together with interest on the foregoing amount for the period from and including
the First Closing Date to but excluding the date of such payment at a rate per
annum equal to the Federal Funds Rate. If the Estimated FDS Purchase Price is
less than the FDS Purchase Price, then the Purchaser shall, within five (5)
Business Days after the FDS Purchase Price has been finally determined pursuant
to Section 2.3(c), pay such deficiency (plus the amount of interest on such
deficiency calculated in accordance with item 7 of the Estimated First Closing
Statement) by wire transfer of immediately available funds (in U.S. dollars) to
FDS on behalf of the Sellers, together with interest on the foregoing amount for
the period from and including the First Closing Date to but excluding the date
of such payment at a rate per annum equal to the Federal Funds Rate. Each party
to this Agreement shall make available to the other parties, and to the
Accountant, its and its accountants work papers (to the extent possible),
schedules and other supporting data as may be reasonably requested by such other
parties to enable them to verify the amounts set forth in the Final First
Closing Statement.

            SECTION 2.4. The First Closing.

            (a) The closing (the "First Closing") of the purchase and sale of
the FDS Assets and the Prime Stock and the assumption of the FDS Liabilities
hereunder (collectively, the "First Purchase and Assumption") shall take place
at the offices of Simpson Thacher & Bartlett LLP, 425 Lexington Avenue, New
York, New York, or by facsimile transmission on the first Business Day of the
Fiscal Month after the Fiscal Month in which the last of the conditions set
forth in Article VII (other than conditions relating solely to the delivery of
documents to be dated the First Closing Date) has been satisfied or waived in
accordance with the terms of this Agreement or at such other date or location as
the parties hereto jointly designate in writing (the "First Closing Date").

                                       22
<PAGE>

            (b) At the First Closing, the Purchaser shall, and the Sellers shall
and shall cause Prime to, deliver or cause to be delivered to each other (i)
instruments of sale, assignment, transfer and conveyance of the FDS Assets, the
Prime Stock and the FDS Liabilities, respectively (which shall be the First
Instrument of Assignment and Assumption), (ii) a receipt for the FDS Purchase
Price, and (iii) such other instruments as are necessary or appropriate to
reflect any alternative arrangements described in Section 6.15, in each case,
appropriately executed by the Sellers and the Purchaser.

            (c) At the First Closing, the Purchaser shall pay the Estimated FDS
Purchase Price (plus the amount of any interest thereon as set forth on and
calculated in accordance with item 7 of the Estimated First Closing Statement)
by wire transfer of immediately available funds (in U.S. dollars) prior to 11:00
A.M. Eastern time on the First Closing Date to an account specified by FDS at
least three (3) Business Days prior to the First Closing Date.

            (d) Immediately following the First Closing, the Purchaser shall
cause CEBA Bank to issue to FDS Bank (or its assignee), and FDS Bank (or its
assignee) shall purchase, the CEBA Equity Interests, for a purchase price equal
to one hundred dollars ($100) payable by wire transfer of immediately available
funds to an account or accounts specified by the Purchaser at least three (3)
Business Days prior to the First Closing Date.

                                  ARTICLE III
                  SECOND CLOSING, PURCHASE, SALE AND ASSUMPTION

            SECTION 3.1. Purchase and Sale of the GE/Macy's Assets. On the terms
and subject to the conditions of this Agreement, at the Second Closing and
effective from and after the Second Closing Date, the Sellers shall sell, convey
and assign (or cause their Subsidiaries to sell, assign or convey) to Purchaser,
free and clear of all Liens, except Permissible Liens, the GE/Macy's Assets, and
the Purchaser shall purchase the GE/Macy's Assets. Immediately following receipt
of the GE/Macy's Assets, the Purchaser shall transfer, contribute or otherwise
assign the GE/Macy's Assets to CEBA Bank.

            SECTION 3.2. Assumption of the GE/Macy's Liabilities. On the terms
and subject to the conditions of this Agreement, at the Second Closing and
effective from and after the Second Closing Date, the Purchaser shall assume,
pay, defend, discharge and perform as and when due the GE/Macy's Liabilities.
Immediately following its assumption of the GE/Macy's Liabilities, the Purchaser
shall cause CEBA Bank to assume the GE/Macy's Liabilities. The Excluded
Liabilities shall be retained by the Sellers and their Affiliates or GE Bank and
their Affiliates, as applicable. The May Liabilities shall be retained by the
Sellers and their Affiliates, as applicable, until the Third Closing.

            SECTION 3.3. GE/Macy's Purchase Price; GE/Macy's Purchase Price
Adjustment.

            (a) On the second Business Day before the Second Closing, FDS, on
behalf of the Sellers, shall deliver to the Purchaser the Estimated Second
Closing Statement reflecting the

                                       23
<PAGE>

Sellers' good faith calculation of the Estimated GE/Macy's Purchase Price to be
paid by the Purchaser at the Second Closing.

            (b) Within forty-five (45) days after the Second Closing, FDS, on
behalf of the Sellers, shall deliver to the Purchaser the Final Second Closing
Statement prepared based on the information in the Master File with respect to
the GE/Macy's Accounts as of the Second Cut-Off Time and copies of the Master
File with respect to the GE/Macy's Accounts as of the Second Cut-Off Time.

            (c) The Purchaser shall, within forty-five (45) days after receipt
of the Final Second Closing Statement, advise the Sellers in writing and in
reasonable detail if it believes that the Final Second Closing Statement did not
accurately reflect the items required to be included therein in accordance with
the provisions of this Agreement and Schedule 1.1(b)(2) hereto, in each case
stating in reasonable detail the basis of its belief. In the event the Purchaser
delivers such an objection, the Sellers and the Purchaser shall attempt in good
faith to resolve their differences. In the event all differences are not
resolved within sixty (60) days following receipt of the Final Second Closing
Statement by the Purchaser, then the issues remaining unresolved shall be
determined by the Accountant. The Accountant shall resolve all disputed items in
accordance with the provisions of this Agreement. In making its determination,
the Accountant may only consider those items and amounts as to which the
Purchaser and the Sellers have disagreed within the time periods and on the
grounds specified. The Accountant's determination shall be conclusive and
binding on the Purchaser and the Sellers absent manifest error. The fees of the
Accountant shall be shared by the Purchaser and the Sellers in proportion to the
relative differences between their respective calculations of the GE/Macy's
Purchase Price and the amount determined by the Accountant.

            (d) If the Estimated GE/Macy's Purchase Price exceeds the GE/Macy's
Purchase Price, then FDS, on behalf of the Sellers, shall, within five (5)
Business Days after the GE/Macy's Purchase Price has been finally determined
pursuant to Section 3.3(c), pay such excess (plus the amount of interest on such
excess calculated in accordance with item 5 of the Estimated Second Closing
Statement) by wire transfer of immediately available funds (in U.S. dollars) to
the Purchaser, together with interest on the foregoing amount for the period
from and including the Second Closing Date to but excluding the date of such
payment at a rate per annum equal to the Federal Funds Rate. If the Estimated
GE/Macy's Purchase Price is less than the GE/Macy's Purchase Price, then the
Purchaser shall, within five (5) Business Days after the GE/Macy's Purchase
Price has been finally determined pursuant to Section 3.3(c), pay such
deficiency (plus the amount of interest on such deficiency calculated in
accordance with item 5 of the Estimated Second Closing Statement) by wire
transfer of immediately available funds (in U.S. dollars) to FDS on behalf of
the Sellers, together with interest on the foregoing amount for the period from
and including the Second Closing Date to but excluding the date of such payment
at a rate per annum equal to the Federal Funds Rate. Each party to this
Agreement shall make available to the other parties, and to the Accountant, its
and its accountants work papers (to the extent possible), schedules and other
supporting data as may be reasonably requested by such parties to enable them to
verify the amounts set forth in the Final Second Closing Statement.

            SECTION 3.4. The Second Closing.

                                       24
<PAGE>

            (a) The closing (the "Second Closing") of the purchase and sale of
the GE/Macy's Assets and assumption of the GE/Macy's Liabilities hereunder
(collectively, the "Second Purchase and Assumption") shall take place at the
offices of Simpson Thacher & Bartlett LLP, 425 Lexington Avenue, New York, New
York, or by facsimile transmission on the first Business Day of the Fiscal Month
after the Fiscal Month in which the last of the conditions set forth in Article
VIII (other than conditions relating solely to the delivery of documents to be
dated the Second Closing Date) has been satisfied or waived in accordance with
the terms of this Agreement or at such other date or location as the parties
hereto jointly designate in writing (the "Second Closing Date"). The parties
understand and intend that the Second Purchase and Assumption shall occur
concurrently with the termination of the GE/Macy's Program Agreement.

            (b) At the Second Closing, the Purchaser and the Sellers shall
deliver or cause to be delivered to each other (i) instruments of sale,
assignment, transfer and conveyance of the GE/Macy's Assets and the GE/Macy's
Liabilities, respectively (which shall be the Second Instrument of Assignment
and Assumption), (ii) a receipt for the GE/Macy's Purchase Price, and (iii) such
other instruments as are necessary or appropriate to reflect any alternative
arrangements described in Section 6.15, in each case, appropriately executed by
the Sellers and the Purchaser.

            (c) At the Second Closing, the Purchaser shall pay the Estimated
GE/Macy's Purchase Price (plus the amount of any interest thereon as set forth
on and calculated in accordance with item 5 of the Estimated Second Closing
Statement) by wire transfer of immediately available funds (in U.S. dollars)
prior to 11:00 A.M. Eastern time on the Second Closing Date to an account or
accounts specified by FDS at least three (3) Business Days prior to the Second
Closing Date.

                                   ARTICLE IV
                  THIRD CLOSING, PURCHASE, SALE AND ASSUMPTION

            SECTION 4.1. Purchase and Sale of the May Assets. On the terms and
subject to the conditions of this Agreement, at the Third Closing and effective
from and after the Third Closing Date, the Sellers shall or shall cause May Bank
to sell, convey and assign to Purchaser, free and clear of all Liens, except
Permissible Liens, the May Assets, and the Purchaser shall purchase the May
Assets. Immediately following receipt of the May Assets, the Purchaser shall
transfer, contribute or otherwise assign the May Assets to CEBA Bank.

            SECTION 4.2. Assumption of the May Liabilities. On the terms and
subject to the conditions of this Agreement, at the Third Closing and effective
from and after the Third Closing Date, the Purchaser shall assume, pay, defend,
discharge and perform as and when due the May Liabilities. Immediately following
its assumption of the May Liabilities, the Purchaser shall cause CEBA Bank to
assume the May Liabilities. The Excluded Liabilities shall be retained by the
Sellers and their Affiliates, as applicable.

            SECTION 4.3. May Purchase Price; May Purchase Price Adjustment.

                                       25
<PAGE>

            (a) On the second Business Day before the Third Closing, FDS, on
behalf of the Sellers, shall deliver to the Purchaser the Estimated Third
Closing Statement reflecting the Sellers' good faith calculation of the
Estimated May Purchase Price to be paid by the Purchaser at the Third Closing.

            (b) Within forty-five (45) days after the Third Closing, FDS, on
behalf of the Sellers, shall deliver to the Purchaser the Final Third Closing
Statement prepared based on the information in the Master File with respect to
the May Accounts as of the Third Cut-Off Time and copies of the Master File with
respect to the May Accounts as of the Third Cut-Off Time.

            (c) The Purchaser shall, within thirty (30) days after receipt of
the Final Third Closing Statement, advise the Sellers in writing and in
reasonable detail if it believes that the Final Third Closing Statement did not
accurately reflect the items required to be included therein in accordance with
the provisions of this Agreement and Schedule 1.1(b)(3) hereto, in each case
stating in reasonable detail the basis of its belief. In the event the Purchaser
delivers such an objection, the Sellers and the Purchaser shall attempt in good
faith to resolve their differences. In the event all differences are not
resolved within forty-five (45) days following receipt of the Final Third
Closing Statement by the Purchaser, then the issues remaining unresolved shall
be determined by the Accountant. The Accountant shall resolve all disputed items
in accordance with the provisions of this Agreement. In making its
determination, the Accountant may only consider those items and amounts as to
which the Purchaser and the Sellers have disagreed within the time periods and
on the grounds specified. The Accountant's determination shall be conclusive and
binding on the Purchaser and the Sellers absent manifest error. The fees of the
Accountant shall be shared by the Purchaser and the Sellers in proportion to the
relative differences between their respective calculations of the May Purchase
Price and the amount determined by the Accountant.

            (d) If the Estimated May Purchase Price exceeds the May Purchase
Price, then FDS, on behalf of the Sellers, shall, within five (5) Business Days
after the May Purchase Price has been finally determined pursuant to Section
4.3(c), pay such excess (plus the amount of interest on such excess calculated
in accordance with item 5 of the Estimated Third Closing Statement) by wire
transfer of immediately available funds (in U.S. dollars) to the Purchaser,
together with interest on the foregoing amount for the period from and including
the Third Closing Date to but excluding the date of such payment at a rate per
annum equal to the Federal Funds Rate. If the Estimated May Purchase Price is
less than the May Purchase Price, then the Purchaser shall, within five (5)
Business Days after the May Purchase Price has been finally determined pursuant
to Section 4.3(c), pay such deficiency (plus the amount of interest on such
deficiency calculated in accordance with item 5 of the Estimated Third Closing
Statement) by wire transfer of immediately available funds (in U.S. dollars) to
FDS on behalf of the Sellers, together with interest on the foregoing amount for
the period from and including the Third Closing Date to but excluding the date
of such payment at a rate per annum equal to the Federal Funds Rate. Each party
to this Agreement shall make available to the other parties, and to the
Accountant, its and its accountants work papers (to the extent possible),
schedules and other supporting data as may be reasonably requested by such
parties to enable them to verify the amounts set forth in the Final Third
Closing Statement.

            SECTION 4.4. The Third Closing.

                                       26
<PAGE>

            (a) The closing (the "Third Closing") of the purchase and sale of
the May Assets and assumption of the May Liabilities hereunder (collectively,
the "Third Purchase and Assumption") shall take place at the offices of Simpson
Thacher & Bartlett LLP, 425 Lexington Avenue, New York, New York, or by
facsimile transmission on a date specified by FDS (upon not less than ninety
(90) days' prior written notice to the Purchaser) occurring no more than twelve
(12) months following the date of the closing of the May Merger (and following
the completion of reasonable due diligence as set forth in Section 6.16) and no
earlier than the first Business Day of the Fiscal Month after the Fiscal Month
in which the last of the conditions set forth in Article IX (other than
conditions relating solely to the delivery of documents to be dated the Third
Closing Date) has been satisfied or waived in accordance with the terms of this
Agreement or at such other date or location as the parties hereto jointly
designate in writing (the "Third Closing Date").

            (b) At the Third Closing, the Purchaser and the Sellers shall
deliver or cause to be delivered to each other (i) instruments of sale,
assignment, transfer and conveyance of the May Assets and the May Liabilities,
respectively (which shall be the Third Instrument of Assignment and Assumption),
(ii) a receipt for the May Purchase Price, and (iii) such other instruments as
are necessary or appropriate to reflect any alternative arrangements described
in Section 6.15, in each case, appropriately executed by the Sellers and the
Purchaser.

            (c) At the Third Closing, the Purchaser shall pay the Estimated May
Purchase Price (plus the amount of any interest thereon as set forth on and
calculated in accordance with item 5 of the Estimated Third Closing Statement)
by wire transfer of immediately available funds (in U.S. dollars) prior to 11:00
A.M. Eastern time on the Third Closing Date to an account or accounts specified
by FDS at least three (3) Business Days prior to the Third Closing Date.

                                   ARTICLE V
                         REPRESENTATIONS OF THE PARTIES

            SECTION 5.1. Representations of FDS. Except as Previously Disclosed
against a specific representation and warranty set forth in this Section 5.1 and
other than with respect to the May Assets and the May Liabilities, FDS
represents to the Purchaser as follows:

            (a) Existence and Authority. FDS Bank is a stock savings bank, duly
organized, validly existing and in good standing under the laws of the United
States of America. Each of FDS, Prime and Prime II is duly organized, validly
existing and in good standing under its jurisdiction of organization. Each of
the Sellers and Prime has the requisite power and authority to own the Acquired
Assets and Stock owned by it and to carry on the Business as currently conducted
by it, and is duly qualified to do business in each jurisdiction where the
ownership or operation of the Acquired Assets and Stock owned or operated by it
or the conduct of the Business conducted by it requires such qualification,
except for any failure to have such authority or be so qualified that would not
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect on the Business or the Sellers.

            (b) Authorization and Validity. Each Seller has the requisite
corporate power and authority to execute, deliver and perform its obligations
under this Agreement and each of the

                                       27
<PAGE>

Ancillary Agreements to which it is a party. Each of this Agreement and each
Ancillary Agreement has been duly authorized by each Seller party thereto by all
necessary corporate action. This Agreement has been duly executed and delivered
by each Seller party hereto and each Ancillary Agreement has been, or shall have
been at the First Closing Date (or the Second Closing Date with respect to the
Second Instrument of Assignment and Assumption), duly executed and delivered by
each Seller party thereto. Assuming that this Agreement has been, and that the
Ancillary Agreements have been or shall be on or prior to the First Closing Date
(or the Second Closing Date with respect to the Second Instrument of Assignment
and Assumption), duly authorized, executed and delivered by the Purchaser, this
Agreement is, and the Ancillary Agreements are or shall be at the First Closing
Date (or the Second Closing Date with respect to the Second Instrument of
Assignment and Assumption), the legal, valid and binding obligations of the
Sellers party hereto and thereto, enforceable against such Sellers in accordance
with their respective terms, subject to applicable bankruptcy, insolvency,
moratorium, reorganization, fraudulent transfer and other laws affecting
creditors' rights generally and to general equitable principles.

            (c) Governmental and Third-Party Consents. No notices, reports or
other filings are required to be made by the Sellers or Prime with, nor are any
consents, registrations, approvals, permits or authorizations required to be
obtained by the Sellers or Prime from, any Governmental Authority or any other
third party in connection with the execution, delivery or performance of this
Agreement and the Ancillary Agreements by the Sellers or the consummation by
them of the transactions contemplated by this Agreement or the Ancillary
Agreements, except for (i) the Requisite Regulatory Approvals, (ii) the Required
Amendments and Confirmations and (iii) such other notices, reports, filings,
consents, registrations, approvals, permits or authorizations the failure to
obtain would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect (excluding for these purposes clause (a)(4)
of the definition of Material Adverse Effect) on the Business or the Sellers.
FDS has no reason to believe that the Sellers will not be able to obtain the
Requisite Regulatory Approvals required to be obtained by them on a timely
basis.

            (d) No Conflicts. The execution, delivery and performance by the
applicable Sellers of this Agreement and the Ancillary Agreements do not, and
(subject to obtaining the Requisite Regulatory Approvals, the Required
Amendments and Confirmations and other Previously Disclosed governmental and
third-party consents, registrations, approvals, permits and authorizations
referred to in Section 5.1(c)) the consummation of the transactions contemplated
by this Agreement and the Ancillary Agreements will not:

                  (1) breach, violate, conflict with, or be prohibited by the
            Constituent Documents of the Sellers or Prime;

                  (2) breach, violate, conflict with, or be prohibited by any
            Requirement of Law or Applicable Order applicable to the Sellers or
            Prime;

                  (3) breach, violate, conflict with, be prohibited by, require
            any additional approval under or result in a default under the
            terms, conditions or provisions of any Contract of any of the
            Sellers or Prime, or give any third party the right to

                                       28
<PAGE>

            terminate or cancel any right of any Seller or Prime under any
            Contract of such Person, or accelerate the performance of its
            obligations thereunder; or

                  (4) result in the creation of any Lien on the properties or
            assets of any of the Sellers or Prime, including the Acquired Assets
            and Stock, other than Permissible Liens;

except in each case described in clause (3) or (4), for any breach, violation,
default, termination, cancellation, acceleration or Lien that would not
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect (excluding for these purposes clause (a)(4) of the definition of
Material Adverse Effect) on the Business or the Sellers.

            (e) SEC Reports; Other Financial Information.

                  (1) The Prime Master Trust and Prime have each filed with the
            Securities and Exchange Commission (the "SEC") all forms, reports
            and other documents (including all prospectuses and registration
            statements) required to be filed by it with respect to all periods
            commencing on or after January 1, 2002 (the "SEC Documents"). As of
            their respective filing dates (or effective dates, in the case of
            prospectuses and registration statements), the SEC Documents
            complied in all material respects with the requirements of the
            Securities Act of 1933 (the "Securities Act") or the Securities
            Exchange Act of 1934 (the "Exchange Act"), as applicable, and the
            rules and regulations of the SEC promulgated thereunder, as modified
            by SEC staff interpretive or no-action positions relating to credit
            card securitizations and did not contain any untrue statement of any
            material fact or omit to state any material fact required to be
            stated therein or necessary to make the statements therein, in light
            of the circumstances in which they were made, not misleading.

                  (2) The financial information included in the items listed in
            Schedule 5.1(e)(2) was true and accurate in all material respects as
            of the dates set forth therein.

            (f) Absence of Certain Changes. Since January 29, 2005, the Business
has been conducted in the ordinary course of business consistent with past
practice and there has not been (1) any material change in: (x) any financial
accounting practices, policies or procedures (to the extent any such change
would be binding on or otherwise affect the Business or the Purchaser following
the Closing, and except for any change in accounting practices, polices and
procedures required by reason of a concurrent change in GAAP); (y) any
collections, pricing, origination, charge-off, reaging, credit or underwriting
practices, policies and procedures of Sellers with respect to the Accounts; or
(z) the servicing practices, policies and procedures of the Sellers with respect
to the Gross Receivables or the Prime Securitization Receivables, except in each
case for any such changes after the date hereof as approved in writing by the
Purchaser, or (2) any Material Adverse Effect on the Business or the Sellers.

            (g) Title to Properties; Encumbrances. A Seller has good title to or
a valid leasehold interest in, or is licensed or otherwise entitled to use, all
of the Acquired Assets and

                                       29
<PAGE>

Stock (other than the Accounts, to which Section 5.1(l) is applicable), free and
clear of all Liens, other than Permissible Liens. Upon consummation of the
transactions contemplated by this Agreement, including the execution and
delivery of the documents to be delivered at the First Closing, at the First
Closing (and at the Second Closing with respect to the GE/Macy's Assets), the
Purchaser shall be vested with good and marketable title in and to the Acquired
Assets and Stock (other than the Accounts, to which Section 5.1(l) is
applicable), free and clear of all Liens other than Permissible Liens, and the
Required Amendments and Confirmations when obtained and effective, shall
constitute a valid assignment of the Sellers' rights and interest in the
applicable Securitization Documents enforceable against the Sellers and, upon
the filing of appropriate financing statements and all required continuations,
amendments and replacements thereof, against all other persons.

            (h) Litigation. FDS has Previously Disclosed a list and a summary
description of each pending Action with respect to Accounts pending as of the
date hereof in which the Seller or any of its Affiliates (or the Seller or any
of its Affiliates or GE Bank or any of its Affiliates in the case of GE/Macy's
Accounts) is a named defendant. There are no actions, suits, proceedings or
claims pending, in arbitration or before any Governmental Authority, against any
of the Sellers or Prime or their Subsidiaries, or to the Sellers' Knowledge,
threatened against any of the Sellers or Prime or their Subsidiaries, in each
case that would reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect on the Business or the Sellers.

            (i) Contracts. Each Assigned Contract constituting part of the
Acquired Assets and Stock is a valid, legally binding agreement of the Seller or
Subsidiary thereof that is party thereto. The Sellers have made available to the
Purchaser true and complete copies of all Assigned Contracts. Neither such
Seller or Subsidiary nor, to the Sellers' Knowledge, any other party thereto is
in default under the terms of any such Contract, except for any such failures to
be valid and binding and such defaults as would not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect on the
Business or the Sellers. None of the Sellers or any Subsidiary of any Seller has
received any written notice of termination, cancellation, breach or default
under any Assigned Contract.

            (j) Books and Records. All Books and Records of the Sellers relating
to the Business, the Master File, the FDS Cardholder List, the GE/Macy's
Cardholder List and the May Cardholder List have been maintained accurately and
in accordance with all Requirements of Law applicable to the Sellers and the
Business in all material respects.

            (k) Compliance with Laws. Except to the extent that a breach of any
of the following would not reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect (excluding for these purposes clause
(a)(4) of the definition of Material Adverse Effect) on the Business or the
Sellers:

                  (1) since January 1, 2003, the Sellers and Prime have been in
            compliance with all Requirements of Law relating to the Business and
            the Acquired Assets and Stock; and

                  (2) since January 1, 2003, the Sellers and Prime have not been
            subject to any capital plan or supervisory agreement,
            cease-and-desist or similar order or

                                       30
<PAGE>

            directive or memorandum of understanding between any of them and any
            Governmental Authority or issued by any Governmental Authority, nor
            has any of them adopted any board resolutions at the request of any
            Governmental Authority.

            (1) Accounts.

                  (1) FDS Bank or Prime is the sole owner of and has good and
            marketable title to the FDS Accounts, the Gross Receivables on the
            FDS Accounts and the Prime Securitization Assets (subject in each
            case to the rights, claims and interests arising under the
            Securitization Documents). Upon the First Closing, subject to the
            filing of appropriate financing statements and all required
            continuations, amendments and replacements thereof, all right, title
            and interest in and to the FDS Accounts, the Gross Receivables on
            the FDS Accounts, and the Prime Securitization Assets shall vest or
            be vested in the Purchaser free and clear of all Liens other than
            Permissible Liens (and subject in each case to the rights, claims
            and interests arising under the Securitization Documents).

                  (2) As of the Second Closing, FDS Bank shall be the sole owner
            of and have good and marketable title to the GE/Macy's Accounts and
            the Gross Receivables on the GE/Macy's Accounts. This Agreement
            shall, following the Second Closing Date, and subject to the filing
            of appropriate financing statements and all required continuations,
            amendments and replacements thereof, vest in the Purchaser all
            right, title and interest in and to the GE/Macy's Accounts and the
            Gross Receivables on the GE/Macy's Accounts, free and clear of all
            Liens other than Permissible Liens.

                  (3) To the Sellers' Knowledge, each Account Agreement (other
            than any Account Agreement with respect to any Charged Off Account)
            is a valid and legally binding obligation of each obligor
            thereunder, including any cosigner, guarantor or surety, and is
            enforceable against such obligors in accordance with its terms,
            subject to (i) possible claims and defenses on disputed card
            transactions asserted by a Cardholder, (ii) applicable bankruptcy,
            insolvency, reorganization, moratorium, fraudulent transfer and
            other laws relating to or affecting creditors' rights generally and
            the effect of general equitable principles, and (iii) the
            Servicemembers Civil Relief Act.

                  (4) Since January 29, 2005, except for changes after the date
            hereof permitted by Section 6.2, (i) the Sellers have not effected
            any material change in operating policies and procedures of the
            Business relating to the maintenance of, and collection policies
            with respect to, the Accounts (other than changes permitted to be
            made by GE Bank pursuant to the GE/Macy's Program Agreement) and
            (ii) the Business has been operated in all material respects in
            compliance with the policies and procedures of the Sellers and GE
            Bank (other than changes permitted to be made by GE Bank pursuant to
            the GE/Macy's Program Agreement).

                                       31
<PAGE>

                  (5) Each Account complies with, and was solicited and opened
            in accordance with, in all material respects the applicable rules
            and regulations of the applicable Card Association.

                  (6) Each Account complies in all material respects with the
            applicable Account Agreement.

                  (7) All Account applications have been taken and evaluated and
            applicants notified in a manner that complied with all applicable
            Requirements of Law.

                  (8) All Accounts have been solicited, originated, maintained
            and serviced in compliance with all applicable Requirements of Law.

                  (9) All disclosures made in connection with the Accounts
            complied in all material respects with all applicable Requirements
            of Law.

                  (10) To the Sellers' Knowledge, each of the Gross Receivables
            arises from or in connection with a bona fide sale or loan
            transaction (including any amounts in respect of finance charges,
            annual fees and other charges and fees assessed on the Accounts).

            (m) Securitization. Except to the extent that any breaches of the
following would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect on the Business or the Sellers:

                  (1) each Seller or Prime and, to the Knowledge of Sellers,
            each other party thereto has performed in all material respects each
            obligation to be performed by it under each of the Prime
            Securitization Documents, including the filing of any financing
            statements, continuation statements or amendments under the Uniform
            Commercial Code of each applicable jurisdiction with the appropriate
            filing offices;

                  (2) each of the Prime Securitization Interests, each series of
            certificates in Prime Master Trust and each of the Securitization
            Documents to which any Seller, Prime or Prime Master Trust, as the
            case may be, is a party is in full force and effect and is a valid,
            binding and enforceable obligation of such Seller, Prime or Prime
            Master Trust, as the case may be, and to the Knowledge of Sellers,
            the other parties thereto, subject to applicable bankruptcy,
            insolvency, moratorium, reorganization, fraudulent transfer and
            other laws affecting creditors' rights generally and to general
            equitable principles;

                  (3) true and complete copies of the Prime Securitization
            Documents have been made available to Purchaser and there have been
            no amendments or modifications to the Securitization Documents made
            since the date such copies were made available to Purchaser;

                  (4) the Prime Pooling and Servicing Agreement is not required
            to be qualified as an indenture under the Trust Indenture Act of
            1939, as amended, and

                                       32
<PAGE>

            the Prime Master Trust is not required to be registered as an
            investment company under the Investment Company Act of 1940, as
            amended;

                  (5) Prime is the sole owner of the transferor interest under
            the Prime Securitization Documents;

                  (6) the listing of the Securitization Documents set forth in
            Schedule 1.1(f) and Schedule 1.1(g) is a true, accurate and complete
            list of the Contracts to which any of the Sellers, Prime or Prime II
            is a party relating to the Master Trusts;

                  (7) no interests in the Prime Master Trust have been issued
            since December 2004;

                  (8) no event or condition exists which is or with either
            notice or the passage of time would (i) constitute a default, event
            of default, amortization event, specified event or other event or
            circumstance, (ii) require any accelerated application of cash flows
            received in respect of the Prime Securitization Receivables, or
            (iii) trigger any requirement under any Prime Securitization
            Document to (A) fund an increase in any spread account, reserve
            account or similar account, (B) draw on any such account under the
            terms of any Prime Securitization Document or (C) otherwise increase
            any credit enhancement required under the Prime Securitization
            Documents (each, an "Adverse Development");

                  (9) no event or condition exists which constitutes an Adverse
            Development or a Servicer Default or other similar event permitting
            the termination of the Servicer under the Prime Securitization
            Documents (a "Servicer Default or Termination"); and

                  (10) assuming all required consents and approvals referred to
            in Section 5.1(c) are obtained, the consummation of the transactions
            contemplated hereby (including, without limitation, the execution
            and delivery of the Required Amendments and Confirmations) shall not
            cause the occurrence of an Adverse Development or a Servicer Default
            or Termination.

            (n) Servicing Qualifications. Each of FDS Bank and FACS Group, Inc.
is licensed and qualified in all jurisdictions necessary to conduct the
servicing activities with respect to the Accounts in which it is engaged in
accordance with all applicable Requirements of Law, except where the failure to
be so qualified would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect on the Business or the Sellers.

            (o) Taxes.

                  (1) The Sellers, Prime and the Master Trusts have filed all
            material Tax Returns that they were required to file (taking into
            account all applicable extensions) on or before the date hereof (in
            the case of the Sellers, solely to the extent of any Tax Returns
            related to the Business), and all Taxes required to be

                                       33
<PAGE>

            shown on such Tax Returns or otherwise due and owing with respect to
            Prime, the FDS Assets, the GE/Macy's Assets or the Business have
            been timely paid.

                  (2) For federal, Ohio and New York State Tax purposes, all
            interests in the Prime Master Trust held by Prime or sold to
            investors are indebtedness of Prime, interests in an entity other
            than an association taxable as a corporation or a publicly traded
            partnership, or interests in a disregarded entity.

                  (3) There are no pending or (to the Knowledge of the Sellers)
            threatened actions or proceedings for the assessment or collection
            of a material amount of Taxes with respect to Prime, nor has Prime
            or any Affiliate thereof received any notice or inquiry from any
            jurisdiction in which Prime does not currently file Tax Returns to
            the effect that Prime may be subject to taxation by such
            jurisdiction.

            (p) No Brokers or Finders. The Assumed Liabilities do not include,
and Prime has not incurred, any liability for any financial advisory fees,
brokerage fees, commissions or finder's fees directly or indirectly in
connection with this Agreement or the transactions contemplated hereby or by the
Ancillary Agreements.

            (q) Prime. The authorized capital stock of Prime consists of 100
shares of Common Stock, par value $0.01 per share, of which 100 shares are
issued and outstanding ("Prime Common Stock"). All of the issued and outstanding
shares of Prime Common Stock are beneficially and legally owned by FDS, free and
clear of all Liens. All of the issued and outstanding shares of Prime Common
Stock are duly authorized, validly issued, fully paid and nonassessable. There
are no outstanding (i) securities convertible into or exchangeable for Prime
Common Stock, (ii) options, warrants, calls or other rights to purchase or
subscribe for Prime Common Stock or (iii) contracts of any kind to which Prime
or any of its Affiliates is subject or bound requiring the issuance after the
date of this Agreement of (x) Prime Common Stock, (y) any convertible or
exchangeable security of the type referred to in clause (i) or (z) any options,
warrants, calls or rights of the type referred to in clause (ii). Prime does not
own, directly or indirectly, any equity interest or investment in any Person.
Prime was established for the sole purpose of entering into, and engaging in the
transactions contemplated by, the Prime Securitization Documents and since its
formation, (i) has engaged in no other business activities, (ii) has conducted
its business and operations only as contemplated by the Prime Securitization
Documents and (iii) has no outstanding Liabilities.

            (r) Intellectual Property. None of the Sellers, Prime and their
Subsidiaries has granted any license or other right to any third party to use
the Transferred Intellectual Property (i) in connection with any Credit Card
program or (ii) that would violate any rights in the Transferred Intellectual
Property granted to the Purchaser pursuant to the Program Agreement. To the
Seller's Knowledge, there has been no misappropriation of any trade secrets or
other confidential or proprietary information contained in the Transferred
Intellectual Property by any Person.

            (s) Certain Securitization Matters.

                                       34
<PAGE>

                  (1) None of (i) the FDS Accounts, the GE/Macy's Accounts or
            the May Accounts, as applicable; (ii) the Gross Receivables (other
            than the Prime Securitization Receivables) on such Accounts; and/or
            (iii) Interchange Fees, Account Agreements and Master Files related
            to such Accounts (collectively, the "Specified Assets") were
            acquired by the Seller thereof in contemplation of the transactions
            contemplated by this Agreement. No Seller of any of the Specified
            Assets has any rights under the Program Agreement to purchase any of
            the Program Assets (as defined in the Program Agreement) upon
            termination of the Program or otherwise, with any such purchase
            rights vesting solely in FDS and its Subsidiaries other than the
            Seller of such Specified Assets. In connection with the First
            Closing and Assumption, the Specified Assets that constitute FDS
            Assets will be sold by FDS Bank or Prime II to the Purchaser. In
            connection with the termination of the GE/Macy's Program Agreement,
            the Specified Assets that constitute GE/Macy's Assets will be sold
            by GE Bank and/or one of its Affiliates to FDS Bank and, in
            connection with the Second Closing and Assumption, be sold by FDS
            Bank to the Purchaser. In connection with the May Merger and the
            Third Closing and Assumption, the Specified Assets that constitute
            May Assets will either be sold (i) directly by May Bank and/or one
            of its Affiliates to the Purchaser or (ii) by May Bank and/or one of
            its Affiliates to FDS Bank and subsequently sold by FDS Bank to the
            Purchaser (it being understood that during the period from the
            closing of the May Merger until the Third Purchase and Assumption,
            the Specified Assets that constitute May Assets shall be owned by
            May Bank and/or one of its Affiliates reasonably acceptable to the
            Purchaser and/or FDS Bank).

                  (2) The Purchase Price for the Acquired Assets and Stock shall
            be fairly allocated among the Sellers and that portion of the
            Purchase Price allocable to the Acquired Assets and Stock
            transferred by each Seller shall be paid to such Seller. No
            allocation made pursuant to this Section 5.1(s)(2) shall apply for
            any Tax or accounting purposes.

                  (3) In the event FDS exercises the purchase right under the
            Program Agreement, FDS has no present intention to cause any
            particular entity to be the transferee of such Program Assets, with
            FDS reserving all rights to decide at the time of transfer who such
            transferee will be.

            SECTION 5.2. Representations of the Purchaser. Except as Previously
Disclosed, the Purchaser represents to the Sellers as follows:

            (a) Existence and Authority. The Purchaser is a validly existing
national banking association, duly organized and in good standing under the laws
of the United States of America, and has the corporate power and authority to
carry on its business as now conducted and to acquire and operate the Business
as currently conducted or as proposed to be conducted. The Purchaser and its
deposits are insured by the Federal Deposit Insurance Corporation to the fullest
extent permitted by law.

                                       35
<PAGE>

            (b) Authorization and Validity. The Purchaser has the requisite
corporate power and authority to execute, deliver and perform its obligations
under this Agreement and each of the Ancillary Agreements to which it is a
party. This Agreement and each Ancillary Agreement have been duly authorized by
the Purchaser by all necessary corporate action. This Agreement has been duly
executed and delivered by the Purchaser and each Ancillary Agreement has been or
shall have been, at the First Closing Date (or the Second Closing Date with
respect to the Second Instrument of Assignment and Assumption), duly executed
and delivered by the Purchaser. Assuming that this Agreement has been, and the
Ancillary Agreements have been or shall be on or prior to the First Closing Date
(or the Second Closing Date with respect to the Second Instrument of Assignment
and Assumption), duly authorized, executed and delivered by the Sellers party
thereto, this Agreement is, and the Ancillary Agreements shall be at the First
Closing Date (or the Second Closing Date with respect to the Second Instrument
of Assignment and Assumption), the legal, valid and binding obligations of the
Purchaser, enforceable against the Purchaser in accordance with their respective
terms, subject to applicable bankruptcy, insolvency, moratorium, reorganization,
fraudulent transfer and other laws affecting creditors' rights generally and to
general equitable principles.

            (c) Governmental and Third-Party Consents. No notices, reports or
other filings are required to be made by the Purchaser with, nor are any
consents, registrations, approvals, permits or authorizations required to be
obtained by the Purchaser from, any Governmental Authority or any other third
party in connection with the execution, delivery and performance of this
Agreement and the Ancillary Agreements by the Purchaser, as applicable, or the
consummation by the Purchaser of the transactions contemplated by this Agreement
or the Ancillary Agreements, except for the Requisite Regulatory Approvals and
for such other notices, reports, filings, consents, registrations, approvals,
permits or authorizations the failure to obtain which would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect
(excluding for these purposes clause (a)(4) of the definition of Material
Adverse Effect) on the Purchaser or on the Business following the First Closing
Date. The Purchaser has no reason to believe that it will not be able to obtain
the Requisite Regulatory Approvals on a timely basis.

            (d) No Conflicts. The execution, delivery and performance by the
Purchaser of this Agreement and the Ancillary Agreements do not, and (subject to
obtaining the Requisite Regulatory Approvals and the other Previously Disclosed
governmental and third-party consents, registrations, approvals, permits and
authorizations referred to in Section 5.2(c)) the consummation of the
transactions contemplated by this Agreement and the Ancillary Agreements will
not:

                  (1) breach, violate, conflict with or be prohibited by the
            Purchaser's Constituent Documents;

                  (2) breach, violate, conflict with or be prohibited by any
            Requirement of Law or Applicable Order applicable to the Purchaser;
            or

                  (3) breach, violate, conflict with, be prohibited by, require
            any additional approval under or result in a default under the
            terms, conditions or provisions of any Contract of the Purchaser, or
            give any third party the right to terminate or

                                       36
<PAGE>

            cancel any right of the Purchaser, conflict with, be prohibited by,
            require any additional approval under any such Contract, or
            accelerate the performance of its obligation thereunder;

except in each case described in clause (3), for any breach, violation, default,
termination, cancellation, acceleration or Lien that would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect
(excluding for these purposes clause (a)(4) of the definition of Material
Adverse Effect) on the Purchaser or on the Business following the First Closing
Date.

            (e) Absence of Certain Changes. Since January 29, 2005, there has
not been any change in the financial condition or results of operations of the
Purchaser that has had, individually or in the aggregate, a Material Adverse
Effect on the Purchaser or on the Business as of the First Closing Date.

            (f) Compliance with Laws. Except to the extent that a breach of any
of the following would not reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect (excluding for these purposes clause
(a)(4) of the definition of Material Adverse Effect) on the Purchaser or the
Business as of the First Closing Date:

                  (1) the Purchaser is in compliance with all Requirements of
            Law relating to its credit card business; and

                  (2) neither the Purchaser nor any of its Affiliates is subject
            to any capital plan or supervisory agreement, cease-and-desist or
            similar order or directive or memorandum of understanding between it
            and any Governmental Authority or issued by any Governmental
            Authority, nor has any of them adopted any board resolutions at the
            request of any Governmental Authority.

            (g) Servicing Qualifications. The Purchaser is licensed and
qualified in all jurisdictions necessary to service the Accounts in accordance
with all applicable Requirements of Law, except where the failure to be so
qualified would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect on the Purchaser or the Business or on the
ability of the Purchaser to perform its duties as servicer, or on ability of the
Purchaser to perform its duties as sub-servicer, under the Prime Pooling and
Servicing Agreement following the First Closing Date.

            (h) Financing. The Purchaser has sufficient cash, available lines of
credit or other sources of immediately available funds to enable it to pay the
Estimated FDS Purchase Price as required by Section 2.4(c), the Estimated
GE/Macy's Purchase Price as required by Section 3.4(c), and the Estimated May
Purchase Price as required by Section 4.4(c), and to timely pay any other
amounts to be paid by it under this Agreement.

            (i) Litigation. Except as described in filings made prior to the
date hereof by the Purchaser or Citigroup, Inc. with the SEC, there are no
actions, suits, proceedings or claims pending, in arbitration or before any
Governmental Authority, against the Purchaser or its Affiliates, or to the
Purchaser's Knowledge, threatened against Purchaser or any of its Affiliates,

                                       37
<PAGE>

in each case that would reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect on the Purchaser or on the Business.

            (j) No Brokers or Finders. Any liability incurred by the Purchaser
or its Affiliates for any financial advisory fees, brokerage fees, commissions
or finder's fees directly or indirectly in connection with this Agreement or the
transactions contemplated hereby or by the Ancillary Agreements shall be borne
by the Purchaser.

            (k) Restricted Securities. The Purchaser understands that the shares
of Prime Stock are "restricted securities" under applicable U.S. federal and
state securities laws and that, pursuant to such laws, Purchaser must hold those
securities indefinitely unless they are registered with the SEC and qualified by
applicable state Governmental Authorities or an exemption from such registration
and qualification is available.

            (l) Investment Representation. The Purchaser is purchasing the Prime
Stock for its own account with the present intention of holding such securities
for investment purposes and not with a view to or for sale in connection with
any public distribution of such securities in violation of any federal or state
securities laws. The Purchaser is an "accredited investor" as defined in
Regulation D promulgated by the SEC under the Securities Act. Purchaser
understands the risks of the transactions contemplated hereby and of ownership
of the Prime Stock. Purchaser acknowledges that the Prime Stock has not been
registered under the Securities Act or any state or foreign securities laws and
that the Prime Stock may not be sold, transferred, offered for sale, pledged,
hypothecated or otherwise disposed of unless such sale, transfer, offer, pledge,
hypothecation or other disposition is pursuant to the terms of an effective
registration statement under the Securities Act and qualification under any
applicable state or foreign securities laws or pursuant to an exemption from
registration under the Securities Act and any applicable state or foreign
securities laws.

            (m) License. The Purchaser is licensed to participate in the
programs of each of the Card Associations to the extent necessary to consummate
the transactions contemplated by this Agreement and the Ancillary Agreements and
to perform its obligations hereunder and thereunder. The Purchaser is a member
in good standing of the Card Associations.

            (n) Organization and Capitalization of CEBA Bank. At the time of the
First Closing, CEBA Bank will be a national bank, duly organized, validly
existing and in good standing under the laws of the United States of America. At
the time of the First Closing, all of the issued and outstanding shares of
capital stock of CEBA Bank (the "CEBA Capital Stock") shall be beneficially and
legally owned by the Purchaser, free and clear of all Liens other than
Permissible Liens. All of the issued and outstanding shares of CEBA Capital
Stock will be duly authorized, validly issued, fully paid and nonassessable
(except as provided in 12 U.S.C. Section. 55). Upon the issuance of the CEBA
Equity Interests to FDS Bank (or its assignee) pursuant to Section 2.4(d) all of
the CEBA Equity Interests will be duly authorized, validly issued, fully paid
and nonassessable (except as provided in 12 U.S.C. Section. 55). Other than as
contemplated by this Agreement, there will be no outstanding (i) securities
convertible into or exchangeable for CEBA Capital Stock, (ii) options, warrants,
calls or other rights to purchase or subscribe for CEBA Capital Stock or (iii)
contracts of any kind to which CEBA Bank or any of its Affiliates is subject or
bound requiring the issuance after the date of this Agreement of (x) CEBA
Capital Stock, (y)

                                       38
<PAGE>

any convertible or exchangeable security of the type referred to in clause (i)
or (z) any options, warrants, calls or rights of the type referred to in clause
(ii). CEBA Bank will not own, directly or indirectly, any equity interest or
investment in any Person.

            (o) Operations of CEBA Bank. CEBA Bank will be established for the
sole purpose of entering into, and engaging in the transactions contemplated by,
this Agreement and the Ancillary Agreements, and following its formation, as of
the First Closing, (i) will not have engaged in any other business activities
other than organization and qualification of CEBA Bank under applicable
Requirements of Law and with the applicable Governmental Authorities, (ii) will
have conducted its business and operations only as contemplated by this
Agreement or the Ancillary Agreements and applicable Requirements of Law and
(iii) will not have incurred any Liabilities other than Liabilities incurred or
arising out of this Agreement or the Ancillary Agreements or in connection with
the organization and qualification of CEBA Bank under applicable Requirements of
Law and with the applicable Governmental Authorities. CEBA Bank will not at any
time during the Term (as defined in the Program Agreement) engage in any
business or issue any Credit Cards except pursuant to the Program Agreement.
CEBA Bank will at all times during the Term conform its operations so as to meet
the requirements of 12 U.S.C. Section.1841(c)(2) or any comparable successor
statute.

            SECTION 5.3. No Other Representations or Warranties; No Recourse.
Except as expressly set forth in this Article V or the Ancillary Agreements,
neither the Sellers nor the Purchaser have made or make any other express or
implied representations, or any express or implied warranty, either written or
oral, with respect to the Acquired Assets and Stock, the Assumed Liabilities,
the Sellers, the Business or the Purchaser, respectively, or as to any other
matter whatsoever. Except as otherwise expressly provided herein or in any
Ancillary Agreement, the sale of the Acquired Assets and Stock is without
recourse of any kind to FDS or its Affiliates or to the Purchaser or its
Affiliates. THE PURCHASER ACKNOWLEDGES THAT THE SELLERS DISCLAIM ALL WARRANTIES
OTHER THAN THOSE EXPRESSLY CONTAINED IN THIS AGREEMENT OR ANY ANCILLARY
AGREEMENT, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR WARRANTY OF FITNESS FOR
A PARTICULAR PURPOSE.

                                   ARTICLE VI
                                    COVENANTS

            SECTION 6.1. Conduct of Business.

            (a) Except as otherwise contemplated hereby or by the Ancillary
Agreements, and except for transactions in the ordinary course of business,
until the First Closing Date (and, with respect to the GE/Macy's Assets, until
the Second Closing Date), FDS and FDS Bank shall, and shall cause Prime to,
conduct the Business (for purposes of this Section 6.1(a), after the First
Closing, solely with respect to the GE/Macy's Assets and GE/Macy's Liabilities)
or cause the Business to be conducted in the ordinary course consistent with
past practice. Without limiting the generality of the foregoing, FDS and FDS
Bank shall (as it relates to the Business), and shall cause Prime to, use their
respective reasonable best efforts to preserve intact the business organizations
and relationships with third parties relating to the Business, to keep available
the

                                       39
<PAGE>

services of required employees of the Business and to preserve beneficial
relationships with customers in connection with the Business, following
substantially the same practices and standards, in all material respects,
including collection practices and accounting practices for charge-offs and
reserves, as in effect on the date of this Agreement (subject to such changes
therein as may be made by GE Bank in accordance with the provisions of the
GE/Macy's Program Agreement).

            (b) Prior to the closing of the May Merger, FDS shall not waive any
of its contractual rights against May Co. to require May Co. to continue
ordinary course operations and refrain from specified activities, in each case
as such operations and activities relate to the credit card business of May Co.,
May Bank and their Subsidiaries (the "May Business"). From and after the closing
of the May Merger, except as otherwise contemplated hereby or by the Ancillary
Agreements, and except for transactions in the ordinary course of business,
until the Third Closing Date, FDS and FDS Bank shall conduct the May Business or
cause the May Business to be conducted in the ordinary course consistent with
past practice (except to the extent permitted in Section 6.2). Without limiting
the generality of the foregoing, subject to Section 6.2(b), FDS and FDS Bank
shall (as it relates to the May Business) use their respective reasonable best
efforts to preserve intact the business organizations and relationships with
third parties relating to the May Business, to keep available the services of
required employees of the May Business and to preserve beneficial relationships
with customers in connection with the May Business, following substantially the
same practices and standards, in all material respects, including collection
practices and accounting practices for charge-offs and reserves, as in effect on
the closing date of the May Merger.

            SECTION 6.2. Certain Changes.

            (a) Without limiting Section 6.1, except as otherwise contemplated
hereby (including Section 6.2(b)) or by the Ancillary Agreements or as required
by the applicable Requirements of Law or the GE/Macy's Program Agreement with
respect to the GE/Macy's Assets, from the date of this Agreement until the First
Closing Date (or, with respect to the GE/Macy's Assets, the Second Closing Date
or, with respect to the May Assets, the Third Closing Date) without the prior
written consent of the Purchaser (which consent shall not be unreasonably
withheld or delayed), the Sellers shall not and shall cause their Subsidiaries
not to:

                  (i) enter into or amend any Assigned Contract except in the
ordinary course of the Business consistent with past practice and only to the
extent such entry or amendment would not have a Material Adverse Effect on the
Business;

                  (ii) amend any of the Prime Securitization Documents;

                  (iii) except for the acquisition of May Co., acquire a
material amount of assets from any other Person or all or substantially all of
the assets of any Person, whether by merger, asset purchase or otherwise, if, in
either case, such assets would constitute Acquired Assets and Stock;

                                       40
<PAGE>

                  (iv) materially change the aggregate expenses that would be
incurred by FDS and its Affiliates in the servicing of the Program or the
performance of interim services in accordance with the Program Agreement;

                  (v) make any material change in: (x) any financial accounting
practices, policies or procedures (to the extent any such change would be
binding on or otherwise affect the Business or the Purchaser following the First
Closing, the Second Closing or the Third Closing, as the case may be, and except
for any change in accounting practices, polices and procedures required by
reason of a concurrent change in GAAP); (y) any collections, pricing,
origination, charge-off, reaging, credit or underwriting practices, policies and
procedures of Sellers with respect to the Accounts; or (z) the servicing
practices, policies and procedures of the Sellers with respect to the Gross
Receivables or the Prime Securitization Receivables;

                  (vi) sell, lease or otherwise dispose of any of the Acquired
Assets and Stock, except (1) in the ordinary course of business and in
transactions that individually or in the aggregate with all such other
dispositions would not have a Material Adverse Effect on the Sellers or the
Business, (2) in connection with securitizations of receivables arising under
the Accounts (provided that the benefits thereof are transferable to the
Purchaser at the First Closing), (3) pursuant to the terms of Contracts or
commitments existing as of the date of this Agreement and Previously Disclosed,
or (4) as otherwise Previously Disclosed; or

                  (vii) except in the ordinary course of business consistent
with past practice, settle any material claim, action or proceeding or waive any
material rights or claims in respect of the Business in a manner that would
adversely affect the Business or any of the Acquired Assets and Stock or Assumed
Liabilities after the First Closing; or

                  (viii) agree with any Person or otherwise commit themselves to
do any of the foregoing.

            (b) Notwithstanding the provisions of Sections 6.1(b) and 6.2(a),
FDS may sell assets that would otherwise constitute Acquired Assets hereunder in
connection with dispositions by FDS of any stores or other retail channels of
FDS and its Affiliates or May Co. and its Affiliates in connection with the May
Merger; provided that (i) such dispositions shall be effected pursuant to a
settlement with or other written commitment to a Governmental Authority in
connection with such Governmental Authority's review of the May Merger or, (ii)
if such dispositions are not effected pursuant to such a settlement or
commitment referred to in clause (i), the Gross Receivables disposed of in
connection with all such dispositions of May Assets effected prior to the
closing of the May Merger in reliance upon this Section 6.2(b) shall not exceed
$150,000,000 in the aggregate.

            (c) The parties acknowledge that FDS intends to use its commercially
reasonable efforts following the closing of the May Merger to align to the
extent reasonably practicable the account terms, policies, practices and
procedures applicable to the May Accounts and the May Business with the account
terms, policies, practices and procedures applicable to the other Accounts and
the Business. Accordingly, notwithstanding the provisions of Sections 6.1(b) and
6.2(a), the Sellers and their Subsidiaries may make changes to the account
terms, policies, practices and procedures applicable to the May Accounts and the
May Business to the

                                       41
<PAGE>

extent such changes are in furtherance of such alignment. The parties further
acknowledge that the completion of such efforts by FDS is not a condition to the
Purchaser's obligation to effect the Third Purchase and Assumption.

            SECTION 6.3. Access and Confidentiality.

            (a) Until the First Closing Date (and, with respect to the GE/Macy's
Assets, until the Second Closing Date and with respect to the May Assets,
following the closing of the May Merger and until the Third Closing Date), upon
reasonable prior notice and subject to applicable Requirements of Law relating
to the exchange of information, FDS and FDS Bank shall, and shall cause Prime
to, permit the Purchaser and its authorized representatives to have reasonable
access, during regular business hours for purposes consistent with this
Agreement, to the properties and Books and Records relating to the Business,
including the Master File, the FDS Cardholder List, the GE/Macy's Cardholder
List and the May Cardholder List, to the extent that such access does not unduly
interfere with the business of the Sellers; provided that the Purchaser and such
representatives comply with the confidentiality obligations contained herein and
in the Confidentiality Agreement; and provided, further, that the foregoing
shall not (1) require the Sellers to permit any inspection, or to disclose any
information, that in their reasonable judgment would result in the disclosure of
any trade secrets of third parties or trade secrets of the Sellers or their
Affiliates unrelated to the Business or violate any obligations of the Sellers
to any third party with respect to confidentiality if the Sellers shall have
used reasonable best efforts to obtain the consent of such third party to such
inspection or disclosure or (2) require any disclosure by the Sellers that
could, as a result of such disclosure, have the effect of causing the waiver of
any attorney-client privilege.

            (b) If this Agreement is terminated, each party, at its own expense,
shall promptly deliver (without retaining any copies) to the other party or (at
their option) confirm in writing to the other party that it has completely
destroyed all information furnished to such party or its representatives by the
other party or any of their agents, employees or representatives in connection
with this Agreement, whether so obtained before or after the execution hereof,
and all analyses, compilations, forecasts, studies or other documents prepared
by such party or its representatives that contain or reflect any such
information; provided, however, that the foregoing shall not apply to summary
analyses made by such party that such party is required to retain (i) as part of
the minutes of the proceedings of its board of directors or any committee
thereof, or (ii) to comply with applicable Requirements of Law. Notwithstanding
the return or destruction of such information by the receiving party and/or its
agents, employees and representatives, the receiving party and its agents,
employees and representatives will continue to be bound by its obligations
hereunder and under the Confidentiality Agreements regarding the use and
confidentiality of such information. Notwithstanding the foregoing provisions of
this Section 6.3(b), the Purchaser shall not be required to return information
relating to the FDS Assets or the FDS Liabilities after the First Closing, the
GE/Macy's Assets or the GE/Macy's Liabilities after the Second Closing, or the
May Assets or the May Liabilities after the Third Closing.

            (c) In addition to the confidentiality arrangements contained
herein, all information provided or obtained in connection with the transactions
contemplated by this Agreement and by the Ancillary Agreements (including
pursuant to clause (a) above) on or prior

                                       42
<PAGE>

to the First Closing Date (or, with respect to information relating to the
GE/Macy's Assets and GE/Macy's Liabilities, on or prior to the Second Closing
Date and with respect to information relating to the May Assets and May
Liabilities, on or prior to the Third Closing Date) shall be held by the
Purchaser in accordance with the Confidentiality Agreement, dated November 19,
2004 between Citicorp Credit Services Inc. (USA) and FDS (the "FDS
Confidentiality Agreement") and the Confidentiality Agreement, dated April 26,
2005 between Citicorp Credit Services Inc. (USA) and FDS (the "May
Confidentiality Agreement" and together with the FDS Confidentiality Agreement,
the "Confidentiality Agreements"). In the event of a conflict or inconsistency
between the terms of this Agreement and the Confidentiality Agreements, the
terms of this Agreement shall govern.

            (d) The parties agree that monetary damages would not be a
sufficient remedy for any breach of the foregoing provisions of this Section 6.3
and the provisions of the Confidentiality Agreements, and that, in addition to
all other remedies, each Party will be entitled to seek specific performance and
to seek injunctive or other equitable relief as a remedy for any breach of the
foregoing provisions of this Section 6.3 and the provisions of the
Confidentiality Agreements.

            (e) From the date hereof through the First Closing Date (and with
respect to the GE/Macy's Assets, through the Second Closing Date, and with
respect to the May Assets, from the closing of the May Merger through the Third
Closing Date), the Sellers shall provide to the Purchaser on a monthly basis the
reports that would be required to be provided to the Purchaser pursuant to
Section 7.1 of the Program Agreement following the Effective Date thereunder (or
in the case of the May Assets, such similar existing reports as are reasonably
available to FDS).

            (f) From the date hereof through the Second Closing Date, the
Sellers shall provide the Purchaser reasonable prior written notice (including a
description of such change) of any material changes in the credit and
underwriting, risk management, reaging, posting, collection or operating
policies and procedures with respect to the Business made pursuant to the
GE/Macy's Program Agreement. From the date of the closing of the May Merger
through the Third Closing Date, the Sellers shall provide the Purchaser
reasonable prior written notice describing any such material changes to be made
in connection with the May Business.

            SECTION 6.4. Reasonable Best Efforts; Other Filings.

            (a) Subject to the terms and conditions of this Agreement, the
Purchaser shall, and shall cause its Subsidiaries to, and FDS and FDS Bank
shall, and shall cause their Subsidiaries to, use reasonable best efforts to
take, or cause to be taken, all actions and to do, or cause to be done, all
things necessary, proper or advisable under applicable Requirements of Law, so
as to permit consummation of the transactions contemplated by this Agreement as
promptly as reasonably practicable and shall cooperate fully with each other to
that end.

            (b) Without limiting Section 6.4(a), FDS and FDS Bank shall, and
shall cause their Subsidiaries to, and the Purchaser shall and shall cause its
Affiliates to, use reasonable best efforts to prepare all documentation, to
effect all filings and to obtain all permits, consents, approvals and
authorizations of all Governmental Authorities necessary to consummate the

                                       43
<PAGE>

transactions contemplated by this Agreement and the Ancillary Agreements,
including taking all reasonable actions necessary to defend, mitigate or rescind
the effect of any litigation or administrative proceeding involving any
Governmental Authority adversely affecting the consummation of the transactions
contemplated by this Agreement or the validity or enforceability of this
Agreement, including promptly appealing any adverse court or administrative
decision. Each of the Sellers, on the one hand, and the Purchaser, on the other
hand, shall consult with the other with respect to the obtaining of such
permits, consents, approvals and authorizations and to keep the other apprised
of the status thereof. Subject to appropriate confidentiality and legal
privilege protections, the Sellers and the Purchaser shall each furnish to the
others such necessary information and reasonable assistance as any of the
parties may reasonably request in connection with the foregoing.

            (c) Without limiting the foregoing, the parties shall use their
reasonable best efforts to obtain (i) the Requisite Regulatory Approvals with
respect to the First Purchase and Assumption, the Second Purchase and Assumption
and the Third Purchase and Assumption, and (ii) with the cooperation of FDS and
its Subsidiaries, any licenses, permits or other qualifications with respect to
the Purchaser or any of its Affiliates necessary to satisfy the condition set
forth in Section 7.3(e) and to allow the Purchaser to perform its obligations
under the Program Agreement, in each case in time to permit the First Closing
Date to occur on or before August 29, 2005 or, if the First Closing Date has not
then occurred, as promptly thereafter as reasonably practicable. The parties
hereby agree, without any request or demand by the other parties, (i) to make
all necessary filings related to the Requisite Regulatory Approvals with respect
to the First Purchase and Assumption no later than fifteen (15) Business Days
from the execution and delivery of this Agreement, (ii) to supply as promptly as
practicable to the appropriate Governmental Authorities any additional
information and documentary material that may be requested in connection with
the receipt of the Requisite Regulatory Approvals and (iii) to prosecute
actively all such filings and pursue the receipt of each Requisite Regulatory
Approval and the licenses, permits or other qualifications referred to in clause
(ii) above.

            (d) The Sellers and the Purchaser agree to take such actions with
respect to the Prime Securitization Assets and Prime Securitization Documents
prior to the First Closing Date as the other parties may reasonably request,
including those actions that are incident to the receipt of ratings
confirmations from the rating agencies in connection with the purchase of the
Prime Stock and the assumption by the Purchaser of the roles of servicer and
transferor (and the role of the Purchaser as sub-servicer) under the Prime
Securitization Documents.

            (e) The Purchaser shall promptly notify the Sellers in writing, and
FDS and FDS Bank shall promptly notify the Purchaser in writing, upon (i)
becoming aware of any order or decree or any complaint seeking an order or
decree restraining or enjoining the execution of any Ancillary Agreement or the
consummation of the transactions contemplated by this Agreement or any Ancillary
Agreement, or (ii) receiving any notice from any Governmental Authority of its
intention to (A) institute a suit or proceeding to restrain or enjoin the
execution of any Ancillary Agreement or the consummation of the transactions
contemplated by this Agreement or any Ancillary Agreement, (B) nullify or render
ineffective this Agreement or the Ancillary Agreements if such transactions are
consummated, or (C) fail to issue or give any of the Requisite Regulatory
Approvals.

                                       44
<PAGE>

            (f) Any filing fees under the HSR Act or any other domestic or
foreign antitrust merger control laws shall be borne by the Purchaser.

            (g) The parties agree that if so requested by FDS not later than the
earlier to occur of (i) fifteen (15) days prior to the First Closing Date and
(ii) the date on which the Purchaser has received all Requisite Regulatory
Approvals required to be obtained by it, the parties will negotiate in good
faith with respect to such mutually acceptable changes to the terms of this
Agreement and the Program Agreement as FDS may reasonably request in order to
maintain the status of FDS Bank as a savings association in good standing with
the Office of Thrift Supervision, including without limitation amending such
agreements to provide that some or all of the Employee Accounts (as defined in
the Program Agreement) shall be retained following the First Closing at FDS
Bank; provided, however, that no such changes shall be made to the extent they
would affect the ability of the Purchaser and the CEBA Bank to file a
consolidated federal income Tax Return following the First Closing Date in
accordance with Section 6.14(d).

            (h) The parties agree that in the event that the OCC is not willing
to approve the ownership of the CEBA Equity Interests by FDS Bank, the parties
shall negotiate in good faith with respect to mutually acceptable changes to the
terms of this Agreement and the Program Agreement to provide for such other
corporate or ownership structure of the issuer of Credit Cards under the Program
as the parties mutually agree; provided that failure of the OCC to approve (i)
the ownership of the CEBA Equity Interests by FDS Bank or (ii) such alternative
corporate or ownership structure shall not give rise to the payment of the
Termination Fee pursuant to Section 10.4(b).

            SECTION 6.5. Additional Instruments. At the reasonable request of
FDS or FDS Bank, on the one hand, or the Purchaser, on the other hand, at or
after the First Closing, the other Person shall promptly execute and deliver, or
cause to be executed and delivered, to the requesting party such assignments,
bills of sale, assumption agreements, consents and other similar instruments in
addition to those required by this Agreement, in form and substance reasonably
satisfactory to the requesting party, as may be reasonably necessary to carry
out or implement any provision of this Agreement or any Ancillary Agreement or
to make effective the First Purchase and Assumption, the Second Purchase and
Assumption or the Third Purchase and Assumption, as the case may be.

            SECTION 6.6. Non-Solicitation. The Purchaser shall continue to
comply with the provisions of Section 6 of the FDS Confidentiality Agreement
during the eighteen (18) month period following the First Closing Date. The
Purchaser shall continue to comply with the provisions of Section 6 of the May
Confidentiality Agreement during the eighteen (18) month period following the
Third Closing Date. The parties agree that money damages would not be a
sufficient remedy for any breach of this Section 6.6 and that, in addition to
all other remedies, the Sellers and their Affiliates will be entitled to seek
specific performance and to seek injunctive or other equitable relief as a
remedy for any breach of this Section 6.6 or the provisions of the
Confidentiality Agreement. Purchaser waives any requirements for the securing or
posting of any bond in connection with such remedy.

            SECTION 6.7. Credit Card Marks; Branding. It is expressly agreed
that, except for the license granted in the Program Agreement, the Purchaser is
not purchasing or acquiring

                                       45
<PAGE>

any right, title or interest in the FDS Licensed Marks or other trademarks or
service marks of the Sellers or their Affiliates that the Sellers have used
prior to the date of this Agreement (or shall use or own thereafter) in
connection with the Accounts or the Business (collectively, the "Credit Card
Marks"). The Purchaser acknowledges that the Sellers or their Affiliates own the
Credit Card Marks and goodwill related thereto and symbolized thereby.

            SECTION 6.8. Notice to Cardholders.

            (a) First Purchase and Assumption.

                  (i) Promptly following the First Closing Date, the Purchaser
      shall prepare jointly with FDS and FDS Bank a form or forms of notice to
      each Cardholder who has an FDS Account owned by the Purchaser as of the
      First Closing Date to the effect that such Account has been acquired by
      the Purchaser, provided that such notice shall be sent to any Cardholder
      that has an inactive Account following the date such Account becomes
      active. Such notice shall be in the form approved by both parties, which
      approval shall not be unreasonably withheld or delayed, and shall comply
      with all applicable Requirements of Law and the by-laws, rules and
      regulations of the Card Associations if applicable. The costs of
      preparation and mailing of such notices shall be borne by the Purchaser.
      The mailing shall be made in such manner and at such time as the Sellers
      and the Purchaser may mutually agree.

                  (ii) From and after the date of this Agreement and until the
      First Closing, the Purchaser and its Affiliates shall not communicate with
      the FDS Account Cardholders (whether by mail, by telephone or otherwise)
      regarding the Business or their FDS Accounts without the prior written
      consent of the Sellers, which consent shall not be unreasonably withheld
      or delayed.

            (b) Second Purchase and Assumption.

                  (i) Promptly following the Second Closing Date, the Purchaser
      shall prepare jointly with FDS and FDS Bank a form or forms of notice to
      each Cardholder who has a GE/Macy's Account to the effect that such
      Account has been acquired by the Purchaser; provided that such notice
      shall be sent to any Cardholder that has an inactive Account following the
      date such Account becomes active. Such notice shall be in the form
      approved by both parties, which approval shall not be unreasonably
      withheld or delayed, and shall comply with all applicable Requirements of
      Law and the by-laws, rules and regulations of the Card Associations if
      applicable. The costs of preparation and mailing of such notices shall be
      borne by the Purchaser. The mailing shall be made in such manner and at
      such time as the Sellers and the Purchaser may mutually agree.

                  (ii) From and after the date of this Agreement and until the
      Second Closing, the Purchaser and its Affiliates shall not communicate
      with the GE/Macy's Account Cardholders (whether by mail, by telephone or
      otherwise) regarding the Business or their GE/Macy's Accounts without the
      prior written consent of the Sellers, which consent shall not be
      unreasonably withheld or delayed.

            (c) Third Purchase and Assumption.

                                       46
<PAGE>

                  (i) Promptly following the Third Closing Date, the Purchaser
      shall prepare jointly with FDS and FDS Bank or May Bank, as the case may
      be, a form or forms of notice to each Cardholder who has a May Account to
      the effect that such Account has been acquired by the Purchaser; provided
      that such notice shall be sent to any Cardholder that has an inactive
      Account following the date such Account becomes active. Such notice shall
      be in the form approved by both parties, which approval shall not be
      unreasonably withheld or delayed, and shall comply with all applicable
      Requirements of Law and the by-laws, rules and regulations of the Card
      Associations if applicable. The costs of preparation and mailing of such
      notices shall be borne by the Purchaser. The mailing shall be made in such
      manner and at such time as the Sellers and the Purchaser may mutually
      agree.

                  (ii) From and after the date of this Agreement and until the
      Third Closing, the Purchaser and its Affiliates shall not communicate with
      the May Account Cardholders (whether by mail, by telephone or otherwise)
      regarding the Business or their May Accounts without the prior written
      consent of the Sellers, which consent shall not be unreasonably withheld
      or delayed.

            SECTION 6.9. Cooperation in Obtaining Approval and Consents. The
Purchaser agrees to cause one or more of its Affiliates to assume or to join as
joint and several indemnitors, and irrevocable and unconditional guarantors and
sureties, of the obligations of the Purchaser to the extent reasonably requested
by the applicable trustees or rating agencies and any other party whose consent,
approval or action is reasonably required in connection with transfer of the
Prime Securitization Assets and related Liabilities of the Sellers.

            SECTION 6.10. Post-Closing Access. The Purchaser shall, upon
reasonable notice and subject to applicable Requirements of Law relating to the
exchange of information, afford to the Sellers, their Affiliates and their
representatives reasonable access (including the right to copy), without charge,
during normal business hours, to the Acquired Assets and Stock, the Books and
Records relating thereto, any Person who maintains or controls any of the
foregoing for the Purchaser or its Subsidiaries, all as may be reasonably
requested by the Sellers or any of their Affiliates in order to enable the
Sellers to (i) prepare the First Final Closing Statement, the Second Final
Closing Statement, and the Third Final Closing Statement and participate in the
resolution of any disputes relating thereto; (ii) permit the performance of any
covenants required to be performed under this Agreement and the Ancillary
Agreements after the First Closing Date, the Second Closing Date or the Third
Closing Date by the Sellers; (iii) permit the preparation of any Tax Return or
other document required to be filed with any Governmental Authority; and (iv)
respond to any proceeding or to any claim made, or to any request for
information, by any Governmental Authority or any other Person not a party
hereto (other than an Affiliate of the Purchaser), including any Cardholder with
respect to matters that may constitute Excluded Liabilities.

            SECTION 6.11. Cooperation in Litigation. (a) Subject to Section
12.4, the Sellers and the Purchaser shall cooperate, to the extent reasonably
requested by the other, in the handling and disposition of any claim, action,
suit, arbitration, proceeding, investigation or regulatory inquiry ("Actions"),
whether or not listed on the Schedules and whether or not pending or threatened
prior to the First Closing, the Second Closing or the Third Closing, that

                                       47
<PAGE>

arise out of or are related to any event or occurrence with respect to the
Business prior to the First Closing (or, with respect to the GE/Macy's Assets or
the GE/Macy's Liabilities, the Second Closing and with respect to the May Assets
or May Liabilities, the Third Closing Date); provided, however, that the party
ultimately responsible for discharging such Action shall have the authority to
take such actions as it deems necessary or advisable, in its sole discretion, to
discharge such Action, subject, however, to the provisions of this Agreement.

            (b) The Sellers shall be entitled to keep copies of all litigation
filings, correspondence, Books and Records and other documentation of any kind
that the Sellers reasonably determine are necessary or desirable in connection
with the handling and disposition of the Actions by the Sellers and their
Affiliates.

            SECTION 6.12. Preservation of and Access to Books and Records. The
Purchaser shall preserve and keep all Books and Records of the Business and all
information relating to the accounting, business, financial and Tax affairs of
the Business that are in existence on the First Closing Date or that come into
existence after the First Closing Date but relate to the Business prior to the
First Closing Date (in the case of the FDS Assets and the FDS Liabilities) or
the Second Closing Date (in the case of the GE/Macy's Assets and the GE/Macy's
Liabilities) or the Third Closing Date (in the case of the May Assets and the
May Liabilities) for a period of seven (7) years after the Third Closing Date,
or for any longer period (i) as may be required by any federal, state, local or
foreign governmental body or agency, (ii) as may be reasonably necessary with
respect to the prosecution or defense of any audit or other Action that is then
pending or threatened, or (iii) that is equivalent to the period established by
any applicable statute of limitations (excluding any extension or waiver
thereof) with respect to matters pertaining to Taxes. For a period of four (4)
years following the seven (7) year period specified above, if the Purchaser
wishes to destroy such records, the Purchaser shall first provide the Sellers
the opportunity to take possession of the same (at the Sellers' cost and
expense).

            SECTION 6.13. Bulk Sales Law. The Purchaser hereby waives compliance
by the Sellers, in connection with the transactions contemplated hereby, with
the provisions of any applicable bulk sales law (including the Uniform
Commercial Code Bulk Transfer provisions).

            SECTION 6.14. CEBA Bank.

            (a) As promptly as practicable after the date of this Agreement (but
in any event prior to the First Closing), the Purchaser shall form CEBA Bank by
(i) causing an organizing group to execute and file with the OCC all required
organization documents; (ii) applying for deposit insurance; and (iii) filing
any other required documents with such other applicable Governmental Authorities
as the Purchaser shall determine to be necessary or appropriate.

            (b) The Purchaser shall use its reasonable best efforts to, as
promptly as practicable following the formation of CEBA Bank, cause CEBA Bank to
be (i) licensed and qualified in all jurisdictions necessary to service the
Accounts in accordance with all applicable Requirements of Law, except where the
failure to be so qualified would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect on CEBA Bank or the
Business or on the ability of CEBA Bank to perform its duties as servicer, or on
ability of CEBA Bank to perform its duties as sub-servicer, under the Prime
Pooling and Servicing

                                       48
<PAGE>

Agreement following the First Closing Date and (ii) licensed to participate in
the programs of each of the Card Associations to the extent necessary to perform
its obligations hereunder and thereunder following the First Closing.

            (c) Pursuant to Section 2.4(d), at the First Closing, the Purchaser
shall cause CEBA Bank to issue to FDS Bank (or its assignee) shares of CEBA
Preferred Stock with the rights and preferences set forth in Annex E (the "CEBA
Equity Interests"). Upon the issuance of the CEBA Equity Interests to FDS Bank
(or its assignee), the CEBA Equity Interests will be duly authorized, validly
issued, fully paid and nonassessable.

            (d) The Purchaser and the CEBA Bank shall file a consolidated
federal income Tax Return following the First Closing Date.

            SECTION 6.15. Third-Party Consents.

            (a) To the extent that any consent needed to assign to the Purchaser
any Assigned Contract has not been obtained on or prior to the First Closing
Date or the Second Closing Date, as applicable, this Agreement and any document
delivered pursuant hereto shall not constitute an assignment or attempted
assignment thereof if such assignment or attempted assignment would constitute a
breach of such Assigned Contract or would give rise to a valid right of
termination thereof. If any such third-party consent shall not be obtained on or
prior to the First Closing Date or the Second Closing Date, as applicable, then
the parties shall cooperate in entering into alternative arrangements at the
First Closing Date or the Second Closing Date, as applicable, pursuant to which
the Purchaser would obtain substantially all of the benefits and become
responsible for substantially all of the obligations under such Assigned
Contract.

            (b) The Purchaser and the Sellers shall use commercially reasonable
efforts (which for purposes of this Section 6.15 shall not require any payment
of money by the Sellers or the Purchaser, except as agreed between them in
writing) to seek any required consents to the assignment of the Assigned
Contracts which have not been obtained as of the First Closing Date or the
Second Closing Date, as applicable, and promptly upon receipt of such consents
shall effect such assignments.

            (c) The parties shall cooperate to (i) identify Contracts of May Co.
and its Affiliates that should be assigned to the Purchaser in connection with
the Third Assignment and Assumption and shall mutually agree on the Contracts
that shall be so assigned and (ii) identify such third party consents the
parties mutually agree are necessary in connection with the Third Assignment and
Assumption. The Sellers shall update their Schedules relating to Sections 5.1(c)
and 5.1(d) and Schedules 1.1(a) and 7.1 prior to the Third Closing to reflect
the existence of any such Contracts or consents and Sections 6.15(a) and 6.15(b)
shall apply to such Assigned Contracts mutatis mutandis with respect to the
Third Closing Date.

            SECTION 6.16. May Portfolio.

            (a) FDS shall permit the Purchaser to conduct reasonable due
diligence with respect to the May Assets and the May Liabilities at a time to be
mutually agreed by the parties between sixty (60) days and one hundred twenty
(120) days prior to the anticipated Third

                                       49
<PAGE>

Closing Date. Except as set forth in Sections 6.16(b), the Purchaser's rights
and obligations hereunder shall not be affected in any manner by such due
diligence.

            (b) In the event that:

                  (i) the requirement set forth in Schedule 6.16 with respect to
this Section 6.16(b)(i) shall not have been satisfied, or

                  (ii) as a result of the due diligence specified in Schedule
6.16, the Purchaser determines that FDS will be unable to make one or more of
the representations and warranties referred to in Section 9.2(b) and that such
failure would constitute a failure of the closing condition set forth in Section
9.2(b) and provides written notice of such determination to FDS, or

                  (iii) following the closing of the May Merger, FDS provides
written notice to the Purchaser that FDS will be unable to make one or more of
the representations and warranties referred to in Section 9.2(b) and that such
failure would constitute a failure of the closing condition set forth in Section
9.2(b),

then the following shall apply. In the event of a notice delivered by the
Purchaser to FDS, the Purchaser may elect in such notice (A) to close the Third
Purchase and Assumption and waive the obligation of FDS to make the
representations and warranties with respect to the facts and circumstances
giving rise to the inability of FDS to make such representations or warranties
identified pursuant to clause (b)(ii) or (b)(iii) above or permit FDS to modify
such representations and warranties such that FDS is able to make such
representations and warranties, or (B) to initiate a renegotiation of the May
Purchase Price (it being understood that the Purchaser shall not propose any
adjustment to the financial or other terms and conditions of the Program
Agreement other than as expressly contemplated in Sections 4.8 and 4.9 of the
Program Agreement; provided that (i) the Purchaser will take into account the
terms and conditions of the Program Agreement when proposing any adjustment to
the May Purchase Price and (ii) nothing herein shall preclude the Purchaser from
proposing to reduce the May Purchase Price to below the Gross Receivables value
of the May Assets). In the event of a notice delivered by FDS to Purchaser, the
Purchaser shall, within ten (10) Business Days following the receipt of such
notice, make one of the specified elections set forth in the previous sentence
by written notice to FDS. If Purchaser makes an election set forth in clause (A)
above, the parties shall cooperate to close the Third Purchase and Assumption in
accordance with such election; provided that the closing of the Third Purchase
and Assumption shall not constitute a waiver by the Purchaser of any of its
rights to be indemnified for Losses other than Losses arising out of or relating
to the facts and circumstances giving rise to the inability of FDS to make the
representations and warranties identified pursuant to clause (b)(ii) or (b)(iii)
above. If Purchaser makes an election set forth in clause (B) above, the parties
shall negotiate in good faith to agree upon a revised May Purchase Price;
provided that if the parties do not agree upon a revised May Purchase Price
within thirty (30) days following the date of the receipt of the notice of
election by Purchaser, then FDS may take either of the following actions in its
sole discretion: (Y) accept the price last proposed by the Purchaser during the
thirty (30) day period as the new May Purchase Price; or (Z) terminate this
Agreement in its entirety pursuant to Section 10.3.

                                       50
<PAGE>

            SECTION 6.17. Interim Servicing. Notwithstanding that following the
First Closing FDS is no longer the Servicer, FDS hereby agrees that during the
period from the First Closing and until December 15, 2005, it shall use its
reasonable best efforts to prepare or cause to be prepared the reports specified
in Schedule 6.17 and deliver or cause to be delivered such reports to Purchaser
within time frames mutually agreed upon by the parties. FDS hereby agrees to
provide Purchaser with all necessary and reasonable access to its facilities and
personnel necessary for Purchaser to (i) verify the accuracy and completeness of
the data contained in each such report and (ii) prepare the annual servicer's
certificate and the annual independent accountants' report in accordance with
the Prime Pooling and Servicing Agreement. In consideration for performing the
services set forth in this Section 6.17 (the "Interim Services"), Purchaser
shall pay by wire transfer of immediately available funds (in U.S. dollars) to
FDS within ten (10) Business Days of the receipt of any invoice from FDS in
respect of the Interim Services the actual costs and expenses (including
allocated costs and expenses) incurred by FDS and its Affiliates in providing
the Interim Services as set forth on such invoice. The amount of such payment
shall not be a "Program Expense" under the Program Agreement. The Purchaser
shall indemnify and hold harmless FDS and its Affiliates from any and all Losses
arising from the performance of the Interim Services, except to the extent any
of the foregoing acted with gross negligence or willful misconduct in performing
such Interim Services.

            SECTION 6.18. Securitization Matters. (a) At the First Closing Date,
FDS shall cause Jones Day, counsel to FDS, to deliver to the Purchaser a
reliance letter with respect to the most recent opinion of Jones Day with
respect to the Prime Securitization Receivables (the "Jones Day Opinion"),
together with a certificate from a duly authorized officer of FDS that the
assumptions set forth or referred to in the Jones Day Opinion have been complied
with in all material respects since the date of such opinion.

            (b) In the event that FDS is unable to make any of the
representations and warranties set forth in Section 5.1(s) at the First Closing
or the Second Closing or the Third Closing, as applicable, FDS shall not be
required to make such representations and warranties and FDS shall make such
other representations and warranties with respect to the subject matter of
Section 5.1(s) as shall be mutually agreed between the Purchaser and FDS.

                                  ARTICLE VII
             CONDITIONS TO EFFECT THE FIRST PURCHASE AND ASSUMPTION

            SECTION 7.1. Conditions to Each Party's Obligations. The respective
obligations of the Sellers and the Purchaser to effect the First Purchase and
Assumption are subject to the fulfillment or written waiver, at or prior to the
First Closing Date, of the following conditions:

            (a) Governmental and Regulatory Approvals. All of the Requisite
Regulatory Approvals shall have been obtained and shall be in full force and
effect and all waiting periods required by law (including under the HSR Act)
shall have expired or been terminated, and all other approvals or authorizations
of, filings and registrations with, and notifications to, all Governmental
Authorities required to effect the First Purchase and Assumption shall have been

                                       51
<PAGE>

obtained and shall be in full force and effect, except to the extent that the
failure to obtain such an approval or authorization (other than a Requisite
Regulatory Approval) would not reasonably be expected to have, individually or
in the aggregate, a Material Adverse Effect on the Business or on the Sellers or
the Purchaser.

            (b) Third Party Consents. The consents and approvals of the Persons
set forth in Schedule 7.1 with respect to the First Closing shall have been
obtained and shall be in full force and effect, except to the extent that the
failure to obtain such a consent or approval would not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect on the
Business.

            (c) No Injunction or Prohibition. No Governmental Authority of
competent jurisdiction shall have enacted, issued, promulgated, enforced or
entered any statute, rule, regulation, by-law, judgment, decree, injunction or
other order (whether temporary, preliminary or permanent) that is in effect and
prohibits or makes illegal consummation of the transactions contemplated by this
Agreement or the Ancillary Agreements.

            (d) Program Agreement. The Program Agreement shall have been duly
executed and delivered by the parties thereto.

            (e) Instrument of Assignment and Assumption. The First Instrument of
Assignment and Assumption shall have been duly executed and delivered by the
parties thereto.

            (f) Financing Statements. Sellers shall have executed and delivered
UCC-1 financing statements to be filed in the Offices of the Secretaries of
State of any state necessary to perfect the sale of the Gross Receivables
purchased pursuant to the First Purchase and Assumption.

            (g) Required Amendments and Confirmations. The Required Amendments
and Confirmations shall have been obtained and shall have become effective in
accordance with their terms.

            (h) Prime II. The Sellers shall have given all notices and satisfied
all conditions necessary to pay, and shall have paid in full, the investor
certificates issued by Prime II Master Trust and shall have terminated the Prime
II Master Trust.

            (i) Card Associations. The Card Associations shall have confirmed
that, upon the consummation of the First Purchase and Assumption, CEBA Bank
shall be a Participating Member in the VISA Partnership Program in good standing
with all necessary power and authority under the by-laws and membership and
operating rules of the Card Associations to carry on the Business and issue
Credit Cards as contemplated by the Program Agreement.

            SECTION 7.2. Conditions to Obligations of the Purchaser. The
obligations of the Purchaser to effect the First Purchase and Assumption are
subject to the fulfillment or waiver by it in writing, at or prior to the First
Closing Date, of the following additional conditions:

                                       52
<PAGE>

            (a) Performance. The Sellers shall have performed in all material
respects all their covenants and agreements set forth in this Agreement to the
extent required to be performed at or prior to the First Closing Date.

            (b) Representations. The representations of FDS set forth in this
Agreement shall be true and correct as of (1) the date of this Agreement and (2)
the First Closing Date (except that representations that by their terms speak as
of the date of this Agreement or some other date shall be true and correct only
as of such date), except to the extent that any failure to be so true and
correct (after excluding the effect of any Knowledge, Material Adverse Effect or
other materiality qualifier set forth in any such representation) would not
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect on the Business or the Sellers.

            (c) Certificate. The Purchaser shall have received a certificate
signed on each Sellers' behalf by an executive officer of each Seller, dated the
First Closing Date, to the effect that the conditions set forth in Sections
7.2(a) and 7.2(b) have been satisfied.

            (d) Securitization Opinions. The Purchaser shall have received
copies of any Tax opinions or other opinions to the trustee expressly required
by the Securitization Documents to be delivered on behalf of the Sellers in
order to consummate the transactions contemplated hereby.

            SECTION 7.3. Conditions to Obligations of the Sellers. The
obligations of the Sellers to effect the First Purchase and Assumption are
subject to the fulfillment or waiver by them in writing, at or prior to the
First Closing Date, of the following additional conditions:

            (a) Performance. The Purchaser shall have performed in all material
respects all its covenants and agreements set forth in this Agreement to the
extent required to be performed at or prior to the First Closing Date.

            (b) Representations. The representations of the Purchaser set forth
in this Agreement shall be true and correct as of (i) the date of this Agreement
and (ii) the First Closing Date (except that any representations that by their
terms speak as of the date of this Agreement or some other date shall be true
and correct only as of such date), except to the extent that any failure to be
so true and correct (after excluding the effect of any Knowledge, Material
Adverse Effect or materiality qualifier set forth in any such representation)
would not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect on the Business following the First Closing Date or on
the Purchaser.

            (c) Certificate. The Sellers shall have received a certificate
signed on the Purchaser's behalf by an executive officer of the Purchaser, dated
the First Closing Date, to the effect that the conditions set forth in Sections
7.3(a) and 7.3(b) have been satisfied.

            (d) Securitization Opinions. The Sellers shall have received copies
of any Tax opinions or other opinions provided to the Purchaser, on behalf of
the Sellers, as required by the Securitization Documents, rating agencies or
trustee in connection with the acquisition of the Prime Stock and the assumption
of the roles of transferor and servicer under the Prime Master Trust in order to
consummate the transactions contemplated hereby.

                                       53
<PAGE>

            (e) CEBA Equity Interests. The Purchaser shall have taken all of the
required actions, corporate and otherwise, to cause CEBA Bank to issue to FDS
Bank (or its assignee) the CEBA Equity Interests.

                                  ARTICLE VIII
             CONDITIONS TO EFFECT THE SECOND PURCHASE AND ASSUMPTION

            SECTION 8.1. Conditions to Each Party's Obligations. The respective
obligations of the Sellers and the Purchaser to effect the Second Purchase and
Assumption are subject to the fulfillment or written waiver, at or prior to the
Second Closing Date, of the following conditions:

            (a) Governmental and Regulatory Approvals. All of the Requisite
Regulatory Approvals shall have been obtained and shall be in full force and
effect and all waiting periods required by law (including under the HSR Act)
shall have expired or been terminated, and all other approvals or authorizations
of, filings and registrations with, and notifications to, all Governmental
Authorities required to effect the Second Purchase and Assumption shall have
been obtained or made and shall be in full force and effect, except to the
extent that the failure to obtain such an approval or authorization (other than
a Requisite Regulatory Approval) would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect on the GE/Macy's
Assets following the Second Closing Date.

            (b) Third Party Consents. The consents and approvals of the Persons
set forth in Schedule 7.1 with respect to the Second Closing shall have been
obtained and shall be in full force and effect, except to the extent that the
failure to obtain such a consent or approval would not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect on the
GE/Macy's Assets following the Second Closing Date.

            (c) No Injunction or Prohibition. No Governmental Authority of
competent jurisdiction shall have enacted, issued, promulgated, enforced or
entered any statute, rule, regulation, by-law, judgment, decree, injunction or
other order (whether temporary, preliminary or permanent) that is in effect and
prohibits or makes illegal consummation of the transactions contemplated by this
Agreement or the Ancillary Agreements to occur on the Second Closing Date.

            (d) Instrument of Assignment and Assumption. The Second Instrument
of Assignment and Assumption shall have been duly executed and delivered by the
parties thereto.

            (e) Financing Statements. Sellers shall have executed and delivered
UCC-1 financing statements to be filed in the Offices of the Secretaries of
State of any states necessary to perfect the sale of the Gross Receivables
purchased pursuant to the Second Purchase and Assumption.

            (f) Completion of First Closing. The First Purchase and Assumption
shall have been completed either prior to or contemporaneously with the Second
Purchase and Assumption.

                                       54

<PAGE>

            (g) Termination of GE/Macy's Program Agreement. The GE/Macy's
Program Agreement shall have terminated and the GE/Macy's Accounts and related
assets and liabilities shall have been reconveyed to the Sellers or their
designee (which may be the Purchaser) prior to or contemporaneously with the
Second Closing.

            SECTION 8.2. Conditions to Obligations of the Purchaser. The
obligations of the Purchaser to effect the Second Purchase and Assumption are
subject to the fulfillment or written waiver, at or prior to the Second Closing
Date, of the following additional conditions:

            (a) Performance of Obligations. The Sellers shall have performed in
all material respects all their covenants and agreements set forth in this
Agreement with respect to the GE/Macy's Assets and the GE/Macy's Liabilities to
the extent required to be performed at or prior to the Second Closing Date.

            (b) Representations. The representations of FDS set forth in this
Agreement (other than the representations in Sections 5.1(e)(1), (l)(1), (m),
(n) and (q), and any other representations of FDS to the extent relating to the
FDS Assets and the FDS Liabilities) shall be true and correct as of (i) the date
of this Agreement and (ii) the Second Closing Date (except that representations
that by their terms speak as of the date of this Agreement or some other date
shall be true and correct only as of such date), except to the extent that any
failure to be so true and correct (after excluding the effect of any Knowledge,
Material Adverse Effect or materiality qualifier set forth in any such
representation) would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect on the GE/Macy's Assets or on the Sellers.

            (c) Certificate. The Purchaser shall have received a certificate
signed on each Seller's behalf by an executive officer of each Seller, dated the
Second Closing Date, to the effect that the conditions set forth in Sections
8.2(a) and 8.2(b) have been satisfied.

            SECTION 8.3. Conditions to Obligations of FDS and FDS Bank. The
obligations of the Sellers to effect the Second Purchase and Assumption are
subject to the fulfillment or waiver in writing, at or prior to the Second
Closing Date, of the following additional conditions:

            (a) Performance. The Purchaser shall have performed in all material
respects all its covenants and agreements set forth in this Agreement to the
extent required at or prior to the Second Closing Date.

            (b) Representations. The representations of the Purchaser set forth
in this Agreement (other than the representations in Sections 5.2(e), (k) and
(l)) shall be true and correct as of the date of this Agreement and the Second
Closing Date (except that any representations that by their terms speak as of
the date of this Agreement or some other date shall be true and correct only as
of such date), except to the extent that any failure to be so true and correct
(after excluding the effect of any Knowledge, Material Adverse Effect or
materiality qualifier set forth in any such representation) would not reasonably
be expected to have, individually or in the aggregate, a Material Adverse Effect
on the GE/Macy's Assets or on the Purchaser.

                                       55

<PAGE>

            (c) Certificate. The Sellers shall have received a certificate
signed on the Purchaser's behalf by an executive officer of the Purchaser, dated
the Second Closing Date, to the effect that the conditions set forth in Sections
8.3(a) and 8.3(b) have been satisfied.

                                   ARTICLE IX
             CONDITIONS TO EFFECT THE THIRD PURCHASE AND ASSUMPTION

            SECTION 9.1. Conditions to Each Party's Obligations. The respective
obligations of the Sellers and the Purchaser to effect the Third Purchase and
Assumption are subject to the fulfillment or written waiver, at or prior to the
Third Closing Date, of the following conditions:

            (a) Governmental and Regulatory Approvals. All of the Requisite
Regulatory Approvals shall have been obtained and shall be in full force and
effect and all waiting periods required by law (including under the HSR Act)
shall have expired or been terminated, and all other approvals or authorizations
of, filings and registrations with, and notifications to, all Governmental
Authorities required to effect the Third Purchase and Assumption shall have been
obtained or made and shall be in full force and effect, except to the extent
that the failure to obtain such an approval or authorization (other than a
Requisite Regulatory Approval) would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect on the May Assets
following the Third Closing Date.

            (b) Third Party Consents. The consents and approvals of the Persons
set forth in Schedule 7.1 with respect to the Third Closing shall have been
obtained and shall be in full force and effect, except to the extent that the
failure to obtain such a consent or approval would not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect on the May
Assets following the Third Closing Date.

            (c) No Injunction or Prohibition. No Governmental Authority of
competent jurisdiction shall have enacted, issued, promulgated, enforced or
entered any statute, rule, regulation, by-law, judgment, decree, injunction or
other order (whether temporary, preliminary or permanent) that is in effect and
prohibits or makes illegal consummation of the transactions contemplated by this
Agreement or the Ancillary Agreements to occur on the Third Closing Date.

            (d) Instrument of Assignment and Assumption. The Third Instrument of
Assignment and Assumption shall have been duly executed and delivered by the
parties thereto.

            (e) Financing Statements. Sellers shall have executed and delivered
UCC-1 financing statements to be filed in the Offices of the Secretaries of
State of any states necessary to perfect the sale of the Gross Receivables
purchased pursuant to the Third Purchase and Assumption.

            (f) Completion of First and Second Closing. The First and Second
Purchase and Assumption shall have been completed either prior to or
contemporaneously with the Third Purchase and Assumption.

                                       56

<PAGE>

            (g) Closing of the May Merger. The May Merger shall have been
consummated.

            SECTION 9.2. Conditions to Obligations of the Purchaser. The
obligations of the Purchaser to effect the Third Purchase and Assumption are
subject to the fulfillment or written waiver, at or prior to the Third Closing
Date, of the following additional conditions:

            (a) Performance of Obligations. The Sellers shall have performed in
all material respects all their covenants and agreements set forth in this
Agreement with respect to the May Assets and the May Liabilities to the extent
required to be performed at or prior to the Third Closing Date.

            (b) Representations. Subject to Sections 6.16(b) and (c), FDS shall
make the representations set forth in Section 5.1, as of the Third Closing Date,
mutatis mutandis as if the May Assets were the FDS Assets or the GE/Macy's
Assets, as applicable, and the May Liabilities were the FDS Liabilities or the
GE/Macy's Liabilities, as applicable (to the extent the categories of FDS
Assets, FDS Liabilities, GE/Macy's Assets and GE/Macy's Liabilities, on the one
hand, and the May Assets and the May Liabilities, on the other hand, are of
similar nature); provided that the representation contained in Section 5.1(e)(2)
shall be made with respect to the financial information set forth in Schedule
9.2(b); provided, further, that FDS shall not make the representations in
Sections 5.1(e)(1), (l)(1), (m), (n) and (q) or any representations with respect
to the Prime Stock, the FDS Assets, the FDS Liabilities, the GE/Macy's Assets or
the GE/Macy's Liabilities; and provided, further, that solely for the purposes
of the representations and warranties made pursuant to this Section 9.2(b) and
all rights arising therefrom, including any rights to indemnification, the term
"Business" shall include the May Business.

            (c) Certificate. The Purchaser shall have received a certificate
signed on each Seller's behalf by an executive officer of each Seller, dated the
Third Closing Date, to the effect that the conditions set forth in Section
9.2(a) have been satisfied and making the representations specified in Section
9.2(b).

            SECTION 9.3. Conditions to Obligations of FDS and FDS Bank. The
obligations of the Sellers to effect the Third Purchase and Assumption are
subject to the fulfillment or waiver in writing, at or prior to the Third
Closing Date, of the following additional conditions:

            (a) Performance. The Purchaser shall have performed in all material
respects all its covenants and agreements set forth in this Agreement to the
extent required at or prior to the Third Closing Date.

            (b) Representations. The representations of the Purchaser set forth
in this Agreement (other than the representations in Sections 5.2(e), (k) and
(l)) shall be true and correct as of the date of this Agreement and the Third
Closing Date (except that any representations that by their terms speak as of
the date of this Agreement or some other date shall be true and correct only as
of such date), except to the extent that any failure to be so true and correct
(after excluding the effect of any Knowledge, Material Adverse Effect or
materiality qualifier set forth in any such representation) would not reasonably
be expected to have, individually or in the aggregate, a Material Adverse Effect
on the May Assets or on the Purchaser.

                                       57

<PAGE>

            (c) Certificate. The Sellers shall have received a certificate
signed on the Purchaser's behalf by an executive officer of the Purchaser, dated
the Third Closing Date, to the effect that the conditions set forth in Sections
9.3(a) and 9.3(b) have been satisfied.

                                   ARTICLE X
                                  TERMINATION

            SECTION 10.1. Termination Prior to the First Closing. This Agreement
may be terminated at any time before the First Closing Date:

            (a) by the mutual written consent of the parties hereto;

            (b) by either the Purchaser or FDS, if any Requisite Regulatory
Approval or any other approval of a Governmental Authority, the lack of which
would result in the failure to satisfy the condition set forth in Section
7.1(a), has been denied by the applicable Governmental Authority and such denial
has become final and nonappealable;

            (c) by either the Purchaser or FDS, if prior to the First Closing,
(i) any permanent injunction or action by any Governmental Authority of
competent jurisdiction prohibiting consummation of the transactions contemplated
by this Agreement or the Ancillary Agreements becomes final and nonappealable;
(ii) any law or regulation makes consummation of the transactions contemplated
by this Agreement or the Ancillary Agreements illegal or otherwise prohibited;
or (iii) consummation of the transactions contemplated by this Agreement or the
Ancillary Agreements would violate any nonappealable final order, decree or
judgment of any Governmental Authority having competent jurisdiction;

            (d) by either the Purchaser or FDS if the First Purchase and
Assumption is not consummated by March 1, 2006; provided, however, that neither
the Purchaser nor FDS may terminate this Agreement pursuant to this Section
10.1(d) if such party's breach of any representation, warranty or covenant
contained herein has been the cause of or resulted in the failure to consummate
such transactions by such date; or

            (e) by either the Purchaser or FDS, in the event of a breach or
default in the performance by the other party of any representation, warranty,
covenant or agreement of such other party, which breach or default (i) would,
individually or in the aggregate with all other uncured breaches and defaults of
such other party, constitute grounds for the conditions set forth in Section
7.2(a) or (b) or Section 7.3(a) or (b), as the case may be, not to be satisfied
at the First Closing Date, and (ii) has not been, or cannot be, cured within
thirty (30) days after written notice, describing such breach or default in
reasonable detail, is given by the terminating party to the breaching or
defaulting party.

            SECTION 10.2. Termination Prior to the Second Closing(a) . This
Agreement may be terminated following the First Closing Date and prior to the
Second Closing Date by either the Purchaser or FDS if the Second Purchase and
Assumption is not consummated by December 31, 2006; provided, however, that
neither the Purchaser nor FDS may terminate this Agreement pursuant to this
Section 10.2 if such party's breach of any representation, warranty or covenant

                                       58

<PAGE>

contained herein has been the cause of or resulted in the failure to consummate
such transactions by such date.

            SECTION 10.3. Termination Prior to the Third Closing. This Agreement
may be terminated pursuant to Section 6.16(b) following the First Closing Date
and prior to the Third Closing Date.

            SECTION 10.4. Effect of Termination.

            (a) If this Agreement is terminated, it shall become void and of no
further effect and no party hereto (or any of its Affiliates, directors,
officers, representatives or agents) shall have any liability or further
obligation to any other party to this Agreement, except (i) for payment of the
Termination Fee if applicable in accordance with Section 10.4(b), (ii) the
representations set forth in Sections 5.1(p) and 5.2(j) and the obligations set
forth in Sections 6.3(b)-(d), this Section 10.4 and Article XIII (other than
Section 13.10 thereof) shall continue to apply following any such termination
and (iii) termination of this Agreement shall not relieve any party of any
liability arising out of or resulting from any knowing, willful or intentional
breach of this Agreement by such party prior to such termination.
Notwithstanding the foregoing, if this Agreement is terminated after the First
Closing Date or the Second Closing Date, then this Agreement shall remain in
effect but solely as to the matters relating to any Acquired Assets and Stock
sold to the Purchaser prior to such termination.

            (b) If this Agreement is terminated pursuant to Section 10.1(b) as a
result of the Purchaser's failure to obtain the approval of the Office of the
Comptroller of the Currency (the "OCC") required to be obtained by it or
approval of the Board of Governors of the Federal Reserve System where such
approval is necessary pursuant to any Requirement of Law or because the OCC or
the Board of Governors of the Federal Reserve System shall have enacted, issued,
promulgated, enforced or entered any statute, rule, regulation, by-law,
judgment, decree, injunction or other order (whether temporary, preliminary or
permanent) that prohibits or makes illegal consummation of the transactions
contemplated by this Agreement or the Ancillary Agreements, then the Purchaser
shall promptly, but in no event later than date of such termination, pay FDS an
amount equal to the Termination Fee by wire transfer of immediately available
funds. The parties acknowledge that the agreement contained in this Section
10.4(b) is an integral part of the transactions contemplated by this Agreement,
and that, without this agreement, FDS and FDS Bank would not enter into this
Agreement; accordingly, if the Purchaser fails to pay promptly any amount due
pursuant to this Section 10.4(b), and, in order to obtain such payment, FDS or
FDS Bank commences a suit which results in a judgment against the Purchaser for
the Termination Fee, the Purchaser shall pay to FDS its reasonable costs and
expenses (including reasonable attorneys' fees and expenses) in connection with
such suit, together with interest on the amount of the fee at the Federal Funds
Rate in effect on the date such payment was required to be made notwithstanding
the provisions of Section 10.4(b). The parties agree that any remedy or amount
payable pursuant to this Section 10.4(b) shall constitute FDS's sole and
exclusive remedy for the Purchaser's failure to obtain the approvals referred to
above from the OCC or the Board of Governors of the Federal Reserve System.

                                       59

<PAGE>

                                   ARTICLE XI
                                   TAX MATTERS

            SECTION 11.1. Cooperation. The parties hereto shall furnish or cause
to be furnished (and shall cause Prime to furnish) to each other, promptly upon
reasonable request, any information and assistance relating to the Acquired
Assets and Stock, the Business and Prime as the requesting party deems
reasonably necessary in connection with the filing of any Tax Returns, the
preparation for any audit by any Governmental Authority, the response to any
inquiry by a Governmental Authority, the mailing or filing of any notice and the
prosecution or defense of any claim, suit or proceeding relating to any Tax
Returns or any other filing required to be made with any Governmental Authority
or any other matter related to Taxes.

            SECTION 11.2. Tax Returns. All Tax Returns filed by the Sellers or
Prime for periods ending on or before the First Closing Date (or the Second
Closing Date in the case of the GE/Macy's Assets and the Third Closing Date in
the case of the May Assets) shall remain the property of the Sellers. The
Purchaser shall be given access to Tax Returns as deemed reasonably necessary in
the sole discretion of the Sellers.

            SECTION 11.3. Conveyance Taxes. All excise, sales, use, transfer,
documentary, stamp or similar Taxes that are payable or that arise as a result
of the consummation of the transactions contemplated by this Agreement and the
Ancillary Agreements and any recording or filing fees with respect thereto shall
be borne by the Purchaser. Such Taxes shall not be considered Excluded
Liabilities.

            SECTION 11.4. Refunds. The Purchaser shall, if the Sellers so
request and at the Sellers' expense (for reasonable out-of-pocket costs and
expenses), cooperate with the Sellers to file for and obtain any Tax refund or
credit related to the Business or the Acquired Assets and Stock or Prime that
relates to any period ending on or before the First Closing Date (in the case of
Prime, the FDS Assets or the Business (other than the GE/Macy's Assets and the
May Assets)), the Second Closing Date (in the case of the GE/Macy's Assets) or
the Third Closing Date (in the case of the May Assets). If the Purchaser at any
time receives a Tax refund or credit described in the immediately preceding
sentence, the Purchaser shall promptly pay over such refund or the amount of
such credit to the Sellers; provided, however, that, if a Governmental Authority
at any time requires the Purchaser to reimburse such Governmental Authority for
the amount of any refund or credit previously paid to the Sellers, the Sellers
jointly and severally shall indemnify, hold harmless and reimburse the Purchaser
and its Affiliates for the amount of such refund or credit, including all
interest, penalties, costs and expenses associated therewith. Any Tax refunds or
credits relating to Prime, the FDS Assets, the GE/Macy's Assets, the May Assets
or the Business with respect to a Straddle Period shall be equitably apportioned
between the Purchaser, on the one hand, and the Sellers, on the other hand.
Notwithstanding the foregoing, the Purchaser shall be entitled to all refunds
with respect to any Taxes paid pursuant to Section 11.3.

            SECTION 11.5. Tax Filing Obligations. FDS shall include Prime's
taxable income and the income of the Master Trusts through the close of business
on the First Closing Date in FDS's consolidated federal income Tax Returns and
in any combined, consolidated or unitary Tax Returns that include Prime, and
shall pay or cause Prime to pay any Taxes due with

                                       60

<PAGE>

respect thereto. FDS shall prepare and timely file (or cause to be prepared and
timely filed) all Tax Returns with respect to (i) Prime, the FDS Assets and the
Business (other than the GE/Macy's Assets and the May Assets) for all periods
ending on or before the First Closing Date, (ii) the GE/Macy's Assets for all
periods ending on or before the Second Closing Date and (iii) the May Assets for
all periods ending on or before the Third Closing Date. With respect to state
and local Tax Returns required to be filed after the First Closing Date (in the
case of Prime, the FDS Assets or the Business (other than the GE/Macy's Assets
and the May Assets)), the Second Closing Date (in the case of the GE/Macy's
Assets) or the Third Closing Date (in the case of the May Assets), FDS shall,
when permitted by applicable Requirements of Law, elect to file a short-period
Tax Return for the portion of such period which ends on the First Closing Date,
the Second Closing Date or the Third Closing Date as applicable. FDS shall
prepare and timely file (or cause to be prepared and timely filed) all such
short-period Tax Returns.

            SECTION 11.6. Purchase Price Allocations; Section 338(h)(10)
Election.

            (a) FDS and the Purchaser shall join in timely making an election
under Section 338(h)(10) of the Code and any comparable provision of state,
local or foreign Tax law with respect to the sale of the Prime Stock
(collectively, the "Section 338(h)(10) Election"). FDS and the Purchaser shall
cooperate in the completion and timely filing of the Section 338(h)(10) Election
in accordance with the provisions of Treasury Regulation Section 1.338(h)(10)-1
and any comparable provisions of state, local or foreign Tax law. In furtherance
of the foregoing, (i) prior to the First Closing Date, FDS and the Purchaser
shall agree, based on information then available, on the form and content of
Internal Revenue Service ("IRS") Form 8023 ("Form 8023"), and (ii) on or prior
to the First Closing Date, FDS and the Purchaser shall execute two originals of
such Form 8023, containing information then available. Such Form 8023 shall be
filed in accordance with applicable Requirements of Law.

            (b) Following the First Closing Date, the Purchaser and the Sellers
shall attempt to agree on the allocation solely for Tax purposes of (i) the FDS
Purchase Price between the FDS Assets (the "FDS Allocation Amount") and the
Prime Stock (the "Prime Stock Amount"), and (ii) the FDS Allocation Amount, the
FDS Liabilities, to the extent required, and any other relevant amount among the
FDS Assets (together, the "First Closing Allocation"). The First Closing
Allocation shall comply with the requirements of Sections 338 and 1060 of the
Code and shall provide for an allocation of not less than the following amount
(the "Minimum FDS Allocation") to items (1), (4), (5), (6) and (7) of the
definition of "FDS Assets" (such assets, collectively, the "FDS Account
Assets"):

      .06 x [(FDS Purchase Price + FDS Liabilities) - $50,000,000)] +
$50,000,000.

If the parties cannot agree on the First Closing Allocation within ninety (90)
days after the First Closing Date, the First Closing Allocation shall be
determined by the Accountant through the dispute resolution method described in
Section 2.3(c); provided, that the Accountant shall not allocate less than the
Minimum FDS Allocation to the FDS Account Assets. Notwithstanding anything to
the contrary contained herein, the Purchaser and the Sellers shall use the First
Closing Allocation, as finally determined pursuant to this Section 11.6(b), for
all Tax purposes, including the filing of IRS Forms 8594 and 8883 and all other
Tax Returns. If the FDS Purchase

                                       61

<PAGE>

Price or the FDS Liabilities are adjusted, the parties shall revise the First
Closing Allocation on a basis consistent with this Section 11.6(b) in order to
reflect such adjustment.

            (c) Following the determination of the Prime Stock Amount pursuant
to Section 11.6(b) above, the Purchaser and the Sellers shall attempt to agree
on the allocation solely for Tax purposes of the Prime Stock Amount, any other
relevant items appropriately treated as purchase price attributable to the Prime
Stock and the Liabilities of Prime among the assets of Prime in compliance with
the requirements of Sections 338 and 1060 of the Code (the "Prime Allocation").
If the parties cannot agree on the Prime Allocation within forty-five (45) days
after the determination of the Prime Stock Amount, each of the Sellers, on the
one hand, and the Purchaser, on the other hand, shall use its own allocation for
all Tax purposes, including the filing of IRS Form 8883 and all other Tax
Returns. If the Prime Stock Amount or a Liability of Prime is adjusted, the
parties shall revise the Prime Allocation, if any, on a basis consistent with
this Section 11.6(c) in order to reflect such adjustment.

            (d) Following the Second Closing Date, the Purchaser and the Sellers
shall attempt to agree on the allocation solely for Tax purposes of the
GE/Macy's Purchase Price, the GE/Macy's Liabilities, to the extent required, and
any other relevant amount among the GE/Macy's Assets (the "Second Closing
Allocation"). The Second Closing Allocation shall comply with the requirements
of Sections 338 and 1060 of the Code and shall provide for an allocation of not
less the following amount (the "Minimum GE/Macy's Allocation") to items (1),
(4), (5), (6) and (7) of the definition of "GE/Macy's Assets" (such assets,
collectively, the "GE/Macy's Account Assets"):

      .06 x [(GE/Macy's Purchase Price + GE/Macy's Liabilities) - $20,000,000)]
      + $20,000,000.

If the parties cannot agree on the Second Closing Allocation within ninety (90)
days after the Second Closing Date, the Second Closing Allocation shall be
determined by the Accountant through the dispute resolution method described in
Section 2.3(c); provided, that the Accountant shall not allocate less than the
Minimum GE/Macy's Allocation to the GE/Macy's Account Assets. Notwithstanding
anything to the contrary contained herein, the Purchasers and the Sellers shall
use the Second Closing Allocation, as finally determined pursuant to this
Section 11.6(d), for all Tax purposes, including the filing of IRS Form 8594 and
all other Tax Returns. If the GE/Macy's Purchase Price or the GE/Macy's
Liabilities are adjusted, the parties shall revise the Second Closing Allocation
on a basis consistent with this Section 11.6(d) in order to reflect such
adjustment.

(e) Following the Third Closing Date, the Purchaser and the Sellers shall
attempt to agree on the allocation solely for Tax purposes of the May Purchase
Price, the May Liabilities, to the extent required, and any other relevant
amount among the May Assets (the "Third Closing Allocation"). The Third Closing
Allocation shall comply with the requirements of Sections 338 and 1060 of the
Code and shall provide for an allocation of not less than the following amount
(the "Minimum May Allocation") to items (1), (4), (5), (6) and (7) of the
definition of "May Assets" (such assets, collectively, the "May Account
Assets"):

         .06 x [(May Purchase Price + May Liabilities) - $30,000,000)] +
$30,000,000.

                                       62

<PAGE>

If the parties cannot agree on the Third Closing Allocation within ninety (90)
days after the Third Closing Date, the Third Closing Allocation shall be
determined by the Accountant through the dispute resolution method described in
Section 2.3(c); provided, that the Accountant shall not allocate less than the
Minimum May Allocation to the May Account Assets. Notwithstanding anything to
the contrary contained herein, the Purchaser and the Sellers shall use the Third
Closing Allocation, as finally determined pursuant to this Section 11.6(e), for
all Tax purposes, including the filing of IRS Form 8594 and all other Tax
Returns. If the May Purchase Price or the May Liabilities are adjusted, the
parties shall revise the Third Closing Allocation on a basis consistent with
this Section 11.6(e) in order to reflect such adjustment.

            (f) The Purchaser, on the one hand, and the Sellers, on the other
hand, shall promptly inform one another of any challenge by any Governmental
Authority to any allocation made pursuant to this Section 11.6 and shall consult
and keep one another reasonably informed with respect to the status of any
discussion, proposal or submission regarding such challenge. Notwithstanding the
foregoing, in the event the IRS (or any other Governmental Authority) challenges
any allocation made pursuant to this Section 11.6, the applicable party may
settle or litigate such challenge without the consent of the other parties.

            SECTION 11.7. Straddle Periods. In the case of Taxes that are
payable with respect to a Straddle Period, the portion of any such Tax that is
allocable to the portion of the period ending on the First Closing Date, the
Second Closing Date or the Third Closing Date, as applicable, shall be:

            (a) in the case of income Taxes, sales Taxes, employment Taxes and
other Taxes that are readily apportionable based on an actual or deemed closing
of the books deemed to equal the amount which would be payable if the taxable
period ended on the First Closing Date, the Second Closing Date or the Third
Closing Date, as applicable; and

            (b) in the case of all other Taxes, deemed to be the amount of such
Taxes for the entire Straddle Period multiplied by a fraction the numerator of
which is the number of calendar days in the portion of the Straddle Period
ending on the First Closing Date, the Second Closing Date or the Third Closing
Date, as applicable, and the denominator of which is the number of calendar days
in the entire Straddle Period.

            SECTION 11.8. Tax Contests. (a) The Sellers shall control the
conduct of any audit or other administrative or judicial proceeding with respect
to Taxes relating to Prime, the FDS Assets, the GE/Macy's Assets, the May Assets
or the Business (a "Tax Contest") solely to the extent of any issues for which
the Sellers have an indemnification obligation under this Agreement (other than
with respect to a Straddle Period or a Tax Contest involving a consolidated,
combined, affiliated or unitary Tax Return which includes the Purchaser or any
Affiliate thereof (including Prime), which Tax Contest shall be conducted as
provided in clauses (b)-(c) below), and the Purchaser shall control the conduct
of all other Tax Contests with respect to any Tax Liability relating to Prime,
the FDS Assets, the GE/Macy's Assets, the May Assets or the Business; (b) in the
case of any Tax Contest with respect to a Straddle Period, the controlling party
shall be whichever of the Purchaser, on the one hand, or the Sellers, on the
other hand, would bear the greater Tax Liability with respect to such Tax
Contest if the Governmental

                                       63

<PAGE>

Authority was successful in such proceeding; provided, however, that neither
party shall settle such Tax Contest without the prior written consent of the
other party, which consent shall not be unreasonably withheld and (c) neither
any Seller nor any Affiliate thereof shall be entitled to (i) review any
consolidated, combined, affiliated or unitary Tax Return which includes the
Purchaser or any Affiliate thereof (including Prime), or (ii) participate in any
Tax Contest with respect to any consolidated, combined, affiliated or unitary
Tax Return which includes the Purchaser or any Affiliate thereof (including
Prime).

            SECTION 11.9. Payments. Payment by an indemnifying party of any
amount with respect to Taxes under this Agreement shall be made within fifteen
(15) days following written notice by the indemnified party that payment of such
amounts to the appropriate Governmental Authority is due. In the case of a Tax
that is contested in accordance with the provisions of this Article XI, payment
of the Tax to the appropriate Governmental Authority shall be considered to be
due no earlier than the date a final determination to such effect is made by the
appropriate Governmental Authority.

            SECTION 11.10. Survival of Tax Indemnities. The obligations of the
parties with respect to indemnification for Taxes under this Agreement, and the
representations and warranties set forth in Section 5.1(o), shall remain in full
force and effect until sixty (60) days after the expiration of all applicable
statutes of limitations (including extensions) for the assessment or collection
of Taxes for which indemnification may be claimed under this Agreement.

            SECTION 11.11. FIRPTA Certificates. On or prior to each of the First
Closing Date, the Second Closing Date and the Third Closing Date, the Purchaser
shall have received from each of the Sellers a certificate in compliance with
Treasury Regulation Section 1.1445-2(b), certifying that such Seller is not a
"foreign person" under Section 1445 of the Code.

            SECTION 11.12. Tax Sharing Agreements. Notwithstanding anything to
the contrary contained herein, all Liabilities and obligations between the
Sellers and any of their Affiliates (other than Prime), on the one hand, and
Prime, on the other hand, under any Tax allocation, Tax sharing, Tax
reimbursement or other similar agreement or arrangement in effect prior to the
First Closing Date shall cease and terminate as of the First Closing Date and
shall no longer be enforceable.

                                  ARTICLE XII
                           SURVIVAL; INDEMNIFICATION

            SECTION 12.1. Survival.

            (a) The representations or warranties of the parties in this
Agreement shall survive the First Closing until the eighteen (18) month
anniversary of the First Closing Date; provided that (i) the representations and
warranties made pursuant to Sections 5.1(a), (b), (g), (l)(1), (l)(2) and (p)
and Sections 5.2(a), (b) and (j) shall survive indefinitely and (ii) the
representations and warranties in Section 5.1(o) shall survive as provided in
Article XI. In addition, the representations or warranties of FDS in Sections
5.1(c), (d), (e)(2), (f), (h), (j), (k), (l)(3)-(10), (r) and (s) in each case
with respect to the GE/Macy's Assets and GE/Macy's

                                       64

<PAGE>

Liabilities, and the representations of the Purchaser in Section 5.2, except
pursuant to Section 5.2(e), shall survive the Second Closing until the eighteen
(18) month anniversary of the Second Closing Date.

            (b) The representations or warranties of FDS made pursuant to
Section 9.2(b) and the representations of the Purchaser made pursuant to Section
5.2 (except in respect of the representation set forth in Section 5.2(e)) shall
survive the Third Closing until the eighteen (18) month anniversary of the Third
Closing Date; provided that (i) the representations and warranties made on the
same basis as Sections 5.1(a), (b), (g), (l)(2) and (p) and the representations
and warranties made pursuant to Sections 5.2(a), (b) and (j) shall survive
indefinitely and (ii) the representations and warranties made on the same basis
as Section 5.1(o) shall survive as provided in Article XI.

            (c) No claim for indemnification pursuant to this Article XII for
breach of any representation or warranty may be brought after the date on which
such representation or warranty no longer survives; provided, that if a written
notice of a claim for indemnification is given to the indemnifying party in
accordance with Section 12.4(a) prior to the termination of the applicable
survival period, the indemnifying party's obligation hereunder with respect to
such indemnification claim shall survive until such claim has been finally
resolved.

            SECTION 12.2. Indemnification by the Sellers. Subject to the
provisions of this Article XII, after the First Closing Date, FDS shall
indemnify the Purchaser and its Affiliates against, and agree to hold each of
them harmless from, any and all damage, loss, liability, cost, claim, interest,
award, judgment, penalty or expense (including reasonable expenses of
investigation and reasonable attorneys' fees and expenses in connection with any
action, suit or proceeding) ("Losses") incurred or suffered by the Purchaser or
any of its Affiliates because of (1) any breach of a representation or warranty
of the Sellers contained in Section 5.1 or made pursuant to Section 9.2(b) (and,
with respect to representations and warranties made pursuant to Section 9.2(b),
the references to Section 5.1 throughout this Section 12.2 shall be deemed to
refer to the corresponding representations and warranties made pursuant to
Section 9.2(b)) determined without regard to any Knowledge, Material Adverse
Effect or materiality qualifier therein (except in the case of the
representations set forth in Sections 5.1(e)(1) and (f)), (2) any breach of an
agreement or covenant made by the Sellers in this Agreement, (3) any Excluded
Liability, (4) any Excluded Asset, (5) any Prime Excluded Taxes, (6) the failure
by the Sellers to comply with any applicable bulk sales laws (notwithstanding
the waiver contained in Section 6.13) or (7) any Action brought by a Cardholder
against (x) any Seller with respect to one or more FDS Accounts that is pending
as of the First Closing Date, (y) any Seller or GE Bank with respect to one or
more GE/Macy's Accounts that is pending as of the Second Closing Date, and (z)
any Seller, May Co. or May Bank with respect to one or more May Accounts that is
pending as of the Third Closing Date. Notwithstanding the foregoing, the
Purchaser and its Affiliates shall not be entitled to indemnification pursuant
to clause (1) of this Section 12.2 (other than for breaches of Sections 5.1(a),
(b), (g), (l)(1) and (l)(2), which shall not be subject to the following
limitations): (a) in respect of any individual set of claims, facts or
occurrences or any series of related claims, facts or occurrences (each a "De
Minimis Claim"), if the aggregate Losses in respect of such De Minimis Claim is
less than twenty-five thousand dollars ($25,000); provided, however, in the
event that the aggregate Losses in respect of all such De Minimis Claims exceed
five million dollars ($5,000,000), thereafter indemnification claims pursuant to
clause (1) of this Section 12.2

                                       65

<PAGE>

shall be subject to indemnification without regard to the limitations set forth
in this clause (a); (b) for any Losses until the aggregate amount of all Losses
incurred or suffered by the Purchaser or any of its Affiliates (excluding Losses
related to De Minimis Claims) exceeds twenty-five million dollars ($25,000,000),
in which case the Purchaser and its Affiliates shall be entitled to
indemnification for the full amount of Losses in excess of such threshold; and
(c) for Losses, in the aggregate, incurred or suffered by the Purchaser or any
of its Affiliates in excess of four-hundred million dollars ($400,000,000).

            SECTION 12.3. Indemnification by the Purchaser. The Purchaser agrees
to indemnify each Seller and each of their respective Affiliates against, and
agree to hold each of them harmless from, any and all Losses incurred or
suffered by a Seller or any such Affiliate because of (1) any breach of a
representation or warranty of the Purchaser contained in Section 5.2 determined
without regard to any Knowledge, Material Adverse Effect or materiality
qualifier therein (except in the case of the representation set forth in
Sections 5.2(e)), (2) any breach of an agreement or covenant made by the
Purchaser in this Agreement, (3) any Assumed Liability, (4) any Liability for
Taxes of Prime other than Prime Excluded Taxes or Taxes that constitute Excluded
Liabilities or (5) the operation of the Business from and after the First
Closing (and with respect to the GE/Macy's Assets and the GE/Macy's Liabilities
from and after the Second Closing and with respect to the May Assets and the May
Liabilities from and after the Third Closing). Notwithstanding the foregoing,
the Sellers and their Affiliates shall not be entitled to indemnity pursuant to
clause (1) of this Section 12.3 (other than for breaches of Sections 5.2(a) and
(b), which shall not be subject to the following limitations): (a) in respect of
any De Minimis Claims; provided, however, in the event that the aggregate Losses
in respect of all such De Minimis Claims exceed $5,000,000, thereafter
indemnification claims pursuant to clause (1) of this Section 12.3 shall be
subject to indemnification without regard to the limitations set forth in this
clause (a); (b) for any Losses until the aggregate amount of all Losses incurred
or suffered by the Sellers or any of their Affiliates (excluding Losses related
to De Minimis Claims) exceeds twenty-five million dollars ($25,000,000), in
which case the Sellers and their Affiliates shall be entitled to indemnification
for the full amount of Losses in excess of such threshold; and (c) for Losses,
in the aggregate, incurred or suffered by the Sellers or their Affiliates in
excess of four-hundred million dollars ($400,000,000).

            SECTION 12.4. Notice, Settlements and Other Matters.

            (a) A party seeking indemnification pursuant to Section 12.2 or
Section 11.4 (an "Indemnified Party") must give prompt written notice to the
party from whom such indemnification is sought (the "Indemnifying Party") of the
assertion of any claim, or the commencement of any action or proceeding, in
respect of which indemnity may be sought hereunder specifying in reasonable
detail the individual items of the Losses in respect of which indemnification is
sought including the amount, the date each such item was paid, incurred or
properly accrued, and the specific details of the breach of representation,
warranty or covenant or other claim or matter to which such item is related. In
the event that any third party claim is made against the Indemnified Party and
the Indemnified Party notifies the Indemnifying Party of the commencement
thereof, the Indemnifying Party may elect at any time to negotiate a settlement
or a compromise of such action or claim or to defend such action or claim, in
each case at its sole cost and expense (subject to the limitations set forth in
Section 12.2, if the Sellers are the Indemnifying Party, or Section 12.3, if the
Purchaser is the Indemnifying Party) and with

                                       66

<PAGE>

its own counsel. If, within thirty (30) days of receipt from an Indemnified
Party of the notice referred to above, the Indemnifying Party (i) advises the
Indemnified Party in writing that it shall not elect to defend, settle or
otherwise compromise or pay such action or claim or (ii) fails to make such an
election in writing, the Indemnified Party may (subject to the Indemnifying
Party's continuing right of election in the preceding sentence), at its option,
defend, settle, compromise or pay such action or claim; provided that any such
settlement or compromise shall be permitted hereunder only with the written
consent of the Indemnifying Party, which consent shall not be unreasonably
withheld. Unless and until the Indemnifying Party makes an election in
accordance with this Section to defend, settle, compromise or pay such action or
claim, all of the Indemnified Party's reasonable costs arising out of the
defense, settlement, compromise or payment thereof shall be Losses subject to
indemnification by the Indemnifying Party (subject to the provisions and
limitations of Sections 12.2 and 12.3, as applicable). Each Indemnified Party
shall make available to the Indemnifying Party all information reasonably
available to such Indemnified Party relating to such action or claim. If the
Indemnifying Party elects to defend any such action or claim, the Indemnified
Party may participate in such defense with counsel of its choice at the
Indemnified Party's sole cost and expense.

            (b) The Indemnified Party shall have the right to reject any
settlement proposed by the Indemnifying Party if the Indemnified Party is not
fully and unconditionally released from any liability resulting from that claim
or is required to pay any costs, expenses or damages to any person as a result
of the claim that are not covered by the indemnity provided herein. The
Indemnified Party shall not have the right to settle any third party claim
without the written consent of the Indemnifying Party if the Indemnifying Party
is contesting such claim in good faith and has assumed the defense of such claim
from the Indemnified Party or if the period for determining whether or not to
assume the defense of such claim from the Indemnified Party has not expired.

            (c) In calculating the amount of any Losses of an Indemnified Party
under this Article XII, there shall be subtracted the amount of any (1) Tax
benefits actually realized by the Indemnified Party with respect to such Losses,
(2) insurance proceeds and third-party payments actually received by the
Indemnified Party with respect to such Losses and (3) any merchant charge-backs
or other set-offs that would be permissible under the operating rules and
regulations of the applicable Card Association in effect at that time (whether
or not such charge-back or other set-off was actually made), and there shall be
added the amount of any related Tax costs or other expenses. In the event that
the Indemnifying Party reimburses the Indemnified Party for any Losses prior to
the realization or receipt of any proceeds, benefits, payments, charge-backs or
set-offs contemplated by clauses (1), (2) or (3) above, the Indemnified Party
shall remit to the Indemnifying Party any such amounts that the Indemnified
Party subsequently receives or realizes with respect to such Losses (net of any
related Tax costs or other expenses to the extent such amounts were not
previously taken into account). Upon the payment of any claim hereunder, the
Indemnifying Party shall be subrogated to the extent of such payment to the
rights of the Indemnified Party against any person with respect to the subject
matter of such claim.

            (d) Without limitation of their respective rights and obligations as
set forth elsewhere in this Article XII, and subject to the procedures for
indemnification claims set forth in this Article XII, the Indemnified Party
shall act in good faith, shall use commercially reasonable

                                       67

<PAGE>

efforts to mitigate any Losses (including by seeking to fully realize or receive
any proceeds, benefits, payments, charge-backs or set-offs contemplated by
clauses (1), (2) and (3) of Section 12.4(c)), shall use similar discretion in
the use of personnel and the incurring of expenses as the Indemnified Party
would use if it were engaged and acting entirely at its own cost and for its own
account, and shall consult regularly with the Indemnifying Party with respect to
all its matters of interest to the Indemnifying Party under this Article XII.

            (e) All indemnity payments shall be treated as additional
adjustments to the amount of the total consideration paid for the Acquired
Assets and Stock and the Business for all Tax purposes.

            (f) Notwithstanding anything to the contrary contained herein, the
indemnification provided for herein shall not cover, and in no event shall any
party hereto be liable for, any indirect damages, including consequential,
incidental, exemplary or special damages, or punitive damages (except to the
extent necessary to reimburse an Indemnified Party for judgments actually
awarded to third parties in respect of such types of damages).

            (g) After the First Closing Date, Article XI and this Article XII
shall constitute the Sellers' and the Purchaser's exclusive remedy for any of
the matters addressed herein or other claim arising out of or relating to this
Agreement; provided, however, that this provision shall not impair the ability
of either party to obtain specific performance or other equitable relief.
Notwithstanding the foregoing, the indemnification obligations and other
obligations set forth in Article XI of this Agreement, and any claims arising
out of the matters addressed in Article XI of this Agreement, shall, to the
extent addressed therein, be governed solely by such Article XI and not by this
Article XII.

                                  ARTICLE XIII
                                 MISCELLANEOUS

            SECTION 13.1. Notices. All notices and other communications by the
Purchaser or the Sellers hereunder shall be in writing to the other party and
shall be deemed to have been duly given when delivered in person, when received
via facsimile or overnight courier, or when posted by United States registered
or certified mail, with postage prepaid, addressed as follows:

            if to the Purchaser to:

                           Citibank, N.A.
                           701 E. 60th North
                           Sioux Falls, South Dakota  57104
                           Attention: David Zimbeck
                           Facsimile: (605) 330-6745

                           with a copy to:

                                       68

<PAGE>

                           Citigroup Inc.
                           399 Park Avenue
                           New York, New York 10043
                           Attention: Andrew Felner
                           Facsimile: (212) 793-6072

                           with a copy to:

                           Shearman & Sterling LLP
                           599 Lexington Avenue
                           New York, New York 10022-6069
                           Attention: Creighton O'M Condon
                           Facsimile: (212) 848-7179

            if to the Sellers to:

                           c/o Federated Department Stores, Inc.
                           7 West Seventh Street
                           Cincinnati, Ohio  45202
                           Attention: Vice Chair - Finance
                           Facsimile: (513) 579-7462

                           with a copy to:

                           c/o Federated Department Stores, Inc.
                           7 West Seventh Street
                           Cincinnati, Ohio 45202
                           Attention:  General Counsel
                           Facsimile:  (513)-579-7354

                           and

                           FDS Bank
                           9111 Duke Boulevard
                           Mason, Ohio 45040
                           Attention: President
                           Facsimile: (513) 573-2720

                           and

                           Simpson Thacher & Bartlett LLP
                           425 Lexington Avenue
                           New York, New York 10017
                           Attention: Lee Meyerson, Esq.
                                      Maripat Alpuche, Esq.
                           Facsimile: (212) 455-2502

                                       69
<PAGE>

            Notices and other communications may also be sent to such other
address or addresses as the Purchaser or the Sellers may from time to time
designate by notice as provided herein, except that notices of change of address
shall be effective only upon receipt.

            SECTION 13.2. Expenses and Certain Post-Closing Matters.

            (a) Except as otherwise provided herein, all legal and any other
third-party costs and expenses incurred in connection herewith and the
transactions contemplated by this Agreement and the Ancillary Agreements shall
be paid by the party incurring such expenses, except that all fees or other
amounts payable to any Governmental Authority in connection with the HSR Act and
the organization and qualification of CEBA Bank in accordance with this
Agreement shall be paid by the Purchaser.

            (b) Any fees and assessments and similar charges payable to a Card
Association with respect to the FDS Accounts shall be prorated between the
parties for the Sellers' account prior to the First Closing Date and for the
Purchaser's account from and after the First Closing Date. Any fees and
assessments and similar charges payable to a Card Association with respect to
the GE/Macy's Accounts shall be prorated between the parties for the Sellers'
account prior to the Second Closing Date and for the Purchaser's account from
and after the Second Closing Date. Any fees and assessments and similar charges
payable to a Card Association with respect to the May Accounts shall be prorated
between the parties for the Sellers' account prior to the Third Closing Date and
for the Purchaser's account from and after the Third Closing Date. Except as
described above, all fees and assessments and similar charges payable by FDS
Bank or its Affiliates to a Card Association arising out of or relating to the
consummation of the transactions contemplated by this Agreement or the Ancillary
Agreements, shall be for the account of the Sellers. To the extent possible,
such prorations shall be made as soon as possible thereafter in accordance with
the adjustment procedures set forth in Section 2.3, Section 3.3 and Section 4.3.

            (c) Collection efforts and related expenses on the FDS Accounts made
or incurred by the Sellers prior to the First Closing Date shall be the
responsibility of the Sellers, and all monies paid or otherwise collected
thereon prior to the First Closing Date (and all monies paid or otherwise
collected on charged-off accounts prior to the First Closing Date) shall be
retained by the Sellers subject to their contractual obligations under the
Securitization Documents. As between the Sellers and the Purchaser, collection
efforts and related expenses on the GE/Macy's Accounts made or incurred prior to
the Second Closing Date shall be the responsibility of the Sellers, and all
monies paid or otherwise collected thereon prior to the Second Closing Date (and
all monies paid or otherwise collected on charged-off accounts prior to the
Second Closing Date) shall be retained by the Sellers subject to their
contractual obligations under the Securitization Documents and the GE/Macy's
Program Agreement. As between the Sellers and the Purchaser, collection efforts
and related expenses on the May Accounts made or incurred prior to the Third
Closing Date shall be the responsibility of the Sellers, and all monies paid or
otherwise collected thereon prior to the Third Closing Date (and all monies paid
or otherwise collected on charged-off accounts prior to the Third Closing Date)
shall be retained by the Sellers subject to their contractual obligations under
the Securitization Documents.

                                       70

<PAGE>

            (d) The Purchaser shall be responsible for all fees of the rating
agencies in connection with confirming ratings and providing approvals for the
contemplated assumptions and any proposed amendments of the Prime Securitization
Documents by the Purchaser.

            (e) The Purchaser shall pay to the Sellers, as soon as practicable
following receipt thereof, any payments or other proceeds that constitute
Excluded Assets and are received after the First Closing by the Purchaser or any
of its Affiliates, including Interchange Fees received by the Purchaser in
respect of transactions under FDS Accounts occurring prior to the First Cut-Off
Time, any Interchange Fees received by the Purchaser in respect of transactions
under GE/Macy's Accounts occurring prior to the Second Cut-Off Time and any
Interchange Fees received by the Purchaser in respect of transactions under May
Accounts occurring prior to the Third Cut-Off Time. The Sellers shall pay to the
Purchaser, as soon practicable following receipt thereof, any payments or other
proceeds that constitute Acquired Assets and Stock and are received after the
First Closing (or the Second Closing with respect to the GE/Macy's Assets or the
Third Closing with respect to the May Accounts) by the Sellers or any of their
Affiliates (other than pursuant to this Agreement), including Interchange Fees
received by the Sellers in respect of transactions under FDS Accounts occurring
on or after the First Cut-Off Time, any Interchange Fees received by the Sellers
in respect of transactions under GE/Macy's Accounts occurring on or after the
Second Cut-Off Time and any Interchange Fees received by the Sellers in respect
of transactions under May Accounts occurring on or after the Third Cut-Off Time.

            SECTION 13.3. Successors and Assigns. This Agreement shall be
binding upon and shall inure to the benefit of the parties and their respective
successors and permitted assigns. This Agreement and the rights and obligations
hereunder may not be assigned by any party to any person without the prior
written consent of the other parties hereto, and any purported assignment
without such consent shall be void; provided that FDS Bank may, without such
consent, assign its right and obligation to purchase the CEBA Equity Interests
pursuant to Section 2.4(d) to FDS or any other Subsidiary of FDS upon written
notice to the Purchaser.

            SECTION 13.4. Entire Agreement; Amendment; Waiver. This Agreement
and the Ancillary Agreements, including the annexes and schedules hereto and
thereto, embody the entire agreement of the parties hereto with respect to the
subject matter hereof and supersede all prior agreements with respect thereto,
other than the Confidentiality Agreement. No representation, warranty,
inducement, promise, understanding or condition not set forth in this Agreement
(or the other documents referred to in the preceding sentence) has been made or
relied on by any party in entering into this Agreement. This Agreement may be
amended, and any provision hereof waived, but only in writing signed by the
party against whom such amendment or waiver is sought to be enforced.

            SECTION 13.5. Counterparts. This Agreement may be executed in two or
more counterparts any of which may be delivered by facsimile transmission and
all of which shall together constitute one and the same instrument.

            SECTION 13.6. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware applicable to
contracts made and to be performed within such State, and the obligations,
rights and remedies of the parties hereunder shall be determined in accordance
with such laws.

                                       71

<PAGE>

            SECTION 13.7. Waiver of Jury Trial and Venue.

            (a) Each party hereto hereby waives all right to trial by jury in
any action or proceeding to enforce or defend any rights under this Agreement.

            (b) Each party hereto hereby irrevocably submits to the jurisdiction
of the United States District Court of Delaware or, if such federal jurisdiction
is unavailable, in the state courts of the State of Delaware over any action
arising out of this Agreement, and each party hereto hereby irrevocably waives
any objection which such party may now or hereafter have to the laying of
improper venue or forum non conveniens. Each party hereto agrees that a judgment
in any such action or proceeding may be enforced in other jurisdictions by suit
on the judgment or in any manner provided by law. Any and all service of process
and any other notice in any such suit, action or proceeding with respect to this
Agreement shall be effective against any party hereto if given as provided
herein.

            SECTION 13.8. Severability. In case any one or more of the
provisions contained herein shall be invalid, illegal or unenforceable in any
respect under any law, the validity, legality and enforceability of the
remaining provisions contained herein shall not in any way be affected or
impaired thereby, and this Agreement shall be reformed, construed and enforced
as if such invalid, illegal or unenforceable provision or portion of any
provision had never been contained herein and there had been contained herein
instead such valid, legal and enforceable provisions as would most nearly
accomplish the intent and purpose of such invalid, illegal or unenforceable
provision.

            SECTION 13.9. No Petition. The Purchaser covenants and agrees that
it shall not, prior to the date that is one year and one day after the final
payment of any series of investor certificates or any other series issued by the
Master Trusts, acquiesce, petition or otherwise invoke the process of any
Governmental Authority for the purpose of commencing or sustaining a case
against Prime, Prime II or Master Trusts under any federal or state bankruptcy,
insolvency or similar law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of Prime, Prime II or
the Master Trusts or any substantial part of its property or ordering the
winding up or liquidation of the affairs of Prime, Prime II or the Master
Trusts.

            SECTION 13.10. Public Announcement. Except for any notice which is
required by law or regulation, each of the Purchaser, on the one hand, and each
Seller, on the other hand, agrees that it shall not issue a press release, make
any other public statement or make any statement to the Employees with respect
to the transactions contemplated by this Agreement or the Ancillary Agreements
without the prior written consent of the other, which consent shall not be
unreasonably withheld or delayed. Each of the Purchaser, on the one hand, and
each Seller, on the other hand, agrees, if possible, to notify and consult with
the other at least twenty-four (24) hours in advance of filing any notice
required by law or regulation.

            SECTION 13.11. Third-Party Beneficiaries. Nothing in this Agreement,
expressed or implied, shall confer on any person, other than the parties hereto
and Prime or their respective successors and permitted assigns, any rights,
remedies, obligations or liabilities; provided that the provisions of Article
XII shall inure to the benefit of the Indemnified Parties.

                                       72

<PAGE>

            SECTION 13.12. Schedules. The Schedules to this Agreement set forth,
among other things, items the disclosure of which is required under this
Agreement either in response to an express disclosure requirement contained in a
provision of this Agreement or as an exception to one or more of the
representations or covenants contained in this Agreement; provided that the mere
inclusion of an item in a Schedule as an exception to a representation shall not
be considered an admission by the disclosing party that such item (or any
non-disclosed item or information of comparable or greater significance)
represents a material exception or fact, event or circumstance or that such item
has had or is reasonably expected to result in a Material Adverse Effect with
respect to the disclosing party or the Business.

                  [Remainder of Page Intentionally Left Blank]

                                       73

<PAGE>

            IN WITNESS WHEREOF, this Agreement has been executed on behalf of
each of the parties hereto as of the day and year first above written.

                            CITIBANK, N.A.

                            By:  /s/ Ray Quinlan
                                Name: Ray Quinlan
                                Title: Executive Vice President

                            FEDERATED DEPARTMENT STORES, INC.

                            By:  /s/ Ronald W. Tysoe
                                Name:  Ronald W. Tysoe
                                Title:  Vice Chair

                            FDS BANK

                            By: /s/ Teresa Huxel
                                Name: Teresa Huxel
                                Title: President and Chief Financial Officer

                            PRIME II RECEIVABLES CORPORATION

                            By: /s/ Susan P. Storer
                                Name: Susan P. Storer
                                Title: President<PAGE>

                                                                    EXHIBIT 10.2

                          CREDIT CARD PROGRAM AGREEMENT

                                  BY AND AMONG

                       FEDERATED DEPARTMENT STORES, INC.,

                                    FDS BANK,

                                FACS GROUP, INC.,

                                       AND

                                 CITIBANK, N.A.

<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                                                                  <C>
ARTICLE I DEFINITIONS............................................................................................     1
         1.1      Generally......................................................................................     1
         1.2      Miscellaneous..................................................................................    16

ARTICLE II ESTABLISHMENT OF THE PROGRAM..........................................................................    17
         2.1      Credit Program.................................................................................    17
         2.2      Exclusivity....................................................................................    17
         2.3      Retail Portfolio Acquisitions..................................................................    19
         2.4      Retail Portfolio Dispositions..................................................................    21
         2.5      Partner Exclusivity............................................................................    21
         2.6      General Electric Capital Corporation / Macy's Credit Card Program..............................    22

ARTICLE III PROGRAM MANAGEMENT AND ADMINISTRATION................................................................    22
         3.1      Program Objectives.............................................................................    22
         3.2      Operating Committee............................................................................    22
         3.3      Executive Committee............................................................................    26
         3.4      Program Relationship Managers; Partner Program Team............................................    26

ARTICLE IV PROGRAM OPERATIONS....................................................................................    27
         4.1      Operation of the Program.......................................................................    27
         4.2      Certain Responsibilities of the FDS Companies..................................................    28
         4.3      Certain Responsibilities of Bank...............................................................    29
         4.4      Ownership of Accounts..........................................................................    29
         4.5      Branding of Accounts/Credit Cards/Credit Card Documentation/Solicitation Materials.............    30
         4.6      Underwriting and Risk Management...............................................................    30
         4.7      Cardholder Terms...............................................................................    32
         4.8      Value Propositions.............................................................................    32
         4.9      Participation in Reversals.....................................................................    33
         4.10     Sales Taxes....................................................................................    35

ARTICLE V MARKETING..............................................................................................    36
         5.1      Promotion of Program...........................................................................    36
         5.2      Marketing Commitment...........................................................................    36
         5.3      Communications with Cardholders................................................................    37
         5.4      Additional Marketing Support...................................................................    38
         5.5      Ancillary Products.............................................................................    38
         5.6      Marketing Plan.................................................................................    38

ARTICLE VI CARDHOLDER INFORMATION................................................................................    39
         6.1      Customer Information...........................................................................    39
         6.2      Cardholder Data................................................................................    40
         6.3      FDS Shopper Data; FDS Prospect List............................................................    43
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                                                  <C>
ARTICLE VII OPERATING STANDARDS..................................................................................    45
         7.1      Reports........................................................................................    45
         7.2      Servicing; Interim Servicing; Transition of Services at the Election of the FDS
                  Companies......................................................................................    45
         7.3      Service Level Standards........................................................................    46
         7.4      Credit Systems.................................................................................    48
         7.5      Systems Interface; Technical Support...........................................................    49

ARTICLE VIII MERCHANT SERVICES...................................................................................    50
         8.1      Transmittal and Authorization of FDS Charge Transaction Data...................................    50
         8.2      POS Terminals..................................................................................    50
         8.3      In-Store Payments..............................................................................    50
         8.4      Settlement Procedures..........................................................................    50
         8.5      Bank's Right to Charge Back....................................................................    52
         8.6      No Processing Fees.............................................................................    52

ARTICLE IX PROGRAM ECONOMICS.....................................................................................    53
         9.1      Bank's Responsibility for Program Operation....................................................    53
         9.2      Settlement Statements..........................................................................    53
         9.3      FDS Compensation...............................................................................    53
         9.4      Budgeting......................................................................................    54

ARTICLE X INTELLECTUAL PROPERTY..................................................................................    55
         10.1     The FDS Licensed Marks.........................................................................    55
         10.2     Bank Licensed Marks............................................................................    57
         10.3     Intellectual Property..........................................................................    58

ARTICLE XI REPRESENTATIONS, WARRANTIES AND COVENANTS.............................................................    59
         11.1     General Representations and Warranties of FDS..................................................    59
         11.2     General Representations and Warranties of Bank.................................................    61
         11.3     General Covenants of the FDS Companies.........................................................    62
         11.4     General Covenants of Bank......................................................................    63

ARTICLE XII ACCESS, AUDIT AND DISPUTE RESOLUTION.................................................................    64
         12.1     Access Rights..................................................................................    64
         12.2     Audit Rights...................................................................................    64
         12.3     Dispute Resolution.............................................................................    65

ARTICLE XIII CONFIDENTIALITY.....................................................................................    69
         13.1     General Confidentiality........................................................................    69
         13.2     Use and Disclosure of Confidential Information.................................................    70
         13.3     Unauthorized Use or Disclosure of Confidential Information.....................................    70
         13.4     Return or Destruction of Confidential Information..............................................    70

ARTICLE XIV EVENTS OF DEFAULT; RIGHTS AND REMEDIES...............................................................    71
         14.1     Events of Default..............................................................................    71
         14.2     Defaults by Bank...............................................................................    71
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>                                                                                                                  <C>
         14.3     Defaults by the FDS Companies..................................................................    72
         14.4     Remedies for Events of Default.................................................................    73

ARTICLE XV TERM/TERMINATION......................................................................................    73
         15.1     Term...........................................................................................    73
         15.2     Termination by the FDS Companies Prior to the End of the Initial Term or Renewal
                  Term...........................................................................................    73
         15.3     Termination by Bank Prior to the End of the Initial Term or Renewal Term.......................    74
         15.4     Automatic Termination..........................................................................    74

ARTICLE XVI EFFECTS OF TERMINATION...............................................................................    74
         16.1     General Effects................................................................................    74
         16.2     The FDS Companies' Option to Purchase the Program Assets.......................................    75
         16.3     Dedicated Program Personnel....................................................................    77
         16.4     Rights of Bank if Purchase Option Not Exercised................................................    77

ARTICLE XVII INDEMNIFICATION.....................................................................................    78
         17.1     FDS Indemnification of Bank....................................................................    78
         17.2     Bank Indemnification of the FDS Companies......................................................    79
         17.3     Procedures.....................................................................................    80
         17.4     Notice and Additional Rights...................................................................    81

ARTICLE XVIII MISCELLANEOUS......................................................................................    82
         18.1     Securitization.................................................................................    82
         18.2     Assignment.....................................................................................    82
         18.3     Sale or Transfer of Accounts...................................................................    83
         18.4     Subcontracting.................................................................................    83
         18.5     Amendment......................................................................................    83
         18.6     Non-Waiver.....................................................................................    83
         18.7     Severability...................................................................................    83
         18.8     Waiver of Jury Trial and Venue.................................................................    83
         18.9     Governing Law; Compliance with Law.............................................................    84
         18.10    Specific Performance...........................................................................    84
         18.11    Captions.......................................................................................    84
         18.12    Notices........................................................................................    84
         18.13    Coordination of Consents and Approvals.........................................................    85
         18.14    Further Assurances.............................................................................    85
         18.15    No Joint Venture...............................................................................    85
         18.16    Press Releases.................................................................................    85
         18.17    No Set-Off.....................................................................................    86
         18.18    Conflict of Interest...........................................................................    86
         18.19    Third Parties..................................................................................    86
         18.20    Force Majeure..................................................................................    86
         18.21    Entire Agreement...............................................................................    86
         18.22    Binding Effect.................................................................................    87
         18.23    Counterparts/Facsimiles........................................................................    87
</TABLE>

                                      iii
<PAGE>

<TABLE>
<S>                                                                                                                  <C>
         18.24    Financial Statements...........................................................................    87
         18.25    Survival.......................................................................................    87
</TABLE>

                                       iv
<PAGE>

                          CREDIT CARD PROGRAM AGREEMENT

         This Credit Card Program Agreement is made as of the 1st day of June,
2005, by and among Federated Department Stores, Inc., a Delaware corporation,
("FDS"), FDS Bank, a federally-chartered stock savings bank ("FDS Bank"), FACS
Group, Inc., an Ohio corporation ("FACS", and together with FDS and FDS Bank,
the "FDS Companies"), and Citibank, N.A., a national banking association
("Bank").

                              W I T N E S S E T H:

         WHEREAS, the FDS Companies, directly and through subsidiaries, are
engaged in, among other activities, operating retail department stores and a
Credit Card Business (as hereinafter defined);

         WHEREAS, concurrently with the execution of this Agreement, FDS, FDS
Bank and Bank are entering a purchase and sale agreement (the "Purchase
Agreement"; unless otherwise defined herein, terms defined therein being used in
this Agreement as so defined) pursuant to which Bank shall purchase the Credit
Card Business, subject to the satisfaction of certain conditions, in the
following transactions, as more fully set forth in the Purchase Agreement: (1)
at the First Closing, Bank shall purchase the FDS Accounts and certain related
assets and liabilities; (2) at the Second Closing, Bank shall purchase the
GE/Macy's Accounts and certain related assets and liabilities; and (3) at the
Third Closing, Bank shall purchase the May Accounts and certain related assets
and liabilities;

         WHEREAS, the FDS Companies have requested that Bank establish a program
pursuant to which, from and after the Effective Date of this Agreement, Bank
shall issue private label and co-branded credit cards to be serviced, marketed
and promoted in accordance with the terms hereof;

         WHEREAS, the parties hereto agree that the goodwill associated with the
FDS Licensed Marks contemplated for use hereunder are of substantial value that
is dependent upon the maintenance of high quality services and appropriate use
of the trademarks pursuant to this Agreement; and

         NOW, THEREFORE, in consideration of the terms, conditions and mutual
covenants contained herein, and for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

                                    ARTICLE I

                                   DEFINITIONS

            1.1 Generally. The following terms shall have the following meanings
when used in this Agreement:

         "AAA" means the American Arbitration Association.

<PAGE>

         "Account" means any account under which a purchase, cash advance,
convenience check or balance transfer transaction may be or has been made by or
to a Person (or any Person authorized by such Person) pursuant to a Credit Card
Agreement established pursuant to the terms of this Agreement or acquired
pursuant to the Purchase Agreement. For the avoidance of doubt, the term Account
shall include (i) the Purchased Accounts from their respective dates of purchase
pursuant to the Purchase Agreement, and (ii) all Accounts established or
reactivated from and after the Effective Date, including the Private Label
Accounts, the General Purpose Accounts and the Employee Accounts.

         "Account Documentation" means, with respect to an Account, any and all
documentation arising from that Account, including Credit Card Documentation,
checks or other forms of payment arising from that Account, notices to
Cardholders, credit bureau reports (to the extent not prohibited from transfer
by contract with the credit bureau), adverse action notices, change of terms
notices, other notices, correspondence, memoranda, documents, stubs,
instruments, certificates, agreements, magnetic tapes, disks, hard copy formats
or other computer-readable data transmissions, any microfilm, electronic or
other copy of any of the foregoing, and any other written, electronic or other
records or materials of whatever form or nature, including tangible and
intangible information, arising from any of the foregoing to the extent related
to the Program; provided that Account Documentation shall not include FDS's or
any of its Affiliates' register tapes, invoices, sales or shipping slips,
delivery or other receipts or other indicia of the sale of FDS Goods and
Services, or any reports, analyses or other documentation prepared by any of the
FDS Companies or their Affiliates for use in the retail business operated by the
FDS Companies and their Affiliates regardless of whether derived in whole or in
part from the Account Documentation; and provided, further, that notwithstanding
that certain information included in the Account Documentation might also
constitute FDS Shopper Data, nothing contained in this definition shall limit
FDS's rights in and to the FDS Shopper Data as set forth in Section 6.3.

         "Additional Marketing Commitment" means the obligation of Bank to pay
the amounts set forth in Schedule 1.1(l) for the purposes specified by the
Operating Committee.

         "Additional Premium" means the collective reference to (i) the
"Additional Premium" portion of the FDS Purchase Price, as defined on the Final
First Closing Statement, as finally determined in accordance with Section 2.3 of
the Purchase Agreement, (ii) the "Additional Premium" portion of the GE/Macy's
Purchase Price, as defined on the Final Second Closing Statement, as finally
determined in accordance with Section 3.3 of the Purchase Agreement, and (iii)
the "Additional Premium" portion of the May Purchase Price, as defined on the
Final Third Closing Statement, as finally determined in accordance with Section
4.3 of the Purchase Agreement.

         "Adjusted Fair Market Value" has the meaning set forth in Schedule
16.2(d)(i).

         "Adverse Sales Development" means, with respect to any twelve (12)
Fiscal Month period after the Benchmark Year (as defined below), (i) a decrease
of thirty-three percent (33%) or more in the aggregate sales volume in the FDS
Channels as compared to the immediately preceding twelve (12) Fiscal Month
period or (ii) aggregate sales volume in the FDS Channels is less than sixty-six
percent (66%) of the aggregate sales volume in the FDS Channels during the

                                       2
<PAGE>

Benchmark Year; provided, however, that, to the extent that Bank is servicing
Program Assets related to any Sold Chain or Sold Area Stores pursuant to any
agreement or arrangement with the purchaser thereof, the aggregate sales volume
in the FDS Channels for any period referred to above shall include the aggregate
sales volume at such Sold Chain or Sold Area Stores during the twelve (12)
Fiscal Month period ending prior to the sale of such Sold Chain or Sold Area
Store. For purposes hereof, "Benchmark Year" means the twelve (12) Fiscal Month
period beginning with the Fiscal Month in which the Third Closing Date occurs.

         "Affiliate" means, with respect to any Person, each Person that
controls, is controlled by, or is under common control with, such Person. For
purposes of this definition, "control" of a Person means the possession,
directly or indirectly, of the power to direct or cause the direction of its
management or policies, whether through the ownership of voting securities, by
contract or otherwise. Notwithstanding the foregoing, solely for purposes of
this Agreement and regardless of its characterization under Applicable Law, CEBA
Bank shall be deemed to be an Affiliate of Bank and not an Affiliate of FDS,
except as otherwise expressly provided in this Agreement and except that for
purposes of Articles VI and XIII hereof, CEBA Bank also shall be deemed to be an
Affiliate of FDS.

         "Agreement" means this Program Agreement, together with all of its
schedules and exhibits, as modified, altered, supplemented, amended and/or
restated from time to time.

         "Ancillary Products" means (i) any financial services or financial or
credit related products (other than FDS Credit Cards), including insurance
products and services, credit protection products, investment and securities
products, home equity products, wealth accumulation products, savings and
deposit products and debt suspension products and (ii) any auto, travel or other
membership clubs and similar services that are not FDS Goods and Services.

         "Applicable Law" means, to the extent applicable to the Program or any
Party hereto, all federal, state and local laws (including common law),
statutes, regulations, injunctions, written regulatory guidance, substantive
recommendations (which Bank shall request in writing if so requested by FDS),
orders, judgments, directives or determinations of any Governmental Authority or
any order or judgment of any arbitrator, as may be amended and in effect from
time to time during the Term, including (i) the Truth in Lending Act and
Regulation Z; (ii) the Equal Credit Opportunity Act and Regulation B; (iii) the
Fair Debt Collection Practices Act; (iv) the Fair Credit Reporting Act; (v) the
Gramm-Leach-Bliley Act; and (vii) the USA PATRIOT Act, and, in each case, any
implementing regulations or interpretations issued thereunder.

         "Applicable Order" means, with respect to any Person, a judgment,
injunction, writ, decree or order of any Governmental Authority, in each case
legally binding on that Person or on any material amount of its property.

         "Approved Ancillary Products" means the products listed on Schedule
1.1(a) and any additional Ancillary Products approved for offering under the
Program after the Effective Date pursuant to the terms of this Agreement.

         "Average Private Label Interest Free Receivables" means, for any twelve
(12) consecutive Fiscal Month period, the Average Private Label Receivables that
are unbilled and

                                       3
<PAGE>

subject to any active interest free payment plan or three (3) or six (6) month
deferred payment plan plus the Average Private Label Receivables that have been
billed under (i) the 12-PAY or twelve (12) months SEAT plans or (ii) other new
Account types introduced pursuant to Article III and designated for inclusion in
the calculation of Average Private Label Interest Free Receivables in connection
with such introduction.

         "Average Private Label Receivables" means, for any twelve (12)
consecutive Fiscal Month period, Average Receivables under Private Label
Accounts.

         "Average Receivables" means, (a) for any Fiscal Month, the Cardholder
Indebtedness calculated on a sum of cycles basis of reporting monthly
receivables under the Accounts, and (b) for any Fiscal Year, (i) the sum of the
amounts determined pursuant to clause (a) for each Fiscal Month in such Fiscal
Year divided by (ii) the number of Fiscal Months in such Fiscal Year.

         "Bad Debt Reserve" means the bad debt reserve maintained by Bank solely
with respect to the Accounts under the Program in an amount, from time to time,
equal to the product of (i) forty percent (40%) of the aggregate amount of
Cardholder Indebtedness multiplied by (ii) the Loss Rate multiplied by (iii)
7/12. For purposes of this definition, "Loss Rate" means, with respect to the
twelve (12) Fiscal Month period with respect to which the calculation of the Bad
Debt Reserve is being made, a percentage equal to (i) (A) the aggregate amount
of Cardholder Indebtedness that is forecasted by Bank (in a manner consistent
with its forecasts for partner Credit Card portfolios managed by Bank of a
similar size and nature) to be written-off under the Program during such twelve
(12) Fiscal Month period, calculated on a sum of cycles basis of reporting
monthly receivables under the Accounts, minus (B) the aggregate amount
forecasted by Bank (in a manner consistent with its forecasts for partner Credit
Card portfolios managed by Bank of a similar size and nature) to be recovered
with respect to previously written-off Cardholder Indebtedness during such
twelve (12) Fiscal Month period (including recovery of sales taxes paid on
written-off Cardholder Indebtedness), divided by (ii) the aggregate amount of
the average amount of Cardholder Indebtedness under the Program forecasted for
each Fiscal Month during such twelve (12) Fiscal Month period (in each case,
calculated on a sum of cycles basis of reporting monthly receivables under the
Accounts for each Fiscal Month).

         "Bank" has the meaning set forth in the preamble hereof; provided that
Bank shall mean CEBA Bank with respect to Bank's rights and obligations
hereunder following the assignment of this Agreement to CEBA Bank pursuant to
Section 18.2.

         "Bank Licensed Marks" means the trademarks, tradenames, service marks,
logos and other proprietary designations of Bank listed on Schedule 1.1(b) and
licensed to the FDS Companies under Section 10.2 hereof.

         "Bank Manager" has the meaning set forth in Section 3.4(a) hereof.

         "Bank Parent" means Citigroup, Inc.

         "Bank Systems" means Systems owned, leased or licensed by and operated
by or on behalf of Bank or any of its controlled Affiliates; provided that a
System shall not be a Bank System if access or permission to use such System
must be granted by FDS or any of its Affiliates in order for Bank or any of its
Affiliates to use such System hereunder.

                                       4
<PAGE>

         "Bankruptcy Code" means Title 11 of the United States Code, as amended,
or any other applicable state or federal bankruptcy, insolvency, moratorium or
other similar law and all laws relating thereto.

         "Billing Cycle" means the interval of time between regular periodic
Billing Dates for an Account.

         "Billing Date" means, for any Account, the last day of a Billing Cycle
as of when the Account is billed.

         "Billing Statement" means a summary of Account credit and debit
transactions for a Billing Cycle including a descriptive statement covering
purchases, charges, past due account information and Loyalty Program
information.

         "Budget" means the semi-annual or annual (as the case may be) budget
for the Program, in substantially the form attached hereto as Schedule 9.4(a) or
such other form as may be approved by the Operating Committee, which in each
case shall set forth, among other information determined by the Operating
Committee, the projected account volumes, revenues, expenses, write-offs, and
funding needs and obligations for the Program for the period covered and an
explanation of how such needs will be met.

         "Business Day" means any day, other than a Saturday, Sunday or legal
holiday, on which both FDS and Bank are open for business at their respective
U.S. headquarters.

         "Business Plan" means a three-year business plan for the Program, in
substantially the form agreed upon by the Parties on or prior to the Effective
Date or such other form as may be approved by the Operating Committee, which
shall in each case describe strategies for Program growth and shall include
detailed financial statements, a schedule of all major assumptions underlying
such financial statements, a description of all capital expenditures and Systems
improvements projected for the period, the projected funding needs of the
Program for such period, and an explanation of how those needs will be met.

         "Card Association" means Visa International Inc. and Visa U.S.A. Inc.
or any successor thereto and, to the extent that, any time following the
Effective Date, FDS Bank approves the issuance pursuant hereto of Co-Branded
Credit Cards bearing the mark of any other card association or card network
(e.g., MasterCard, American Express or Discover), such other card association or
card network.

         "Cardholder" means any Person who has been issued an FDS Credit Card
and includes authorized user(s).

         "Card Association Contract" has the meaning set forth in Section 9.3(c)
hereof.

         "Cardholder Data" means (i) the Cardholder List and (ii) all other
personally identifiable information about a Cardholder (A) received by or on
behalf of Bank (including by the FDS Servicer in its capacity as such) in
connection with the Cardholder's application for use of an FDS Credit Card or
Account or (B) otherwise obtained by or on behalf of Bank (including information
obtained by the FDS Servicer in its capacity as such and information contained
in

                                       5
<PAGE>

the Master File conveyed to Bank pursuant to the Purchase Agreement) for
inclusion in its database of Cardholder information (including information about
a Cardholder purchased by Bank), including all transaction and experience
information collected by or on behalf of Bank (including by the FDS Servicer in
its capacity as such) with regard to each purchase charged by a Cardholder using
his or her FDS Credit Card (including FDS Charge Transaction Data with respect
to charges on Private Label Accounts and transaction and experience information
with respect to charges on General Purpose Accounts).

         "Cardholder Indebtedness" means all amounts charged and owing to Bank
by Cardholders with respect to Accounts (including principal balances from
outstanding charges, charges for Approved Ancillary Products, balance transfers,
convenience checks, cash advances, finance charges, NSF fees, late charges,
pay-by-phone fees and any other fees and charges), whether or not billed, less
the amount of any credit balances owing by Bank to Cardholders, including in
respect of any payments and any credits associated with returns of goods and/or
services and other credits and adjustments, whether or not billed.

         "Cardholder List" means any list (whether in hardcopy, magnetic tape,
electronic or other form) that identifies Cardholders, including any such
listing that sets forth the names, addresses, email addresses (as available),
telephone numbers or social security numbers of any or all Cardholders.

         "Change of Control" means, with respect to any Person (the "subject
Person"), (i) a Person or group becomes the "beneficial owner" (as defined in
Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934 (except that a
Person or group shall be deemed to own all securities it has the right to
acquire)), directly or indirectly, of more than fifty percent (50%) of the total
voting power of the subject Person, (ii) such subject Person merges,
consolidates, acquires, is acquired by, or otherwise combines with any other
Person in a transaction in which the subject Person is not the surviving entity
or which constitutes a "merger of equals", it being understood that a subject
Person shall not be considered the "surviving entity" of a transaction if either
(A) the members of the Board of Directors of the subject Person immediately
prior to the transaction constitute less than a majority of the members of the
Board of Directors of the ultimate parent entity of the entity surviving or
resulting from the transaction or (B) securities of the subject Person that are
outstanding immediately prior to the transaction (or securities into which such
securities are converted in the transaction) represent less than fifty percent
(50%) of the total voting power of the ultimate parent entity of the entity
surviving or resulting from the transaction, or (iii) the subject Person sells
all or substantially all of its assets to a Person that is not an Affiliate of
the subject Person.

         "Co-Branded Credit Card" means a Credit Card, including the Credit
Cards listed on Schedule 1.1(c) as "Co-Branded Credit Cards," that (i) bears an
FDS Licensed Mark and a trademark, tradename, service mark, logo or other
proprietary designation of a Card Association and (ii) is linked to a General
Purpose Account and (except in the case of SAV Visa Accounts or as otherwise
agreed by the Parties) a Private Label Account.

         "Confidential Information" has the meaning set forth in Section 13.1(a)
hereof.

         "Conversion Costs" has the meaning set forth in Section 16.2(d)(iii)
hereof.

                                       6
<PAGE>

         "CPI" means the Consumer Price Index for All Urban Consumers (CPI-U)
for the U.S. City Average for All Items, as published by the United States
Department of Labor Bureau of Labor Statistics, or any successor organization.

         "Credit Card" means a credit card pursuant to which the cardholder or
authorized user may purchase goods and services, obtain cash advances or
convenience checks, and transfer balances through open-end revolving credit,
commonly known as a credit or charge card; provided that the term does not
include: (i) any gift card; (ii) any debit card, smart card, stored value card,
electronic or digital cash card or any other card that does not provide the
holder thereof with the ability to obtain credit other than through an overdraft
line or similar feature; (iii) any secured card, including any card secured by a
lien on real or other property or by a deposit (but excluding any credit card
issued in respect of an Employee Account, which shall be deemed a Credit Card
for purposes of this Agreement); (iv) any card issued to the holder of a
securities brokerage account that allows the holder to obtain credit through a
margin account; or (v) any credit or charge card designated as a corporate
credit or charge card.

          "Credit Card Agreement" means the Credit Card agreement between Bank
(including as an assignee of FDS Bank, GE Bank or May Bank (as defined in the
Purchase Agreement)) and a Cardholder (and any replacement of such agreement),
governing the use of an Account, together with any amendments, modifications or
supplements that now or hereafter may be made to such Credit Card Agreement (and
any replacement of such agreement).

         "Credit Card Application" means the credit application that must be
completed and submitted in order to establish an Account (including any such
application submitted at the POS, by phone or via the Internet).

         "Credit Card Business" means the Business, as that term is defined in
the Purchase Agreement.

         "Credit Card Documentation" means, with respect to the Accounts, all
Credit Card Applications; Credit Card Agreements; FDS Credit Cards;
documentation containing the terms and conditions of any Loyalty Programs mailed
or sent to Cardholders; and Billing Statements, in each case relating to such
Accounts.

         "Disclosing Party" has the meaning set forth in Section 13.1(d) hereof.

         "Early Age Collection" has the meaning set forth in Section 4.2(a)(iv)
hereof.

         "Effective Date" means the First Cut-Off Time (as defined in the
Purchase Agreement).

         "Employee Accounts" means the Prepaid Employee Accounts and Private
Label Accounts designated (including by designation in the master file) by an
FDS Company as Accounts that are eligible for any employee discount or otherwise
designated by an FDS Company as "Employee Accounts" from time to time.

         "Equity Holder" means the FDS entity that is the owner of the preferred
equity interests of CEBA Bank that are issued pursuant to the Purchase
Agreement.

                                       7
<PAGE>

         "Estimated Remittance" has the meaning set forth in Section 8.4(c)
hereof.

         "Event of Default" means the occurrence of any one of the events listed
in Section 14.1 hereof.

         "Exchange Act" means the Securities and Exchange Act of 1934 and the
rules and regulations promulgated thereunder.

         "Executive Committee" has the meaning set forth in Section 3.3 hereof.

         "FACS" has the meaning set forth in the preamble hereof.

         "Fair Market Value" has the meaning set forth in Schedule 16.2(e).

         "FDIC" means the Federal Deposit Insurance Corporation.

         "FDS" has the meaning set forth in the preamble hereof.

         "FDS Accounts" has the meaning set forth in the Purchase Agreement.

         "FDS Bank" has the meaning set forth in the preamble hereof.

         "FDS Bank Designees" has the meaning set forth in Section 3.2(c)
hereof.

         "FDS Channels" means (i) all retail establishments owned or operated by
FDS or its Affiliates (including Licensee departments therein), (ii) all
websites owned or operated by FDS or its Affiliates or their Licensees, and
(iii) all mail order, catalog and other direct access media that are owned or
operated by FDS or its Affiliates or their Licensees.

         "FDS Charge Transaction Data" means the transaction information (in the
form of electronic information) with regard to a charge on an Account with
respect to each purchase of FDS Goods and Services or Approved Ancillary
Products by a Cardholder on credit and each return of FDS Goods and Services or
Approved Ancillary Products for credit.

         "FDS Companies" has the meaning set forth in the preamble hereof.

         "FDS Credit Card" means a Co-Branded Credit Card, a Private Label
Credit Card or a Credit Card linked to a Prepaid Employee Account.

         "FDS Debit Cards" has the meaning set forth in Section 2.2(d) hereof.

         "FDS Event of Default" means the occurrence of any one of the events
listed in Section 14.3 hereof or an Event of Default where an FDS Company is the
defaulting Party.

         "FDS Goods and Services" means the products and services sold, charged
or offered by or through FDS Channels, including for personal, household, or
business purposes, and including accessories, delivery services, protection
agreements, gift cards, shipping and handling, and work or labor to be performed
for the benefit of customers of the FDS Channels.

                                       8
<PAGE>

         "FDS Licensed Marks" means the trademarks, tradenames, service marks,
logos and other proprietary designations of the FDS Companies listed on Schedule
1.1(e) and licensed to Bank by the FDS Companies under Section 10.1 hereof.

         "FDS Manager" has the meaning set forth in Section 3.4(a) hereof.

         "FDS Marketing Commitment" means the obligation of Bank to pay the
amounts set forth in Schedule 1.1(l) for marketing purposes as set forth in, and
in accordance with, Section 5.2(b).

         "FDS Matters" has the meaning set forth in Section 3.2(f) hereof.

         "FDS Profit Share" has the meaning set forth in Schedule 1.1(i).

         "FDS Prospect List" has the meaning set forth in Section 6.3(b) hereof.

         "FDS Revenue Share" means the sum of the Net Credit Sale Share (as set
forth on Schedule 9.3(a)) plus the New Account Payments (as set forth on
Schedule 9.3(a)).

         "FDS Servicer" means FDS Bank or such of its Affiliates, including
FACS, responsible for performing the servicing functions referred to in Section
7.2(a).

         "FDS Servicing Charge" means, for any Fiscal Month, the amount
calculated as set forth in Schedule 1.1(g).

         "FDS Shopper" means any Person who makes purchases of FDS Goods and
Services.

         "FDS Shopper Data" means all personally identifiable information
regarding an FDS Shopper that is obtained by (or on behalf of) FDS or any of its
Affiliates at any time (including prior to the date hereof), including
personally identifiable information obtained in connection with such FDS Shopper
making a purchase of FDS Goods and Services.

         "FDS Systems" means Systems owned, leased or licensed by and operated
by or on behalf of FDS or its Affiliates; provided that a System shall not be an
FDS System if access or permission to use such System must be granted by Bank or
any of its Affiliates in order for FDS or any of its Affiliates to use such
System hereunder.

         "FDS Transaction" means any purchase, exchange or return of FDS Goods
and Services by a Cardholder using an FDS Credit Card.

         "FedCustomer" means the retail marketing database used by FDS and its
Affiliates.

         "Federal Funds Rate" means the offered rate as reported in The Wall
Street Journal in the "Money Rates" section for reserves traded among commercial
banks for overnight use in amounts of one million dollars ($1,000,000) or more
or, if no such rate is published for a day, the rate published for the preceding
Business Day, calculated on a daily basis based on a 365 day year.

                                       9
<PAGE>

         "Finance Charge Reversal Percentage" means, with respect to any Fiscal
Quarter, an amount, expressed as a percentage, equal to (i) the aggregate amount
of all finance charges that had been assessed on the Accounts and then reversed
by FDS or its Subsidiaries (other than System generated refunds of provisional
finance charges assessed prior to on time payment in full of amounts due by a
Cardholder) during the twelve (12) Fiscal Month period ended at the end of such
Fiscal Quarter calculated on a sum of cycles basis of reporting monthly
receivables under the Accounts, divided by (ii) the aggregate amount of all
finance charges assessed on the Accounts during the twelve (12) Fiscal Month
period ended at the end of such Fiscal Quarter calculated on a sum of cycles
basis of reporting monthly receivables under the Accounts.

         "Fiscal Month" means each four (4) or five (5) week period designated
as such in the calendar published by the National Retail Federation for
retailers on a Fiscal Year-reporting basis; provided, that the Fiscal Month in
which the Effective Date occurs shall be deemed to begin on the Effective Date.

         "Fiscal Quarter" means each three (3) Fiscal Month period set forth in
the calendar published by the National Retail Federation for retailers on a
Fiscal Year-reporting basis; provided that the Fiscal Quarter in which the
Effective Date occurs shall be deemed to begin on the Effective Date.

         "Fiscal Year" means the fiscal year set forth in the calendar published
by the National Retail Federation setting forth the fiscal year for retailers on
a 52/53 week fiscal year ending on the Saturday closest to January 31; provided
that the Fiscal Year in which the Effective Date occurs shall be deemed to begin
on the Effective Date.

         "Force Majeure Event" has the meaning set forth in Section 18.20
hereof.

         "Funding Costs" has meaning set forth on Schedule 1.1(m).

         "Future Subcontractors" has the meaning set forth in Section 6.2(h)(i)
hereof.

         "GE Bank" means GE Capital Consumer Card Co., an Ohio banking
corporation.

         "GE/Macy's Account" has the meaning set forth in the GE/Macy's Program
Agreement.

         "GE/Macy's Program Agreement" means the Amended and Restated Credit
Card Program Agreement, dated as of June 4, 1996, by and among GE Bank, FDS and
the other parties thereto, as amended, restated or otherwise modified from time
to time.

         "GE/Macy's Receivables" has the meaning set forth in the GE/Macy's
Program Agreement.

         "General Purpose Account" means an Account linked to any Co-Branded
Credit Card and usable solely for the purpose of financing (i) purchases (and
all fees and charges relating thereto) of goods and services through sellers or
channels other than the FDS Channels and (ii) purchases (and all fees and
charges relating thereto) of FDS Goods and Services through any FDS Channel that
does not honor the Private Label Account linked to such Co-Branded Credit

                                       10
<PAGE>

Card (e.g., purchase of FDS Goods and Services at a Macy's store using a
Bloomingdale's branded FDS Credit Card).

         "Governmental Authority" means any federal, state or local domestic,
foreign or supranational governmental, regulatory or self-regulatory authority,
agency, court, tribunal, commission or other governmental, regulatory or
self-regulatory entity.

         "Gross Receivables" means amounts owing (net of credit balances) from
cardholders with respect to accounts in a Credit Card portfolio (including
outstanding loans, cash advances and other extensions of credit; billed or
unbilled finance charges and late charges; and any other billed or unbilled
fees, charges and interest assessed on such accounts).

         "Guidelines" has the meaning set forth in Section 6.1(b) hereof.

         "High Collar" has the meaning set forth on Schedule 1.1(f) hereto.

         "Indemnified Party" has the meaning set forth in Section 17.3(b)
hereof.

         "Indemnifying Party" has the meaning set forth in Section 17.3(b)
hereof.

         "Initial Term" has the meaning set forth in Section 15.1 hereof.

         "Inserts" has the meaning set forth in Section 5.3(a) hereof.

         "In-Store Payment" means any payment on an Account made in a retail
store owned or operated by FDS or any of its Subsidiaries by a Cardholder or a
person acting on behalf of a Cardholder.

          "Intellectual Property" means, on a worldwide basis, all intellectual
property, including (i) rights associated with works of authorship, including
copyrights, moral rights and mask-works; (ii) trademarks, service marks,
internet domain names and other source indicators and the goodwill associated
therewith; (iii) trade secret rights; (iv) patents, designs, algorithms and
other industrial property rights; (v) other intellectual and industrial property
rights of every kind and nature, however designated, whether arising by
operation of law, contract, license or otherwise; and (vi) applications,
registrations, renewals, extensions, continuations, divisions or reissues
thereof now or hereafter in force (including any rights in any of the
foregoing).

         "Interchange Fees" means the interchange fees or interchange
reimbursement fees paid or payable to Bank by the Card Association with respect
to the Accounts, in Bank's capacity as a Credit Card issuer, and in connection
with Cardholder usage of the Accounts.

         "Interim Services" means the services set forth in Schedule 1.1(n).

         "Joint IP" has the meaning set forth in Section 10.3(b) hereof.

         "Knowledge" means, with respect to any of the FDS Companies or Bank,
the actual knowledge of the executive officers of the organization who have
managerial responsibility for the Program, after reasonable inquiry.

                                       11
<PAGE>

         "Late Fee Reversal Percentage" means, with respect to any Fiscal
Quarter, an amount equal to (i) the aggregate amount of all late fees that had
been assessed on the Accounts and then reversed by FDS or its Subsidiaries
during the twelve (12) Fiscal Month period ended at the end of such Fiscal
Quarter calculated on a sum of cycles basis of reporting monthly receivables
under the Accounts, divided by (ii) the aggregate amount of all late fees
assessed on the Accounts during the twelve (12) Fiscal Month period ended at the
end of such Fiscal Quarter calculated on a sum of cycles basis of reporting
monthly receivables under the Accounts.

         "Legally Required Communications" means any communications with
Cardholders (including any communications relating to customer service, account
management and collections) that are required by Applicable Law.

         "LIBOR" means the London Interbank Offered Rates.

         "Licensee" means any Person authorized by FDS or any of its
Subsidiaries to operate in and sell FDS Goods and Services from the FDS Channels
under the FDS Licensed Marks, solely with respect to such Person's or any of its
Subsidiaries' operation in and sale of FDS Goods and Services from the FDS
Channels or under the FDS Licensed Marks.

         "Low Collar" has the meaning set forth on Schedule 1.1(f) hereto.

         "Loyalty Programs" has the meaning set forth in Section 4.8(a) hereof.

         "Manager" has the meaning set forth in Section 3.4(a) hereof.

         "Marketing Plan" has the meaning set forth in Section 5.6(a) hereof.

         "May Co." means The May Department Stores Company, a Delaware
corporation.

         "May Merger" means the merger of May Co. with and into Milan
Acquisition Corp., a Subsidiary of FDS, pursuant to the Agreement and Plan of
Merger, dated as of February 27, 2005, by and among FDS, Milan Acquisition Corp.
and May Co., as amended or otherwise modified from time to time.

         "Merchant Discount" means a discount rate generally applied against
settlements due to merchants for transactions with respect to the use of a
Credit Card, which includes the Interchange Fees as well as any other
transaction fees.

         "Monthly Settlement Sheet" has the meaning set forth in Section 9.2(a)
hereof.

         "MSA" means a metropolitan statistical area as defined by the U.S.
Office of Management and Budget and announced in an OMB Bulletin.

         "Net Credit Sales" means, for any Fiscal Year or Fiscal Month, an
amount equal to (i) gross credit sales on Accounts (including gift card sales,
sales tax, delivery charges, Licensee sales and any other amount included in the
full amount charged by Cardholders) during such Fiscal Year or Fiscal Month,
minus (ii) the sum of credits for returned goods and cancelled

                                       12
<PAGE>

services and other credits (such as concessions, discounts and adjustments) on
Accounts during such Fiscal Year or Fiscal Month.

         "Net FDS Write-offs" means, with respect to Accounts that have been
written-off in a Fiscal Month as losses on a sum of cycles basis of reporting
monthly receivables under the Accounts in accordance with the credit and
collection policies contained in the Risk Management Policies, (a) amounts
charged to the written-off Accounts, identified by Account, relating to the sale
of FDS Goods and Services, including sales and use tax but excluding finance
charges and late charges, minus (b) the portion of any recoveries received
during such Fiscal Month on previously written-off Accounts attributable to the
sale of FDS Goods and Services, including sales and use taxes but excluding
finance charges and late charges.

         "New Account Payments" has the meaning set forth in Schedule 9.3(a)
hereof.

         "New Bank Mark" has the meaning set forth in Section 10.2(b) hereof.

         "New FDS Mark" has the meaning set forth in Section 10.1(b) hereof.

         "Nominated Purchaser" has the meaning set forth in Section 16.2(a)
hereof.

         "Operating Committee" has the meaning set forth in Section 3.2(a)
hereof.

         "Operating Procedures" means the operating procedures for the Program
in effect from time to time in accordance with Section 4.1(b) hereof.

         "Parties" means the collective reference to the FDS Companies and Bank;
and unless the context otherwise requires, "Party" means either the collective
reference to the FDS Companies, on the one hand, or Bank, on the other hand.

         "Partner Designees" has the meaning set forth in Section 3.2(c) hereof.

         "Partner Event of Default" means the occurrence of any one of the
events listed in Section 14.2 hereof or an Event of Default where a Bank is the
defaulting Party.

         "Partner Matters" has the meaning set forth in Section 3.2(g) hereof.

         "Partner Servicing Charge" means the amount calculated as set forth on
Schedule 1.1(g).

         "Person" or "person" means any individual, corporation, business trust,
partnership, association, limited liability company or similar organization, or
any Governmental Authority.

         "POS" means point of sale.

         "Premium" means the collective reference to (i) the "Premium" portion
of the FDS Purchase Price, as defined on the Final First Closing Statement, as
finally determined in accordance with Section 2.3 of the Purchase Agreement,
(ii) the "Premium" portion of the GE/Macy's Purchase Price, as defined on the
Final Second Closing Statement, as finally determined in accordance with Section
3.3 of the Purchase Agreement, and (iii) the "Premium"

                                       13
<PAGE>

portion of the May Purchase Price, as defined on the Final Third Closing
Statement, as finally determined in accordance with Section 4.3 of the Purchase
Agreement.

         "Prepaid Employee Account" means a payment product issued to an
employee of FDS or any of its Subsidiaries that may be used for the purchases of
FDS Goods and Services and otherwise has the same functionality and features as
a Private Label Account, except that the terms of such Account shall require the
applicable employee to prepay the amount that can be utilized for purchases
pursuant to that Account, and is designated by an FDS Company as an Account that
is eligible for an employee discount.

         "Pre-Tax Profit" has the meaning set forth in Schedule 1.1(i).

         "Previously Disclosed" means a disclosure in writing setting forth an
exception to the representations and warranties of FDS or Bank, as applicable,
in each case as set forth in the corresponding Schedule to this Agreement, which
Schedules are being delivered by FDS and Bank concurrently with the execution
and delivery of this Agreement by the Parties.

         "Primary Initial Program Terms" means (a) the credit offerings and
cardholder terms described in Section 4.7 and Schedule 4.7, (b) the Value
Propositions described in Section 4.8 and Schedules 4.8(a) and 4.8(b), (c) the
Risk Management Policies set forth in Schedules 4.6(b), 4.6(c)(i) and
4.6(c)(ii), and (d) the SLAs set forth in Schedule 7.3.

         "Private Label Accounts" means the (i) Accounts linked to Private Label
Credit Cards and (ii) Accounts linked to Co-Branded Credit Cards solely for the
purpose of financing the purchase of FDS Goods and Services (and all fees and
charges relating thereto) through any FDS Channel (except any such FDS Channel
that has not provided for cross-acceptance of such Credit Card from another FDS
Channel, the marks of which are linked to such Co-Branded Credit Card).

         "Private Label Credit Card" means a Credit Card that bears an FDS
Licensed Mark and may be used solely to finance purchases of FDS Goods and
Services through any FDS Channel associated with the FDS Licensed Marks
appearing on the face of such Credit Card, including the Credit Cards listed on
Schedule 1.1(c) as "Private Label Credit Cards". Each Private Label Credit Card
is linked to solely a Private Label Account (and not a General Purpose Account).

         "Program" means the Private Label Credit Card and Co-Branded Credit
Card program established pursuant to this Agreement.

         "Program Assets" means the Accounts, Account Documentation, Cardholder
List, Cardholder Data, Solicitation Materials and all Cardholder Indebtedness
(whether held by Bank or a third party).

         "Program Expenses" has the meaning set forth in Schedule 1.1(i).

         "Program Objectives" has the meaning set forth in Section 3.1 hereof.

         "Program Privacy Policy" means the privacy policy and associated
disclosures to be provided by Bank to Cardholders in connection with the
Program, as set forth in Section 6.2(a)

                                       14
<PAGE>

and as modified from time to time in accordance with such Section, provided,
however, that the Program Privacy Policy shall be deemed not to include the
portion of the notice set forth in Schedule 6.2(b) entitled "Citigroup Privacy
Promise to Consumers".

         "Program Purchase Date" has the meaning set forth in Section 16.2(c)
hereof.

         "Purchase Agreement" has the meaning set forth in the recitals hereof.

         "Purchased Accounts" means the collective reference to (i) the FDS
Accounts from and after the occurrence of the First Closing, (ii) the GE/Macy's
Accounts from and after the occurrence of the Second Closing and (iii) the May
Accounts from and after the occurrence of the Third Closing.

         "Quarterly Settlement Sheet" has the meaning set forth in Section
9.2(b) hereof.

         "Receiving Party" has the meaning set forth in Section 13.1(d) hereof.

         "Retail Merchants" has the meaning set forth in Section 8.1 hereof.

         "Renewal Term" has the meaning set forth in Section 15.1 hereof.

         "Right of First Offer" has the meaning set forth in Schedule 2.2.

         "Risk Management Policies" means the underwriting and risk management
policies, procedures and practices applicable to the Program, consistent with
this Agreement, including policies, procedures and practices for credit and
Account openings, transaction authorization, fraud, collections, credit line
assignment, increases and decreases, over-limit decisions, Account closures,
payment crediting and charge-offs.

         "Sales Tax Refunds" means refunds, rebates, credits or deductions of
sales and use tax by any taxing authority in respect of an Account, and all
allowable interest relating thereto.

         "Second Look Program" has the meaning set forth in Section 2.2(c)
hereof.

         "Services Transition Date" has the meaning set forth in Section 7.2(d)
hereof.

         "Significant Portfolio" has the meaning set forth in Section 2.3(b)(i)
hereof.

         "SLA" means each individual performance standard set forth on Schedule
7.3.

         "Small Portfolio" has the meaning set forth in Section 2.3(a) hereof.

         "Sold Area Stores" has the meaning set forth in Section 2.4 hereof.

         "Sold Chain" has the meaning set forth in Section 2.4 hereof.

         "Solicitation Materials" means works of authorship, documentation,
materials, artwork, copy, brochures, applications, any other written or recorded
materials and any advertisements in any format or media (including television,
internet and radio), used to promote or identify the

                                       15
<PAGE>
Program to Cardholders and potential Cardholders, including direct mail
solicitation materials and coupons.

      "Special Condition" has the meaning set forth in Section 11.4(g) hereof.

      "SPIFs" has the meaning set forth in Section 5.2(a)(v) hereof.

      "Subsidiary" when used with respect to any Person, means another Person,
where an amount of the voting securities, or other voting ownership or voting
partnership interests of the second Person sufficient to elect at least a
majority of its board of directors or similar governing body (or if there are
not such voting interests, fifty percent (50%) or more of the equity interest of
which) is owned directly or indirectly by the first Person or by another
Subsidiary of the first Person.

      "Systems" means software, databases, computers, systems and networks.

      "Systems Transition Date" has the meaning set forth in Section 7.4(a)
hereof.

      "Term" means the Initial Term and each Renewal Term.

      "Termination Period" means the period beginning on the earlier of the date
of expiration of this Agreement or the date of any notice of termination
pursuant to Article XV and ending on either (i) the date the Program Assets are
purchased pursuant to Section 16.2, if FDS or a Nominated Purchaser purchases
the Program Assets, or (ii) the date that either (A) the FDS Companies deliver
written notice to Bank of their election not to purchase the Program Assets or
(B) the right of the FDS Companies to purchase the Program Assets expires in
accordance with the terms of this Agreement.

      "Total Servicing Transfer" has the meaning set forth in Section 7.2(c)
hereof.

      "Trademark Style Guide" means any rules governing the manner of usage of
trademarks, tradenames, service marks, logos and other proprietary designations.

      "Transition Plan" means the transition plan agreed upon by the Parties on
or before the Effective Date as to the actions the Parties shall take to
initiate the Program in accordance with this Agreement and which shall be
attached hereto as Schedule 1.1(j).

      "Unamortized Premium" has the meaning set forth in Schedule 1.1(k).

      "Unapproved Matter" has the meaning set forth in Section 3.2(e)(ii)(B)
hereof.

      "Value Propositions" means the value propositions described in Section 4.8
and any other card-related promotional or rewards programs as may be established
by the Operating Committee from time to time.

      "Year-End Settlement Sheet" has the meaning set forth in Section 9.2(c)
hereof.

            1.2 Miscellaneous. As used herein: (a) all references to the plural
number shall

                                       16
<PAGE>

include the singular number (and vice versa); (b) all references to "herein,"
"hereunder," "hereof" or like words shall refer to this Agreement as a whole and
not to any particular section, subsection or clause contained in this Agreement;
(c) all references to "include," "includes" or "including" shall be deemed to be
followed by the words "without limitation"; (d) unless specified as Business
Days, all references to days or months shall be deemed references to calendar
days or months; and (e) all references to "$" or "dollars" shall be deemed
references to United States dollars.

                                   ARTICLE II

                          ESTABLISHMENT OF THE PROGRAM

            2.1 Credit Program. Beginning as of the Effective Date, Bank shall
offer and issue the FDS Credit Cards, and shall issue (or arrange to be issued
by an Affiliate or another third party acceptable to FDS or currently offering
such products on Bank's behalf) the Approved Ancillary Products. Bank shall
promptly open a new Account and issue a new Private Label Credit Card or
Co-Branded Credit Card with respect to each Credit Card Application approved in
accordance with the Risk Management Policies. In addition, in the case of any
employee of FDS or any of its Subsidiaries who applies for an FDS Credit Card
but is not approved for a Private Label Account in accordance with the Risk
Management Policies, Bank shall arrange for an Affiliate to offer, or cause to
be offered, and Bank shall issue, or arrange for the issuance by an Affiliate
of, a Prepaid Employee Account. To the extent approved in accordance with the
terms of this Agreement, in addition to the FDS Credit Cards and Approved
Ancillary Products, the Program shall include such other Ancillary Products and
other payment products as shall be incorporated in the Program in the future.

            2.2 Exclusivity.

      (a) General. Except as otherwise provided in this Section 2.2 and in
Section 2.3, during the Term, each of the FDS Companies, on behalf of itself and
its Affiliates, agrees that it shall not, by itself or in conjunction with or
pursuant to agreements with others, directly or indirectly: (i) issue, offer or
market in the United States a Credit Card, whether or not bearing an FDS
Licensed Mark or any other mark comprised, in whole or in part, of the name of
any FDS retail entity, other than through the Program; (ii) expressly authorize
any third party to issue, offer or market in the United States a revolving
credit or installment loan product bearing an FDS Licensed Mark or any other
mark comprised, in whole or in part, of the name of any FDS retail entity, other
than through the Program; or (iii) sell, rent or otherwise make available, or
allow others to sell, rent or otherwise make available, any FDS Shopper Data or
other Cardholder information for marketing, issuance or offering of any
revolving credit or installment loan product bearing an FDS Licensed Mark or any
other mark comprised, in whole or in part, of the name of any FDS retail entity.

      (b) GE/Macy's and May Credit Cards. Notwithstanding Section 2.2(a), (i)
FDS and its Affiliates shall have the right to continue to exercise their rights
and perform their obligations pursuant to the GE/Macy's Program Agreement until
the termination thereof; provided that FDS shall not permit the term of such
agreement to be extended or renewed and (ii) following the May Merger and prior
to the Third Closing Date, FDS and its Affiliates shall be entitled to offer

                                       17
<PAGE>

the May Accounts and operate the May Business (as defined in the Purchase
Agreement) as contemplated by the Purchase Agreement.

      (c) Second-Look Credit Card Program. Notwithstanding Section 2.2(a), FDS
and its Affiliates shall have the right at any time during the Term to establish
a program (a "Second Look Program") for issuing Credit Cards, including Private
Label Credit Cards and Co-Branded Credit Cards, using the FDS Licensed Marks, to
customers whose Credit Card Applications have been declined by Bank (and
customers who were granted credit under the Program, but for whom the credit
granted is not sufficient to accommodate the purchase of any FDS Goods and
Services). Upon the request of any FDS Company, Partner shall forward to the FDS
Companies or a provider of secondary financing the Credit Card Applications with
respect to such customers and shall take such other actions as are reasonably
requested by the FDS Companies in order to facilitate the issuance of Credit
Cards to such customers pursuant to any Second Look Program.

      (d) Debit Cards. In the event that FDS or any of its Affiliates desires to
issue or market a debit card that bears the brand of the relevant card
association and one or more FDS Licensed Marks ("FDS Debit Cards"), FDS shall
first provide notice to Bank of such desire. Bank shall have thirty (30) days
from the receipt of such notice to make a proposal (or to cause one of its
Affiliates to make a proposal) with respect to such issuance. If Bank or one of
its Affiliates elects to make such a proposal during such time period, FDS shall
negotiate in good faith with Bank or such Affiliate to arrive at an agreement
providing for the offering, on mutually satisfactory terms, of a debit card
product featuring functionality and terms mutually agreeable to FDS and Bank. In
the event that FDS and Bank (or Bank's Affiliate) fail to reach agreement on the
principal terms thereof within thirty (30) days from the date of Bank's initial
proposal to FDS, FDS shall be free to issue FDS Debit Cards or enter into an
arrangement with any third party to issue FDS Debit Cards; provided that FDS
shall not enter into any such third party arrangement having contractual terms,
product features and functionality that are in the aggregate materially less
favorable to FDS than the terms, features and functionality offered to FDS by
Bank or its Affiliate.

      (e) Retail Portfolio Acquisition. Notwithstanding Section 2.2(a), Bank's
sole rights with respect to Credit Card portfolios acquired by FDS or its
Affiliates during the Term are set forth in Section 2.3 hereof. The limitations,
restrictions and procedures set forth in Section 2.2(d) shall not apply to debit
card portfolios acquired by FDS or its Affiliates, and Bank shall have no rights
with respect to any such acquired portfolios.

      (f) Payment Plans. Without the prior written consent of Bank, none of FDS
or its Affiliates shall offer the payment plans set forth on Schedule 4.8(b)(i)
to their retail customers except (i) through the Program, (ii) through a
second-look Credit Card program established in compliance with Section 2.2(c) or
(iii) to the extent that, without the consent of FDS, such payment plans are no
longer offered through the Program.

      (g) Other Products. Notwithstanding the prohibitions set forth in this
Section 2.2, FDS and its Affiliates shall be free to do any of the following at
any time:

                  (i) issue, offer or market any payment products not expressly
covered in this Section 2.2 (e.g., FDS and its Affiliates shall not be
restricted from issuing, accepting or

                                       18
<PAGE>

otherwise taking action with respect to (A) gift cards, pre-paid cards or stored
value cards, whether or not bearing an FDS Licensed Mark, or (B) debit cards
(whether or not bearing an FDS Licensed Mark) other than to the extent set forth
above with respect to FDS Debit Cards);

                  (ii) participate in rewards programs and promotions by card
associations or for cards not branded with any of the FDS Licensed Marks (e.g.,
American Express Membership Rewards);

                  (iii) offer its customers a loyalty program of any type
(whether or not using an FDS Licensed Mark); provided that (a) no such program
shall (1) promote the generation of Credit Card accounts in the United States
other than the Accounts or (2) be marketed more prominently in any retail stores
operated by FDS and Subsidiaries than the Loyalty Programs offered under the
Program; and (b) the Loyalty Programs offered under the Program shall be the
primary loyalty programs of FDS and its Subsidiaries (as applicable); and

                  (iv) accept any type of Credit Card, debit card or other
payment product for purchases of FDS Goods and Services.

            2.3 Retail Portfolio Acquisitions.

      (a) Small Acquired Portfolios. If FDS or any of its Affiliates acquires
(including by merger, consolidation or other business combination) a retail
department store business that directly or through an Affiliate or unaffiliated
third party issues a Credit Card in the United States and the portfolio of such
Credit Cards has Gross Receivables, as of the month-end preceding the date of
acquisition, of less than five hundred million dollars ($500,000,000) (a "Small
Portfolio"), unless it is prohibited from doing so by contractual prohibitions
applicable to the acquired business or by Applicable Law, FDS or such Affiliate
shall sell, and Bank shall purchase, such Small Portfolio in accordance with the
terms and procedures set forth in Schedule 2.3(a); provided, however, that
Bank's obligation to purchase the Small Portfolio shall be subject only to
receipt of applicable regulatory approvals and the execution by FDS of the
transaction agreement referred to in Section 2.3(c).

      (b) Significant Acquired Portfolios.

                  (i) If FDS or any of its Affiliates acquires (including by
merger, consolidation or other business combination) a retail department store
business that directly or through an Affiliate or unaffiliated third party
issues a Credit Card in the United States and the portfolio of such Credit Cards
has Gross Receivables, as of the month-end preceding the date of acquisition, of
five hundred million dollars ($500,000,000) or more (a "Significant Portfolio"),
FDS may elect to (A) keep such Significant Portfolio (or if the portfolio is
then subject to an agreement with a third party issuer, retain such portfolio
with such third party issuer), or (B) subject to Bank's Right of First Offer,
transfer such Significant Portfolio to a third party.

                  (ii) If FDS elects to keep such Significant Portfolio (or if
the portfolio is then subject to an agreement with a third party issuer, retain
such portfolio with such third party issuer), FDS shall have the right to
operate (itself or through arrangements with a third party) the Credit Card
business associated with such Significant Portfolio. If FDS does not sell the
Significant Portfolio to Bank and this Agreement remains in effect, the
restrictions of Section 2.2

                                       19
<PAGE>

shall not apply to the Credit Card business associated with such Significant
Portfolio, including any growth thereof.

      (c) In the event of a sale of a Small Portfolio to Bank or if FDS accepts
an offer from Bank to purchase a Significant Portfolio, (i) the Parties shall
promptly negotiate in good faith and execute a purchase agreement for such
portfolio, which shall contain terms and conditions substantially similar to the
Purchase Agreement to the extent applicable (and such other terms and conditions
as may be mutually satisfactory to the Parties), and (ii) FDS shall arrange for
the Parties to have reasonable access to information regarding such portfolio to
enable the Parties to perform customary due diligence for purposes of
determining the purchase price for such portfolio. The Parties shall not
unreasonably withhold or delay execution of such purchase agreement or any other
documents necessary to effectuate such sale. The Parties shall use reasonable
efforts to ensure that the closing under such purchase agreement occurs as
promptly as reasonably practicable following the execution of such purchase
agreement.

      (d) Third Party Programs. Notwithstanding the foregoing provisions of this
Section 2.3, if the Credit Cards offered by the acquired retail department store
business are issued by a third party pursuant to a program agreement or other
contractual arrangement between such third party and such acquired retail
business, the FDS Companies shall not be required to terminate such agreement or
arrangement in order to offer such portfolio to Bank. Following completion of
such acquisition, FDS and its Affiliates shall be entitled to continue to comply
with such agreements or arrangements and to renew such agreements or
arrangements upon their expiration. Without limiting their rights and
obligations hereunder, Bank shall cooperate with the FDS Companies in an effort
to ensure that the operation of the Program and the acquired program can both
continue without disruption to the customer base of FDS and its Affiliates;
provided, however, that any cross-acceptance of Credit Cards between the Program
and any such other third party program or arrangement shall be made only on a
reciprocal basis.

      (e) Bank Programs. Notwithstanding the foregoing provisions of this
Section 2.3, if the Credit Cards offered by the acquired retail department store
business are owned by Bank or any of its Affiliates, upon request of FDS, FDS
and Bank shall negotiate in good faith in order to enter into an agreement
containing mutually satisfactory terms pursuant to which the acquired Credit
Card portfolio would be integrated into the Program by converting the acquired
Credit Card accounts into Accounts subject to this Agreement; provided, however,
that if the Parties, after having used good faith to do so, cannot reach a
mutually satisfactory agreement for the integration of such acquired Credit Card
portfolio into the Program, then the Program and the acquired Credit Card
portfolio shall continue to be operated in accordance with the then-existing
respective terms applicable to each, and Bank shall not be deemed in breach of
the provisions of Section 2.5 in respect of the continued operation of such
acquired Credit Card portfolio.

      (f) Conversion of Purchased Accounts. If Bank or any of its Affiliates
acquires any Credit Card portfolio pursuant to this Section 2.3, unless
otherwise provided in this Section 2.3, the Parties shall integrate such Credit
Card portfolio with the Program and convert all acquired Credit Card accounts to
Accounts established under the Program, which converted Accounts shall be
subject to the same terms and conditions as the Accounts and to this Agreement,
and shall participate in the Program, as if they were originated under this
Agreement. Bank shall cover all costs and expenses related to conversions
pursuant to this Section 2.3(f) (which costs

                                       20
<PAGE>

and expenses shall be Program Expenses), including replacement of Credit Cards,
notices to Cardholders and complying with other requirements of Applicable Law.

      (g) No Other Obligations. Except as set forth in this Section 2.3, neither
Party nor any of their respective Affiliates shall (i) have any obligation to
include in the Program any Credit Card portfolios acquired in connection with
any merger, consolidation, acquisition or other transaction or otherwise cause
them to be transferred to Bank or (ii) have any obligation to include any debit
card program so acquired in the Program or otherwise transfer any such program
to Bank. Except to the extent included in the Program, an acquired portfolio may
be operated free of the exclusivity restrictions set forth in this Agreement.

            2.4 Retail Portfolio Dispositions.

      (a) In the event that FDS or any of its Affiliates arranges for the sale
of (a) any existing chain or other group of separately identifiable stores,
including through the sale of a division or subsidiary of FDS (a "Sold Chain"),
or (b) all stores or other retail establishments within an MSA ("Sold Area
Stores"), Bank shall negotiate in good faith with FDS in connection with such
disposition to the extent the purchaser of any Sold Chain or Sold Area Stores
expresses an interest in the Program Assets primarily related thereto. If, as a
result of a disposition referred to in the preceding sentence, FDS ceases to own
any stores in a particular MSA, then, in the event that neither FDS nor the
purchaser of the Sold Chain or Sold Area Stores purchases the Program Assets
primarily related thereto, the provisions of clause (a) of Section 16.4 hereof
shall apply in respect of any Account (a) that at the time of such disposition
has been or thereafter becomes purchase-inactive for at least twelve (12)
consecutive Billing Cycles and (b) for which seventy-five percent (75%) of the
purchase activity in the twelve (12) Billing Cycles preceding the period of
inactivity was at a store or stores disposed of. Notwithstanding the foregoing,
any replacement or substitute Credit Card issued to the holders of such Accounts
shall be a non-partner Credit Card (i.e. a Credit Card that is issued by Bank or
its Affiliates other than pursuant to a program, joint-marketing or similar
agreement with a third party). Notwithstanding the foregoing, Bank shall not
sell any of the foregoing Accounts without the prior written consent of FDS
(which consent shall not be unreasonably withheld).

      (b) In the event that FDS or any of its Affiliates arranges for the sale
of stores, divisions or subsidiaries pursuant to a settlement with or other
written commitment to a Governmental Authority in connection with such
Governmental Authority's review of the May Merger, FDS shall have the right to
cause the disposition of the portion of the Program Assets related to such
disposition to a third party purchaser for a purchase price equal to (i) the
Cardholder Indebtedness of the Program Assets disposed of plus (ii) the product
of (A) the Premium plus the Additional Premium paid in respect of all Purchased
Accounts times (B) (1) Cardholder Indebtedness of the Program Assets disposed of
divided by (2) total Cardholder Indebtedness.

            2.5 Partner Exclusivity. During the Term, neither Bank nor any of
its Affiliates shall enter into any agreement with any of the retailers listed
on Schedule 2.5 or any of their respective Affiliates providing for issuance,
offering or marketing in the United States of a Credit Card bearing a corporate
name, brand or trademark used by any of such retailers in connection with the
operation of their retail businesses in the United States.

                                       21
<PAGE>

            2.6 General Electric Capital Corporation / Macy's Credit Card
Program. Prior to the Second Closing, Bank shall work together with the FDS
Companies to (i) ensure that the Program and the program under the GE/Macy's
Program Agreement shall continue to coexist in substantially the same manner as
prior to the Effective Date and (ii) avoid, to the extent possible (consistent
with this Agreement), any conflicts that may arise between the operations of the
Program and those of the program under the GE/Macy's Program Agreement. Prior to
the consummation of the Second Closing (and the termination or expiration of the
GE/Macy's Program Agreement), Bank shall have no right to any amounts received
by FDS pursuant to the GE/Macy's Program Agreement or to any amounts generated
by GE/Macy's Accounts or GE/Macy's Receivables. Bank shall not be liable
hereunder for any act or omission to act to the extent that such act or omission
was properly taken by Bank in order to satisfy its respective obligations under
this Section 2.6 without gross negligence or willful misconduct (and no such act
or omission shall constitute an Event of Default hereunder).

                                  ARTICLE III

                      PROGRAM MANAGEMENT AND ADMINISTRATION

            3.1 Program Objectives. In performing their responsibilities with
respect to the management and administration of the Program, each Party shall be
guided by the following Program objectives (the "Program Objectives"):

      (a)   to drive retail sales and profitability of the FDS Companies and
            their Affiliates;

      (b)   to provide high-quality service consistent with the preservation and
            enhancement of the FDS brands;

      (c)   to differentiate the FDS Companies and their Affiliates from their
            competitors in terms of customer value, convenience and service;

      (d)   to provide a Program tailored to the unique characteristics of the
            retail customers of the FDS Companies and their Affiliates; and

      (e)   to retain existing Cardholders and generate new Accounts and FDS
            Credit Card usage to drive the FDS Companies' and their Affiliates'
            retail sales and increase Program revenues and profitability.

            3.2 Operating Committee.

      (a) Establishment of the Operating Committee. FDS Bank, on behalf of the
FDS Companies, and Bank hereby establish a committee (the "Operating Committee")
to oversee and review the conduct of the Program pursuant to this Agreement and
to perform any other action that, pursuant to any express provision of this
Agreement, requires its action.

      (b) Subcommittees of the Operating Committee. The Operating Committee may
designate additional committees (which may include persons who are not members
of the Operating Committee) with responsibility for overseeing and administering
specified aspects of the Program (e.g., marketing, underwriting and risk
management); provided, however, that

                                       22
<PAGE>

approval of any matter expressly required by this Agreement to be approved by
the Operating Committee shall not be delegated to any subcommittee or other
body.

      (c) Composition of the Operating Committee. The Operating Committee shall
consist of six (6) members, of whom three (3) members shall be nominated by FDS
Bank (the "FDS Bank Designees") and three (3) members shall be nominated by Bank
(the "Partner Designees"). The initial FDS Bank Designees and Partner Designees
shall be determined prior to the First Closing. FDS shall at all times have as
one of its designees the FDS Manager (as defined in Section 3.4(a)) and Bank
shall at all times have as one of its designees Bank Manager (as defined in
Section 3.4(a)). Bank and FDS Bank may each substitute its designees to the
Operating Committee from time to time, provided that each Party shall provide
the other Party with as much prior notice of any such substitution as is
reasonably practicable under the circumstances.

      (d) Functions of the Operating Committee. Subject to Sections 3.2(e),
3.2(f) and 3.2(g), the Operating Committee shall:

                  (i)   approve the semi-annual and annual Budget and the
                        Business Plan, including the assumptions and performance
                        targets reflected therein;

                  (ii)  review monthly, quarterly and annual Program performance
                        relative to the Budget and the Business Plan and Program
                        Objectives;

                  (iii) oversee Program marketing activities, including:

                        (A)   review and approval of the Marketing Plan; and

                        (B)   allocation of the Additional Marketing Commitment;

                  (iv)  review collection strategies and collection metrics;

                  (v)   monitor activities of competitive programs and identify
                        implications of market trends;

                  (vi)  approve (which approval will not be unreasonably
                        withheld) the use of any third party (e.g.,
                        subcontractor or outsourced service provider), other
                        than any Affiliate or Licensee of FDS or Bank, as the
                        case may be, to perform any obligation to be performed
                        by Bank or the FDS Companies under the Program to the
                        extent such obligation involves customer contact
                        (whether in person, by telephone or in writing) prior to
                        ninety (90) days' delinquency (as set forth on, and in
                        accordance with, Schedule 4.2(a)(iv)), in each case,
                        except to the extent subcontracted or outsourced as of
                        the Effective Date;

                  (vii) evaluate and approve changes to the Primary Initial
                        Program Terms, including the evaluation and approval of
                        any of the following:

                                       23
<PAGE>

                        (A)   offering of new Credit Card or other payment
                              products or Ancillary Products;

                        (B)   changes in Cardholder terms, including any of the
                              terms set forth on Schedule 4.7;

                        (C)   changes to the Risk Management Policies (which
                              shall be  submitted to the Operating Committee
                              together with the expected pro forma effects of
                              such changes on the Program);

                        (D)   changes to the Operating Procedures;

                        (E)   changes to the SLAs applicable to the Program;

                        (F)   changes to existing Value Propositions, or
                              approval of additional Value Propositions to be
                              supported by the Program;

                  (viii) approve the design of Credit Card Documentation, the
                         design of FDS Credit Cards and any changes thereto;

                  (ix)   review customer service, collections and other
                         servicing performance and reporting aspects of the
                         Program against SLAs and other requirements of this
                         Agreement;

                  (x)    approve any capital expenditures (or group of related
                         capital expenditures) that would constitute Program
                         Expenses in excess of one hundred thousand dollars
                         ($100,000) in any Fiscal Year;

                  (xi)   carry out such other tasks as are assigned to it by
                         this Agreement or jointly by the Parties;

                  (xii)  approve any modifications to the Transition Plan;

                  (xiii) approve changes to the Program Privacy Policy or the
                         notice set forth in Schedule 6.2(b); and

                  (xiv)  evaluate and approve new Credit Card products,
                         Ancillary Products or other products and services
                         proposed to be offered to Cardholders.

      (e) Proceedings of the Operating Committee.

                  (i) Meetings and Procedural Matters. The Operating Committee
shall meet (in person or telephonically) not less frequently than monthly. In
addition, any member of the Operating Committee may call a special meeting by
delivery of at least five (5) Business Days' prior notice to all of the other
members of the Operating Committee, which notice shall specify the purpose for
such meeting. Except to the extent expressly provided in this Agreement, the
Operating Committee (and any subcommittee formed by it) shall determine the
frequency, place

                                       24
<PAGE>

and agenda for its meetings, the manner in which meetings shall be called and
all procedural matters relating to the conduct of meetings and the approval of
matters thereat.

                  (ii) Actions.

                        (A) Each of FDS and Bank shall be entitled to one vote
                  in respect of all matters to be approved by the Operating
                  Committee (or any applicable subcommittees). Any one of the
                  representatives of FDS and of Bank on the Operating Committee
                  (or any subcommittee) may cast the vote allocated to FDS or
                  Bank, as the case may be, in the manner determined by such
                  representatives. Any matter requiring the approval of the
                  Operating Committee (or any subcommittee) shall require the
                  affirmative approval of both FDS and Bank.

                        (B) If the Operating Committee shall fail to agree on
                  any matter of significance to the Program, including any
                  unresolved subcommittee matter to which the Operating
                  Committee has attempted in good faith to resolve (an
                  "Unapproved Matter"), then such Unapproved Matter shall be
                  referred to the Executive Committee (as defined in Section
                  3.3) for further consideration. Any such resolution by the
                  Executive Committee shall be deemed to be the action and
                  approval of the Operating Committee for purposes of this
                  Agreement. If a majority of the Executive Committee members
                  constituting the full Executive Committee (including any
                  vacancies) shall fail to resolve the Unapproved Matter within
                  ten (10) Business Days after such matter has been referred to
                  the Executive Committee, then such Unapproved Matter shall be
                  referred to the President of Citi Cards and the Vice Chairman
                  or other senior executive of FDS responsible for FDS's credit
                  program, who shall in good faith attempt to resolve the
                  matter. Any such resolution by such senior officers shall be
                  deemed to be the action and approval of the Operating
                  Committee for purposes of this Agreement. If, after ten (10)
                  Business Days, the Unapproved Matter remains unresolved by
                  such senior officers of FDS Bank and Bank, the failure to
                  agree shall constitute a deadlock. In the event of a deadlock,
                  the final decision shall rest with FDS Bank in the case of FDS
                  Matters and with Bank in the case of Partner Matters, each of
                  whom shall exercise their discretion reasonably and in good
                  faith. If a deadlock should occur with respect to a matter
                  that is neither an FDS Matter nor a Partner Matter, the matter
                  shall be deemed rejected by the Operating Committee.

                        (C) No changes to the Primary Initial Program Terms
                  shall be made before the first anniversary of the Effective
                  Date without the approval of the Operating Committee (it being
                  understood that "approval" shall not include any decision made
                  pursuant to the penultimate sentence of Section
                  3.2(e)(ii)(B)); provided, however, that (i) if a Party
                  concludes that a change is required by Applicable Law or is
                  commensurate and proportionate to any negative changes in
                  through the door populations or individual segment performance
                  (as evidenced and measured by validated scores or generally
                  accepted, data driven credit risk metrics), and (ii) if such
                  Party would have final decision making authority with respect
                  to such change (pursuant to Section 3.2(f) or (g)), then,
                  after satisfying all procedures provided in this Article III
                  with respect to the consideration and

                                       25
<PAGE>

                  approval of the matter by the Operating Committee, such Party
                  may make the change without regard to this clause (C).

                        (D) Without limiting the provisions of this Article III,
                  during the first year following the Effective Date, the
                  Operating Committee will consider the matters set forth on
                  Schedule 3.2(e)(ii)(D).

      (f) FDS Matters. In accordance with and subject to this Section 3.2, FDS
Bank shall have the ultimate decision making authority with respect to the
matters set forth on Schedule 3.2(f) (the "FDS Matters").

      (g) Partner Matters. In accordance with and subject to this Section 3.2,
Bank shall have the ultimate decision making authority with respect to the
matters set forth on Schedule 3.2(g) (the "Partner Matters").

            3.3 Executive Committee. The strategic direction of the Program
shall be subject to the review of an executive committee (the "Executive
Committee"). The Executive Committee shall be responsible for (i) periodically
reviewing the Program; (ii) setting and reviewing strategy for the Program;
(iii) overseeing competitive positioning of Program information systems support
and strategy; (iv) reviewing fundamental changes in the operation of the
Program; and (v) all other matters that the Parties agree should be reviewed by
the Executive Committee. The Executive Committee shall consist of four (4)
members, with two (2) members appointed by each of FDS and Bank and reasonably
acceptable to each other. Each Party shall have the right to remove or replace
its appointees for any reason and at any time, and to fill any vacancy with
respect to its appointees. The initial appointees to the Executive Committee of
each Party shall be determined prior to the Effective Date. The Executive
Committee shall meet (in person or by telephone or video conference) quarterly
or at such other intervals and at places as may be decided by the members of the
Executive Committee; provided, that either FDS Bank or Bank may call a meeting
of the Executive Committee by delivery of at least thirty (30) Business Days'
prior written notice to the other Party (which written notice may be waived by
written agreement of all members of the Executive Committee) containing the
purpose, time and place of the meeting. The members of the Executive Committee
shall appoint an acting chairman and adopt such other rules for the conduct of
meetings as are agreed upon from time to time. The Executive Committee shall be
subject, mutatis mutandis, to the same voting and records provisions of the
Operating Committee set forth in Section 3.2 above.

            3.4 Program Relationship Managers; Partner Program Team.

      (a) Bank and the FDS Companies shall each appoint one Program relationship
manager (each, a "Manager"; the appointee of the FDS Companies, the "FDS
Manager"; and the appointee of Bank, the "Bank Manager"). The FDS Manager and
the Bank Manager shall be the leaders of their respective teams and they and
their teams shall conduct their responsibilities in accordance with the terms of
this Agreement. The FDS Companies and Bank shall endeavor to provide stability
and continuity in the Manager positions and Bank's other Program personnel.

      (b) The initial FDS Manager shall be determined prior to the Effective
Date.

                                       26
<PAGE>

      (c) The initial Bank Manager and the member of Bank's senior management to
whom the Bank Manager reports shall be determined prior to the Effective Date.
The Bank Manager's performance-based compensation shall be based upon the
Program Objectives and other specific annual targets and objectives, including
Program profitability targets. Prior to appointing a new Bank Manager, Bank will
(i) provide FDS an opportunity to meet the proposed candidate, (ii) consult with
FDS and permit FDS an opportunity to provide input and express its views as to
the proposed candidate and (iii) give due consideration to FDS's input and views
as to the appointment of the new Manager. With respect to future Bank Manager
candidates, Bank shall seek to propose candidates with substantial
Program-relevant experience, including (i) substantial Credit Card industry
experience and/or (ii) experience with the department store industry, and/or
comparable customer demographics and/or loyalty programs.

      (d) Prior to appointing a new Manager, the FDS Companies will (i) provide
Bank an opportunity to meet the proposed candidate, (ii) consult with Bank and
permit Bank an opportunity to provide input and express its views as to the
proposed candidate and (iii) give due consideration to Bank's input and views as
to the appointment of the new Manager.

      (e) Bank shall maintain a Program team having expertise and experience
commensurate with a Credit Card program of the size and nature of the Program.
Neither the Bank Manager nor any senior member of Bank's Program team that is or
was a leader of Bank's risk management, finance, decision management or
marketing Program groups shall be reassigned to any program operated by Bank or
any of its Affiliates pursuant to any agreement or arrangement with any retailer
listed on Schedule 2.5 within twelve (12) months of the date that such person
last worked on the Program.

                                   ARTICLE IV

                               PROGRAM OPERATIONS

            4.1 Operation of the Program.

      (a) Each of the Parties hereto shall perform its obligations under this
Agreement (i) in compliance with the terms and conditions of this Agreement
(including any policies, procedures and practices adopted pursuant to this
Agreement), (ii) in good faith, and (iii) in a manner consistent with the
Program Objectives and any annual targets and objectives set by the Operating
Committee from time to time.

      (b) The initial Operating Procedures applicable to various aspects of the
operation of the Program are attached hereto as Schedule 4.1(b). Changes to such
Operating Procedures shall only be made with the approval of the Operating
Committee.

      (c) Except as expressly provided otherwise in this Agreement, Bank shall
use commercially reasonable efforts to ensure that the personnel and other
resources (including Systems and other technology resources) devoted by Bank to
the Program shall be appropriate for a program of the size and nature
contemplated by this Agreement.

                                       27
<PAGE>

            4.2 Certain Responsibilities of the FDS Companies.

      (a) In addition to its other obligations set forth elsewhere in this
Agreement, FDS Bank agrees that during the Term it shall, in its capacity as FDS
Servicer (either itself or through the Affiliate(s) to which it subcontracts the
relevant functions), take the following actions all in accordance with the Risk
Management Policies and the Operating Procedures:

                  (i) as provided in Sections 7.2 and 7.3, maintain a System to
process Credit Card Applications, service the Accounts and effect customer
service;

                  (ii) as provided in Sections 7.2 and 7.3, maintain call
centers to respond to inquiries from Cardholders and to deal with billing
related claims and adjustments (including by making finance charge and late fee
reversals and rebates), establish new Accounts or Account types, authorize
transactions, and assign, increase and decrease credit lines;

                  (iii) as provided in Sections 7.2 and 7.3, provide Account
monitoring services, including identifying delinquencies, implementing
collection efforts, implementing credit-line adjustments, over limit
authorizations and Account deactivation or cancellation;

                  (iv) as provided in Sections 7.2 and 7.3, handle early stage
collection and recovery efforts in respect of Accounts delinquent no more than
ninety (90) days as set forth on, and in accordance with, Schedule 4.2(a)(iv)
("Early Age Collection");

                  (v) deliver Monthly Settlement Sheets, Quarterly Settlement
Sheets and Year-End Settlement Sheets in accordance with this Agreement,
including, in each case the calculation of Pre-tax Profit and the other amounts
and estimates set forth on Schedule 1.1(i) for the applicable period; and

                  (vi) until the Services Transition Date, perform the Interim
Services.

      (b) In addition to their other obligations set forth elsewhere in this
Agreement, the FDS Companies agree that during the Term they shall:

                  (i) solicit new Accounts through in-store instant credit
procedures (in accordance with this Agreement) and display of Solicitation
Materials (or Credit Card Applications) in the FDS Channels pursuant to the
Marketing Plan;

                  (ii) implement and administer the Marketing Plan in accordance
with this Agreement;

                  (iii) pay sales associate compensation relating to the
solicitation of new Accounts;

                  (iv) receive In-Store Payments, subject to reimbursement to
Bank and reimbursement from Bank for the processing of such payments as provided
in this Agreement;

                  (v) deliver to Bank accounting data feeds, including data
relating to Cardholder Indebtedness, finance charges billed and charge-offs, and
other financial and

                                       28
<PAGE>

statistical information as may be reasonably requested by Bank for financial
reporting and securitization purposes and in connection with the exercise and
performance of its rights and obligations under this Agreement, such data feeds
and other information to be delivered electronically and in a form to be
mutually agreed; and

                  (vi) implement the Transition Plan in a timely manner.

            4.3 Certain Responsibilities of Bank.

      (a) In addition to the other obligations set forth elsewhere in this
Agreement, Bank agrees that during the Term it shall:

                  (i) subject to Article III and Section 4.6, establish and
implement all Risk Management Policies;

                  (ii) fund all Program Expenses as provided in this Agreement;

                  (iii) use Bank's and Bank's Affiliates' data and data
resources to support the Program and increase sales of FDS Goods and Services as
provided in Section 5.4(a);

                  (iv) following the applicable Services Transition Date, in
accordance with Sections 7.2 and 7.3, process remittances from Cardholders;

                  (v) following the applicable Services Transition Date, in
accordance with Sections 7.2 and 7.3, prepare, process and mail Credit Card
Documentation, Inserts, privacy policy notices, change in terms notices and
other communications to Cardholders, and provide the FDS Companies with adequate
supplies of Credit Card Applications;

                  (vi) fund all Cardholder Indebtedness on the Accounts;

                  (vii) extend credit on newly originated and existing Accounts
and offer the Value Propositions with respect to those Accounts as are provided
for pursuant to this Agreement;

                  (viii) comply with the terms of the Credit Card Agreements,
the Program Privacy Policies and all Cardholder opt-ins and opt-outs;

                  (ix) following the applicable Services Transition Date, in
accordance with Sections 7.2 and 7.3, handle collection and recovery efforts in
respect of Accounts other than Early Age Collection efforts;

                  (x) maintain the mainframe credit system and the call center
client service systems, in each case to the extent FDS's Systems are not used;
and

                  (xi) implement the Transition Plan in a timely manner.

            4.4 Ownership of Accounts.

                                       29
<PAGE>

      (a) Except to the extent of the FDS Companies' ownership of the FDS
Licensed Marks and the options to purchase Program Assets under Sections 2.4 and
16.2, CEBA Bank shall be the sole and exclusive owner of all Accounts (including
the Purchased Accounts), Cardholder Indebtedness and Account Documentation. All
purchases by Cardholders that are charged on the Accounts and the Cardholder
Indebtedness shall create a relationship of debtor and creditor between the
Cardholders and Bank, respectively. None of the FDS Companies or their
Affiliates shall be considered a creditor with respect to any Account or the
Gross Receivables arising thereunder.

      (b) Except as expressly provided herein (including Section 9.3), Bank
shall be entitled to (i) receive all payments made by Cardholders on Accounts,
(ii) retain for its account all Cardholder Indebtedness and all other fees and
income authorized by the Credit Card Agreements and collected with respect to
the Accounts and Cardholder Indebtedness, and (iii) retain for its account all
income from selling Approved Ancillary Products.

            4.5 Branding of Accounts/Credit Cards/Credit Card
      Documentation/Solicitation Materials.

      (a) The Credit Card Documentation, the FDS Credit Cards and the
Solicitation Materials shall be in the design and format proposed by the FDS
Companies and approved by the Operating Committee; provided that, to the extent
subject to Bank's final authority, Bank shall be responsible for ensuring that
the Credit Card Documentation, the FDS Credit Cards and the Solicitation
Materials comply with Applicable Law and for ensuring that the FDS Credit Cards
and the Solicitation Materials comply with the Credit Card Documentation. Unless
otherwise agreed by the Parties, Billing Statements with respect to Co-Branded
Credit Cards shall be designed to separately reflect in two (2) separate Billing
Statements (i) information with respect to the associated Private Label Account
and (ii) information with respect to the associated General Purpose Account.

      (b) Bank shall bear the costs and expenses of development and delivery of
the Credit Card Documentation, FDS Credit Cards and Solicitation Materials,
which shall be Program Expenses.

      (c) The applicable FDS Licensed Marks shall appear prominently on (i) the
face of the FDS Credit Cards issued or renewed after the Effective Date, (ii)
the Credit Card Documentation created after the Effective Date and (iii) the
Solicitation Materials created after the Effective Date. Unless otherwise agreed
by the Operating Committee, the FDS Credit Cards, the Credit Card Documentation
and the Solicitation Materials shall not bear Bank Licensed Marks; provided,
however, that Bank's name shall appear (i) on the back of the FDS Credit Cards
issued or renewed after the Effective Date, (ii) on the Credit Card
Documentation created after the Effective Date and (iii) on the Solicitation
Materials created after the Effective Date, in each case to identify Bank as the
credit provider under the Program, together with any other disclosures required
by Applicable Law.

            4.6 Underwriting and Risk Management.

                                       30
<PAGE>

      (a) Subject to Section 2.1 with respect to Prepaid Employee Accounts, Bank
shall accept or reject any Credit Card Application based solely upon application
of the then-current Risk Management Policies. Upon satisfaction of the
applicable credit criteria set forth in the Risk Management Policies, Bank shall
promptly establish a Private Label Credit Account and/or a General Purpose
Account, as applicable. The Credit Card types to be associated with such
Accounts shall be established in accordance with the terms of the Loyalty
Programs and the Risk Management Policies. Bank shall have the right, power and
privilege to review periodically the creditworthiness of Cardholders to
determine the range of credit limits to be made available to individual
Cardholders and whether or not to suspend or terminate credit privileges of such
Cardholders; provided, however, that Bank shall only decrease credit limits or
suspend or terminate credit privileges on an individual Account basis consistent
with the then current Risk Management Policies and in a manner consistent with
Article III and this Section 4.6.

      (b) The initial Risk Management Policies to be in effect as of the
Effective Date are attached hereto as Schedule 4.6(b). Each Party may propose
modifications of any aspect of the Risk Management Policies, which modifications
shall be made only in accordance with Article III.

      (c) The Program shall be operated throughout the Term to achieve the
targets set forth in Schedule 4.6(c)(ii). In the case of any inconsistency
between the terms of Schedule 4.6(c)(i) and (ii), the terms of Schedule
4.6(c)(ii) shall control. If the targets set forth in Schedule 4.6(c)(ii) are
not achieved with respect to any measurement period set forth on Schedule
4.6(c)(ii) with respect to the applicable target, the actions set forth on
Schedule 4.6(c)(iii) shall apply.

      (d) In the event of a change in (i) the applicable through-the-door
population or individual segment performance (as measured by validated scores or
generally accepted, data driven credit risk metrics), (ii) industry wide
performance expectations or (iii) Applicable Law, the Operating Committee shall
consider and approve any changes to Schedules 4.6(c)(i) and 4.6(c)(ii) and shall
preserve the targets or alternative targets, as appropriately and mutually
agreed, and remedies set forth in such schedules, but after taking into account
the relevant change referred to in clause (i), (ii) or (iii).

      (e) Within fifteen (15) days after the end of each Fiscal Month, Bank
shall report to FDS Bank, in a mutually agreed upon format, the applicable
metrics with respect to each of the targets set forth on Schedule 4.6(c)(ii)
during such Fiscal Month (it being understood that the measurement period to
determine any penalties associated with such targets under Schedule 4.6(c)(ii)
may exceed one Fiscal Month). During the period in which Interim Services are
being provided, reporting will be prepared by FDS Bank and the Parties agree to
use FDS Bank generated reporting for review of the applicable metrics with
respect to each of the targets set forth on Schedule 4.6(c)(ii) until such time
as Bank has the necessary access to such data.

      (f) To the extent that the changes implemented as referenced in Schedule
11.1(g) result in substandard performance, such changes, with Operating
Committee approval, will be reversed upon demonstration of such substandard
performance. Additionally, upon such reversal, the applicable targets in
Schedule 4.6(c)(ii) shall be revised as appropriate.

                                       31
<PAGE>

      (g) Bank shall use commercially reasonable efforts to perform all
necessary security functions to minimize fraud in the Program due to lost,
stolen or counterfeit cards and fraudulent applications. Each of the FDS
Companies agrees to use commercially reasonable efforts to cooperate with Bank
in such functions.

            4.7 Cardholder Terms.

      (a) The terms and conditions of all Purchased Accounts and of all new
Accounts originated on and after the Effective Date shall be the terms and
conditions applicable to the Account type immediately prior to the Effective
Date, including the terms and conditions set forth on Schedule 4.7; provided,
however, that changes to the terms and conditions of the Accounts may be made
only in accordance with Article III.

      (b) Except as otherwise agreed by FDS, the card association for all
Co-Branded Credit Cards shall be Visa International Inc. and Visa U.S.A. Inc. or
any successor thereto. Except as otherwise approved by the Operating Committee,
Bank (or CEBA Bank to the extent that Bank has assigned this Agreement to CEBA
Bank pursuant to Section 18.2) shall be, at all times during the Term, a
Participating Member in the VISA Partnership Program, or any successor thereto.

      (c) Unless otherwise agreed by the Parties, (i) the account numbers, BINs
and expiration date of all FDS Accounts shall remain the same after the
Effective Date, (ii) the account numbers, BINs and expiration date of all
GE/Macy's Accounts shall remain the same after the Second Closing Date, and
(iii) the account numbers, BINs and expiration date of all May Accounts shall
remain the same after the Third Closing Date

            4.8 Value Propositions.

      (a) Loyalty Programs. All elements of the Star Rewards and Insider Loyalty
Programs, as set forth on Schedule 4.8(a) (the "Loyalty Programs"), shall remain
in effect and shall be honored by the Parties unless modified by approval of the
Operating Committee. Bank shall be responsible for funding all aspects of the
Loyalty Programs, as more fully set forth in Schedule 4.8(a), except that FDS
shall be responsible for funding the portion of Redeemed Rewards set forth in
Schedule 4.8(a).

      (b) Payment Plans. Bank shall offer and support the payment plans set
forth on Schedule 4.8(b)(i) and, subject to the limitations set forth in this
Section 4.8(b), the cost of maintaining such payment plans shall be borne by
Bank. Within ten (10) calendar days after the end of each Fiscal Quarter, the
FDS Servicer (or following the Systems Transition Date, Bank) shall provide to
the other Parties a report setting forth, for such preceding twelve (12) Fiscal
Month period ended at the end of such Fiscal Quarter: (i) Average Private Label
Receivables and (ii) Average Private Label Interest Free Receivables. If the
dollar amount of Average Private Label Interest Free Receivables as a percentage
of Average Private Label Receivables for such preceding twelve (12) Fiscal Month
period ended at the end of such Fiscal Quarter exceeds the percentage threshold
set forth in Schedule 4.8(b)(ii), FDS shall make the applicable cash payment to
Bank as set forth in Schedule 4.8(b)(ii) for the actual number of days in such
Fiscal Quarter calculated on the basis of a 360-day year, which cash payment
shall be excluded from

                                       32
<PAGE>

the calculation of Pre-Tax Profit. If the dollar amount of Average Private
Label Interest Free Receivables as a percentage of Average Private Label
Receivables for the preceding twelve (12) Fiscal Month period ended at the end
of such Fiscal Quarter is less than the percentage threshold set forth in
Schedule 4.8(b)(ii), Bank shall make the applicable cash payment to FDS as set
forth in Schedule 4.8(b)(ii) for the actual number of days in such Fiscal
Quarter, calculated on the basis of a 360-day year, which cash payment shall be
excluded from the calculation of Pre-Tax Profit. The Parties shall negotiate in
good faith to adjust the foregoing provisions of this Section 4.8(b) to
appropriately reflect the impact of the addition of the May Accounts to the
Program as set forth in Schedule 4.8(b)(ii). No such negotiations shall be
deemed to constitute an attempt to renegotiate the May Purchase Price under the
Purchase Agreement or otherwise affect the Parties' rights thereunder.

      (c) Cardholder Discounts. The FDS Companies may provide discounts to
Cardholders from time to time; provided the cost of such discounts are borne by
the FDS Companies either through POS markdowns or in accordance with the
procedures set forth in Section 8.4.

      (d) Changes to Value Propositions. The terms and conditions of the Value
Propositions set forth in this Section 4.8, and the Parties' related
responsibilities in respect thereof, may be modified solely with the approval of
the Operating Committee in accordance with Article III.

      (e) Value Proposition Support. Except to the extent performed as part of
the services provided by the FDS Servicer prior to the Systems Transition Date,
Bank shall be responsible for accounting and servicing of all rewards under the
Value Propositions associated with the Program (including with respect to
Loyalty Programs, in accordance with the eligibility criteria for each Loyalty
Program), such as printing certificates on monthly Billing Statements and
rewards summaries. All Value Proposition testing existing as of the Effective
Date shall be supported by the Program. Bank shall continue to honor any accrued
benefits to customers accrued prior to the Effective Date in connection with
such Value Propositions (subject to the reimbursement and other financial
obligations of the FDS Companies set forth above in this Section 4.8).

            4.9 Participation in Reversals.

      (a) Reporting of Reversals. Each Quarterly Settlement Statement shall set
forth a calculation of the applicable Finance Charge Reversal Percentage and
Late Fee Reversal Percentage for the preceding Fiscal Quarter and such other
calculations as are necessary to calculate the payment in respect thereof to be
made by the Parties pursuant to this Section 4.9. All amounts payable pursuant
to this Section 4.9 (i) shall be netted against each other so that only a single
payment shall be made pursuant to this Section 4.9 and (ii) shall be excluded
from the calculation of Pre-Tax Profit.

      (b) Finance Charge Reversals.

                  (i) Private Label Accounts. If the Finance Charge Reversal
Percentage solely with respect to the Private Label Accounts reflected in the
Quarterly Settlement Statement with

                                       33
<PAGE>

respect to the preceding Fiscal Quarter is greater than the applicable High
Collar, the FDS Companies shall pay Bank an amount equal to (A) the Finance
Charge Reversal Percentage solely with respect to the Private Label Accounts
minus the applicable High Collar, multiplied by (B) the aggregate amount of all
finance charges assessed on the Private Label Accounts during such preceding
Fiscal Quarter. If the Finance Charge Reversal Percentage solely with respect to
the Private Label Accounts for such Fiscal Quarter is less than the applicable
Low Collar, Bank shall pay the FDS Companies an amount equal to (A) the
applicable Low Collar minus the Finance Charge Reversal Percentage solely with
respect to the Private Label Accounts, multiplied by (B) the aggregate amount of
all finance charges assessed on the Private Label Accounts during such preceding
Fiscal Quarter calculated on a sum of cycles basis of reporting monthly
receivables under the Private Label Accounts.

                  (ii) General Purpose Accounts. If the Finance Charge Reversal
Percentage solely with respect to the General Purpose Accounts reflected in the
Quarterly Settlement Statement with respect to the preceding Fiscal Quarter is
greater than the applicable High Collar, the FDS Companies shall pay Bank an
amount equal to (A) the Finance Charge Reversal Percentage solely with respect
to the General Purpose Accounts minus the applicable High Collar, multiplied by
(B) the aggregate amount of all finance charges assessed on the General Purpose
Accounts during such preceding Fiscal Quarter. If the Finance Charge Reversal
Percentage solely with respect to the General Purpose Accounts for such Fiscal
Quarter is less than the applicable Low Collar, Bank shall pay the FDS Companies
an amount equal to (A) the applicable Low Collar minus the Finance Charge
Reversal Percentage solely with respect to the General Purpose Accounts,
multiplied by (B) the aggregate amount of all finance charges assessed on the
General Purpose Accounts during such preceding Fiscal Quarter calculated on a
sum of cycles basis of reporting monthly receivables under the General Purpose
Accounts.

      (c) Late Fee Reversals.

                  (i) Private Label Accounts. If the Late Fee Reversal
Percentage solely with respect to the Private Label Accounts reflected in the
Quarterly Settlement Sheet with respect to the preceding Fiscal Quarter is
greater than the applicable High Collar, the FDS Companies shall pay Bank an
amount equal to (A) the Late Fee Reversal Percentage solely with respect to the
Private Label Accounts minus the applicable High Collar, multiplied by (B) the
aggregate amount of all late fees assessed on the Private Label Accounts during
such preceding Fiscal Quarter. If the Late Fee Reversal Percentage solely with
respect to the Private Label Accounts for such Fiscal Quarter is less than the
applicable Low Collar, Bank shall pay the FDS Companies an amount equal to (A)
the applicable Low Collar minus the Late Fee Reversal Percentage solely with
respect to the Private Label Accounts, multiplied by (B) the aggregate amount of
all late fees assessed on the Private Label Accounts during such preceding
Fiscal Quarter calculated on a sum of cycles basis of reporting monthly
receivables under the Private Label Accounts.

                  (ii) General Purpose Accounts. If the Late Fee Reversal
Percentage solely with respect to the General Purpose Accounts reflected in the
Quarterly Settlement Sheet with respect to the preceding Fiscal Quarter is
greater than the applicable High Collar, the FDS Companies shall pay Bank an
amount equal to (A) the Late Fee Reversal Percentage solely with respect to the
General Purpose Accounts minus the applicable High Collar, multiplied by (B) the

                                       34
<PAGE>

aggregate amount of all late fees assessed on the General Purpose Accounts
during such preceding Fiscal Quarter. If the Late Fee Reversal Percentage solely
with respect to the General Purpose Accounts for such Fiscal Quarter is less
than the applicable Low Collar, Bank shall pay the FDS Companies an amount equal
to (A) the applicable Low Collar minus the Late Fee Reversal Percentage solely
with respect to the General Purpose Accounts, multiplied by (B) the aggregate
amount of all late fees assessed on the General Purpose Accounts during such
preceding Fiscal Quarter calculated on a sum of cycles basis of reporting
monthly receivables under the General Purpose Accounts.

      (d) Adjustments. Prior to the Third Closing Date, the Parties shall
negotiate in good faith to adjust Sections 4.9(b) and (c) (including the High
Collars and the Low Collars) to appropriately reflect the impact of the addition
of the May Accounts to the Program. No such negotiations shall be deemed to
constitute an attempt to renegotiate the May Purchase Price under the Purchase
Agreement or otherwise affect the Parties rights thereunder.

            4.10 Sales Taxes. FDS and its Subsidiaries shall remit when due any
sales taxes relating to the sale of FDS Goods and Services that have been
charged to an Account. Unless the FDS Servicer has access to such information in
connection with its services hereunder, Bank shall provide the FDS Companies on
a monthly basis (based upon Fiscal Months) with a detailed description of all
Net FDS Write-offs and shall sign such forms and provide any such other
information as requested by FDS to enable FDS and its Subsidiaries to recover
any Sales Tax Refunds. Except as expressly provided in this Section 4.10, Bank
acknowledges and agrees that it shall not, directly or indirectly, seek to claim
or recover any amount by way of a Sales Tax Refund. Bank agrees that, to the
extent the laws of any jurisdiction would permit Bank or any of its Affiliates
to elect or designate the party entitled to receive Sales Tax Refunds, Bank
shall, and shall cause its Affiliates to, take all steps necessary to enable and
permit FDS or any of its appropriate Affiliates to elect to receive the Sales
Tax Refunds. Further, Bank agrees that, to the extent the Applicable Law of any
jurisdiction would permit Bank or any of its Affiliates, but not the FDS
Companies or any of their Affiliates, to receive Sales Tax Refunds, Bank shall,
and shall cause its Affiliates to, take all steps necessary to receive the Sales
Tax Refunds, except to the extent that taking any such steps would reasonably be
likely to create any tax obligation or liability of Bank or its Affiliates.
Whenever Bank or any of its Affiliates are applying for Sales Tax Refunds in
accordance with the preceding sentence, (a) Bank shall promptly notify FDS of
the application for Sales Tax Refunds, and (b) FDS and its Subsidiaries shall
provide such information reasonably requested by Bank to enable Bank, or any of
its Affiliates, to recover any such Sales Tax Refunds. FDS shall pay to Bank an
amount equal to Sales Tax Refunds received by FDS and its Subsidiaries, net of
an amount equal to the FDS Companies' reasonable out-of-pocket costs incurred in
connection with obtaining such Sales Tax Refunds (it being understood that if
the reasonable out-of-pocket costs incurred by the FDS Companies or any of their
Affiliates to obtain such Sales Tax Refunds exceeds the amount of Sales Tax
Refunds actually obtained, then any such excess amounts shall be treated as
Program Expenses). All Sales Tax Refunds received by Bank or any of its
Affiliates shall be treated as income of the Program. In the event FDS or any of
its Subsidiaries is audited or assessed by a taxing authority, and as a result
any Sales Tax Refunds, or any interest or penalties with respect thereto, is
repaid to such taxing authority, Bank shall repay such amount to FDS, and such
amount shall be treated as a reduction of Program income in the next Monthly
Settlement Sheet for the Program. Bank and its Affiliates also shall fully
cooperate in any such audit or assessment.

                                       35
<PAGE>

                                    ARTICLE V

                                    MARKETING

            5.1 Promotion of Program. In accordance with the Marketing Plan,
Bank and the FDS Companies shall cooperate with each other and actively support
and promote the Program to both existing and potential Cardholders.

            5.2 Marketing Commitment.

      (a) The FDS Marketing Commitment shall be used by FDS and its Affiliates
in accordance with the Marketing Plan for any of the following marketing
purposes:

                  (i)   new Credit Card Applications;

                  (ii)  POS brochures;

                  (iii) new Account membership kits;

                  (iv)  the allocated costs incurred by the FDS Servicer for its
                        use of FedCustomer;

                  (v)   FDS division incentive programs (other than special
                        promotion incentive funds ("SPIFs") paid to sales
                        associates, which shall be paid from amounts reimbursed
                        pursuant to Schedule 9.3(a));

                  (vi)  solicitations to Private Label Credit Card Cardholders
                        offering Co-Branded Credit Cards;

                  (vii) Inserts, to the extent designed to stimulate usage of
                        FDS Credit Cards;

                  (viii) loyalty program testing; and

                  (ix)  other marketing activities of the type performed by FACS
                        prior to the Effective Date.

      (b) Each Monthly Settlement Sheet shall set forth an accounting of the
costs incurred, if any, by FDS and its Affiliates in the prior Fiscal Month
which may be paid out of the FDS Marketing Commitment and Bank shall (i)
reimburse the FDS Companies from the FDS Marketing Commitment for such amounts
as provided in Section 9.3 (or, in the event Bank or any other third party
conducts any of the above-referenced activities or provides any of the
above-referenced services at the request of FDS Bank, upon request of FDS Bank
shall retain or pay to the applicable third party the amounts payable in respect
of such activities or products) and (ii) reduce the amount remaining in the FDS
Marketing Commitment by the amount so reimbursed, retained or paid. To the
extent that the expenditures of the FDS Marketing Commitment by FDS and its
Affiliates in any Fiscal Year exceed the amount in the FDS Marketing Commitment,
the FDS Companies shall be entitled to reimbursement from the FDS Marketing
Commitment for the following Fiscal Year of such expenditures to the extent they
do

                                       36
<PAGE>

not exceed (in the aggregate) ten percent (10%) of the Marketing Commitment for
the following Fiscal Year (without Operating Committee approval). Any amount in
the FDS Marketing Commitment for a given Fiscal Year that is not spent in that
Fiscal Year, at the direction of the Operating Committee, either (i) shall
remain available for use during the Term; or (ii) if the Operating Committee
determines that such amount shall not be used for the Program, shall be included
as income in the calculation of Pre-Tax Profit in the next Year-End Settlement
Sheet prepared following such determination.

      (c) The Additional Marketing Commitment shall be used as set forth in the
Marketing Plan and as otherwise directed by the Operating Committee from time to
time. The FDS Companies and Bank shall each provide to the other for inclusion
in the Monthly Settlement Sheet, an accounting of such Party's and its
Affiliates' use of the Additional Marketing Commitment in the prior Fiscal
Month, and Bank shall reimburse the FDS Companies for such amounts used by FDS
and its Affiliates, and shall reduce the amount remaining in the Additional
Marketing Commitment by the amounts used by Bank and its Affiliates. Any amount
in the Additional Marketing Commitment for a given Fiscal Year that is not spent
in that Fiscal Year, at the direction of the Operating Committee, either (i)
shall remain available for use during the Term or (ii) if the Operating
Committee determines that such amount shall not be used for the Program, shall
be included as income in the calculation of Pre-Tax Profit in the next Year-End
Settlement Sheet prepared following such determination.

      (d) Except as otherwise provided in Section 5.2(b), any proposed
expenditure in excess of the remaining FDS Marketing Commitment for any Fiscal
Year or in excess of the Additional Marketing Commitment for any Fiscal Year
shall require the prior approval of the Operating Committee (which at the time
of granting any such approval shall approve the treatment of such excess
expenditures).

      (e) For the avoidance of doubt, neither the FDS Marketing Commitment nor
(except as otherwise expressly provided in Section 5.4) the Additional Marketing
Commitment shall be used to fund the activities described in Section 5.4 or any
other marketing initiatives approved by the Operating Committee pursuant to a
Marketing Plan that allocates such costs to Bank.

            5.3 Communications with Cardholders.

      (a) FDS Inserts. FDS and its Affiliates shall have the exclusive right to
communicate with Cardholders, except for any Legally Required Communication,
through use of inserts, fillers and bangtails (which shall be included on all
billing envelopes) (collectively, "Inserts"), including Inserts selectively
targeted for particular classes of Cardholders, in any and all Billing
Statements (including electronic Billing Statements) and envelopes, subject to
production requirements contained in the Operating Procedures and Applicable
Law. Except as otherwise provided in the Marketing Plan, and except for Inserts
required by Applicable Law (which shall be paid for by Bank and shall be deemed
Program Expenses, except to the extent otherwise provided in Section 11.4(g)),
the FDS Companies shall be responsible for the content of, and the cost of
preparing and printing, any such Inserts (provided that in the case of
"bangtails" such costs shall be limited to the direct costs (without any
overhead allocation) incurred by Bank in producing such bangtails). Subject to
Section 11.4(g), if the insertion of Inserts in particular Billing Statements
would increase the postage costs for such Billing Statements, the FDS

                                       37
<PAGE>

Companies agree to either pay for the incremental postage cost or prioritize the
use of Inserts to avoid postage cost over-runs. The FDS Companies shall retain
all revenues they receive from all Inserts (other than any Inserts promoting the
FDS Credit Cards or Approved Ancillary Products that the FDS Companies may
permit to be produced and distributed in accordance with the Marketing Plan).

      (b) Billing Statement Messages. FDS and its Affiliates shall have the
exclusive right to use Billing Statement (including electronic Billing
Statement) messages and Billing Statement envelope (or electronic mail) messages
in each Billing Cycle to communicate with Cardholders, subject to production
requirements contained in the Operating Procedures and Applicable Law. Such
messages shall be included at no cost to the FDS Companies. Notwithstanding the
foregoing, subject to Section 11.4(g), any message required by Applicable Law
shall take precedence over FDS's and its Affiliates' messages.

            5.4 Additional Marketing Support.

      (a) Upon the reasonable request of FDS from time to time, Bank shall
perform or cause the performance of the marketing functions set forth on
Schedule 5.4(a) at no cost or expense to the FDS Companies (and the cost and
expense of performing such functions shall not constitute Program Expenses);
provided, however, that, notwithstanding the foregoing, the FDS Companies shall
be responsible for all out-of-pocket third party costs and expenses relating to
the production of marketing materials and mailing services (which costs and
expenses the FDS Companies may fund from amounts in the Additional Marketing
Commitment).

      (b) Following the Effective Date, upon FDS's request, Bank shall retain a
mutually agreed upon third party to conduct surveys of Cardholder perception and
satisfaction on a regular, periodic basis consistent with the practices of the
FDS Companies prior to the Effective Date but in no event less frequently than
annually (it being understood that the costs associated with the preparation of
such surveys shall be treated as paid from the Additional Marketing Commitment).
Such surveys shall be in a form and employ methodologies developed in
consultation with the FDS Companies and shall provide for a level of information
that is at a minimum substantially similar to the information gathered by the
FDS Companies prior to the Effective Date. Bank shall make available to the FDS
Companies the results of such surveys as well as all associated work papers
promptly following completion thereof.

            5.5 Ancillary Products. Except for the Approved Ancillary Products
and the FDS Credit Cards, Bank and its Affiliates shall not offer (except as
directed by the FDS Companies) any goods or services (including any Ancillary
Products) to Cardholders or through the Program. Bank may from time to time
propose to the Operating Committee that Bank be permitted to solicit through
mailings, Billing Statements, Inserts, telemarketing or otherwise, any or all
Cardholders for a specific Ancillary Product. If the Operating Committee agrees
to permit such solicitations, such solicitations shall be permitted on the terms
set by the Operating Committee and the Parties shall be compensated as set forth
in Article IX hereof.

            5.6 Marketing Plan.

                                       38
<PAGE>

      (a) On an annual basis, the FDS Companies shall develop, in consultation
with Bank, a marketing plan for the Program that outlines the objectives,
strategies and general tactics for marketing the Program for the applicable
Fiscal Year (the "Marketing Plan"). In addition, each Marketing Plan shall (i)
include a budget and indicate the anticipated source of funds for each budgeted
item and (ii) outline marketing responsibilities of the Parties. The initial
Marketing Plan to be in effect as of the Effective Date and until January 28,
2006 is attached hereto as Schedule 5.6.

      (b) FDS shall submit the Marketing Plan for each Fiscal Year to the
Operating Committee at least thirty (30) days prior to beginning of the Fiscal
Year to which such Marketing Plan relates. FDS shall have the right to change an
approved Marketing Plan in its sole discretion; provided that any material
modification to an approved Marketing Plan shall require the approval of the
Operating Committee.

                                   ARTICLE VI

                             CARDHOLDER INFORMATION

            6.1 Customer Information.

      (a) All sharing, use and disclosure of Cardholder Data and FDS Shopper
Data under this Agreement shall be subject to the provisions of this Article VI.
The Parties acknowledge that the same or similar information may be contained in
the Cardholder Data, the FDS Shopper Data, and other data and that each such
pool of data shall therefore be considered separate information subject to the
specific provisions applicable to that data hereunder.

      (b) Each Party to the extent it possesses Cardholder Data, and Bank to the
extent it possesses FDS Shopper Data, shall maintain an information security
program that is designed to meet the objectives of the Interagency Guidelines
Establishing Information Security Standards as issued by the Office of the
Comptroller of the Currency in the OCC Bulletin, OCC 2005-13 (12 C.F.R Section
30) and by the Office of Thrift Supervision (12 C.F.R. Section 570, Appendix B)
(collectively, the "Guidelines"), including, at a minimum, maintenance of an
information security program that is designed to: (i) ensure the security and
confidentiality of the Cardholder Data and the FDS Shopper Data; (ii) protect
against any anticipated threats or hazards to the security or integrity of the
Cardholder Data and the FDS Shopper Data; (iii) protect against unauthorized
access to or modification, destruction, disclosure or use of the Cardholder Data
and the FDS Shopper Data; and (iv) ensure the proper disposal of Cardholder Data
and FDS Shopper Data. Additionally, such security measures shall meet current
industry standards and shall be at least as protective as those used by each
Party to protect its other confidential customer information. Each Party shall
use the same degree of care in protecting the Cardholder Data and the FDS
Shopper Data against unauthorized disclosure as it accords to its own
confidential customer information, but in no event less than a reasonable
standard of care. In particular, Bank shall treat FDS Shopper Data as if it were
"customer information" for purposes of the regulations above. In the event a
Party becomes aware of any unauthorized use, modification, destruction or
disclosure of, or access to, Cardholder Data, such Party shall immediately
notify the other Party and shall cooperate with the other Party, as they deem
necessary or as required by Applicable Law, (x) to assess the nature and scope
of such incident, (y) to contain and control such incident to prevent further

                                       39
<PAGE>

unauthorized access to or use of Cardholder Data, and (z) to provide prompt
notice to affected Cardholders. In the event Bank becomes aware of any
unauthorized use, modification, destruction or disclosure of, or access to, FDS
Shopper Data, Bank shall immediately notify the FDS Companies and shall
cooperate with them, as they deem necessary or as required by Applicable Law,
(x) to assess the nature and scope of such incident, (y) to contain and control
such incident to prevent further unauthorized access to or use of FDS Shopper
Data, and (z) to provide prompt notice to affected FDS Shoppers. The cost and
expenses of any such notice shall be borne solely by the Party that experienced
the unauthorized use, modification, destruction or disclosure of, or access to,
Cardholder Data or FDS Shopper Data and such costs and expenses shall not be
Program Expenses.

      (c) The Parties agree that for all purposes of Applicable Law relevant to
the sharing, use and disclosure of Cardholder Data and FDS Shopper Data pursuant
to this Article VI, FDS and its Subsidiaries shall each be considered
"affiliates" of CEBA Bank as such term is used in the Gramm-Leach-Bliley Act,
the Fair Credit Reporting Act, any similar provision of state law and any
implementing regulations adopted thereunder (it being understood that nothing in
this Agreement shall constitute FDS and its Subsidiaries, on the one hand, and
Citibank, N.A., on the other hand, Affiliates of each other for such purposes).

            6.2 Cardholder Data.

      (a) As among the Parties hereto, the Cardholder Data shall be the property
of and exclusively owned by CEBA Bank.

      (b) The privacy notice provided to Cardholders pursuant to the
Gramm-Leach-Bliley Act constituting part of the Program Privacy Policy shall be
in the form attached hereto as Schedule 6.2(b). Any changes to such privacy
notice or to the Program Privacy Policy described therein shall be made only in
accordance with Article III.

      (c) Bank shall not use, or permit to be used, the Cardholder Data, except
as provided in this Section 6.2. Bank may use the Cardholder Data in compliance
with Applicable Law and the Program Privacy Policy solely (i) for purposes of
soliciting, marketing or servicing (in each case, solely as directed by the FDS
Companies or the Operating Committee) customers listed in the Cardholder Data
for FDS Credit Cards, Approved Ancillary Products, and any other products and
services approved by the Operating Committee, (ii) as otherwise necessary to
carry out its obligations or exercise its rights hereunder (including its rights
to use such information as contemplated by Section 16.4), or (iii) as required
by Applicable Law. Bank has no rights to use the Cardholder Data for marketing
purposes except as expressly provided herein.

      (d) Bank shall not disclose, or permit to be disclosed, the Cardholder
Data, except as provided in this Section 6.2. Bank shall not, directly or
indirectly, sell or otherwise transfer any right in or to the Cardholder Data
other than to FDS or any of its Affiliates or to a Nominated Purchaser pursuant
to Section 16.2. Bank may disclose the Cardholder Data in compliance with
Applicable Law and the Program Privacy Policy solely:

                  (i) to its authorized subcontractors in connection with a
permitted use of such Cardholder Data under this Section 6.2, provided that each
such authorized subcontractor agrees

                                       40
<PAGE>

in writing to maintain all such Cardholder Data as strictly confidential in
perpetuity and not to use or disclose such information to any Person other than
Bank or an FDS Company, except as required by Applicable Law or any Governmental
Authority (after giving Bank and the FDS Companies prior notice and an
opportunity to defend against such disclosure); provided, further, that each
such authorized subcontractor maintains, and agrees in writing to maintain, an
information security program that is designed to meet the objectives of the
Guidelines, including, at a minimum, maintenance of an information security
program that is designed to: (w) ensure the security and confidentiality of the
Cardholder Data; (x) protect against any anticipated threats or hazards to the
security or integrity of the Cardholder Data; (y) protect against unauthorized
access to or modification, destruction, disclosure or use of the Cardholder
Data; and (z) ensure the proper disposal of Cardholder Data; and provided,
further, that each such authorized subcontractor agrees to notify promptly Bank
and the FDS Companies of any unauthorized disclosure, use, or disposal of, or
access to, Cardholder Data and to cooperate with Bank and the FDS Companies in
any investigation thereof and remedial action with respect thereto;

                  (ii) to its Affiliates, and its and such Affiliates'
employees, attorneys and accountants with a need to know such Cardholder Data in
connection with a permitted use of such Cardholder Data under this Section 6.2;
provided that (A) any such Person is bound by terms substantially similar to
this Section 6.2 as a condition of employment or of access to Cardholder Data or
by professional obligations imposing comparable terms; and (B) Bank shall be
responsible for the compliance by each such Person with the terms of this
Section 6.2; or

                  (iii) to any Governmental Authority with authority over Bank
(A) in connection with an examination of Bank; or (B) pursuant to a specific
requirement to provide such Cardholder Data by such Governmental Authority or
pursuant to compulsory legal process; provided that Bank seeks the full
protection of confidential treatment for any disclosed Cardholder Data to the
extent available under Applicable Law governing such disclosure, and with
respect to clause (B), to the extent permitted by Applicable Law, Bank (1)
provides at least ten (10) Business Days' prior notice of such proposed
disclosure to FDS if reasonably possible under the circumstances, and (2) seeks
to redact the Cardholder Data to the fullest extent possible under Applicable
Law governing such disclosure; or

                  (iv) to any consumer reporting agency in accordance with the
federal Fair Credit Reporting Act.

      (e) Subject to Applicable Law and the Program Privacy Policy, Bank shall
transmit to the FDS Companies on a real-time basis throughout each day by a
secure data feed into FDS Systems designated by FDS from time to time, in
formats agreed to by the Parties in advance from time to time:

                  (i) for any customer who has applied for an FDS Credit Card,
regardless of the marketing channel of such application: (A) the customer's
name, address, email address, telephone number, social security number and all
other information supplied on the application or prescreened response submitted
by the customer; (B) an indication of whether or not the customer has been
approved for an FDS Credit Card; and (C) if the customer has been approved for
an FDS Credit Card, the FDS Credit Card issued (or to be issued) to such
customer (i.e., specify the type of FDS Credit Card and the FDS Licensed Mark to
be used on such FDS Credit Card);

                                       41
<PAGE>

                  (ii) for each Cardholder, joint-Cardholder and authorized
buyer, (A) such person's name, address, email address, telephone number, social
security number and Account number; (B) any reported change to any of the
foregoing information; (C) transaction and experience data; and (D) any such
other Cardholder Data as the FDS Companies may reasonably request;

                  (iii) the Cardholder's name and account number for any Account
that is delinquent;

                  (iv) the Cardholder's name and account number for any Account
that has been closed; and

                  (v) the Cardholder Data for all categories of information
available on the FDS Companies' credit Systems as of the date hereof.

      (f) Subject to Applicable Law and the Program Privacy Policy, Bank shall
transmit by a secure data feed into FedCustomer (or other FDS Systems designated
by FDS from time to time), in a format agreed to by the Parties, on an as billed
basis, all information contained in the Billing Statements and all other
Cardholder Data for all categories of information available on FedCustomer as of
the date hereof (including, for each Cardholder, joint-Cardholder and authorized
buyer, name, address, email address, telephone number, information as to
creditworthiness and changes to any of the foregoing information).

      (g) Bank shall reasonably cooperate with the FDS Companies to provide FDS
and its Affiliates with the maximum ability permissible under Applicable Law and
the Program Privacy Policy to receive, use and disclose the Cardholder Data,
including, as reasonably necessary or appropriate, through use of consents,
opt-in provisions or opt-out provisions, in each case as directed by the FDS
Companies. Without limiting the foregoing, FDS and each of its Affiliates may
receive, use and disclose the Cardholder Data in compliance with Applicable Law
and the Program Privacy Policy (i) for purposes of promoting the Program or
promoting FDS Goods and Services, (ii) as otherwise necessary to carry out its
obligations under this Agreement, and (iii) as otherwise permitted by Applicable
Law.

      (h) The FDS Companies may use the Cardholder Data in compliance with
Applicable Law and the Program Privacy Policy. Each of the FDS Companies may
disclose the Cardholder Data in compliance with Applicable Law and the Program
Privacy Policy solely:

                  (i) to its existing subcontractors as of the Effective Date
and to authorized subcontractors that enter into agreements with an FDS Company
after the Effective Date ("Future Subcontractors") in connection with a
permitted use of such Cardholder Data under this Section 6.2, provided that each
such Future Subcontractor agrees in writing to maintain all such Cardholder Data
as strictly confidential in perpetuity and not to use or disclose such
information to any Person other than an FDS Company or Bank, except as required
by Applicable Law or any Governmental Authority (after giving the FDS Companies
prior notice and an opportunity to defend against such disclosure); provided,
further, that each such Future Subcontractor maintains, and agrees in writing to
maintain, an information security program that is designed to

                                       42
<PAGE>

meet the objectives of the Guidelines, including, at a minimum, maintenance of
an information security program that is designed to: (w) ensure the security and
confidentiality of the Cardholder Data; (x) protect against any anticipated
threats or hazards to the security or integrity of the Cardholder Data; (y)
protect against unauthorized access to or modification, destruction, disclosure
or use of the Cardholder Data; and (z) ensure the proper disposal of Cardholder
Data; and provided, further, that each such Future Subcontractor agrees to
notify promptly Bank and the FDS Companies of any unauthorized disclosure, use,
or disposal of, or access to, Cardholder Data and to cooperate with Bank and the
FDS Companies in any investigation thereof and remedial action with respect
thereto;

                  (ii) to its Affiliates, and its and such Affiliates'
employees, attorneys and accountants with a need to know such Cardholder Data in
connection with a permitted use of such Cardholder Data under this Section 6.2;
provided that (A) any such Person is bound by terms substantially similar to
this Section 6.2 as a condition of employment or of access to Cardholder Data or
by professional obligations imposing comparable terms; and (B) the FDS Companies
shall be responsible for the compliance by each such Person with the terms of
this Section 6.2; or

                  (iii) to any Governmental Authority with authority over such
FDS Company (A) in connection with an examination of such FDS Company; or (B)
pursuant to a specific requirement to provide such Cardholder Data by such
Governmental Authority or pursuant to compulsory legal process; provided that
such FDS Company seeks the full protection of confidential treatment for any
disclosed Cardholder Data to the extent available under Applicable Law governing
such disclosure, and with respect to clause (B), to the extent permitted by
Applicable Law, such FDS Company (1) provides at least ten (10) Business Days'
prior notice of such proposed disclosure to Bank if reasonably possible under
the circumstances, and (2) seeks to redact the Cardholder Data to the fullest
extent possible under Applicable Law governing such disclosure.

      (i) With respect to the sharing, use and disclosure of the Cardholder Data
following the termination of this Agreement:

                  (i) the rights and obligations of the Parties under this
Section 6.2 shall continue through any Termination Period;

                  (ii) if FDS exercises its rights under Section 16.2, Bank
shall transfer its right, title and interest in the Cardholder Data to FDS or
its Nominated Purchaser as part of such transaction, and Bank's right to use and
disclose the Cardholder Data shall terminate upon the termination of the
Termination Period; and

                  (iii) if FDS provides notice that it shall not exercise its
rights under Section 16.2, FDS and its Affiliates' right to use and disclose the
Cardholder Data hereunder shall terminate upon the termination of the
Termination Period.

            6.3   FDS Shopper Data; FDS Prospect List.

      (a) Bank acknowledges that the FDS Companies gather information about
purchasers of FDS Goods and Services and that FDS and its Affiliates have rights
to use and disclose such

                                       43
<PAGE>

information independent of whether such information also constitutes Cardholder
Data. FDS acknowledges that Bank gathers information independent of the Program
and that Bank and its Affiliates shall not be subject to any limitations in
respect of their right to use and disclose such information notwithstanding that
such information may be the same as any information included in the Cardholder
Data or the FDS Shopper Data. Bank shall reasonably cooperate in the maintenance
of the FDS Shopper Data and other data, including by incorporating in the Credit
Card Application and Credit Card Agreement provisions mutually agreed to by the
Parties pursuant to which applicants and Cardholders shall agree that they are
providing their identifying information (including name, address, telephone
number, email address and social security number) and all updates thereto to
both Bank and FDS and its Affiliates. To the extent any Bank is the direct
recipient of such data, it shall provide such data to the FDS Companies in such
format and at such times as shall be agreed upon by the Operating Committee. As
between the FDS Companies and Bank, all the FDS Shopper Data shall be owned
exclusively by the FDS Companies. Bank acknowledges and agrees that it has no
proprietary interest in the FDS Shopper Data.

      (b) Subject to compliance with Applicable Law, FDS's privacy policies, the
Marketing Plan and such criteria (including format) as may be mutually agreed to
from time to time, the FDS Companies shall make available to Bank, free of
charge, a list of customers of FDS and its Subsidiaries who the FDS Companies
have determined are available to be solicited for Accounts under the Program
(the "FDS Prospect List"). As between the FDS Companies and Bank, the FDS
Prospect List shall be owned exclusively by the FDS Companies. Bank acknowledges
it has no proprietary interest in the FDS Prospect List.

      (c) Bank shall not use, or permit to be used, directly or indirectly, the
FDS Shopper Data, except to transfer such data to the FDS Companies to the
extent received by Bank. Bank shall not use, or permit to be used, the FDS
Prospect List except as provided in this Section 6.3(c). Bank may use the FDS
Prospect List in compliance with Applicable Law solely for purposes of
soliciting customers listed in the FDS Prospect List for Accounts or as required
by Applicable Law.

      (d) Bank shall not disclose, or permit to be disclosed, the FDS Shopper
Data or the FDS Prospect List, except as provided in this Section 6.3. Bank
shall not, directly or indirectly, sell or otherwise transfer any right in or to
the FDS Shopper Data or the FDS Prospect List (all such rights belonging
exclusively to the FDS Companies). Bank may disclose the FDS Shopper Data and
the FDS Prospect List in compliance with Applicable Law solely:

                  (i) to its authorized subcontractors in connection with a
permitted use of such FDS Shopper Data or FDS Prospect List under this Section
6.3, provided that each such authorized subcontractor agrees in writing to
maintain all such FDS Shopper Data or FDS Prospect List as strictly confidential
in perpetuity and not to use or disclose such information to any Person other
than a Bank or an FDS Company, except as required by Applicable Law or any
Governmental Authority (after giving Bank and the FDS Companies prior notice and
an opportunity to defend against such disclosure); provided, further, that each
such authorized subcontractor maintains, and agrees in writing to maintain, an
information security program that is designed to meet the objectives of the
Guidelines, including, at a minimum, maintenance of an information security
program that is designed to: (w) ensure the security and confidentiality of

                                       44
<PAGE>

the FDS Shopper Data and FDS Prospect List; (x) protect against any anticipated
threats or hazards to the security or integrity of the FDS Shopper Data and FDS
Prospect List; (y) protect against unauthorized access to or modification,
destruction, disclosure or use of the FDS Shopper Data and FDS Prospect List;
and (z) ensure the proper disposal of FDS Shopper Data and FDS Prospect List;
and provided, further, that each such authorized subcontractor agrees to notify
promptly Bank and the FDS Companies of any unauthorized disclosure, use, or
disposal of, or access to, FDS Shopper Data or FDS Prospect List and to
cooperate with Bank and the FDS Companies in any investigation thereof and
remedial action with respect thereto;

                  (ii) to its Affiliates, and its and such Affiliates'
employees, attorneys and accountants, with a need to know the FDS Shopper Data
or FDS Prospect List in connection with a permitted use of the FDS Shopper Data
or FDS Prospect List under this Section 6.3; provided that (A) any such Person
is bound by terms substantially similar to this Section 6.3 as a condition of
employment, of access to the FDS Shopper Data or FDS Prospect List or by
professional obligations imposing comparable terms; and (B) Bank shall be
responsible for the compliance by each such Person with the terms of this
Section 6.3; or

                  (iii) to any Governmental Authority with authority over such
Bank (A) in connection with an examination of such Bank; or (B) pursuant to a
specific requirement to provide the FDS Shopper Data or FDS Prospect List by
such Governmental Authority or pursuant to compulsory legal process; provided
that Bank seeks the full protection of confidential treatment for any disclosed
FDS Shopper Data or FDS Prospect List, as the case may be, to the extent
available under Applicable Law governing such disclosure, and with respect to
clause (B), to the extent permitted by Applicable Law, Bank (1) provides at
least ten (10) Business Days' prior notice of such proposed disclosure to FDS if
reasonably possible under the circumstances, and (2) seeks to redact the FDS
Shopper Data or FDS Prospect List to the fullest extent possible under
Applicable Law governing such disclosure.

      (e) Upon the termination of this Agreement, Bank's right to use and
disclose the FDS Shopper Data and FDS Prospect List shall terminate. Promptly
following such termination, Bank shall return or destroy all the FDS Shopper
Data and FDS Prospect Lists and shall certify such return or destruction to the
FDS Companies upon request.

                                   ARTICLE VII

                               OPERATING STANDARDS

            7.1 Reports. Each of Bank and the FDS Servicer shall provide to the
Operating Committee and the other Party such reports as are mutually agreed to
by the Parties from time to time and on the time schedule for delivery of such
reports as shall be agreed by the Parties prior to the Effective Date. Unless
otherwise required by FDS, all such reports shall be prepared on a Fiscal-Year
reporting basis; provided, however, that the FDS Companies shall cooperate with
Bank to provide such supplemental reporting as is reasonably necessary to
accommodate Bank's calendar-basis reporting needs.

            7.2 Servicing; Interim Servicing; Transition of Services at the
Election of the FDS Companies.

                                       45
<PAGE>

      (a) The FDS Companies shall perform the applicable servicing functions
referenced in Section 4.2 in accordance with the terms and conditions of this
Agreement, including the SLAs set forth in Schedule 7.3 (as such standards may
be amended from time to time by the Operating Committee). Bank shall perform the
applicable servicing functions referenced in Section 4.3 in accordance with the
terms and conditions of this Agreement, including the SLAs established with
respect thereto in accordance with Section 7.3 hereof (as such standards may be
amended from time to time by the Operating Committee). Without limiting the
foregoing, each of the FDS Companies and Bank shall service the Accounts in
compliance with Applicable Law and with no less care and diligence than the
degree of care and diligence employed by the FDS Companies prior to the
Effective Date.

      (b) Commencing on the Effective Date and ending on such date or dates as
the Parties shall mutually agree to transfer one or more of the Interim Services
to Bank, the FDS Companies shall perform the Interim Services in accordance with
the foregoing requirements and the requirements of Section 7.3. At any time
after the Effective Date, Bank may, upon mutual agreement of the Parties,
commence performing any or all of the Interim Services in accordance with an
appropriate and agreed upon transition plan.

      (c) At any time following the first anniversary of the Effective Date,
upon not less than ninety (90) days' prior written notice by FDS (or one hundred
eighty (180) days' prior written notice if the Systems Transition Date has not
yet occurred at the time of such notice), the FDS Companies shall be entitled to
elect to transfer substantially all of the services then being performed by the
FDS Companies pursuant to Section 4.2(a) to Bank (any such transfer, a "Total
Servicing Transfer") if the Parties have substantially completed reasonable
joint transition planning prior to the giving of such notice (or an additional
ninety (90) days notice if the Parties have not substantially completed such
planning; provided that the Parties shall cooperate to complete such planning
within such ninety (90) day period). Following such Total Servicing Transfer,
Bank shall be obligated to provide all such services in accordance with the
terms of this Agreement and the FDS Companies shall thereafter be relieved of
all obligations under this Article VII. Notwithstanding the foregoing, Bank
shall not be obligated to undertake a Total Servicing Transfer until the System
Transition Date has occurred. Upon any such Total Servicing Transfer, the
payments made pursuant to Article IX shall be adjusted as set forth therein to
take account of such Total Servicing Transfer.

      (d) Without limiting the foregoing provisions of this Section 7.2, upon
mutual agreement of the Parties from time to time following the Effective Date,
the Parties may agree to transfer services on an individual basis at such times
and upon such terms as the Parties may agree (such transition time, with respect
to each individual Interim Service, the "Services Transition Date").

            7.3 Service Level Standards.

      (a) Within fifteen (15) days after the end of each Fiscal Month, the FDS
Companies shall report to Bank, in a mutually agreed upon format, the FDS
Companies' performance under each of the SLAs set forth on Schedule 7.3 during
such Fiscal Month (it being understood that the measurement period to determine
compliance with any SLA may exceed one Fiscal Month).

                                       46
<PAGE>

      (b) The FDS Companies shall comply with SLAs set forth in Schedule 7.3;
provided that that such SLAs shall be amended from time to time to establish new
SLAs and modify existing SLAs, in each case, as deemed appropriate by and with
the approval of the Operating Committee for any reason, including (i) completion
of the System conversion described in Section 7.4(a); (ii) changes in the
Program; (iii) changes in industry-wide performance expectations with respect to
any SLA; and (iv) change in Applicable Law.

      (c) Without limiting the foregoing, prior to transitioning any service to
Bank in accordance with the terms of this Agreement, whether pursuant to (i) an
election by the FDS Companies, (ii) the cessation of any interim service being
performed by the FDS Companies pursuant to Section 7.2(b) or (iii) a termination
of any service upon an SLA breach permitting such termination of service as set
forth in Schedule 7.3, the Operating Committee shall establish SLAs to be
performed by Bank with respect to such transferred service, which new SLAs shall
be deemed automatically applicable to Bank with respect to Bank's performance of
such transferred services and which new SLAs shall provide for at least the
minimum SLA standards provided for in Schedule 7.3 with respect to such service
and/or such other higher SLA standards as are appropriate to reflect the service
levels provided by Bank to other partner portfolios of a size, nature and
customer base similar to the Program and consistent with current industry
practices. Upon the transition of any service to Bank for which an SLA is
applicable, Bank shall be obligated to deliver to the FDS Companies the reports
described in Section 7.3 with respect to such SLAs within fifteen (15) days
after the end of each Fiscal Month (and FDS's obligation to deliver such reports
with respect to such services shall terminate).

      (d) Notwithstanding anything to the contrary contained in Schedule 7.3,
once a service is transferred to Bank pursuant to the terms of this Agreement,
thereafter, the FDS Companies shall no longer be obligated to perform such
services and shall not be obligated to assume responsibilities for such services
for any reasons. Accordingly, upon the occurrence of any SLA failure by Bank
that would have otherwise resulted in a requirement to transfer services to Bank
had the FDS Companies been the Party providing such services, then, (i) the FDS
Companies shall have the option to transition the service subject to the SLA
failure from Bank back to the FDS Companies or an alternate service provider in
accordance with Schedule 7.3 or (ii) if they elect not to transition such
services, such SLA failure shall be deemed an Event of Default by Bank pursuant
to Section 14.2(f) and FDS shall be entitled to exercise its termination rights
pursuant to Section 15.2 in respect of such Event of Default.

      (e) Each Party providing services hereunder shall maintain in effect
during the Term a disaster recovery and business continuity plan that complies
with Applicable Law and that is designed to ensure that Systems availability is
consistent with the standards specified in Schedule 7.3. Each Party shall be
prepared to and have the ability to implement such plan if necessary. Each Party
shall provide the other with access to review such plan upon request. Each Party
shall test its plan annually and shall promptly implement such plan upon the
occurrence of a disaster or business interruption.

      (f) Bank shall be excused from its failure to meet any applicable SLAs to
the extent that such failure results from the FDS Systems or any acts or
omissions of the FDS Companies. The FDS Companies shall be excused from their
failure to meet any applicable SLAs to the extent that any such failure results
from Bank's Systems or any acts or omissions of Bank.

                                       47
<PAGE>

            7.4 Credit Systems.

      (a) Subject to clause (b) of this Section 7.4, the master file of Accounts
and all other Cardholder Data and other Program credit data shall remain on the
FDS Systems for a minimum of one year after the Effective Date. Bank and the FDS
Companies shall work together (including through a subcommittee of the Operating
Committee formed for this purpose) to develop a mutually agreeable Systems
conversion plan designed to convert such data to Bank Systems. Subject to the
satisfaction of each of the requirements set forth in Section 7.4(b), at such
time, if any, when both FDS and Bank are satisfied with the terms of such
conversion plan and have concluded that such conversion will further the Program
Objectives and provide cost efficiencies and features and functionality superior
to those available on the FDS Systems without an unacceptable level of Program
disruption, such conversion shall be implemented (the date of any such
conversion the "Systems Transition Date"). Bank shall bear its costs and
expenses associated with the Systems conversion and such expenses shall not
constitute Program Expenses. Until the Systems Transition Date, FDS shall, in a
manner consistent with FDS's historical practice (taking into account the
magnitude and type of each of the following matters): (i) make modifications and
changes to FDS Systems as necessary to comply with Applicable Law, the Risk
Management Policies and/or the Operating Procedures, following appropriate
consultation with Bank with respect to changes thereto; (ii) ensure that the
features and functionality available on the FDS Systems as of the Effective Date
are maintained in a manner consistent with historical levels, and (iii) ensure
that the technology associated with the FDS Systems (including hardware
platforms, operations systems and software licenses) is sufficient to support
the operation of the Program as contemplated by the terms of this Agreement.

      (b) The Parties acknowledge and agree that no Systems conversion shall
occur pursuant to Section 7.4(a) in absence of satisfaction of each of the
following requirements:

                  (i) Bank shall ensure that all features and functionality
available on the FDS Systems prior to the Systems Transition Date (including
data gathering, interface capabilities with the FDS Companies' other Systems,
Loyalty Program support and core systems/customer service functionality) are
available on Bank Systems as of the Systems Transition Date to the extent the
FDS Systems are to be converted to Bank Systems;

                  (ii) all existing credit data feeds used by FDS or any of its
Affiliates in connection with the Credit Card Business, FedCustomer or otherwise
prior to the Effective Date shall have been replicated on Bank Systems prior to
the Systems Transition Date;

                  (iii) Bank shall provide and Bank Systems shall support the
Internet services set forth on Schedule 7.4(b);

                  (iv) without limiting the foregoing, Bank Systems shall
interface with the FDS Systems that are not converted to Bank Systems in a
manner reasonably acceptable to FDS;

                  (v) Bank shall have a disaster recovery and business
continuity plan applicable to the Bank Systems as set forth in Section 7.3(d)
and Bank shall be prepared to and have the ability to implement such plan if
necessary; and

                                       48
<PAGE>

                  (vi) Bank shall have identified and implemented all hardware
and other Systems changes necessary to ensure that Bank Systems will be
compatible with those FDS Systems that will interface with Bank Systems,
including the POS Systems of FDS and its Affiliates.

      (c) The FDS Companies shall have the right to perform testing to assure
that Bank Systems have the features and functionality described in clauses
(b)(i)-(vi) and any other features and functionality promised by Bank.

      (d) Neither Party shall make any change to any of its Systems that would
render them incompatible in any way with the other Party's or its Affiliates'
Systems or require the other Party or its Affiliates (or the Retail Merchants)
to make any change to any of their Systems (including any POS terminals) or
reduce or restrict interfacing or System feeds, in any such case without the
prior approval of the Operating Committee. Neither Party will make any change to
its Systems with respect to the Program without prior notification to the
Operating Committee if such change would reasonably be expected to materially
impact the Program or the operation of any of the other Party's Systems, except
to the extent such change is necessary in connection with the exercise by FDS or
Bank of an FDS Matter or a Partner Matter, as applicable; provided further,
that, without the prior approval of the Operating Committee, neither Party shall
make any change to its Systems with respect to the Program during October,
November or December. Bank shall cooperate to ensure that System changes are
scheduled with due regard to FDS's retail sales calendar and in a manner
designed to minimize disruption to peak sales periods.

      (e) Prior to the Systems Transition Date, the Operating Committee shall
agree on such modifications to the terms of this Agreement relating to the
allocation of reporting obligations, settlement and chargeback procedures and
other Systems-dependent obligations and procedures as are necessary to
accurately reflect the transition of relevant services, capabilities and data
access of the respective Parties following the System Transition Date.

            7.5 Systems Interface; Technical Support.

      (a) Required Interfaces. The FDS Companies and Bank shall identify, prior
to the Effective Date, the Systems interfaces required to be sustained between
the FDS Companies and Bank. The FDS Companies and Bank shall maintain such
interfaces and cooperate in good faith with each other in connection with any
modifications to such interfaces as may be requested by either Party from time
to time. Each of the FDS Companies and Bank agrees to maintain at its own
expense its respective Systems interfaces so that the operation of the Systems
as a whole is at all times no less functional than prior to the Effective Date.

      (b) Additional Interfaces; Interface Modifications. All requests for new
interfaces, modifications to existing interfaces and terminations of existing
interfaces shall be presented to the Operating Committee for approval. Upon
approval, the Parties shall work in good faith to establish the requested
interfaces or modify or terminate the existing interfaces, as applicable, on a
timely basis. Except as otherwise provided herein (including in Section 7.4),
all costs and expenses with respect to any new interface or interface
modification or termination shall be borne by the requesting Party unless
otherwise determined by the Operating Committee.

                                       49
<PAGE>

      (c) Secure Protocols. The Parties shall use secure protocols for the
transmission of data from Bank and its Affiliates, on the one hand, to FDS and
its Affiliates, on the other hand, and vice versa.

                                  ARTICLE VIII

                                MERCHANT SERVICES

            8.1 Transmittal and Authorization of FDS Charge Transaction Data.
FDS shall, and shall cause its Subsidiaries and Licensees (such Subsidiaries and
Licensees, together with FDS, the "Retail Merchants") to, accept the FDS Credit
Cards for FDS Transactions. The Retail Merchants shall transmit FDS Charge
Transaction Data for authorization of FDS Transactions as provided in the
Operating Procedures. The FDS Transactions shall be authorized or declined on a
real time basis as provided in the Operating Procedures, including transactions
involving split-tender (i.e., a portion of the total transaction amount is
billed to an FDS Credit Card and the remainder is paid through one or more other
forms of payment), transactions over the phone, on-line or hand keyed, as
applicable, or down-payments on FDS Goods and Services for later delivery. If
any Retail Merchant is unable to obtain authorizations for FDS Transactions for
any reason, such Retail Merchant may complete such FDS Transactions without
receipt of further authorization as provided in the Operating Procedures.

            8.2 POS Terminals. The Retail Merchants shall maintain POS terminals
capable of processing FDS Credit Card and Account transactions as handled as of
the Effective Date. To the extent that the Retail Merchants are required to make
changes to any POS terminal (including hardware and software) in order to
process FDS Transactions and transmit FDS Charge Transaction Data under this
Agreement as a result of any System conversion contemplated by Section 7.4 or
any other change or modification to any Bank System or a new Bank System
approved by the Operating Committee, each Party shall pay its respective costs
and expenses associated with such changes.

            8.3 In-Store Payments. The Retail Merchants may accept In-Store
Payments from Cardholders on their Accounts in accordance with the Operating
Procedures. The Retail Merchants shall, as necessary, provide proper
endorsements on such items. Bank hereby grants to each of the FDS Companies and
the Retail Merchants a limited power of attorney (coupled with an interest) to
sign and endorse Bank's name upon any form of payment that may have been issued
in Bank's name in respect of any Account. The FDS Companies and Bank shall
jointly develop procedures in the Operating Procedures with respect to the
manner in which such In-Store Payments shall be processed (it being understood
that such procedures shall provide for immediate credit toward the applicable
open-to-buy limits of the respective Account upon receipt of an In-Store
Payment). The FDS Companies, on behalf of the Retail Merchants, shall notify
Bank upon receipt of In-Store Payments and Bank shall include the FDS Charge
Transaction Data related to such In-Store Payments in the net settlement in
respect of the day immediately following such receipt on the same basis as other
FDS Charge Transaction Data. The Retail Merchants shall issue receipts for such
payments in compliance with Applicable Law.

            8.4 Settlement Procedures.

                                       50
<PAGE>

      (a) The Retail Merchants shall transmit FDS Charge Transaction Data
(including FDS Charge Transaction Data arising in connection with sales by
Licensees) to Bank in accordance with the Operating Procedures on each day that
the Retail Merchant is open for business. If FDS Charge Transaction Data is
received by Bank's processing center before 11:00 A.M. (Eastern time) on any
Business Day on which Bank is open for business, Bank shall process the FDS
Charge Transaction Data and initiate a wire transfer of the payment in respect
thereof before 1:00 P.M. (Eastern time) on the same Business Day.

      (b) Bank shall remit to FDS, for itself and the Retail Merchants, an
amount equal to the total amount of charges identified in all FDS Charge
Transaction Data not yet paid in accordance with Section 8.4(a) less the sum of
(i) the total amount of any credits included in such FDS Charge Transaction
Data, plus (ii) the total amount of In-Store Payments (if any), plus (iii) any
amounts charged back to such Retail Merchants pursuant to Section 8.5. The total
amount of charges reflected in the FDS Charge Transaction Data shall include the
amount of all Cardholder and employee discount(s) such that upon daily
settlement of such FDS Charge Transaction Data in accordance with Section
8.4(c), Bank shall pay FDS the price of the FDS Goods and Services without
giving effect to such discount(s). FDS shall reimburse Bank for the amount of
such discounts on a monthly basis as set forth in Section 8.4(d).

      (c) If any FDS Charge Transaction Data is not received by Bank's
processing center before 11:00 A.M. (Eastern time) on any Business Day on which
such processing center is open for business as a result of any circumstance
other than a willful failure of the Retail Merchant to send such data (e.g.,
Systems failure or communication outage), which circumstance the Retail Merchant
shall use reasonable efforts to remedy, Bank shall initiate a wire transfer
(each such transfer, an "Estimated Remittance") by 3:00 P.M. (Eastern time) on
the same Business Day of Bank's good faith estimate of the amount that should be
transferred to FDS for itself and the Retail Merchants in accordance with
Section 8.4(a) as if such failure had not occurred. Bank's good faith estimate
shall be based on FDS's then most recent projections of Net Credit Sales and
shall take into account, among other things, holidays and seasonal and other
sales fluctuations. The Estimated Remittance shall be deducted from any
remittance in respect of applicable FDS Charge Transaction Data when transmitted
and processed pursuant to this Section 8.4 (and to the extent necessary
thereafter to fully reconcile such Estimated Remittance, other FDS Charge
Transaction Data).

      (d) Not more than five (5) days after the end of each Fiscal Month, the
FDS Servicer shall deliver or cause to be delivered to Bank a report for such
preceding Fiscal Month of all discount(s) reflected in the FDS Charge
Transaction Data and paid for by Bank in such preceding Fiscal Month (and, in
the case of FDS Charge Transaction Data for a credit to an Account, all
reversals of discounts reflected in the credits included in such FDS Charge
Transaction Data). The net amount of discounts paid by Bank with respect to such
discounts during such Fiscal Month, as reflected on such report (after deducting
any discounts reversed in respect of FDS Goods and Services for which a credit
was issued), shall be paid by the FDS Companies to Bank within three (3)
Business Days of such report.

      (e) FDS shall be responsible for allocating remittances under this Section
8.4 among all the Retail Merchants as appropriate and Bank shall have no
responsibility or liability in

                                       51
<PAGE>

connection therewith (it being agreed that Bank has no obligation to make
remittances to, any person other than FDS).

            8.5 Bank's Right to Charge Back.

      (a) Right to Charge Back. Bank shall have the right to charge back to FDS
the Cardholder Indebtedness (including Cardholder Indebtedness incurred prior to
the Effective Date with respect to Purchased Accounts) reflected in FDS Charge
Transaction Data only to the extent such charge back is expressly permitted in
clauses (i) through (iv) below.

                  (i) Merchandise Adjustments. If a Cardholder requests an
adjustment based on the quality or delivery of FDS Goods and Services, the
Cardholder request for adjustment shall be promptly communicated to FACS on
behalf of the relevant Retail Merchant. FACS shall honor the customer service
policies and determinations of the Retail Merchant. Amounts shall only be
charged back to the extent FACS authorizes the applicable charge back of
Cardholder Indebtedness.

                  (ii) Fraudulent Charges. If a charge arose from fraud of any
employee or agent of a Retail Merchant, the amount of any Cardholder
Indebtedness with respect to such charge may be charged back to FDS, on behalf
of the relevant Retail Merchant.

                  (iii) Certain Transactions. Any transactions in the FDS
Channels with respect to which appropriate authorizations were not obtained in
accordance with the Operating Procedures may be charged back to FDS.

                  (iv) Cardholder Fraud. Any transactions that arose in any FDS
Channel from fraud in respect of a Private Label Account may be charged back to
FDS.

      (b) Exercise of Chargeback. If Bank exercises its right of chargeback,
Bank may set off all amounts charged back against any sums due to the FDS
Companies under this Agreement, or Bank may demand payment from FDS for the full
amount of such chargeback. In the event of a chargeback pursuant to this Article
VIII, upon payment in full of the related amount by FDS, Bank shall immediately
assign to FDS or the relevant Retail Merchant, without any representation,
warranty or recourse, all right to payments of amounts charged back in
connection with such Cardholder charge. Bank shall cooperate fully in any effort
by the FDS Companies to collect the chargeback amount, including by executing
and delivering any document necessary or useful to such collection efforts.

      (c) General Purpose Account Fraud. All fraud losses in respect of General
Purpose Accounts shall be at Bank's expense (and shall be deemed Program
Expenses).

            8.6   No Processing Fees.

      (a) None of FDS, its Affiliates or the Retail Merchants shall charge any
Credit Card surcharge, application, processing or other Program related fee to
Cardholders.

                                       52
<PAGE>

      (b) None of FDS, its Affiliates or the Retail Merchants shall be required
to pay any Merchant Discount on any FDS Transaction. Bank shall process FDS
Transactions such that the Retail Merchants do not incur any merchant
acquirer/processor or similar fees.

                                   ARTICLE IX

                                PROGRAM ECONOMICS

            9.1 Bank's Responsibility for Program Operation. Except as otherwise
expressly specified in this Agreement, Bank shall be responsible for the costs
of operating the Program. Except as expressly contemplated by the Budget
approved by the Operating Committee or as otherwise expressly provided for in
this Agreement, Bank shall not incur costs that would be deemed Program Expenses
unless otherwise approved by the Operating Committee.

            9.2 Settlement Statements.

      (a) Within thirty (30) days after the end of each Fiscal Month other than
the last Fiscal Month of each Fiscal Quarter, FDS Bank shall deliver to Bank a
statement including all information set forth on Schedule 9.2(a). Each such
statement shall be known as a "Monthly Settlement Sheet." (b) Within thirty (30)
days after the end of each Fiscal Quarter other than the last Fiscal Quarter of
each Fiscal Year, FDS Bank shall deliver to Bank a statement including all
information set forth on Schedule 9.2(b). Each such statement shall be known as
a "Quarterly Settlement Sheet."

      (c) Within thirty (30) days after the end of each Fiscal Year, FDS Bank
shall deliver to Bank a statement including all information set forth on
Schedule 9.2(c). Each such statement shall be known as a "Year-End Settlement
Sheet".

            9.3 FDS Compensation.

      (a) Payments. Not later than 10 A.M. (Eastern time) on the fifth (5th)
Business Day after the receipt of each Monthly Settlement Sheet, Quarterly
Settlement Sheet or Year-End Settlement Sheet, as applicable, Bank shall pay to
FDS Bank the amounts determined in accordance with Schedule 9.3(a). Such amounts
shall be paid to FDS Bank regardless of whether any amounts are disputed by
Bank. Each Party may invoke the dispute resolution procedures set forth herein
in connection with any dispute relating to any payment of the amounts set forth
in the applicable settlement sheet.

      (b) Form of Payment. All payments pursuant to this Section 9.3 shall be
made by wire transfer of immediately available funds to an account designated in
writing by FDS Bank unless otherwise agreed upon by the Parties in writing.

      (c) Card Association Compensation. FDS Bank shall be entitled to all
amounts (other than Interchange Fees) paid to Bank by the Card Association
pursuant to the Visa-Branded Federated Department Stores Co-Branded Card Program
Agreement, dated as of October 22, 2002, between FDS Bank and the Card
Association (as amended, renewed or otherwise

                                       53
<PAGE>

modified, the "Card Association Contract"). Bank shall use its commercially
reasonable efforts to ensure that the Card Association Contract remains in full
force and effect in accordance with its terms following the Effective Date, and
Bank shall not agree to any early termination of the Card Association Contract
or to any amendment or modification thereof that would reduce the amount payable
to FDS Bank pursuant thereto and this Section 9.3(c). Bank shall use its
commercially reasonable efforts to cause the Card Association Contract to be
extended, renewed or replaced by the Card Association at the end of its term
with a replacement contract having economic terms that are (i) the most
favorable economic terms reasonably available to Bank and (ii) no less favorable
than the terms in effect under the Card Association Contract on the date hereof.
Any contract resulting from any such extension, renewal or replacement shall
also be deemed the Card Association Contract and shall be subject to all of the
terms of this Section 9.3(c). All amounts payable pursuant to this Section
9.3(c) shall be payable as set forth in Section 9.3(a). The Parties acknowledge
and agree that (i) in exercising its commercially reasonable efforts hereunder,
Bank shall not be obligated to pay any fee or other amount to the Card
Association or to any other Person unless FDS Bank agrees to reimburse the Bank
for the full amount thereof in connection therewith and (ii) Bank shall not
agree to pay any such fee or other amount unless FDS Bank shall have consented
thereto in writing.

            9.4 Budgeting.

      (a) The Budget for the Fiscal Year ending January 28, 2006 is attached
hereto as Schedule 9.4(a). At least ninety (90) days before the beginning of
each subsequent Fiscal Year, the Managers will jointly submit a proposed annual
Budget for such Fiscal Year to the Operating Committee. Each Budget shall be
based on reasonable estimates of each line item therein based upon the Business
Plan, the Marketing Plan and other information regarding actual historical and
estimated future expenses of the Program and the Parties. Each Party shall
promptly provide information reasonably requested by the Operating Committee in
connection with the review and approval of any Budget.

      (b) The Operating Committee shall review the proposed Budget and approve
the annual Budget in accordance with Section 3.2. The Operating Committee shall
also review the Budget at least semi-annually and may elect to approve
modifications to the forecasts contained in the Budget (and/or approve a
semi-annual Budget) from time to time.

      (c) Within thirty (30) days after the end of each Fiscal Year, the FDS
Servicer shall provide a report to Bank indicating the actual income and
expenses of the Program compared to the applicable Budget. Unless otherwise
approved by the Operating Committee, to the extent any actual expenses incurred
in the prior Fiscal Year in respect of any expense category (including all line
items in such expense category) set forth in Schedule 9.4(c) exceed one hundred
ten percent (110%) of the amount budgeted therefor in the approved Budget for
such Fiscal Year, the following shall apply:

                  (i) with respect to each expense category where such an excess
exists, if such expense category is an expense category with respect to which
the FDS Companies are responsible (as set forth in Schedule 9.4(c)) and are
entitled to payment or reimbursement in accordance with this Agreement
disregarding this Section 9.4(c), the FDS Companies shall make a payment to Bank
in an amount equal to the excess, if any, of (A) the aggregate of all monthly

                                       54
<PAGE>

amounts paid or reimbursed to the FDS Companies in respect of such expense
category for the relevant Fiscal Year over (B) the amount to which the FDS
Companies would have been entitled had the actual amount of the expenses in such
expense category not exceeded the amount budgeted therefor; and

                  (ii) annual Pre-Tax Profit shall be recalculated by the FDS
Servicer; provided that for purposes of such recalculation, for each expense
category as to which there is an excess of the type referred to in the first
paragraph of this Section 9.4(c), the budgeted amount for such expense category
shall be substituted for the amount that would have been recorded for such
expense category based on actual results. Bank shall pay to the FDS Companies an
amount equal to the excess, if any, of (A) the FDS Profit Share to which the FDS
Companies would have been entitled for such Fiscal Year had the actual Pre-Tax
Profit for such Fiscal Year been equal to the Pre-Tax Profit as recalculated in
accordance with this Section 9.4(c)(ii) over (B) the aggregate amount actually
paid to the FDS Companies in respect of the FDS Profit Share for all months in
such Fiscal Year.

      (d) All amounts payable pursuant to Section 9.4(c) shall be reflected in
the Year-End Settlement Sheet and paid to the Party(ies) entitled thereto in
connection with the settlement of the amounts reflected therein.

                                    ARTICLE X

                              INTELLECTUAL PROPERTY

            10.1  The FDS Licensed Marks.

      (a) Grant of License to Use the FDS Licensed Marks. Subject to the terms
and conditions of this Agreement, FDS hereby grants to Bank a non-exclusive,
royalty-free, non-transferable right and license to use the FDS Licensed Marks
(i) with respect to the Program in the United States in connection with the
creation, establishment, marketing and administration of, and the provision of
services related to, the Program and (ii) in connection with any sale permitted
by this Agreement of the Accounts and Cardholder Indebtedness to third parties
for liquidation. All use of the FDS Licensed Marks shall be in accordance with
this Agreement and any Trademark Style Guide delivered by FDS to Bank from time
to time (which FDS shall so deliver). All uses of the FDS Licensed Marks shall
require the prior written approval of FDS. To the extent Bank delegates any of
its rights or obligations hereunder to any authorized Affiliate and/or
authorized third party in accordance with the terms and conditions of this
Agreement, Bank may sublicense its rights in the FDS Licensed Marks hereunder to
such authorized Person; provided that such Person shall agree to comply with all
of the terms and conditions of the use of the FDS Licensed Marks hereunder and
Bank shall remain liable for such Person's failure to so comply. Except as
expressly set forth in this Section 10.1, the rights granted pursuant to this
Section 10.1 are solely for use of Bank and may not be sublicensed without the
prior written approval of FDS.

      (b) New FDS Marks. If FDS or any of its Subsidiaries adopts a trademark,
service mark or other source indicator that is a successor to an FDS Licensed
Mark or that FDS has otherwise elected to use in connection with the Program but
which is not listed on Schedule

                                       55
<PAGE>

1.1(e) hereto (a "New FDS Mark"), Bank may request that FDS add such New FDS
Mark to Schedule 1.1(e) hereto and license its use hereunder; FDS shall not
unreasonably fail to do so (for the avoidance of doubt and without limitation,
it is reasonable for FDS to withhold consent if the New FDS Mark is not a
successor to an FDS Licensed Mark or is not used in connection with its retail
operations), and upon FDS's written approval of the addition of such New FDS
Mark, such New FDS Mark shall be deemed added to Schedule 1.1(e). In the event
that FDS does not license any New FDS Mark to Bank, such New FDS Mark shall be
deemed to be an FDS Licensed Mark solely for purposes of Section 2.2.

      (c) Termination of License. Except to the extent otherwise provided in
Section 16.4, the license granted in this Section 10.1 shall terminate upon the
termination or expiration of this Agreement or, if the purchase option under
Section 16.2 is exercised, the Program Purchase Date. Upon termination of the
license granted in this Section 10.1, all rights in the FDS Licensed Marks
granted hereunder shall revert to FDS and Bank shall (and shall cause its
authorized Affiliates, authorized third parties and permitted sublicensees to):
(i) discontinue all use of the FDS Licensed Marks, or any of them, and any
colorable imitation thereof; and (ii) destroy all unused FDS Credit Cards,
Credit Card Applications, Account Documentation, Solicitation Materials,
periodic statements, materials, displays, advertising and sales literature and
any other items bearing any of the FDS Licensed Marks; provided that if the
purchase option under Section 16.2 is exercised, at FDS's election, such items
shall constitute Program Assets and will be transferred and delivered to FDS or
its Nominated Purchaser pursuant to Section 16.2.

      (d) Ownership of the FDS Licensed Marks. Bank acknowledges that (i) the
FDS Licensed Marks, all rights therein, and the goodwill associated therewith,
are, and shall remain, the exclusive property of FDS and its Affiliates, (ii) it
shall take no action which shall adversely affect the exclusive ownership of FDS
and its Affiliates in the FDS Licensed Marks, or the goodwill associated with
the FDS Licensed Marks (it being understood that the collection of Accounts,
adverse action letters, and changes in terms of Accounts as required by
Applicable Law do not adversely affect goodwill, if done in accordance with the
terms of this Agreement), and (iii) any and all goodwill arising from use of the
FDS Licensed Marks by Bank shall inure to the benefit of FDS. Nothing herein
shall give Bank any proprietary interest in or to the FDS Licensed Marks, except
the right to use the FDS Licensed Marks in accordance with this Agreement, and
Bank shall not contest FDS's title in and to the FDS Licensed Marks. FDS shall
prosecute and maintain the FDS Licensed Marks at FDS's cost and expense and in
its sole discretion.

      (e) Infringement by Third Parties. Bank shall use reasonable efforts to
notify FDS, in writing, promptly upon acquiring Knowledge of any infringing use
of any of the FDS Licensed Marks by any third party. If any of the FDS Licensed
Marks is infringed, FDS alone has the right, in its sole discretion, to take
whatever action it deems necessary to prevent such infringing use; provided,
however, that if FDS fails to take reasonable steps to prevent infringement of
the FDS Licensed Marks by any department store retailer and such infringement
has an adverse effect upon the Program or the rights of Bank hereunder, Bank may
request that FDS take action necessary to alleviate such adverse impact. Bank
shall reasonably cooperate with and assist FDS, at FDS's expense, in the
prosecution of those actions that FDS determines, in its sole discretion, are
necessary or desirable to prevent the infringing use of any of the FDS Licensed
Marks.

                                       56
<PAGE>

            10.2 Bank Licensed Marks.

      (a) Grant of License to Use Bank Licensed Marks. Subject to the terms and
conditions of this Agreement, Bank hereby grants to the FDS Companies a
non-exclusive, royalty-free, non-transferable right and license to use Bank
Licensed Marks in the United States in connection with the creation,
establishment, marketing and administration of, and the provision of services
related to, the Program. All use of Bank Licensed Marks shall be in accordance
with this Agreement and any Trademark Style Guide delivered by Bank to FDS from
time to time (which Bank shall so deliver). All uses of Bank Licensed Marks
shall require the prior written approval of Bank. To the extent the FDS
Companies delegate any of their rights or obligations hereunder to any
authorized Affiliate and/or authorized third party in accordance with the terms
and conditions of this Agreement, the FDS Companies may sublicense their rights
in Bank Licensed Marks hereunder to such authorized Person; provided that such
Person shall agree to comply with all of the terms and conditions of the use of
Bank Licensed Marks hereunder and the FDS Companies shall remain liable for such
Person's failure to so comply. Except as expressly set forth in this Section
10.2, the rights granted pursuant to this Section 10.2 are solely for use of the
FDS Companies and may not be sublicensed without the prior written approval of
Bank.

      (b) New Bank Marks. If Bank adopts a trademark, service mark or other
source indicator for use in connection with its Credit Card business or any
related businesses that is not listed on Schedule 1.1(b) hereto (for purposes of
this Section 10.2, a "New Bank Mark"), FDS may request that Bank add such New
Bank Mark to Schedule 1.1(b) hereto and license its use hereunder; and if the
Operating Committee (which shall decide on behalf of Bank) so agrees, such New
Bank Mark shall be deemed added to Schedule 1.1(b) (provided that
notwithstanding any agreement of the Operating Committee, any New Bank Mark that
is a successor to a Bank Licensed Mark shall be deemed to be licensed as a Bank
Licensed Mark hereunder and added to Schedule 1.1(b)).

      (c) Termination of License. The license granted in this Section 10.2 shall
terminate upon the termination or expiration of this Agreement or, if the
purchase option under Section 16.2 is exercised, six (6) months after the
Program Purchase Date. Upon the termination of the license granted in this
Section 10.2, all rights in Bank Licensed Marks granted hereunder shall revert
to Bank and the FDS Companies shall (and shall cause their authorized
Affiliates, authorized third parties and permitted sublicensees to): (i)
discontinue all use of Bank Licensed Marks, or any of them, and any colorable
imitation thereof; and (ii) destroy all unused FDS Credit Cards, Credit Card
Applications, Account Documentation, Solicitation Materials, periodic
statements, materials, displays, advertising and sales literature and any other
items, in each case, bearing any of Bank Licensed Marks.

      (d) Ownership of Bank Licensed Marks. Each of the FDS Companies
acknowledges that (i) Bank Licensed Marks, all rights therein, and the goodwill
associated therewith, are, and shall remain, the exclusive property of Bank,
(ii) it shall take no action which shall adversely affect Bank's exclusive
ownership of Bank Licensed Marks or the goodwill associated with Bank Licensed
Marks, and (iii) any and all goodwill arising from use of Bank Licensed Marks by
the FDS Companies shall inure to the benefit of Bank. Nothing herein shall give
the FDS Companies any proprietary interest in or to Bank Licensed Marks, except
the right to use Bank

                                       57
<PAGE>

Licensed Marks in accordance with this Agreement, and the FDS Companies shall
not contest Bank's title in and to Bank Licensed Marks. Bank shall prosecute and
maintain the Bank Licensed Marks at Bank's cost and expense and in its sole
discretion.

      (e) Infringement by Third Parties. Each of the FDS Companies shall use
reasonable efforts to notify Bank, in writing, promptly upon acquiring Knowledge
of any infringing use of any Bank Licensed Marks by any third party. If any Bank
Licensed Mark is infringed, Bank alone has the right, in its sole discretion, to
take whatever action it deems necessary to prevent such infringing use;
provided, however, that if Bank fails to take reasonable steps to prevent
infringement of any Bank Licensed Marks by any credit provider and such
infringement has an adverse effect upon the Program or the rights of the FDS
Companies hereunder, the FDS Companies may request that Bank take action
necessary to alleviate such adverse impact. The FDS Companies shall reasonably
cooperate with and assist Bank, at Bank's expense, in the prosecution of those
actions that Bank determines, in its sole discretion, are necessary or desirable
to prevent the infringing use of any Bank Licensed Marks.

            10.3  Intellectual Property.

      (a) Each Party shall continue to own all of its Intellectual Property that
existed as of the Effective Date. Each Party also shall own all right, title and
interest in the Intellectual Property it develops or creates independently of
the other Party during the Term.

      (b) Except to the extent the Parties enter into a separate agreement (or
addendum to this Agreement) with respect to the development, creation, use and
their respective rights in any Joint IP, each Party shall have the right to use,
license and otherwise exploit Joint IP without any restriction or obligation to
account to the other Party; provided, however, that no such Joint IP shall be
used by Bank in connection with any Credit Card or other credit program or other
arrangement with any retailer (including any retailer listed on Schedule 2.5)
without the prior written consent of FDS. "Joint IP" means any Intellectual
Property developed or created in connection with the Program that is deemed to
be jointly owned by Bank, on the one hand, and any of the FDS Companies, on the
other hand, pursuant to this Section 10.3. Patents and patentable inventions
shall be deemed to be owned jointly, as between the Parties only if the
respective personnel of each Party are deemed co-inventors under the patent law.
Software and other works of authorship and associated copyrights shall be deemed
to be jointly owned only if the Parties are deemed co-authors or co-owners of
such software or other work of authorship under the copyright law or otherwise.
Any other Intellectual Property developed by a substantially equal investment of
time, human, intellectual and financial resources by each Party during the Term
of this Agreement shall be owned jointly by the Parties; provided that any such
Intellectual Property constituting a trademark, service mark or other source
indicator, shall be owned exclusively by FDS and may become a "New FDS Mark"
pursuant to Section 10.1(b) (for the avoidance of doubt, Bank shall own all
right, title and interest in any trademark, service mark or other source
indicator it develops or creates independently of the FDS Companies during the
Term). To the extent that a work created by one Party is based on or
incorporates Intellectual Property of the other Party, but the Parties are not
joint owners as set forth above, then one Party shall be the sole owner of the
Intellectual Property in the underlying work and the other Party shall be the
sole owner of the Intellectual Property in the new work. By way of example and
not of limitation, a Party shall not be a joint owner of any Intellectual
Property in any marketing

                                       58
<PAGE>

materials to the extent its contribution thereto consists solely of review,
approval or modification of such materials to ensure compliance with Applicable
Law or Credit Card Documentation.

      (c) During and after the Term of this Agreement, each Party shall use,
license or otherwise exploit (or permit others to do so) any Joint IP solely at
its own risk. Each Party hereby disclaims all representations and warranties,
either express or implied, including any warranties of title, non-infringement,
validity, value, reliability, merchantability or fitness for a particular
purpose, with respect to any Joint IP and its use, licensing or exploitation by
the other Party. The term "Program Assets" includes all of Bank's right, title
and interest in and to any Joint IP used by Bank solely in connection with the
Program (but not any liabilities arising out of or relating to Bank's use of
such Joint IP). Any information or data provided by or on behalf of one Party to
the other Party remains, as between the Parties, the sole property of the
providing Party, and if applicable, shall be considered "Confidential
Information" under Article XIII. Ownership of Cardholder Data, FDS Shopper Data
and FDS Prospect List shall not be governed by this Section 10.3(b). The
provisions of Section 10.3 shall survive any expiration or termination of this
Agreement.

                                   ARTICLE XI

                    REPRESENTATIONS, WARRANTIES AND COVENANTS

            11.1 General Representations and Warranties of FDS. Except as
Previously Disclosed, FDS makes the following representations and warranties to
Bank as of the date hereof and as of the Effective Date:

      (a) Corporate Existence. Each FDS Company: (i) is a corporation (or, in
the case of FDS Bank, a federally chartered stock savings bank) duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization; (ii) is duly licensed or qualified to do business and is in good
standing as a foreign entity in all jurisdictions in which the conduct of its
business or the activities in which it is engaged makes such licensing or
qualification necessary, except to the extent that its non-compliance would not
reasonably be expected to have, individually or in the aggregate, a material
adverse effect on the FDS Companies' ability to perform their obligations
hereunder; and (iii) has all necessary licenses, permits, consents or approvals
from or by, and has made all necessary filings and registrations with, all
governmental authorities having jurisdiction, to the extent required for the
ownership, lease or conduct and operation of its business, except to the extent
that the failure to obtain such licenses, permits, consents or approvals or to
make such filings or registrations would not reasonably be expected to have,
individually or in the aggregate, a material adverse effect on the Program.

      (b) Capacity; Authorization; Validity. Each FDS Company has all necessary
corporate or similar power and authority to (i) execute and enter into this
Agreement and (ii) perform the obligations required of such FDS Company
hereunder and the other documents, instruments and agreements relating to the
Program and this Agreement executed by such FDS Company pursuant hereto. The
execution and delivery by the FDS Companies of this Agreement and all documents,
instruments and agreements executed and delivered by the FDS Companies pursuant
hereto, and the consummation by the FDS Companies of the transactions specified
herein, have been duly and validly authorized and approved by all necessary
corporate

                                       59
<PAGE>

or similar actions of the FDS Companies. This Agreement (i) has been duly
executed and delivered by the FDS Companies, (ii) constitutes the valid and
legally binding obligation of the FDS Companies, and (iii) is enforceable in
accordance with its terms (subject to applicable bankruptcy, insolvency,
reorganization, receivership or other laws affecting the rights of creditors
generally and by general equity principles including those respecting the
availability of specific performance).

      (c) Conflicts; Defaults; Etc. The execution, delivery and performance of
this Agreement by each of the FDS Companies, compliance by each of them with the
terms hereof, and consummation by each of them of the transactions specified
herein will not (i) conflict with, violate, result in the breach of, constitute
an event which would, or with the lapse of time or action by a third party or
both would, result in a default under, or accelerate the performance required
by, the terms of any contract, instrument or agreement to which FDS or any of
its Subsidiaries is a party or by which they are bound, or to which any of the
assets of FDS or any of its Subsidiaries are subject; (ii) conflict with or
violate the articles of incorporation or by-laws, or any other equivalent
organizational document(s), of the FDS Companies; (iii) breach or violate any
Applicable Law, Applicable Order or the by-laws or other membership or operating
rules of the Card Association, in each case, applicable to the FDS Companies;
(iv) require the consent or approval of any other party to any contract,
instrument or commitment to which any FDS Company is a party or by which it is
bound; or (v) require any filing with, notice to, consent or approval of, or any
other action to be taken with respect to, any Governmental Authority, except, in
the cases of clauses (i), (iv) and (v), for such conflicts, breaches, defaults,
violations or failures to obtain such consents or approvals or make or obtain
such filings, notices, consents and approvals as would not reasonably be
expected to have, individually or in the aggregate, a material adverse effect
upon the Program and, except in the case of clause (iii), for any immaterial
breach or violation of any such Applicable Law, Applicable Order, by-law or
rules.

      (d) No Litigation. No action, claim, litigation, proceeding, arbitration
or investigation is pending or, to the Knowledge of FDS, threatened against FDS
or any of its Subsidiaries, at law, in equity or otherwise, by or before any
Governmental Authority, to which FDS or any of its Subsidiaries is a party,
which would reasonably be expected to have, individually or in the aggregate, a
material adverse effect on the Program.

      (e) The FDS Licensed Marks. FDS has the right, power and authority to
grant the rights to use the FDS Licensed Marks expressly granted herein.

      (f) Internal Controls Over Financial Reporting. FDS has implemented with
respect to the Credit Card Business, "disclosure controls and procedures" and
"internal control over financial reporting" (as defined in Rules 13a-15 and
15d-15 of the Exchange Act) reasonably designed to ensure that all information
(both financial and non-financial) required to be disclosed by FDS with respect
to the Credit Card Business in the reports that FDS files or submits under the
Exchange Act is recorded, processed, summarized and reported within the time
periods specified in the rules and forms of the SEC and that all such
information is accumulated and communicated to FDS's management as appropriate
to allow timely decisions regarding required disclosure and to make the
certifications of the Chief Executive Officer and Chief Financial Officer of FDS
required under the Exchange Act with respect to such reports.

                                       60
<PAGE>

      (g) Operating Procedures and Risk Management Policies. Except as set forth
on Schedule 11.1(g), the initial Operating Procedures set forth in Schedule
4.1(b) and the initial Risk Management Policies set forth in Schedule 4.6(b)
represent the operating procedures and risk management policies under which the
FDS Companies have operated the Credit Card Business from January 1, 2005 until
the date hereof. Except as set forth on Schedule 11.1(g), the FDS Companies have
not made any material changes to such operating and risk management policies
since January 1, 2005. The FDS Companies have achieved or exceeded the risk
management targets specified in Schedule 4.6(c)(ii) in either the First Quarter
of Fiscal Year 2005 or as otherwise specified in Schedule 4.6(c)(ii). The FDS
Companies have achieved or exceeded the SLAs specified in Schedule 4.1(b) with
respect to the services to be performed by Bank pursuant to Sections 4.3(a)(v)
and (ix) since July 31, 2004.

            11.2 General Representations and Warranties of Bank. Except as
Previously Disclosed, Bank hereby makes the following representations and
warranties to the FDS Companies as of the date hereof and as of the Effective
Date:

      (a) Corporate Existence. Bank (i) is duly organized, validly existing and
in good standing under the federal laws of the United States and (ii) is duly
licensed or qualified to do business and is in good standing as a foreign entity
in all jurisdictions in which the conduct of the its business or the activities
in which it is engaged, or proposes to engage pursuant to this Agreement, makes
such licensing or qualification necessary, except to the extent that its
non-compliance would not reasonably be expected to have, individually or in the
aggregate, a material adverse effect upon the Program. Bank has all necessary
licenses, permits, consents or approvals from or by, and has made all necessary
filings and registrations with, all governmental authorities having
jurisdiction, to the extent required for the ownership, lease or conduct and
operation of its business and the Credit Card Business pursuant to this
Agreement, except to the extent that the failure to obtain such licenses,
permits, consents or approvals or to make such filings or registrations would
not reasonably be expected to have, individually or in the aggregate, a material
adverse effect upon the Program.

      (b) Capacity; Authorization; Validity. Bank has all necessary corporate or
similar power and authority to (i) execute and enter into this Agreement and
(ii) perform the obligations required of it hereunder and the other documents,
instruments and agreements relating to the Program and this Agreement executed
by Bank pursuant hereto. The execution and delivery by Bank of this Agreement
and all documents, instruments and agreements executed and delivered by Bank
pursuant hereto, and the consummation by Bank of the transactions specified
herein, has been duly and validly authorized and approved by all necessary
corporate or similar actions of Bank. This Agreement (i) has been duly executed
and delivered by Bank, (ii) constitutes the valid and legally binding obligation
of Bank and (iii) is enforceable in accordance with its terms (subject to
applicable bankruptcy, insolvency, reorganization, receivership or other laws
affecting the rights of creditors generally and by general equity principles
including those respecting the availability of specific performance).

      (c) Conflicts; Defaults; Etc. The execution, delivery and performance of
this Agreement by Bank, compliance by it with the terms hereof, and consummation
by it of the transactions specified herein will not (i) conflict with, violate,
result in the breach of, constitute an event which would, or with the lapse of
time or action by a third party or both would, result in

                                       61
<PAGE>

a default under, or accelerate the performance required by, the terms of any
contract, instrument or agreement to which Bank is a party or by which it is
bound, or to which any of the assets of Bank is subject; (ii) conflict with or
violate the articles of incorporation or by-laws, or any other equivalent
organizational document(s), of Bank; (iii) breach or violate any Applicable Law,
Applicable Order or the by-laws or other membership or operating rules of the
Card Association, in each case, applicable to Bank; (iv) require the consent or
approval of any other party to any contract, instrument or commitment to which
any Bank is a party or by which it is bound; or (v) require any filing with,
notice to, consent or approval of, or any other action to be taken with respect
to, any Governmental Authority, except, in the cases of clauses (i), (iv) and
(v), for such conflicts, breaches, defaults, violations or failures to obtain
such consents or approvals or make or obtain such filings, notices, consents and
approvals as would not reasonably be expected to have, individually or in the
aggregate, a material adverse effect upon the Program, and except, in the case
of clause (iii), for any immaterial breach or violation of any such Applicable
Law, Applicable Order, by-laws or rules.

      (d) No Litigation. No action, claim, litigation, proceeding, arbitration
or investigation is pending or, to the Knowledge of Bank, threatened against
Bank or any of its Affiliates, at law, in equity or otherwise, by or before any
Governmental Authority, to which Bank or any of its Affiliates is a party, which
would reasonably be expected to, individually or in the aggregate, have a
material adverse effect on the Program.

      (e) Bank Licensed Marks. Bank or one or more of its Affiliates owns the
Bank Licensed Marks and Bank has the right, power and authority to grant the
rights to use Bank Licensed Marks expressly granted herein.

      (f) FDIC Insurance. Bank's deposit accounts are insured by the FDIC to the
fullest extent permitted by Applicable Law, and to Bank's Knowledge, no
proceeding is contemplated to revoke such insurance.

      (g) Card Associations. Bank is a member in good standing of the Card
Association and has full authority under the by-laws and other membership and
operating rules of the Card Association to issue the Co-Branded Credit Cards and
otherwise perform its obligations under this Agreement.

            11.3 General Covenants of the FDS Companies.

      (a) Litigation. Each of the FDS Companies promptly shall notify Bank in
writing if it receives written notice of any litigation that, if adversely
determined, would reasonably be expected to have a material adverse effect on
the Program, the Accounts in the aggregate or the FDS Companies' ability to
perform their obligations hereunder.

      (b) Reports and Notices. Each of the FDS Companies shall provide Bank with
a facsimile notice specifying the nature of any FDS Event of Default, or any
event which, with the giving of notice or passage of time or both, would
constitute an FDS Event of Default, or any development or other information
which is likely to have a material adverse effect on the Program, the Accounts,
Cardholder Indebtedness or the FDS Companies' ability to perform their
obligations pursuant to this Agreement. Notices pursuant to this Section 11.3(b)
relating to the

                                       62
<PAGE>

FDS Events of Default shall be provided within two (2) Business Days after any
of the FDS Companies has Knowledge of the existence of such default. Notices
relating to all other events or developments described in this Section 11.3(b)
shall be provided (i) promptly after any of the FDS Companies has Knowledge of
the existence of such event or development if such event or development has
already occurred, and (ii) with respect to events or developments that have yet
to occur, as early as reasonably practicable under the circumstances. Any notice
provided under this section shall be confirmed in writing to Bank within five
(5) Business Days after the transmission of the initial notice.

      (c) Applicable Law/Operating Procedures. The FDS Companies shall at all
times during the Term comply in all material respects with Applicable Law
affecting their obligations under this Agreement and the Operating Procedures.

      (d) Disputes with Cardholders. The FDS Companies shall reasonably
cooperate with Bank in a timely manner (but in no event less promptly than
required by Applicable Law) to resolve all disputes with Cardholders.

      (e) Books and Records. Prior to the Systems Transition Date, the FDS
Companies shall keep adequate records and books of account with respect to the
Accounts and Cardholder Indebtedness in which proper entries, reflecting all of
the FDS Companies' transactions relating to the Program are made in accordance
with the terms of this Agreement. The FDS Companies shall keep adequate records
and books of account with respect to their activities relating to the Program,
in which proper entries reflecting all of the FDS Companies' transactions are
made in accordance with the terms of this Agreement. All of the records, files
and books of account of the FDS Companies relating to the Program shall be in
all material respects complete and correct and shall be maintained in accordance
with good business practice and Applicable Law.

            11.4 General Covenants of Bank.

      (a) Litigation. Bank promptly shall notify FDS in writing if it receives
written notice of any litigation that, if adversely determined, would reasonably
be expected to have a material adverse effect on the Program, the Accounts in
the aggregate or Bank's ability to perform its obligations hereunder.

      (b) Reports and Notices. Bank shall provide FDS with a facsimile notice
specifying the nature of any Bank Event of Default, or any event which, with the
giving of notice or passage of time or both, would constitute a Bank Event of
Default, or any development or other information which is likely to have a
material adverse effect on the Program, the Accounts or Bank's ability to
perform its obligations pursuant to this Agreement. Notice pursuant to this
Section 11.4(b) relating to Bank Events of Default shall be provided within two
(2) Business Days after Bank has Knowledge of the existence of such default.
Notices relating to all other events or developments described in this Section
11.4(b) shall be provided (i) promptly after Bank obtains Knowledge of the
existence of such event or development if such event or development has already
occurred, and (ii) with respect to events or developments that have yet to
occur, as early as reasonably practicable under the circumstances. Any notice
produced under this section shall be confirmed in writing to the FDS Companies
within five (5) Business Days after transmission of the initial notice.

                                       63
<PAGE>

      (c) Applicable Law/Operating Procedures. Bank shall at all times during
the Term comply in all material respects with Applicable Law affecting its
obligations under this Agreement and the Operating Procedures. Bank shall at all
times during the Term maintain its federal bank charter.

      (d) Books and Records. Bank shall keep adequate records and books of
account with respect to the Accounts and Cardholder Indebtedness in which proper
entries, reflecting all of Bank's financial transactions relating to the
Program, are made in accordance with the terms of this Agreement. Bank shall
keep adequate records and books of account with respect to their activities
relating to the Program, in which proper entries reflecting all of Bank's
financial transactions are made in accordance with the terms of this Agreement.
All of Bank's records, files and books of account relating to the Program shall
be in all material respects complete and correct and shall be maintained in
accordance with good business practice and Applicable Law.

      (e) FDIC Insurance. Bank's deposit accounts shall be insured by the FDIC
to the fullest extent permitted by Applicable Law throughout the Term. (f) Card
Association. Bank and, from and after the Effective Date, any assignee thereof
shall be members in good standing of the Card Association throughout the Term.

      (g) Special Conditions. In the event that any Special Condition applicable
to Bank or any of its Affiliates results in any of such Parties being required
to incur costs to ensure that the Program remains in compliance with Applicable
Law, such incremental costs shall be paid for or reimbursed by Bank and shall
not be deemed to be Program Expenses or otherwise reduce Pre-tax Profit.
"Special Condition" means any Applicable Order or any other requirement of
Applicable Law affecting the operation of the Program by Bank and its
Affiliates, other than any such Applicable Order or requirement of general
application that similarly affects other Credit Card Banks that are national
banks or federally-chartered savings associations.

                                   ARTICLE XII

                      ACCESS, AUDIT AND DISPUTE RESOLUTION

            12.1 Access Rights. Each Party shall permit the other Party and its
representatives and regulators to visit its facilities related to the Program
during normal business hours with reasonable advance notice and at times and in
a manner that does not unreasonably disrupt its normal business operations. Each
Party shall also permit the other Party and its representatives and regulators
to review (during normal business hours) and obtain copies of the books and
records relating to the Program; provided that neither Party shall be required
to provide access to records to the extent that (a) such access is prohibited by
Applicable Law, (b) such records are legally privileged, (c) such records relate
to other customers of, or credit programs operated by, Bank (or its Affiliates)
or the FDS Companies, or (d) such access would unreasonably disrupt its normal
business operations.

            12.2 Audit Rights. Either Party may, from time to time during the
Term, at its sole cost and expense and upon ten (10) days' prior notice to the
other Party, conduct an audit of (i) the financial and operational records that
are under the control and/or direction of the other Party

                                       64
<PAGE>

and relate to the Program or can be reasonably segregated; and/or (ii) the
operations of the other Party to ensure such Party's compliance with its
obligations under this Agreement; provided, however, that any such audit shall
only be permitted at times and in a manner that does not unreasonably interfere
with the other Party's normal business operations, including that any such audit
shall be conducted during normal business hours in accordance with generally
accepted auditing standards and the auditing Party shall employ such reasonable
procedures and methods as necessary and appropriate in the circumstances,
minimizing interference with the audited Party's normal business operations. The
audited Party shall use reasonable efforts to facilitate the auditing Party's
review, including making reasonably available such personnel of the audited
Party, its Affiliates and its service providers to assist the auditing Party,
its representatives and its regulators as reasonably requested. The audited
Party shall deliver any document or instrument necessary for the audited Party
to obtain such records from any Person maintaining records for the audited Party
and shall maintain records pursuant to its regular record retention policies.
For purposes of this provision, to the extent reasonably practicable, the
audited Party also shall be required to provide records relating to the Program
held by Persons performing services in connection with the Program at the
auditing Party's request. Notwithstanding the generality of the foregoing, the
audited Party shall not be required to provide access to records to the extent
that (a) such access is prohibited by Applicable Law, (b) such records are
legally privileged, or (c) such records relate to other customers of, or credit
programs operated by, the audited Party.

            12.3 Dispute Resolution. Any dispute among the Parties arising out
of or relating to this Agreement, including with respect to the interpretation
of any provision of this Agreement and with respect to the performance by Bank
or the FDS Companies hereunder shall be resolved as provided in this Section
12.3; provided, however, that this provision shall not limit either Party's
right to seek any provisional or other remedy, including, without limitation,
specific performance or injunctive relief from any court of competent
jurisdiction, as may be necessary, in the aggrieved Party's sole discretion, to
protect its rights under this Agreement. This Section 12.3 does not apply to
disputes among the Operating Committee members with respect to decisions
expressly allocated to the Operating Committee pursuant to this Agreement (other
than matters submitted to the Operating Committee pursuant to the dispute
resolution procedure referred to in Section 12.3(a)(i)(B)). Such disputes shall
be resolved in accordance with Section 3.2.

      (a) Informal Dispute Resolution.

                  (i) Prior to the initiation of formal dispute resolution
procedures, the Parties shall first attempt to resolve their dispute informally,
as follows:

                        (A) Operating Committee. Upon the written request of
                  either Party containing a short statement as to the nature of
                  the dispute and the requesting Party's position with respect
                  thereto, the Operating Committee shall meet for the purpose of
                  negotiating in good faith to seek resolution of such dispute.

                        (B) Executive Committee. If, after a period of five (5)
                  Business Days, the Operating Committee is unable to resolve
                  the dispute to the satisfaction of the FDS Companies and Bank,
                  the dispute shall be brought before the Executive

                                       65
<PAGE>

                  Committee, the members of which shall in good faith seek
                  resolution of such dispute.

                        (C) Appointment of Representatives. If, after a period
                  of five (5) Business Days, the Executive Committee is unable
                  to resolve the dispute to the satisfaction of both the FDS
                  Companies and Bank, such unresolved matter shall be referred
                  to the President of Citi Cards and the President of FDS's
                  retail business, whose task it will be to meet for the purpose
                  of negotiating in good faith to seek resolution of the
                  dispute.

      With respect to clauses (A), (B) and (C) above, the location, format,
      frequency, duration and conclusion of these discussions shall be left to
      the discretion of the Operating Committee, Executive Committee and
      representatives, respectively. With respect to clause (C) above, upon
      agreement, the representatives may utilize other alternative dispute
      resolution procedures such as mediation to assist in the negotiations.

      With respect to clauses (A), (B) and (C) above, discussions, documents and
      correspondence exchanged among the representatives, or submitted to the
      Operating Committee or the Executive Committee for purposes of these
      negotiations, shall be treated as confidential information developed for
      purposes of settlement, exempt from discovery and production, which shall
      not be admissible in the arbitration described below or in any lawsuit
      without the concurrence of the Parties. Documents identified in or
      provided with such communications, which were not prepared for the
      purposes of the negotiations, are not so exempted and may, if otherwise
      admissible, be admitted in evidence in the arbitration or lawsuit.

                  (ii) Formal proceedings for the resolution of the dispute
pursuant to Section 12.3(b) shall not be commenced until the earlier of:

                        (A) either of the designated representatives concludes
                  in good faith that amicable resolution through continued
                  negotiation of the dispute does not appear likely and so
                  states in a notice to the other designated representative or
                  in a joint declaration signed by each of them; or

                        (B) twenty (20) Business Days after the appointment of
                  designated representatives pursuant to Section 12.3(a)(i)(C)
                  above (it being understood that this period shall be deemed to
                  run notwithstanding any claim that the process described in
                  this Section 12.3 was not followed or completed).

                  (iii) This Section 12.3 shall not be construed to prevent a
Party from instituting, and a Party is authorized to institute, formal
proceedings earlier than provided in clause (ii) above, to avoid the expiration
of any applicable limitations period, to preserve a superior position with
respect to other creditors, or as provided in Section 12.3(c).

      (b) Arbitration. If the Parties are unable to resolve a dispute as
provided in Section 12.3(a), then the Parties may agree that such dispute be
submitted to mandatory and binding arbitration. Where the Parties have agreed to
arbitrate a specific matter after it has arisen, the following conditions will
apply:

                                       66
<PAGE>

                  (i) Agreement to Arbitrate. Provided the Parties specifically
agree (in their sole discretion) in writing signed by their authorized
representatives specifically referencing this Section 12.3(b) to submit to
arbitration for the dispute described in such writing, such dispute, claim or
controversy relating in any way to this Agreement shall be settled by
arbitration in accordance with the Commercial Arbitration Rules of the AAA. No
damages excluded by or in excess of any damage limitations set forth in this
Agreement shall be awarded. The arbitrator is prohibited from awarding punitive
damages. If such arbitration is agreed to, notwithstanding the then current
specified Commercial Arbitration Rules of the AAA, the terms of this Agreement,
including the terms set forth in this Section 12.3(b), shall supersede any AAA
rule in conflict herewith. In addition, the arbitrator, in deciding all matters
and in fashioning an appropriate remedy or relief, shall be bound to apply the
substantive laws of the State of Delaware. In no event may any demand for
arbitration be made on any date on or after which the institution of legal or
equitable proceedings based on the applicable dispute would be barred by the
applicable statute of limitations or by any provision of this Agreement.

                  (ii) Selection of Arbitrator. The Disputing Party shall notify
the AAA and the other Party in writing and shall request that the AAA furnish a
list of five (5) possible arbitrators who shall have substantial experience in
the substantive area of the dispute. Each Party shall have fifteen (15) days to
reject two (2) of the proposed arbitrators. If only one individual has not been
so rejected, he or she shall serve as arbitrator; if two or more individuals
have not been so rejected, unless the Parties have agreed on one of such
individuals to be the arbitrator, the AAA shall select the arbitrator from those
individuals.

                  (iii) Conduct of Arbitration. Discovery shall be controlled by
the arbitrator and shall be permitted to the extent deemed by the Parties and
the arbitrator to be reasonable in the circumstances. Examples of the types of
discovery that may be permitted include:

                        (A) interrogatories,

                        (B) demands to produce documents,

                        (C) requests for admission, and

                        (D) depositions of a reasonable number of knowledgeable
                  fact witnesses.

The arbitration hearing shall be commenced within sixty (60) days of the demand
for arbitration. The arbitrator shall control the scheduling so as to process
the matter expeditiously. The Parties may submit written briefs. The times
specified in this Section may be extended upon mutual agreement of the Parties
or by the arbitrator upon a showing of good cause.

                  (iv) Replacement of Arbitrator. Should the arbitrator refuse
or be unable to proceed with arbitration proceedings as called for by this
Section 12.3(b), such arbitrator shall be replaced by an arbitrator selected by
mutual agreement of the Parties or, failing such agreement, by the AAA from the
other four (4) arbitrators originally proposed by the AAA and not rejected by
the Parties, if any, or if there are no remaining proposed arbitrators who have
not been rejected, by repeating the process of selection described in Section
12.3(b)(ii) above. If an

                                       67
<PAGE>

arbitrator is replaced pursuant to this Section 12.3(b)(iv), then a rehearing
shall take place in accordance with the provisions of this Section 12.3(b).

                  (v) Findings and Conclusions. The arbitrator rendering
judgment upon disputes between the Parties as provided in this Section 12.3(b)
shall, after reaching judgment and award, prepare and distribute to the Parties
within thirty (30) days after the close of hearings, or as soon thereafter as is
practicable in the circumstances, a writing describing the findings of fact and
conclusions of law relevant to such judgment and award and containing an opinion
setting forth the reasons for the giving or denial of any award. The award of
the arbitrator shall be final and binding on the Parties, and judgment thereon
may be entered in any court of competent jurisdiction.

                  (vi) Place of Arbitration Hearings. The arbitration shall be
held at a mutually agreed upon location or a neutral location determined by the
arbitrator if the Parties do not agree.

                  (vii) Fees. Each Party shall bear its own costs of these
procedures. A Party seeking discovery shall reimburse the responding Party the
costs of production of documents (to include search time and reproduction
costs). The Parties shall equally split the fees of the arbitration cost, the
court reporter's transcript, and the arbitrator.

                  (viii) Confidentiality. The Parties, their representatives and
participants and the arbitrator shall hold the existence, content and result of
the arbitration in confidence, except to the limited extent necessary to enforce
a final settlement agreement or to obtain or enforce a judgment on an
arbitration decision and award.

      (c) Litigation.

                  (i) Immediate Injunctive Relief. If a Party makes a good faith
determination that a breach of the terms of this Agreement by the other Party is
such that a temporary restraining order or other injunctive relief is the only
appropriate and adequate remedy, such Party shall be authorized to seek
immediate injunctive relief without regard to Section 12.3(a) or 12.3(b). If a
Party files a pleading with a court seeking immediate injunctive relief and such
pleading is challenged by the other Party and the injunctive relief sought is
not awarded in substantial part, the Party filing such pleading shall pay all of
the costs and attorneys' fees of the Party successfully challenging the
pleading.

                  (ii) Litigation in Lieu of Arbitration. So long as no
arbitration proceeding has been commenced by one Party and accepted by the other
Party as provided in Section 12.3(b)(i), after the dispute resolution procedures
set forth in Section 12.3(a) or either of the events set forth in Section
12.3(a)(ii) has occurred, either Party shall be authorized to initiate
litigation in order to resolve the dispute.

      (d) Continued Performance. Subject to Articles XV and XVI, each Party
agrees to continue performing its obligations under this Agreement while any
dispute is being resolved except to the extent the issue in dispute precludes
performance (it being understood and agreed by the Parties that a dispute over
payment shall not be deemed to preclude performance).

                                       68
<PAGE>
                                  ARTICLE XIII

                                 CONFIDENTIALITY

            13.1 General Confidentiality.

      (a) For purposes of this Agreement, "Confidential Information" means any
of the following: (i) information that is provided by or on behalf of the FDS
Companies, on the one hand, or Bank, on the other hand, to the other Party or
its agents in connection with the Program (including information provided prior
to the date hereof or the Effective Date); (ii) information about the FDS
Companies or Bank or their Affiliates, or their respective businesses or
employees, that is otherwise obtained by the other Party in connection with the
Program, in each case including: (A) information concerning marketing plans,
objectives and financial results; (B) information regarding business systems,
methods, processes, financing data, programs, products and Value Proposition
terms and features and tests thereof; (C) information unrelated to the Program
obtained by the FDS Companies or Bank in connection with this Agreement,
including by accessing or being present at the business location of the other
Party; and (D) proprietary technical information, including source codes; (iii)
the terms and conditions of this Agreement; and (iv) the Marketing Plan. The
provisions of this Article XIII governing Confidential Information shall not
govern Cardholder Data, FDS Shopper Data or FDS Prospect List, which shall be
governed by the provisions of Article VI.

      (b) The restrictions on disclosure of Confidential Information under this
Article XIII shall not apply to information received or obtained by the FDS
Companies or Bank, as the case may be, that: (i) is or becomes generally
available to the public other than as a result of disclosure in breach of this
Agreement or any other confidentiality obligations; (ii) is lawfully received on
a non-confidential basis from a third party authorized to disclose such
information without restriction and without breach of this Agreement; (iii) is
contained in, or is capable of being discovered through examination of, publicly
available records or products; (iv) is required to be disclosed by Applicable
Law (but only to the extent of such required disclosure); provided that the
Party subject to such Applicable Law shall use reasonable efforts to avoid such
disclosure and notify the other Party of any such use or requirement prior to
disclosure of any Confidential Information obtained from the other Party in
order to afford such other Party an opportunity to seek a protective order to
prevent or limit disclosure of the Confidential Information to third parties;
provided, further, that such information shall be disclosed only to the extent
required by such Applicable Law and shall otherwise remain Confidential
Information; or (v) is developed by the FDS Companies or Bank, as the case may
be, without the use of any proprietary, non-public information provided by the
other Party under this Agreement. Nothing herein shall be construed to permit
the Receiving Party (as defined below) to disclose to any third party any
Confidential Information that the Receiving Party is required to keep
confidential under Applicable Law.

      (c) The terms and conditions of this Agreement, the Business Plan, the
Marketing Plan and the Budget shall each be the Confidential Information of the
FDS Companies and Bank, and each of the Parties to this Agreement shall be
deemed to be a Receiving Party of each of them.

                                       69
<PAGE>

      (d) If the FDS Companies, on the one hand, or Bank, on the other hand,
receive Confidential Information of the other Party ("Receiving Party"), the
Receiving Party shall do the following with respect to the Confidential
Information of the other Party ("Disclosing Party"): (i) keep the Confidential
Information of the Disclosing Party secure and confidential; (ii) treat all
Confidential Information of the Disclosing Party with the same degree of care as
it accords its own Confidential Information, but in no event less than a
reasonable degree of care; and (iii) implement and maintain commercially
reasonable physical, electronic, administrative and procedural security
measures, including commercially reasonable authentication, access controls,
virus protection and intrusion detection practices and procedures.

      (e) Upon reasonable request, the FDS Companies and Bank shall have the
right to review the other Party's information security standards and shall
notify the other Party prior to materially modifying such procedures.

            13.2 Use and Disclosure of Confidential Information.

      (a) Each Receiving Party shall use and disclose the Confidential
Information of the Disclosing Party only for the purpose of performing its
obligations or enforcing its rights with respect to the Program or as otherwise
expressly permitted by this Agreement, and shall not accumulate in any way or
make use of such Confidential Information for any other purpose.

      (b) Each Receiving Party shall: (i) limit access to the Disclosing Party's
Confidential Information to those employees, authorized agents, vendors,
consultants, service providers, accountants, advisors and subcontractors who
have a reasonable need to access such Confidential Information in connection
with the Program, the sale of Program Assets or other assets of FDS and its
Affiliates or the establishment of a new Credit Card or other program or
arrangement for an FDS Company, in each case in accordance with the terms of
this Agreement, and (ii) ensure that any Person with access to the Disclosing
Party's Confidential Information agrees to be bound by confidentiality
provisions consistent with the provisions of this Article XIII.

            13.3 Unauthorized Use or Disclosure of Confidential Information.
Each Receiving Party agrees that any unauthorized use or disclosure of
Confidential Information of the Disclosing Party might cause immediate and
irreparable harm to the Disclosing Party for which money damages might not
constitute an adequate remedy. In that event, the Receiving Party agrees that
injunctive relief may be warranted in addition to any other remedies the
Disclosing Party may have. In addition, the Receiving Party agrees promptly to
advise the Disclosing Party by telephone and in writing via facsimile of any
security breach that may have compromised any Confidential Information or of any
unauthorized misappropriation, disclosure or use by any Person of the
Confidential Information of the Disclosing Party which may come to its
attention, and to take all steps at its own expense reasonably requested by the
Disclosing Party to limit, stop or otherwise remedy such breach,
misappropriation, disclosure or use.

            13.4 Return or Destruction of Confidential Information. Upon the
termination or expiration of this Agreement, the Receiving Party shall comply
with the Disclosing Party's reasonable instructions regarding the disposition of
the Disclosing Party's Confidential Information, which may include return of any
and all the Disclosing Party's Confidential Information (including any
electronic or paper copies, reproductions, extracts or summaries

                                       70
<PAGE>

thereof); provided, however, that the Receiving Party in possession of tangible
property containing the Disclosing Party's Confidential Information may retain
one archived copy of such material, subject to the terms of this Agreement,
which may be used solely for regulatory purposes and may not be used for any
other purpose. Such compliance shall be certified in writing, including a
statement that no copies of Confidential Information have been kept, except as
necessary for regulatory purposes.

                                   ARTICLE XIV

                     EVENTS OF DEFAULT; RIGHTS AND REMEDIES

            14.1 Events of Default. The occurrence of any one or more of the
following events (regardless of the reason therefor) shall constitute an Event
of Default by a Party hereunder:

      (a) Such Party shall fail to make a payment of any material amount due and
payable pursuant to this Agreement (other than the settlement of amounts due in
respect of FDS Charge Transaction Data) and such failure shall remain
un-remedied for a period of five (5) Business Days after the non-defaulting
Party shall have given written notice thereof.

      (b) Such Party shall fail to perform, satisfy or comply with any
obligation, condition, covenant or other provision contained in this Agreement
(other than failure to comply with any SLAs), and such failure shall remain
unremedied for a period of thirty (30) days after the other Party shall have
given written notice thereof specifying the nature of such failure in reasonable
detail; provided that such failure shall not constitute an Event of Default if
either (i) the defaulting Party shall have initiated and diligently pursued a
cure within such time and such cure is completed within sixty (60) days from the
date of written notice regarding such failure or (ii) such failure has not had
and would not reasonably be expected to have, a material adverse effect on the
licensed marks of the non-defaulting Party, and has not had, and would not
reasonably be expected to have, a material adverse impact on the Program or the
non-defaulting Party.

      (c) Any representation or warranty by such Party contained in this
Agreement shall not be true and correct in any respect as of the date when made,
and the Party making such representation or warranty shall fail to cure the
event giving rise to such breach within thirty (30) days after the other Party
shall have given written notice thereof specifying the nature of such breach in
reasonable detail; provided that such breach shall not constitute an Event of
Default if either (i) the defaulting Party shall have initiated and diligently
pursued a cure within such time and such cure is completed within sixty (60)
days from the date of written notice regarding such breach or (ii) such breach
has not had, and would not reasonably be expected to have, a material adverse
effect on the licensed marks of the non-defaulting Party, and has not had, and
would not reasonably be expected to have, a material adverse impact on the
Program or the non-defaulting Party.

            14.2 Defaults by Bank. The occurrence of any one or more of the
following events (regardless of the reason therefor) shall constitute an Event
of Default by Bank hereunder:

                                       71
<PAGE>

      (a) Bank fails to settle FDS Charge Transaction Data and make payment in
full therefor within twenty-four (24) hours of the time that such settlement
payment is due pursuant to Section 8.4.

      (b) CEBA Bank or Citibank, N.A. shall no longer be solvent or shall fail
generally to pay its debts as they become due or there shall be a substantial
cessation of the regular course of business of CEBA Bank or Citibank, N.A..

      (c) The FDIC or any other regulatory authority having jurisdiction over
CEBA Bank or Citibank, N.A. shall order the appointment of a custodian,
receiver, liquidator, assignee, trustee or sequestrator (or similar official) of
such entity or of any substantial part of its properties, or order the
winding-up or liquidation of the affairs of such entity, and such order shall
not be vacated, discharged, stayed or bonded within sixty (60) days from the
date of entry thereof.

      (d) CEBA Bank or Citibank, N.A. shall (i) consent to the institution of
proceedings specified in paragraph (c) above or to the appointment of or taking
possession by a custodian, receiver, liquidator, assignee, trustee or
sequestrator (or similar official) of such entity or of any substantial part of
its properties, or (ii) take corporate or similar action in furtherance of any
such action.

      (e) During the Term, Bank Parent's senior unsecured debt rating falls to
or below BBB+ according to Standard and Poor's rating system or to or below Baa1
according to Moody's Investors' Service rating system, or any such debt rating
is withdrawn.

      (f) Bank shall fail to meet one or more SLAs expressly giving rise to the
right to terminate hereunder.

            14.3 Defaults by the FDS Companies. The occurrence of any one or
more of the following events (regardless of the reason therefor) shall
constitute an Event of Default by the FDS Companies hereunder:

      (a) FDS or the Equity Holder shall no longer be solvent or shall fail
generally to pay its debts as they become due or there shall be a substantial
cessation of FDS's regular course of business.

      (b) A petition under the U.S. Bankruptcy Code or similar law shall be
filed against FDS and not be dismissed within ninety (90) days.

      (c) A decree or order by a court having jurisdiction (i) for relief in
respect of FDS pursuant to Bankruptcy Code or any other applicable bankruptcy or
other similar law, (ii) for appointment of a custodian, receiver, liquidator,
assignee, trustee or sequestrator (or similar official) of FDS or of any
substantial part of its properties, or (iii) ordering the winding-up or
liquidation of the affairs of FDS shall, in any such case be entered, and shall
not be vacated, discharged, stayed or bonded within ninety (90) days from the
date of entry thereof.

      (d) FDS shall (i) file a petition seeking relief pursuant to the
Bankruptcy Code or any other applicable bankruptcy or other similar law, (ii)
consent to the institution of proceedings

                                       72
<PAGE>

pursuant thereto or to the filing of any such petition or to the appointment of
or taking possession by a custodian, receiver, liquidator, assignee, trustee or
sequestrator (or similar official) of FDS or any substantial part of its
properties, or (iii) take corporate or similar action in furtherance of any such
action.

            14.4 Remedies for Events of Default. In addition to any other rights
or remedies available to the Parties at law or in equity, upon the occurrence of
an Event of Default pursuant to Section 14.1, 14.2 or 14.3, the non-defaulting
Party shall be entitled to collect from the defaulting Party any amount
indisputably in default plus interest based on the Federal Funds Rate.

                                   ARTICLE XV

                                TERM/TERMINATION

            15.1 Term. This Agreement shall continue in full force and effect
for ten (10) years from the last to occur of the Second Closing Date or the
Third Closing Date (the "Initial Term"). The Agreement shall renew automatically
without further action of the Parties for a single three (3) year term (the
"Renewal Term"), unless Bank provides written notice of termination at least one
(1) year prior to the expiration of the Initial Term or an FDS Company provides
written notice of termination at least six (6) months prior to the expiration of
the Initial Term.

            15.2 Termination by the FDS Companies Prior to the End of the
Initial Term or Renewal Term. FDS, on behalf of the FDS Companies, may terminate
this Agreement prior to the end of the Initial Term or the Renewal Term, upon
written notice given not more than ninety (90) days after becoming aware of the
occurrence of the relevant event set forth below, in the event of any of the
following:

      (a) after the occurrence of a Partner Event of Default;

      (b) upon thirty (30) days' prior written notice if (i) there is a Change
of Control of Bank Parent or (ii) one or more Persons that is not an Affiliate
of Bank on the date of this Agreement acquires a direct or indirect controlling
interest in Bank or any other Person conducting a substantial part of the Credit
Card business conducted within the corporate group of Bank Parent or such
corporate group otherwise disposes of or terminates a substantial part of such
Credit Card business;

      (c) upon thirty (30) days' prior written notice if there is a Change of
Control of FDS if the other Party to such Change of Control transaction issues,
offers or otherwise provides (either itself or through Affiliates) or is party
to any contractual arrangement with any other Person to issue, offer or
otherwise provide, any Credit Card in the United States;

      (d) upon thirty (30) days' prior written notice if there is a change in
Applicable Law and (i) such change would limit or otherwise restrict in any
material respect the level of access and use by FDS and its Affiliates of the
Cardholder Data as contemplated by this Agreement and (ii) the restrictions
under Applicable Law on the level of access to or use of Cardholder Data by

                                       73
<PAGE>

FDS and its Affiliates after giving effect to such change would be materially
lessened if FDS and its Affiliates operated the Program themselves and/or with a
Person other than Bank; provided, however, that prior to delivering a notice of
termination pursuant to this Section 15.2(d), FDS shall engage in good faith
negotiations with Bank to modify the Program in a way that would preserve at
least the same level of access and use of such data for the benefit of FDS and
its Affiliates following the relevant change in Applicable Law as was
permissible prior to the date of this Agreement, such negotiations not to
terminate (in the absence of an agreement between the Parties on any
modification) earlier than thirty (30) days after the earlier of (i) the date on
which one of the Parties delivers a notice to the other that the relevant change
in Applicable Law is likely to occur or (ii) the date on which the relevant
change in Applicable Law takes effect; or

      (e) upon termination of the Purchase Agreement by FDS pursuant to Section
10.2 or 10.3.

            15.3 Termination by Bank Prior to the End of the Initial Term or
Renewal Term. Bank may terminate this Agreement prior to the end of the Initial
Term or the Renewal Term, upon written notice given not more than ninety (90)
days after becoming aware of the occurrence of the relevant event set forth
below, in the event of any of the following:

      (a) after the occurrence of an FDS Event of Default;

      (b) upon six months prior written notice following an Adverse Sales
Development; or

      (c) upon six months prior written notice following the consummation of a
Change of Control of FDS if both (A) the other Party to such Change of Control
issues, offers or otherwise provides (either itself or through Affiliates) or is
party to any contractual arrangement with any other Person to issue, offer or
otherwise provide, any Credit Card in the United States and (B) the Credit Card
business of such other Party or such other contractual arrangement would have a
material adverse effect on the Program.

            15.4 Automatic Termination. Upon termination of the Purchase
Agreement without the occurrence of the First Closing, this Agreement shall
automatically terminate and shall be null and void.

                                   ARTICLE XVI

                             EFFECTS OF TERMINATION

            16.1 General Effects.

      (a) All solicitations, marketing and advertising of the Program, other
than acceptance of applications through the FDS Channels in the ordinary course
of business consistent with past practice, shall cease upon the expiration or
termination of this Agreement, except as the Parties may otherwise mutually
agree; provided that the Parties shall continue to operate the Program in
accordance with the terms of this Agreement and service the Accounts in good
faith and in the ordinary course of their respective businesses, subject to the
terms of this Agreement, until the provisions of Sections 16.2 and 16.3 are
satisfied. The Parties shall cooperate to ensure the orderly wind-down or
transfer of the Program.

                                       74
<PAGE>

      (b) Upon the satisfaction of the provisions of Section 16.2 and 16.3, all
obligations of the Parties under this Agreement shall cease, except that the
provisions specified in Section 18.25 shall survive.

            16.2 The FDS Companies' Option to Purchase the Program Assets.

      (a) If this Agreement expires or is terminated by either Party for
whatever reason, FDS has the option to purchase, or arrange the purchase by a
third party nominated by FDS (a "Nominated Purchaser"), of the Program Assets
from Bank.

      (b) The purchase option given by Section 16.2(a) is exercisable by FDS or
the Nominated Purchaser serving notice on Bank no later than sixty (60) days
after the receipt of the information with respect to the Program Assets required
to be delivered by Bank pursuant to Section 16.2(e).

      (c) If such purchase option is exercised, FDS or the Nominated Purchaser
must complete the purchase of the Program Assets within one hundred eighty (180)
days after the notice has been given pursuant to Section 16.2(b); provided,
however, that such time period shall be extended as necessary to obtain required
regulatory approvals, rating agency consents, and to complete any interim or
transition servicing obligation agreed to by FDS and Bank. The date of such
completion shall be the "Program Purchase Date."

      (d) In the event that FDS or the Nominated Purchaser exercises the
purchase right, the purchase price shall be as follows:

                  (i) if the purchase right arises upon the expiration of the
Initial Term or any Renewal Term, then such purchase price for the Program
Assets shall be the Adjusted Fair Market Value of the Program Assets;

                  (ii) if the purchase right arises as a result of a termination
of this Agreement pursuant to Section 15.2(a), then such purchase price for the
Program Assets shall be the lower of (A) Fair Market Value of the Program Assets
(which may be less than the amount of Cardholder Indebtedness) and (B) the
amount of Cardholder Indebtedness at the time of the purchase excluding
written-off Cardholder Indebtedness (in accordance with the write-off policies
then applicable to the Program);

                  (iii) if the purchase right arises as a result of a
termination of this Agreement pursuant to Section 15.2(b) or 15.3(b), then such
purchase price for the Program Assets shall be an amount equal to the sum of (A)
the Fair Market Value of the Program Assets (which, for purposes of this clause
(iii), shall not be less than Cardholder Indebtedness excluding written-off
Cardholder Indebtedness (in accordance with the write-off policies then
applicable to the Program)) plus (B) if the termination occurs prior to the
third anniversary of the date hereof and after the System Transition Date, an
amount equal to the aggregate amount of all out-of-pocket costs and expenses
incurred by Bank in connection with the conversion of the Program to the Bank
Systems pursuant to Section 7.4 (the "Conversion Costs");

                  (iv) if the purchase right arises as a result of a termination
of this Agreement pursuant to Section 15.2(c) or 15.3(a), then such purchase
price for the Program Assets shall be

                                       75
<PAGE>

an amount equal to the sum of (A) the Fair Market Value of the Program Assets
(which, for purposes of this clause (iv) shall not be less than Cardholder
Indebtedness excluding written-off Cardholder Indebtedness (in accordance with
the write-off policies then applicable to the Program)), plus (B) from and after
the Third Closing Date, the amount set forth in Schedule 16.2(d)(iv), plus (C)
if the termination occurs prior to the third anniversary of the date hereof and
after the Systems Transition Date, an amount equal to the Conversion Costs;
provided that in no event shall the sum of the amounts set forth in clauses (A)
and (B) be less than the sum of Cardholder Indebtedness at the time of the
purchase excluding written-off Cardholder Indebtedness (in accordance with the
write-off policies then applicable to the Program)) plus the Unamortized
Premium;

                  (v) if the purchase right arises as a result of a termination
of this Agreement pursuant to Section 15.2(d), then such purchase price for the
Program Assets shall be an amount equal to the sum of (A) the Fair Market Value
of the Program Assets (which, for purposes of this clause (v), shall not be less
than Cardholder Indebtedness excluding written-off Cardholder Indebtedness (in
accordance with the write-off policies then applicable to the Program)) plus (B)
if the termination occurs prior to the third anniversary of the date hereof and
after the Systems Transition Date, an amount equal to the Conversion Costs;
provided that in no event shall the amount set forth in clause (A) be less than
the sum of Cardholder Indebtedness at the time of the purchase excluding
written-off Cardholder Indebtedness (in accordance with the write-off policies
then applicable to the Program)) plus the Unamortized Premium;

                  (vi) if the purchase right arises as a result of a termination
of this Agreement pursuant to Section 15.2(e), then such purchase price shall be
equal to the sum of (A) Cardholder Indebtedness at the time of purchase
excluding written-off Cardholder Indebtedness (in accordance with the write-off
policies then applicable to the Program) plus (B) any Premium and Additional
Premium paid prior to such date plus (C) the excess, if any, of (i) the interest
on such Premium and Additional Premium at a rate equal to the Federal Funds Rate
over (ii) the aggregate amount of Pre-Tax Profit (but reduced by the FDS Profit
Share) generated pursuant to this Agreement during the period from the Effective
Date to the date of such purchase, plus (D) the cost (which may be a negative
amount) of unwinding the funding strategy Bank has implemented at the request of
FDS and its Affiliates, unless FDS elects to assume such funding arrangement;
and

                  (vii) if the purchase right arises as a result of a
termination of this Agreement pursuant to Section 15.3(c), then such purchase
price shall be equal to the sum of (A) Cardholder Indebtedness at the time of
purchase excluding written-off Cardholder Indebtedness (in accordance with the
write-off policies then applicable to the Program) plus (B) the Unamortized
Premium.

Notwithstanding anything to the contrary contained in this Agreement, in the
event of a purchase of Program Assets following a termination of this Agreement
upon expiration of the Initial Term or Renewal Term, the purchase price payable
for any Cardholder Indebtedness that was outstanding at the time of the First
Closing Date, Second Closing Date or Third Closing Date, shall be the Fair
Market Value of such Cardholder Indebtedness (without regard to the proviso
contained in the definition thereof).

                                       76
<PAGE>

      (e) The Parties shall use commercially reasonable efforts to minimize
transaction costs and Bank shall provide FDS and the Nominated Purchaser and
their respective representatives reasonable access to the records and accounts
relating to the Program Assets for the purpose of conducting due diligence
investigations to determine whether they wish to purchase the Program Assets and
shall provide as soon as reasonably practicable (but in no event more than
fifteen (15) days) following a request therefor from FDS or its Nominated
Purchaser a master file of the Accounts (which shall include data for at least
the twelve (12) month period preceding the month in which the master file is
requested and shall be updated every thirty (30) days); provided, however, that
Bank shall be entitled to require any Nominated Purchaser to enter into
customary confidentiality arrangements before providing it with such access. The
Parties shall promptly negotiate in good faith and execute a purchase agreement
for the Program Assets to be purchased, which shall contain terms and conditions
substantially similar to those in the Purchase Agreement (if applicable) (and,
if FDS or the Nominated Purchaser elects to purchase the outstanding equity
securities of CEBA Bank that are not owned by FDS or any of its Affiliates,
terms and conditions customary for the sale of such an entity controlled by a
third party). The Parties shall cooperate with one another in connection with
the conversion of the Program Assets to the Systems of the FDS Companies or the
Nominated Purchaser and Bank shall provide reasonable assistance to the FDS
Companies or the Nominated Purchaser in connection with the conversion of the
Program Assets, including the provision of interim services in accordance with
the provisions of this Agreement until such conversion occurs. The Parties shall
not unreasonably withhold or delay execution of such purchase agreement or any
other documents necessary to effectuate such sale. The Parties shall use
reasonable efforts to ensure that the Program Purchase Date occurs as promptly
as reasonably practicable following the execution of such purchase agreement.

            16.3 Dedicated Program Personnel. Upon termination or expiration of
the Program for any reason and until the date that is ninety (90) days after
Bank ceases to provide any services hereunder, FDS shall have the right to offer
employment to employees and independent contractors of Bank and any of Bank's
Affiliates that perform all or substantially all of their work for Bank or its
Affiliates in connection with the Program. Bank shall cooperate with the FDS
Companies in offering employment to such employees and independent contractors
and transitioning such persons to the FDS Companies, including, subject to
Applicable Law, providing reasonably requested information regarding such
persons to the FDS Companies.

            16.4 Rights of Bank if Purchase Option Not Exercised. If this
Agreement expires or is terminated and FDS gives written notice that it shall
not exercise its option referred to in Section 16.2 or otherwise fails to
exercise its option within the time period specified in Section 16.2, the FDS
Companies shall have no further rights whatsoever in the Program Assets. In such
event, the following provisions shall apply:

      (a) Bank shall have the right at its sole discretion on or after the
expiration or termination of this Agreement to:

                  (i) issue to Cardholders a replacement or substitute Credit
Card (which card must not bear any FDS Licensed Marks or any other trademarks or
source indicators confusingly similar thereto) with such characteristics as Bank
considers appropriate and with the cost of card re-design and re-issue being
borne by Bank; provided that the replacement or substitute Credit

                                       77
<PAGE>

Card shall not be issued in cooperation with any business referred to in
Schedule 2.5 in any MSA within which the FDS Companies are still operating
stores; provided, further, that the FDS Companies shall be permitted to add an
enclosure to the last two (2) Billing Statements (with respect to each of the
Private Label Accounts and the General Purpose Accounts) to the effect that the
Program has been terminated;

                  (ii) subject to Applicable Law, notify Cardholders that Bank
shall cease providing credit under the Accounts and require repayment of all
amounts outstanding on all Accounts until all associated receivables have been
repaid;

                  (iii) sell the Accounts and associated receivables to a third
party purchaser, other than a competitor of FDS and its Affiliates (which shall
include those companies listed on Schedule 2.5), selected by Bank at a price
agreed between Bank and the purchaser; or

                  (iv) any combination of (i), (ii) and (iii).

      (b) If this Agreement expires or is terminated and FDS gives written
notice that it shall not exercise its option referred to in Section 16.2 or
otherwise fails to exercise its option within the time period specified in
Section 16.2, the FDS Companies shall provide reasonable assistance in
connection with the conversion of any Program Assets resident on FDS Systems to
Bank Systems, including provision of interim services in accordance with the
provisions of this Agreement until such conversion occurs, which shall not be
later than one hundred eighty (180) days after FDS gives written notice that it
shall not exercise its option referred to in Section 16.2 or after the time
period for FDS to exercise such option shall have expired. The Parties shall
bear their respective costs and expenses of any such conversion and the
transitioning of services performed by the FDS Companies to Bank.

      (c) Within sixty (60) days after FDS gives written notice that it shall
not exercise its option referred to in Section 16.2 or after the time period for
FDS to exercise such option shall have expired, Bank shall no longer use any of
the FDS Licensed Marks (or any other trademarks or source indicators confusingly
similar thereto) and must rebrand the FDS Credit Cards; provided that Bank may
use the FDS Licensed Marks to communicate with Cardholders in connection with
the billing and collection of Accounts and as otherwise required by Applicable
Law for up to one hundred eighty (180) days after such written notice or
expiration.

                                  ARTICLE XVII

                                 INDEMNIFICATION

            17.1 FDS Indemnification of Bank. From and after the Effective Date,
FDS shall indemnify and hold harmless Bank, its Affiliates, and its respective
officers, directors and employees from and against and in respect of any and all
losses, liabilities, damages (direct and indirect), costs and expenses of
whatever nature, including reasonable attorneys' fees and expenses, which are
caused or incurred by, result from, arise out of or relate to:

      (a) any FDS Company's negligence or recklessness or willful misconduct
(including acts and omissions) in performing its obligations under this
Agreement;

                                       78
<PAGE>

      (b) any breach by an FDS Company of any of the terms, covenants,
representations, warranties or other provisions contained in this Agreement;
provided that a breach of any SLA set forth in Schedule 7.3 shall be subject to
the remedies set forth in such Schedule;

      (c) any actions or omissions of Bank taken or not taken at an FDS
Company's written request or direction pursuant to this Agreement except where
Bank would have been otherwise required to take such action (or refrain from
acting) absent the request or direction of the FDS Companies;

      (d) dishonest or fraudulent acts by an FDS Company, or any of its
Affiliates, agents or employees, in connection with the Program (except to the
extent charged back pursuant to Section 8.5);

      (e) the sale of any FDS Goods and Services in an FDS Channel or any
failure by the FDS Companies or their Affiliates to satisfy any of their
obligations to third parties with respect to the sale by them to such third
parties of FDS Goods and Services;

      (f) any Solicitation Materials (i) distributed by an FDS Company and not
approved by the Operating Committee or (ii) provided by Bank;

      (g) any claim, suit or proceeding by any Governmental Authority or other
third party arising out of the failure of FDS or any of its Affiliates to comply
with Applicable Law in connection with the Program or the Operating Procedures,
unless such failure was the result of any action taken or not taken by FDS or
such Affiliate at the written request or direction of Bank or any of its
Affiliates;

      (h) the FDS Companies' Inserts or Billing Statement messages; and

      (i) allegations by a third party that the use of the FDS Licensed Marks or
the FDS Systems constitutes infringement, misappropriation, dilution or other
violation of any Intellectual Property right of such third party.

            17.2 Bank Indemnification of the FDS Companies. From and after the
Effective Date, Bank shall indemnify and hold harmless the FDS Companies, their
Affiliates and their respective officers, directors and employees from and
against and in respect of any and all losses, liabilities, damages, costs and
expenses of whatever nature, including reasonable attorneys' fees and expenses,
which are caused or incurred by, result from, arise out of or relate to:

      (a) Bank's negligence or recklessness or willful misconduct (including
acts and omissions) in performing its obligations under this Agreement;

      (b) any breach by Bank or any of its Affiliates, employees or agents of
any of the terms, covenants, representations, warranties or other provisions
contained in this Agreement or any Credit Card Agreement; provided that a breach
of any SLA set forth in Schedule 7.3 shall be subject to the remedies set forth
in such Schedule;

      (c) any actions or omissions by any of the FDS Companies taken or not
taken at the written request or direction of Bank or any of its Affiliates
pursuant to this Agreement, except

                                       79
<PAGE>

where the FDS Companies would have been otherwise required to take such action
(or refrain from acting) absent such request or direction;

      (d) dishonest or fraudulent acts by Bank, or any of its Affiliates, agents
or employees, in connection with the Program;

      (e) any failure by Bank or its Affiliates to satisfy any of their
obligations to Cardholders with respect to the Program pursuant to the terms of
the applicable Credit Card Agreements;

      (f) any Account Documentation and Solicitation Materials approved by the
Operating Committee and used by any of the FDS Companies in that form that fails
to comply with Applicable Law;

      (g) any claim, suit or proceeding by any third party (i) arising out of
the failure of Bank or any of its Affiliates to comply with Applicable Law in
connection with the Program unless such failure was the result of any action
taken or not taken by Bank or such Affiliate at the specific written request or
direction of the FDS Companies or (ii) to the extent arising out of the
"Citigroup Privacy Promise for Consumers";

      (h) Bank's Inserts or Billing Statement messages;

      (i) allegations by a third party that the use of the Bank Licensed Marks
or the Bank Systems constitutes infringement, misappropriation, dilution or
other violation of any Intellectual Property right of such third party; and

      (j) any capital or guarantee obligations of FDS Bank or its Affiliates
with respect to the CEBA Bank required by law under Section 38 of the Federal
Deposit Insurance Act.

            17.3 Procedures.

      (a) An Indemnified Party (as defined in Section 17.3(b)) shall promptly
give the Indemnifying Party (as defined in Section 17.3(b) notice of any matter
(other than any third party claim, suit or action) upon determining that such
matter has or may give rise to any right of indemnification pursuant to Article
XVII hereof; provided that the failure by the Indemnified Party to give prompt
notice of any such matter shall not limit the liability of the Indemnifying
Party hereunder, except that this provision shall not be deemed to limit the
Indemnifying Party's rights to recover from the Indemnified Party to the extent
of any loss, cost or expense which it can establish resulted directly from such
failure to give prompt notice.

      (b) In case any third party claim is made, or any third party suit or
action is commenced, against a Party (the "Indemnified Party"), the Indemnified
Party shall promptly give the other Party (the "Indemnifying Party") notice
thereof upon making a determination that such third party claim, suit or action
may give rise to a right of indemnification under Article XVII hereof and the
Indemnifying Party shall be entitled to participate in the defense thereof and,
with prior written notice to the Indemnified Party given not later than twenty
(20) days after the delivery of the applicable notice from the Indemnified
Party, to assume, at the Indemnifying

                                       80
<PAGE>

Party's expense, the defense thereof, with counsel reasonably satisfactory to
such Indemnified Party. After notice from the Indemnifying Party to such
Indemnified Party of its election so to assume the defense thereof, the
Indemnifying Party shall not be liable to such Indemnified Party under this
Section for any attorneys' fees or other expenses subsequently incurred by such
Indemnified Party in connection with the defense thereof, other than reasonable
costs of investigation.

      (c) The Indemnified Party shall have the right to employ its own counsel
if the Indemnifying Party elects to assume such defense, but the fees and
expenses of such counsel shall be at the Indemnified Party's expense, unless (i)
the employment of such counsel has been authorized in writing by the
Indemnifying Party, (ii) the Indemnifying Party has not employed counsel to take
charge of the defense within twenty (20) days after delivery of the applicable
notice or, having elected to assume such defense, thereafter ceases its defense
of such action, or (iii) the Indemnified Party has reasonably concluded that
there may be defenses available to it which are different from or additional to
those available to the Indemnifying Party (in which case the Indemnifying Party
shall not have the right to direct the defense of such action on behalf of the
Indemnified Party), in any of which events the attorneys' fees and expenses of
counsel to the Indemnified Party shall be borne by the Indemnifying Party.

      (d) The Indemnifying Party shall promptly notify the Indemnified Party if
the Indemnifying Party desires not to assume, or participate in the defense of,
any such third party claim, suit or action.

      (e) The Indemnified Party or Indemnifying Party may at any time notify the
other of its intention to settle or compromise any third party claim, suit or
action against the Indemnified Party in respect of which payments may be sought
by the Indemnified Party hereunder, and (i) the Indemnifying Party may settle or
compromise any such claim, suit or action solely for the payment of money
damages for which the Indemnified Party will be fully indemnified hereunder, but
shall not agree to any other settlement or compromise without the prior written
consent of the Indemnified Party, which consent shall not be unreasonably
withheld (it being agreed that any failure of an Indemnified Party to consent to
any settlement or compromise involving relief other than monetary damages shall
not be deemed to be unreasonably withheld), and (ii) the Indemnified Party may
settle or compromise any such third party claim, suit or action solely for an
amount not exceeding one thousand dollars ($1,000), but shall not settle or
compromise any other matter without the prior written consent of the
Indemnifying Party, which consent shall not be unreasonably withheld.

            17.4 Notice and Additional Rights.

      (a) If an Indemnified Party fails to give prompt notice of any third party
claim being made or any third party suit or action being commenced upon
determining that such claim, suit or action has or may give rise to any right of
indemnification pursuant to Article XVII, such failure shall not limit the
liability of the Indemnifying Party; provided, however, that this provision
shall not be deemed to limit the Indemnifying Party's rights to recover from the
Indemnified Party to the extent of any loss, cost or expense which it can
establish resulted directly from such failure to give prompt notice.

                                       81
<PAGE>

      (b) Except as otherwise provided in the Agreement (including with respect
to SLAs and risk management penalties), this Article XVII shall constitute the
Parties' exclusive remedy for any of the matters addressed herein or other claim
arising out of or relating to this Agreement; provided, however, that this
provision shall not impair the ability of any Party to obtain specific
performance or other equitable relief.

      (c) Notwithstanding anything to the contrary in this Agreement, no Party
shall be liable to the other for punitive or exemplary damages relating to or
arising out of this Agreement, or any breach thereof or any of the transactions
provided for therein, unless the Indemnified Party shall have become liable to a
third party for any such amounts.

                                  ARTICLE XVIII

                                  MISCELLANEOUS

            18.1 Securitization. Bank shall have the right to securitize or
participate the Cardholder Indebtedness and the Accounts or any part thereof, by
themselves or as part of a larger offering at any time, and, subject to Article
XIII, shall have the right, to make all disclosures and filings associated with
any such securitization or participation in accordance with Applicable Law and
required by the terms of the securitization agreements (and, in the latter case,
subject to appropriate confidentiality arrangements to the extent disclosure of
Cardholder Data is required). Bank shall not securitize or participate the
Cardholder Indebtedness in any manner that would not permit such arrangements to
be unwound or that would not allow removal or substitution of the Program Assets
in order to permit the FDS Companies to purchase the Program Assets pursuant to
Article XVI. Without limiting the foregoing, Bank will structure any
securitization or participation such that if FDS provides written notice to Bank
in accordance with the provisions of this Agreement of FDS's exercise of its
purchase option hereunder in accordance with Article XVI hereof, the
securitization or participation arrangements will not impair FDS's rights to
purchase the Accounts and the Gross Receivables arising thereunder or require
the FDS Companies to assume, directly or indirectly, any obligation under any
such securitization or participation. To the extent any of the FDS Licensed
Marks are used in any securitization documents, such marks shall not be used in
a way that adversely affects any of the FDS Companies or the FDS Licensed Marks.

            18.2 Assignment. None of the FDS Companies, on the one hand, and
Bank, on the other hand, shall assign this Agreement or any of their rights or
obligations hereunder without the prior written consent of the other Party;
provided, however, that, immediately following the First Closing, Bank shall
assign this Agreement, and all of the rights and obligations contained herein
(including licenses granted herein, notwithstanding any contrary limitation on
sub-license rights) to CEBA Bank upon written notice to FDS Bank without any FDS
Companies' consent, provided, however, that the indemnification obligations set
forth in Article XVII shall not be assigned to the CEBA Bank but shall remain
obligations of Citibank, N.A. and Citibank, N.A. shall remain directly liable
therefor (regardless of whether the Person whose actions give rise to such
indemnification obligations is "Bank", CEBA Bank, Citibank, N.A. or any other
Person); provided , further, that the assigning party shall remain obligated and
liable to the FDS Companies without diminution of such obligation or liability
(or the other party's rights or benefits) by virtue of such assignment; and
provided, further, that FDS Bank may assign this

                                       82
<PAGE>

Agreement and all of its rights and obligations hereunder to FDS or any
Subsidiary of FDS.

            18.3 Sale or Transfer of Accounts. Except as otherwise provided in
this Agreement, including as set forth in Sections 18.1 or 18.2, Bank shall not
sell or transfer in whole or in part the Accounts.

            18.4 Subcontracting. Except as set forth in Section 3.2(d)(vi), it
is understood and agreed that, in fulfilling its obligations under this
Agreement, no Person other than a Party hereto or its Affiliates may perform
such Party's functions; provided that, to the extent any of the FDS Companies
subcontract or outsource to any third party any services to be provided
hereunder by the FDS Companies as of the date hereof, the FDS Companies and
their Affiliates may continue to subcontract or outsource such services to any
third party. Each Party hereto shall be responsible for functions performed by
such Affiliates or other Persons to the same extent the Party would be
responsible if it performed such functions itself.

            18.5 Amendment. Except as provided herein, this Agreement may not be
amended except by a written instrument signed by Bank and each of the FDS
Companies.

            18.6 Non-Waiver. No delay by a Party hereto in exercising any of its
rights hereunder, or partial or single exercise of such rights, shall operate as
a waiver of that or any other right. The exercise of one or more of a Party's
rights hereunder shall not be a waiver of, or preclude the exercise of, any
rights or remedies available to such Party under this Agreement or in law or at
equity. Any waiver by a Party shall only be made in writing and executed by a
duly authorized officer of such Party.

            18.7 Severability. In case any one or more of the provisions
contained herein shall be invalid, illegal or unenforceable in any respect under
any law, the validity, legality and enforceability of the remaining provisions
contained herein shall not in any way be affected or impaired thereby, and this
Agreement shall be reformed, construed and enforced as if such invalid, illegal
or unenforceable provision or portion of any provision had never been contained
herein and there had been contained herein instead such valid, legal and
enforceable provisions as would most nearly accomplish the intent and purpose of
such invalid, illegal or unenforceable provision.

            18.8 Waiver of Jury Trial and Venue.

      (a) Each Party hereby waives all right to trial by jury in any action or
proceeding to enforce or defend any rights under this Agreement.

      (b) Each Party hereby irrevocably submits to the jurisdiction of the
United States District Court for the District of Delaware or, if such federal
jurisdiction is unavailable, in the state courts of the State of Delaware over
any action arising out of this Agreement, and each Party hereby irrevocably
waives any objection which such Party may now or hereafter have to the laying of
improper venue or forum non conveniens. Each Party agrees that a judgment in any
such action or proceeding may be enforced in other jurisdictions by suit on the
judgment or in any manner provided by law. Any and all service of process and
any other notice in any such suit, action or proceeding with respect to this
Agreement shall be effective against a Party if given as provided herein.

                                       83
<PAGE>

            18.9 Governing Law; Compliance with Law.

      (a) This Agreement and all rights and obligations hereunder, including
matters of construction, validity and performance, shall be governed by and
construed in accordance with the laws of the State of Delaware applicable to
contracts made to be performed within such State and applicable federal law.

      (b) Each Party shall comply in all material respects with Applicable Law
in connection with its activities and the exercise of its rights and performance
of its obligations hereunder.

            18.10 Specific Performance. The Parties agree that money damages
would not be a sufficient remedy for any breach of Article VI, X or XIII or the
failure of a Party to perform any of its material obligations hereunder, and
that, in addition to all other remedies, each Party will be entitled to seek
specific performance and to seek injunctive or other equitable relief as a
remedy for any such breach or failure to perform its material obligations
hereunder. Each Party waives any requirements for the securing or posting of any
bond in connection with such remedy.

            18.11 Captions. Captions of the articles and sections of this
Agreement are for convenient reference only and are not intended as a summary of
such articles or sections and do not affect, limit, modify or construe the
contents thereof.

            18.12 Notices. Any notice, approval, acceptance or consent required
or permitted under this Agreement shall be in writing to the other Party and
shall be deemed to have been duly given when delivered in person or, if sent by
United States registered or certified mail, with postage prepaid, or by a
nationally recognized overnight delivery service, when received, addressed as
follows:

If to the FDS Companies:                c/o Federated Department Stores, Inc.
                                        7 West Seventh Street
                                        Cincinnati, Ohio 45202
                                        Attention: Vice Chair - Finance
                                        Facsimile: (513) 579-7462

With a copy to:                         c/o Federated Department Stores, Inc.
                                        7 West Seventh Street
                                        Cincinnati, Ohio 45202
                                        Attention: General Counsel
                                        Facsimile: (513) 579-7354

With a copy to:                         FDS Bank
                                        9111 Duke Boulevard
                                        Mason, Ohio 45040
                                        Attention: President
                                        Facsimile: (513) 573-2720

                                       84
<PAGE>

If to Bank:                             Citibank, N.A.
                                        701 E. 60th North
                                        Sioux Falls, South Dakota 57104
                                        Attention: David Zimbeck
                                        Facsimile: (605) 330-6745

With a copy to:                         Citicorp Commerce Solutions
                                        Attention: General manager
                                        Four Parkway North
                                        Deerfield, Illinois 60015
                                        Fax: (847) 579-3259

With a copy to:                         Citigroup Inc.
                                        Attention: M&A Legal
                                        425 Park Ave. 4th Floor
                                        New York, New York 10043
                                        Fax: (212) 793-6072

            18.13 Coordination of Consents and Approvals. With respect to any
consent or approval to be given by the FDS Companies, FDS may give consents or
approvals on behalf of the other FDS Company and Bank shall be entitled to rely
on any such consent or approval of FDS acting on behalf of any or all of the FDS
Companies. With respect to any consent or approval to be given by Bank, Bank may
give such consents or approvals.

            18.14 Further Assurances. The FDS Companies and Bank agree to
produce or execute such other documents or agreements as may be reasonably
necessary or desirable for the execution and implementation of this Agreement
and the consummation of the transactions specified herein and to take all such
further action as the other Party may reasonably request in order to give
evidence to the consummation of the transactions specified herein.

            18.15 No Joint Venture. Nothing contained in this Agreement
(including use of the term "Partner") shall be deemed or construed by the
Parties or any third party to create the relationship of principal and agent,
partnership, joint venture or of any association between the FDS Companies and
Bank, and no act of either Party shall be deemed to create any such
relationship. The FDS Companies and Bank each agree to such further actions as
the other may reasonably request to evidence and affirm the non-existence of any
such relationship.

            18.16 Press Releases. The FDS Companies, on the one hand, and Bank,
on the other hand, each shall obtain the prior written approval of the other
Party with regard to the substance and timing of any press release which
announces the execution of this Agreement or the transactions specified herein,
which prior approval shall not unreasonably be withheld. At all times
thereafter, the FDS Companies and Bank, prior to issuing any press releases
concerning this Agreement or the transactions specified herein, shall consult
with each other concerning the proposed substance and timing of such releases
and give due consideration to the comments of the other Party relating thereto.
The foregoing notwithstanding, it is understood that neither Party shall be
required to obtain any prior consent, but shall consult with each other to the
extent practicable, with regard to (a) filings, press releases and other
announcements as may be required

                                       85
<PAGE>

by Applicable Law or the applicable rules and regulations of any governmental
agency or stock exchange and (b) publications prepared solely by and for
employees of any of the FDS Companies or Bank, or their respective Affiliates.

            18.17 No Set-Off. The FDS Companies and Bank agree that each Party
has waived any right to set-off, combine, consolidate or otherwise appropriate
and apply (i) any assets of the other Party held by the Party or (ii) any
indebtedness or other liabilities at any time owing by the Party to the other
Party, as the case may be, against or on account of any obligations owed by the
other Party under this Agreement, except as expressly set forth herein.

            18.18 Conflict of Interest. Each Party hereto, in performing it
obligations hereunder, shall establish and maintain appropriate business
standards, procedures and controls. Each Party shall review such standards,
procedures and controls with reasonable frequency during the Term including
those related to the activities of its employees and agents in their relations
with the employees, agents and representatives of the other Party hereto and
with other third parties.

            18.19 Third Parties. There are no third-party beneficiaries to this
Agreement. Except for the Indemnified Parties with respect to indemnity claims
pursuant to Article XVII, the Parties do not intend: (i) the benefits of this
Agreement to inure to any third party; or (ii) any rights, claims or causes of
action against a Party to be created in favor of any person or entity other than
the other Party.

            18.20 Force Majeure. If performance of any service or obligation
under this Agreement is prevented, restricted, delayed or interfered with by
reason of labor disputes, strikes, acts of God, floods, lightning, severe
weather, shortages of materials, rationing, utility or communication failures,
earthquakes, war, revolution, acts of terrorism, civil commotion, acts of public
enemies, blockade, embargo or any law, order, proclamation, regulation,
ordinance, demand or requirement having legal effect of any government or any
judicial authority or representative of any such government, or any other act
whatsoever, whether similar or dissimilar to those referred to in this clause,
which are beyond the reasonable control of a Party and could not have been
prevented by reasonable precautions (each, a "Force Majeure Event"), then such
Party shall be excused from such performance to the extent of and during the
period of such Force Majeure Event. A Party excused from performance pursuant to
this Section 18.20 shall exercise all reasonable efforts to continue to perform
its obligations hereunder, including by implementing its disaster recovery and
business continuity plan as provided in Section 7.3(e), and shall thereafter
continue with reasonable due diligence and good faith to remedy its inability to
so perform except that nothing herein shall obligate either Party to settle a
strike or other labor dispute when it does not wish to do so. Notwithstanding
the foregoing, if a condition constituting a Force Majeure Event with respect to
Bank, on the one hand, or an FDS Company on the other hand, exists for more than
thirty (30) consecutive days (or five (5) consecutive days in the case of any
Force Majeure Event affecting any payment obligation hereunder), this provision
shall cease to apply and all rights and remedies of the other Party shall be
reinstated as if this provision had not applied.

            18.21 Entire Agreement. This Agreement, together with the Schedules
hereto which are expressly incorporated herein by reference, and the Purchase
Agreement, supersedes any other agreement, whether written or oral, that may
have been made or entered into by the FDS

                                       86
<PAGE>

Companies and Bank (or by any officer or employee of any such Parties) relating
to the matters specified herein, and constitutes the entire agreement by the
Parties related to the matters specified herein or therein.

            18.22 Binding Effect. This Agreement shall be binding upon and shall
inure to the benefit of the Parties hereto and their respective successors and
permitted assigns. This Agreement is the product of negotiation by the Parties
having the assistance of counsel and other advisers. It is the intention of the
Parties that this Agreement not be construed more strictly with regard to one
Party than with regard to the other.

            18.23 Counterparts/Facsimiles. This Agreement may be executed in any
number of counterparts, all of which together shall constitute one and the same
instrument, but in making proof of this Agreement, it shall not be necessary to
produce or account for more than one such counterpart. Any facsimile of an
executed counterpart shall be deemed an original.

            18.24 Financial Statements. If, at any time during the Term, FDS is
no longer required to publicly file financial statements pursuant to the
Exchange Act or otherwise, FDS shall promptly deliver to Bank quarterly and
annual financial statements in form and substance similar to those required
pursuant to the Exchange Act, as reasonably requested by Bank from time to time.

            18.25 Survival. Upon the expiration or termination of this
Agreement, the Parties shall have the rights and remedies described herein. Upon
such expiration or termination, all obligations of the Parties under this
Agreement shall cease, except that the obligations of the Parties pursuant to
Section 3.4(e) (Partner Program Team), Article VI (Cardholder Information),
Section 8.5 (Bank's Right to Charge Back), Article X (Intellectual Property),
Article XII (Access, Audit and Dispute Resolution), Article XIII
(Confidentiality), Article XVI (Effects of Termination), Article XVII
(Indemnification), Section 18.8 (Waiver of Jury Trial and Venue) and 18.9
(Governing Law; Compliance with Law) shall survive the expiration or termination
of this Agreement.

                  [Remainder of Page Intentionally Left Blank]

                                       87
<PAGE>

      IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be
duly executed as of the date first above written.

                               CITIBANK, N.A.

                               By: /s/ Ray Quinlan
                                   -------------------------------
                                   Name: Ray Quinlan
                                   Title: Executive Vice President

                               FEDERATED DEPARTMENT STORES, INC.

                               By: /s/ Ronald W. Tysoe
                                   -------------------------------
                                   Name: Ronald W. Tysoe
                                   Title: Vice Chair

                               FDS BANK

                               By: /s/ Teresa Huxel
                                   -------------------------------
                                   Name: Teresa Huxel
                                   Title: President and Chief Financial Officer

                               FACS GROUP, INC.

                               By: /s/ Amy Hanson
                                   -------------------------------
                                   Name: Amy Hanson
                                   Title: President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]