Document:

exv4w1

Exhibit 4.1

 

SERIES 2008-CP-2 SUPPLEMENT

Dated as of May 13, 2008

among

TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST,

as Issuer

TEXTRON FINANCIAL CORPORATION,

as Servicer

and

THE BANK OF NEW YORK,

as Indenture Trustee

to

AMENDED AND RESTATED INDENTURE

Dated as of May 26, 2005

between

TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST,

as Issuer

and

THE BANK OF NEW YORK,

as Indenture Trustee

 

TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST

SERIES 2008-CP-2 VARIABLE FUNDING NOTES

 

Series 2008-CP-2 Supplement

 

 

	 	 	 	 	 
	ARTICLE I Definitions
	 	 	1	 
	 
	 	 	 	 
	Section 1.01 Definitions
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II Creation of the Series 2008-CP-2 Notes
	 	 	12	 
	 
	 	 	 	 
	Section 2.01 Designation
	 	 	12	 
	Section 2.02 Form, Execution, Authentication and Delivery of Series 2008-CP-2 Notes
	 	 	12	 
	Section 2.03 Issuance of Additional Series 2008-CP-2 Notes
	 	 	12	 
	Section 2.04 Incremental Fundings
	 	 	13	 
	Section 2.05 Procedure for Decreasing the Invested Amount
	 	 	13	 
	Section 2.06 Transfer of Class B Notes
	 	 	13	 
	 
	 	 	 	 
	ARTICLE III Servicing Fee
	 	 	13	 
	 
	 	 	 	 
	Section 3.01 Servicing Compensation
	 	 	13	 
	 
	 	 	 	 
	ARTICLE IV Rights of Series 2008-CP-2 Noteholders and Allocation and Application of Collections
	 	 	14	 
	 
	 	 	 	 
	Section 4.01 Daily Allocations; Payments to Residual Interestholder
	 	 	14	 
	Section 4.02 Monthly Interest
	 	 	15	 
	Section 4.03 Determination of Monthly Principal
	 	 	15	 
	Section 4.04 Establishment of Accounts
	 	 	16	 
	Section 4.05 Application of Collections
	 	 	16	 
	Section 4.06 Distributions to Series 2008-CP-2 Noteholders  
	 	 	18	 
	Section 4.07 Investor Charge-Offs
	 	 	19	 
	Section 4.08 Excess Funding Account
	 	 	19	 
	Section 4.09 Reallocated Principal Collections
	 	 	19	 
	Section 4.10 Reserve Account
	 	 	19	 
	Section 4.11 Investment of Amounts on Deposit in Series Accounts
	 	 	20	 
	Section 4.12 Scheduled Amortization Period
	 	 	21	 
	 
	 	 	 	 
	ARTICLE V Distributions and Reports to Series 2008-CP-2 Noteholders
	 	 	21	 
	 
	 	 	 	 
	Section 5.01 Distributions
	 	 	21	 
	Section 5.02 Reports and Statements to Series 2008-CP-2 Noteholders
	 	 	21	 
	 
	 	 	 	 
	ARTICLE VI Early Amortization Events
	 	 	21	 
	 
	 	 	 	 
	Section 6.01 Additional Early Amortization Events
	 	 	21	 
	Section 6.02 Recommencement of the Revolving Period
	 	 	23	 
	 
	 	 	 	 
	ARTICLE VII Optional Purchase
	 	 	23	 
	 
	 	 	 	 
	Section 7.01 Optional Purchase
	 	 	23	 
	 
	 	 	 	 
	ARTICLE VIII Final Distributions
	 	 	23	 
	 
	 	 	 	 
	Section 8.01 Acquisition of Notes Pursuant to Section 10.1 of the Indenture;
Distributions pursuant to Section 7.01 of this Series Supplement or Section 5.4
of the Indenture
	 	 	23	 

Series 2008-CP-2 Supplement

i

 

	 	 	 	 	 
	Section 8.02 Series Termination
	 	 	24	 
	 
	 	 	 	 
	ARTICLE IX Other Series Provisions
	 	 	24	 
	 
	 	 	 	 
	Section 9.01 Additional Covenants
	 	 	24	 
	Section 9.02 Tax Treatment of the Series 2008-CP-2 Notes
	 	 	25	 
	Section 9.03 Supplemental Indentures
	 	 	25	 
	Section 9.04 Waiver of Past Defaults
	 	 	25	 
	 
	 	 	 	 
	ARTICLE X Miscellaneous Provisions
	 	 	25	 
	 
	 	 	 	 
	Section 10.01 Ratification of Agreement
	 	 	25	 
	Section 10.02 Counterparts
	 	 	25	 
	Section 10.03 GOVERNING LAW
	 	 	25	 

Series 2008-CP-2 Supplement

ii

 

	 	 	 
	EXHIBITS	 	 
	 
	Exhibit A

	 	Form of Class A Note
	Exhibit B

	 	Form of Class B Note

Series 2008-CP-2 Supplement

iii

 

     SERIES SUPPLEMENT, dated as of May 13, 2008 (as amended from time to time, this “Series
Supplement”) between TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST (the “Issuer” or the
“Trust”), TEXTRON FINANCIAL CORPORATION (the “Servicer”) and THE BANK OF NEW YORK,
as Indenture Trustee (as indenture trustee and not in its individual capacity, the “Indenture
Trustee”) to the Amended and Restated Indenture, dated as of May 26, 2005, between the Issuer
and the Indenture Trustee (as amended, restated, supplemented or otherwise modified from time to
time, the “Indenture”).

     Section 2.1 of the Indenture provides that the Issuer may from time to time issue one or more
new Series of Investor Interests. The Principal Terms of any new Series of Investor Interests are
to be set forth in a Series Supplement. Pursuant to this Series Supplement, the Issuer and the
Indenture Trustee shall create the Series 2008-CP-2 Notes and specify the Principal Terms thereof.
The Servicer is acknowledging this Series Supplement to agree to the terms hereof applicable to the
Servicer. The parties hereto acknowledge that the Issuer is not a separate entity for tax purposes
and that the overall transaction is being structured so that the Class A Notes, if held by Persons
other than the Seller, will be characterized as debt for federal income tax purposes.

ARTICLE I

Definitions

     Section 1.01 Definitions. (a) Whenever used in this Series Supplement, the
following words and phrases have the following meanings.

     “Agent” means any “Managing Agent” as defined in the Class A Note Purchase Agreement.

     “Agreement” means the Amended and Restated Sale and Servicing Agreement, dated as of
May 26, 2005, among Textron Financial Corporation, as Servicer, Textron Receivables Corporation
III, as Seller, the Indenture Trustee and Textron Financial Floorplan Master Note Trust, as
amended, restated, supplemented or otherwise modified from time to time.

     “Allocable Defaulted Amount” means for any Collection Period, the product of (a) the
average daily Series 2008-CP-2 Allocation Percentage for that Collection Period and (b) the
Defaulted Amount for that Collection Period (after giving effect to any allocation of a portion of
the Defaulted Amount to the Residual Interestholder pursuant to Section 4.2 of the Agreement).

     “Allocable Miscellaneous Payments” means, with respect to any day, an amount equal to
the product of (i) the Series 2008-CP-2 Allocation Percentage for such day and (ii) Miscellaneous
Payments on such day.

     “Allocable Non-Principal Collections” means, with respect to any day, an amount equal
to the product of (i) the Series 2008-CP-2 Allocation Percentage for such day and (ii) the
aggregate amount of Non-Principal Collections deposited in the Collection Account on such day
(after giving effect to any allocation of a portion of Non-Principal Collections to the Residual
Interestholder pursuant to Section 4.2 of the Agreement).

     “Allocable Principal Collections” means, with respect to any day, an amount equal to
the product of (i) the Series 2008-CP-2 Allocation Percentage for such day and (ii) the aggregate
amount of Principal Collections deposited in the Collection Account on such day (after giving
effect to any allocation of a portion of Principal Collections to the Residual Interestholder
pursuant to Section 4.2 of the Agreement).

Series 2008-CP-2 Supplement

 

 

     “Alternate Purchasers” has the meaning specified in the Class A Note Purchase
Agreement.

     “Applicable LIBO Percentage” means 1.75%.

     “Available Investor Non-Principal Collections” means, with respect to any Payment
Date, the Investor Non-Principal Collections for the related Collection Period.

     “Available Investor Principal Collections” means, with respect to any Payment Date,
the sum of the Investor Principal Collections for the related Collection Period and the amount, if
any, of Available Investor Non-Principal Collections and Investment Proceeds allocated to cover the
Investor Defaulted Amount, Investor Dilution Amount or to reverse Investor Charge-Offs on such
Payment Date.

     “Available Reserve Account Amount” means, with respect to any Payment Date, an amount
equal to the lesser of (a) the amount on deposit in the Reserve Account (exclusive of Investment
Proceeds on such date and before giving effect to any deposit to, or withdrawal from, the Reserve
Account made or to be made with respect to such date) and (b) the Required Reserve Account Amount,
in each case on such Payment Date.

     “Base Rate” means with respect to any member of an Ownership Group and with respect to
amounts funded by such Ownership Group, a rate per annum equal to the corporate base rate, prime
rate or base rate of interest, as applicable, announced by the Managing Agent for such Ownership
Group (or, if applicable, by the primary bank affiliate of such Managing Agent) from time to time,
changing when and as such rate changes.

     “Breakage Costs” has the meaning specified in the Class A Note Purchase Agreement.

     “Class A Additional Interest” has the meaning specified in Section 4.02(a).

     “Class A Decrease” has the meaning specified in Section 2.05.

     “Class A Interest Rate” means, with respect to any Interest Period, (a) with respect
to any portion of the Series 2008-CP-2 Notes owned by a Conduit Purchaser and funded through the
issuance of Commercial Paper, the CP Rate applicable to such Conduit Purchaser for such Interest
Period per annum, (b) with respect to any portion of the Series 2008-CP-2 Notes not subject to
clause (a) above owned by a Conduit Purchaser or an Alternate Purchaser, the LIBO Rate applicable
to such Conduit Purchaser or Alternate Purchaser for such Interest Period plus the Applicable LIBO
Percentage per annum as the same may be adjusted pursuant to Section 2.05(b) of the Class A Note
Purchase Agreement; provided, however that any such Series 2008-CP-2 Notes subject to clause (b)
shall bear interest at the Base Rate for the first two Business Days following the purchase
thereof, and (c) at all times following the occurrence of an Early Amortization Event, the Base
Rate plus 1% per annum.

     “Class A Interest Shortfall” has the meaning specified in Section 4.02(a).

     “Class A Monthly Interest” has the meaning specified in Section 4.02(a).

     “Class A Note” has the meaning specified in Section 2.01(a).

     “Class A Note Purchase Agreement” means the Class A Note Purchase Agreement dated as
of the date hereof among the Seller, the Issuer, the Servicer, the Conduit Purchasers, Alternate
Purchasers and Managing Agents from time to time party thereto, and SG as the Funding Agent, as
amended, restated, supplemented or otherwise modified from time to time

Series 2008-CP-2 Supplement

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     “Class A Noteholder” means any Holder of a Class A Note, and “Class A
Noteholders” means the Holders of the Class A Notes.

     “Class A Note Principal Balance” means, at any time, the outstanding principal balance
of the Class A Notes at such time.

     “Class B Decrease” has the meaning specified in Section 2.05.

     “Class B Interest Rate” means the Base Rate plus 1.10%.

     “Class B Interest Shortfall” has the meaning specified in Section 4.02(b).

     “Class B Monthly Interest” has the meaning specified in Section 4.02(b).

     “Class B Note” has the meaning specified in Section 2.01(a).

     “Class B Note Purchase Agreement” means the Class B Note Purchase Agreement dated as
of the date hereof between the Seller and the Issuer, as amended from time to time.

     “Class B Noteholder” means any Holder of a Class B Note, and “Class B
Noteholders” means the Holders of the Class B Notes.

     “Class B Note Principal Balance” means, at any time, the outstanding principal balance
of the Class B Notes at such time.

     “Closing Date” means May 13, 2008, and each date on which the principal amount of the
Series 2008-CP-2 Notes is increased pursuant to Section 2.03.

     “Commercial Paper” has the meaning specified in the Class A Note Purchase Agreement.

     “Commitment Termination Date” means the earliest of (i) the Scheduled Termination
Date, (ii) the occurrence of an Early Amortization Event or an Event of Default and (iii) in the
event that the average CP Rate applicable to a Conduit Purchaser (without giving effect to any
amounts incurred in respect of dealer’s fees or commissions) during any consecutive 60 day period
is more than 0.25% over the benchmark commercial paper rate published by Bloomberg on page
ACPB030Y<INDEX> for A-1/P-1 issuers during such period prior to such written notice being
delivered, thirty days following receipt of written notice from the Seller.

     “Conduit Purchaser” has the meaning specified in the Note Purchase Agreement.

     “Control Investors” means (i) Class A Noteholders representing at least a majority of
the Outstanding Amount of the Class A Notes, and (ii) from and after the payment in full of the
Class A Notes, Class B Noteholders representing at least a majority of the Outstanding Amount of
the Class B Notes. For purposes of clause (i) above, any Class A Notes owned or beneficially owned
by the Seller or its Affiliates will be disregarded and deemed not Outstanding.

     “CP Rate” shall mean, with respect to any Conduit Purchaser for any Interest Period,
(i) unless the applicable Managing Agent has determined that the Pooled CP Rate shall be
applicable, the rate per annum calculated by such Managing Agent to reflect the Conduit Purchaser’s
cost of funding the share of Class A Notes held by such Conduit Purchaser during such Interest
Period, taking into account the weighted daily average interest rate payable in respect to such
Commercial Paper during such period

Series 2008-CP-2 Supplement

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(determined in the case of discount Commercial Paper by converting the discount to an interest
bearing equivalent per annum), and applicable placement fees and commissions; and (ii) to the
extent the applicable Managing Agent has determined that the Pooled CP Rate shall be applicable,
the Pooled CP Rate.

     “Decrease” has the meaning specified in Section 2.05.

     “Early Amortization Event” means any Early Amortization Event specified in
Section 5.17 of the Indenture, together with any additional Early Amortization Event specified in
Section 6.01 of this Series Supplement.

     “Early Amortization Period” means a period beginning on the date on which an Early
Amortization Event specified in Section 5.17 of the Indenture or Section 6.01 of this
Series Supplement shall have occurred with respect to the Series 2008-CP-2 Notes and terminating on
the earliest of: (a) the payment in full of the outstanding principal amount of and all accrued and
unpaid interest on the Series 2008-CP-2 Notes; and (b) the Series 2008-CP-2 Stated Maturity Date.
Notwithstanding anything to the contrary in this Series Supplement, an Early Amortization Period
that commences before the scheduled end of the Revolving Period shall be terminated, and the
Revolving Period may recommence, if the Rating Agency Condition is satisfied.

     “Enhancement Base Percentage” means, with respect to any Determination Date, a
fraction (expressed as a percentage (annualized)), the numerator of which is the sum of (a) the
amount of interest on the Class A Notes due on the related Payment Date plus (b) the Investor
Monthly Servicing Fee due on the related Payment Date, and the denominator of which is the
Outstanding Amount of the Series 2008-CP-2 Notes as of the beginning of the related Collection
Period.

     “Enhancement Trigger Event” means the occurrence of any of the following event(s):
(a)(i) on any Determination Date, the average of the Monthly Payment Rates for the three preceding
Collection Periods is less than 14% for the Determination Dates falling in February through May,
less than 16% for the Determination Date falling in June, less than 18% for the Determination Dates
falling in July through October or less than 16% for the Determination Dates falling in November
through January or (ii) on any Determination Date, the Portfolio Yield is less than the sum of the
Enhancement Base Percentage plus 1.00% or (b) on any Determination Date, the average of the Monthly
Payment Rates for the three preceding Collection Periods is less than 13% for the Determination
Dates falling in February through May, less than 15% for the Determination Date falling in June,
less than 17% for the Determination Dates falling in July through October or less than 15% for the
Determination Dates falling in November through January.

     “Enhancement Trigger Period” means a period beginning on the date on which an
Enhancement Trigger Event shall have occurred and terminating on the date on which no Enhancement
Trigger Event shall be continuing; provided that if the Early Amortization Period has
commenced during the continuance of an Enhancement Trigger Period, such Enhancement Trigger Period
shall be deemed to be continuing during the Early Amortization Period.

     “Final Payment Date” means the earlier of (i) the Series 2008-CP-2 Stated Maturity
Date and (ii) the first Payment Date following the Commitment Termination Date on which, after
giving effect to all payments to be made on that Payment Date, the outstanding principal amount of
the Series 2008-CP-2 Notes will be paid in full.

     “Fixed Allocation Percentage” means, with respect to any day, the percentage
equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which is the
Invested Amount as of

Series 2008-CP-2 Supplement

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the last day of the Revolving Period, and the denominator of which is the product of the
Series 2008-CP-2 Allocation Percentage for the day for which the Fixed Allocation Percentage is
being calculated times the greater of (A) the sum of (x) the Net Pool Balance as of the most recent
Reset Date and (y) the Series 2008-CP-2 Excess Funding Amount at the end of such most recent Reset
Date and (B) the sum of the numerators used to calculate the allocation percentage for all
outstanding Series of Investor Interests as of the date of determination.

     “Floating Allocation Percentage” means, with respect to any day, the percentage
equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which is the
Invested Amount as of the most recent Reset Date and the denominator of which is the product of the
Series 2008-CP-2 Allocation Percentage for the day for which the Floating Allocation Percentage is
being calculated times the greater of (A) the sum of (x) the Net Pool Balance as of the most recent
Reset Date and (y) the Excess Funding Amount at the end of such most recent Reset Date and (B) the
sum of the numerators used to calculate the allocation percentage for all outstanding Series of
Investor Interests as of the date of determination.

     “Funding Agent” has the meaning specified in the Class A Note Purchase Agreement.

     “Group One” means Series 2005-A, Series 2006-A, Series 2007-A, Series 2008-CP-1,
Series 2008-CP-2 and each other outstanding Series hereafter specified in the related Series
Supplement to be included in Group One.

     “Group Purchase Limit Excess” has the meaning specified in the Class A Note Purchase
Agreement.

     “Increased Cost Amount” has the meaning specified in the Class A Note Purchase
Agreement.

     “Incremental Funding” has the meaning specified in the Class A Note Purchase Agreement
with respect to the Class A Notes and the meaning specified in the Class B Note Purchase Agreement
with respect to the Class B Notes.

     “Indemnified Amounts” has the meaning specified in the Class A Note Purchase
Agreement.

     “Indenture” has the meaning set forth in the recitals to this Series Supplement.

     “Indenture Trustee” has the meaning set forth in the recitals to this Series
Supplement.

     “Initial Invested Amount” means, with respect to the Series 2008-CP-2 Notes,
$418,995,000, $375,000,000, of which is the Initial Invested Amount of the Class A Notes and
$43,995,000 of which is the Initial Invested Amount of the Class B Notes, plus the amount of any
increase in the principal amount of the Series 2008-CP-2 Notes pursuant to Section 2.03 or
otherwise pursuant to an amendment hereto.

     “Initial Payment Date” means June 13, 2008.

     “Interest Period” means, for any Payment Date, the period from and including the
Payment Date preceding such Payment Date to but excluding such Payment Date (or in the case of the
Initial Payment Date, the period from and including the Closing Date to but excluding the Initial
Payment Date).

     “Interest Rate” means, with respect to the Class A Notes, the Class A Interest Rate
and with respect to the Class B Notes, the Class B Interest Rate.

Series 2008-CP-2 Supplement

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     “Invested Amount” means, when used with respect to any date, an amount equal to (a)
the Initial Invested Amount of the Series 2008-CP-2 Notes, plus (b) the amount of any
increase in the principal amount of the Series 2008-CP-2 Notes pursuant to Section 2.04 prior to
such date, minus (c) the amount, without duplication, of principal payments made to Series
2008-CP-2 Noteholders prior to such date, minus (d) the excess, if any, of the aggregate
amount of Investor Charge-Offs prior to such date over Investor Charge-Offs reimbursed pursuant to
Section 4.05 prior to such date, provided that the Invested Amount shall in no event be
less than zero.

     “Investment Proceeds” means, with respect to any Determination Date and any Payment
Date, an amount equal to all interest and other investment earnings (net of losses and investment
expenses) on funds held in the Principal Account and the Reserve Account and the Series 2008-CP-2
Allocation Percentage of the interest and other investment earnings (net of losses and investment
expenses) on funds held in the Collection Account and the Excess Funding Account credited to the
Collection Account pursuant to Section 4.1 of the Agreement.

     “Investor Charge-Offs” has the meaning specified in Section 4.07.

     “Investor Defaulted Amount” means, with respect to any Payment Date, an amount equal
to the product of (a) the Allocable Defaulted Amount for the related Collection Period and (b) the
average daily Floating Allocation Percentage for the related Collection Period.

     “Investor Dilution Amount” means, with respect to any Payment Date, an amount equal to
the average daily Series 2008-CP-2 Allocation Percentage for the related Collection Period of any
Dilution Amount.

     “Investor Monthly Servicing Fee” has the meaning specified in Section 3.01.

     “Investor Non-Principal Collections” means, with respect to any Deposit Date, an
amount equal to the sum of (a) the product of the Floating Allocation Percentage and Allocable
Non-Principal Collections for such day plus (b) any Allocable Miscellaneous Payments that are
treated as Investor Non-Principal Collections pursuant to Section 4.01(d).

     “Investor Principal Collections” means, with respect to any Deposit Date, (i) falling
in the Revolving Period, the sum of (a) the product of the Floating Allocation Percentage and
Allocable Principal Collections for such day plus (b) any Allocable Miscellaneous Payments that are
treated as Investor Principal Collections for such day and (ii) occurring after the last day of the
Revolving Period, the sum of (a) the product of the Fixed Allocation Percentage and Allocable
Principal Collections for such day plus (b) any Allocable Miscellaneous Payments that are treated
as Investor Principal Collections for such day.

     “Issuer” has the meaning set forth in the recitals to this Series Supplement.

     “LIBO Rate” means, with respect to any Interest Period, the rate per annum equal to
the (i) the applicable British Bankers’ Association Interest Settlement Rate for deposits in U.S.
dollars appearing on Reuters Screen LIBOR01 as of 11:00 a.m. (London time) two Business Days prior
to the first day of the relevant Interest Period, and having a maturity equal to such Interest
Period, provided that, (1) if Reuters Screen LIBOR01 is not available to SG for any
reason, the applicable LIBO Rate for the relevant Interest Period shall instead be the applicable
British Bankers’ Association Interest Settlement Rate for deposits in U.S. dollars as reported by
any other generally recognized financial information service as of 11:00 a.m. (London time) two
Business Days prior to the first day of such Interest Period, and having a maturity equal to such
Interest Period, and (2) if no such British Bankers’ Association Interest Settlement Rate is

Series 2008-CP-2 Supplement

6

 

available to SG, the applicable LIBO Rate for each member of an Ownership Group for the
relevant Interest Period shall instead be the rate determined by SG to be the rate at which the
Managing Agent of such Ownership Group (or, if applicable, the primary bank affiliate of such
Managing Agent) offers to place deposits in U.S. dollars with first-class banks in the London
interbank market at approximately 11:00 a.m. (London time) two Business Days prior to the first day
of such Interest Period, in the approximate amount to be funded at the LIBO Rate and having a
maturity equal to such Interest Period, divided by (ii) one minus the maximum aggregate reserve
requirement (including all basic, supplemental, marginal or other reserves) which is imposed
against SG in respect of Eurocurrency liabilities, as defined in Regulation D of the Board of
Governors of the Federal Reserve System as in effect from time to time (expressed as a decimal),
applicable to such Interest Period. The LIBO Rate shall be rounded, if necessary, to the next
higher 1/16 of 1%.

     “Managing Agent” has the meaning specified in the Class A Note Purchase Agreement.

     “Monthly Payment Rate” means, for any Collection Period, the percentage derived from
dividing (a) Principal Collections for such Collection Period minus Principal Collections allocated
to the Residual Interestholder pursuant to Sections 4.2(f), (g) and (h) of the Agreement by (b) the
beginning Net Pool Balance for such Collection Period.

     “Monthly Principal” has the meaning specified in Section 4.03.

     “Monthly Principal Reallocation Amount” means, for any Collection Period, an amount
equal to the lesser of (i) the excess of (x) the amount needed to make the payments described in
Sections 4.05(a)(i) and (ii) over (y) the amount of Non-Principal Collections,
Investment Proceeds and amounts withdrawn from the Reserve Account that are available to cover the
payments described in Sections 4.05(a)(i) and (ii), and (ii) the excess, if any, of
(x) the Outstanding Amount of the Class B Notes as of the related Payment Date (after giving effect
to any reduction in principal on such Payment Date) over (y) the amount of unreimbursed Investor
Charge-Offs after giving effect to Investor Charge-Offs for the related Collection Period.

     “Monthly Servicing Fee” has the meaning specified in Section 3.2 of the Agreement.

     “Note Purchase Agreements” means the Class A Note Purchase Agreement and the Class B
Note Purchase Agreement.

     “Other Costs” has the meaning set forth in the Class A Note Purchase Agreement.

     “Other Fees” means, for any Collection Period, the fees and amounts payable for such
Collection Period as described in the Fee Letter (as defined in the Class A Note Purchase
Agreement).

     “Other Monthly Amounts” means, for any Collection Period, the Increased Cost Amount,
Other Fees, Other Costs, Breakage Costs and Indemnified Amounts payable to the Series 2008-CP-2
Interestholders for such Collection Period, together with any other amounts due to any
Interestholder under any of the Basic Documents or the Class A Note Purchase Agreements.

     “Ownership Group” has the meaning specified in the Class A Note Purchase Agreement.

     “Partial Amortization Period” means a period after the date on which a Group Purchase
Limit Excess exists and ending on the earlier of (a) the earliest date on which no Group Purchase
Limit Excess exists or (b) the commencement of the Scheduled Amortization Period or the Early
Amortization Period.

Series 2008-CP-2 Supplement

7

 

     “Payment Date Shortfall” has the meaning specified in Section 4.05(a).

     “Payment Date Statement” has the meaning specified in Section 5.02.

     “Pooled Commercial Paper” means Commercial Paper of a Conduit Purchaser which is
subject to any particular pooling arrangement, as determined by the applicable Managing Agent (it
being recognized that a Conduit Purchaser may have more than one distinct group of Pooled
Commercial Paper at any time).

     “Pooled CP Rate” means, for each day with respect to the share of the Class A Notes
held by a Conduit Purchaser as to which the Pooled CP Rate is applicable, the sum of (i) discount
or yield accrued (including, without limitation, any associated with financing the discount or
interest component on the roll over of any Pooled Commercial Paper) on such Conduit Purchaser’s
Pooled Commercial Paper on such day, plus (ii) any and all accrued commissions in respect of its
placement agents and commercial paper dealers, and issuing and paying agent fees incurred, in
respect of such Pooled Commercial Paper for such day, plus (iii) other costs (including without
limitation those associated with funding small or odd lot amounts) with respect to all receivable
purchase, credit and other investment facilities which are funded by the applicable Pooled
Commercial Paper for such day. The Pooled CP Rate shall be determined for such Conduit Purchaser
by the applicable Managing Agent, whose determination shall be conclusive absent manifest error.

     “Portfolio Yield” means, with respect to any Determination Date, a fraction (expressed
as a percentage (annualized)), the numerator of which is an amount equal to Allocable Non-Principal
Collections for the related Collection Period, and the denominator of which is the Invested Amount
less amounts on deposit in the Principal Account and the Series 2008-CP-2 Excess Funding Amount, in
each case as of the beginning of the related Collection Period.

     “Principal Account” means the account designated as such, established and maintained
pursuant to Section 4.04.

     “Rating Agency Condition” means, in relation to any proposed action, amendment or
waiver, that the Issuer (or applicable Person) has obtained prior written consent to such action,
amendment or waiver, from the Control Investors.

     “Reallocated Principal Collections” means, for any Payment Date, Investor Principal
Collections applied in accordance with Section 4.09 in an amount not to exceed the Monthly
Principal Reallocation Amount for the related Collection Period.

     “Record Date” means, with respect to any Payment Date, the close of business on the
last day of the Collection Period preceding such Payment Date.

     “Redemption Price” means, with respect to any Payment Date, the sum of (a) the
aggregate Outstanding Amount of the Series 2008-CP-2 Notes to be redeemed on the Determination Date
preceding the Payment Date on which such redemption is to be made, (b) accrued and unpaid interest
on the unpaid balance of the Series 2008-CP-2 Notes (calculated on the basis of the Outstanding
Amount of each Class of the Series 2008-CP-2 Notes at the Interest Rate as in effect during the
applicable Interest Periods through the day preceding such Payment Date), (c) without duplication
with respect to any amounts due under clause (b) of this definition, any Class A Additional
Interest with respect to the Class A Notes to be repurchased, (c) the aggregate amount of
unreimbursed Investor Charge-Offs and Investor Defaulted Amounts with respect to the Series
2008-CP-2 Notes to be redeemed and (d) accrued and unpaid Investor Monthly Servicing Fees.

Series 2008-CP-2 Supplement

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     “Required Reserve Account Amount” means, for any day, an amount equal to (a) (i) at
any time during the Revolving Period, the product of (x) the Required Reserve Account Percentage
and (y) the then aggregate Outstanding Amount of the Series 2008-CP-2 Notes (after application of
any Collections on such date) and (ii) otherwise, the product of (x) the Required Reserve Account
Percentage and (y) the aggregate Outstanding Amount of the Series 2008-CP-2 Notes on the last day
of the Revolving Period (after application of any Collections on such date), or (b) any other
amount designated by the Seller; provided, however, that if such designation is of a lesser amount,
the Seller shall (i) provide the Indenture Trustee with evidence that the Rating Agency Condition
shall have been satisfied and (ii) deliver to the Indenture Trustee a certificate of an Authorized
Officer to the effect that, based on the facts known to such officer at such time, in the
reasonable belief of the Seller, such designation will not cause an Early Amortization Event to
occur with respect to Series 2008-CP-2.

     “Required Reserve Account Percentage” means (a) 0% so long as an Enhancement Trigger
Period has not occurred and (b) if an Enhancement Trigger Event has occurred, the Required Reserve
Account Percentage shall be the aggregate of (i) 0.75%, if an Enhancement Trigger Event under
clause (a)(i) of the definition thereof has occurred, plus (ii) 1.00%, if an Enhancement Trigger
Event under clause (a)(ii) of the definition thereof has occurred, plus (iii) 1.00% if an
Enhancement Trigger Event under clause (b) of the definition thereof has occurred.

     “Required Residual Percentage” means, with respect to Series 2008-CP-2, 103%.

     “Required Subordination Percentage” means 10.50%.

     “Reserve Account” means the account designated as such, established and maintained
pursuant to Section 4.04.

     “Reserve Account Deficiency” means the excess, if any, of the Required Reserve Account
Amount over the Available Reserve Account Amount.

     “Reset Date” means (a) the last day of a Collection Period, (b) any Addition Date,
(c) any date of issuance of an additional Series of Investor Interests (including the Closing Date)
or any date of issuance of additional Investor Interests of any outstanding Series occurs or (d)
any Removal Commencement Date.

     “Residual Interestholder” means the holder of the Residual Interest.

     “Residual Interestholder’s Percentage” means, with respect to any day, a percentage
(which percentage shall never be less than 0% nor more than 100%) equal to 100% minus (a) the
Floating Allocation Percentage on such day, when used with respect to Allocable Non-Principal
Collections and Allocable Defaulted Amounts and with respect to Allocable Principal Collections
during the Revolving Period, and (b) the Fixed Allocation Percentage on such day, when used with
respect to Allocable Principal Collections during a Scheduled Amortization Period, a Partial
Amortization Period or an Early Amortization Period.

     “Revolving Period” means the period beginning on the Closing Date and terminating on
the earliest of (a) the close of business on the day preceding the Commitment Termination Date, (b)
the close of business on the day preceding the day on which a Partial Amortization Period commences
and (c) the close of business on the day preceding the day on which an Early Amortization Period
commences; provided, however, that, if a Partial Amortization Period ends and an
Early Amortization Period has not commenced, the Revolving Period will recommence as of the open of
business on the day after such Partial Amortization Period ends and if any Early Amortization
Period ends as described in Section 6.02

Series 2008-CP-2 Supplement

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hereof, the Revolving Period will recommence as of the open of business on the day after such
Early Amortization Period ends.

     “Scheduled Amortization Period” means, unless an Early Amortization Event shall have
occurred prior thereto, the period commencing at the close of business on the Scheduled Termination
Date and ending on the earliest to occur of (a) the commencement of the Early Amortization Period,
(b) the Series 2008-CP-2 Stated Maturity Date, and (c) the date on which the Outstanding Amount of
the Series 2008-CP-2 Notes has been reduced to zero.

     “Scheduled Termination Date” means May 11, 2009, as such date may be extended pursuant
to the terms of the Note Purchase Agreement.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Senior Monthly Amount Limit” means, on any Determination Date, an amount equal to
5.0% per annum of the Outstanding Amount of the Class A Notes at such time.

     “Series 2005-A” means the Series 2005-A Notes, the Principal Terms of which are
specified in the Series Supplement dated as of May 26, 2005, by and among the Issuer, the Servicer
and the Indenture Trustee.

     “Series 2006-A” means the Series 2006-A Notes, the Principal Terms of which are
specified in the Series Supplement dated as of April 19, 2006, by and among the Issuer, the
Servicer and the Indenture Trustee.

     “Series 2007-A” means the Series 2007-A Notes, the Principal Terms of which are
specified in the Series Supplement dated as of March 29, 2007, by and among the Issuer, the
Servicer and the Indenture Trustee.

     “Series 2008-CP-1” means the Series 2008-CP-1 Notes, the Principal Terms of which are
specified in the Series Supplement dated as of March 20, 2008, by and among the Issuer, the
Servicer and the Indenture Trustee.

     “Series 2008-CP-2” means the Series 2008-CP-2 Notes, the Principal Terms of which are
specified in this Series Supplement.

     “Series 2008-CP-2 Allocation Percentage” means the Series Allocation Percentage with
respect to Series 2008-CP-2.

     “Series 2008-CP-2 Excess Funding Amount” means, with respect to the Series 2008-CP-2
Notes, for any day, the product of (a) the Series 2008-CP-2 Allocation Percentage on such day and
(b) the amount on deposit in the Excess Funding Account (other than Investment Proceeds) on such
day.

     “Series 2008-CP-2 Excess Non-Principal Collections” means Excess Non-Principal
Collections allocated from other Series in Group One to Series 2008-CP-2 pursuant to Section 4.3 of
the Sale and Servicing Agreement.

     “Series 2008-CP-2 Legal Final Maturity Date” means the Payment Date falling in the
31st calendar month after the then current Commitment Termination Date.

Series 2008-CP-2 Supplement

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     “Series 2008-CP-2 Non-Principal Shortfall” means, with respect to any Payment Date, an
amount equal to the excess, if any, of (a) the full amount required to be paid, without
duplication, pursuant to Sections 4.05(a)(i) through (vii) on such Payment Date
over (b) the Available Investor Non-Principal Collections (excluding any portion thereof
attributable to Excess Non-Principal Collections) and Investment Proceeds with respect to such
Payment Date.

     “Series 2008-CP-2 Principal Shortfall” means, with respect to any Payment Date prior
to the Scheduled Termination Date, an amount equal to the excess, if any, of (a) the full amount
required to be paid, without duplication, pursuant to Sections 4.05(c)(i) through
(iii) on such Payment Date over (b) the Available Investor Principal Collections
with respect to such Payment Date (excluding any portion thereof attributable to Reallocated
Principal Collections) and, with respect to any Payment Date thereafter, the Outstanding Amount of
the Series 2008-CP-2 Notes.

     “Series 2008-CP-2 Noteholder” means the Holders of the Series 2008-CP-2 Notes.

     “Series 2008-CP-2 Notes” has the meaning specified in Section 2.01(a).

     “Series 2008-CP-2 Stated Maturity Date” means the Payment Date falling in the 3rd
calendar month after the then current Commitment Termination Date.

     “Series Supplement” has the meaning set forth in the recitals to this Series
Supplement.

     “Servicer” has the meaning set forth in the recitals to this Series Supplement.

     “Servicing Fee Rate” means, with respect to Series 2008-CP-2, 1.5%, or such other
percentage as may be approved by the Control Investors in writing.

     “SG” means Société Générale, a banking corporation organized under the laws of France.

     “Subordinated Interest Percentage” means, as of any date of determination, a
percentage calculated by dividing (a) an amount equal to (i) the Invested Amount as of such date
minus (ii) the aggregate outstanding principal balance of the Class A Notes plus the Series
2008-CP-2 Excess Funding Amount on such date by (b) the sum of the aggregate outstanding principal
balance of the Class A Notes plus the aggregate outstanding principal balance of the Class B Notes
as of such date.

     “Termination Date” means, with respect to Series 2008-CP-2, the day after the Payment
Date falling in the 2nd calendar month after the Series 2008-CP-2 Legal Final Maturity
Date.

     “Trust” has the meaning set forth in the recitals to this Series Supplement.

     (b) Notwithstanding anything to the contrary in this Series Supplement or the other
Documents, the term “Rating Agency” whenever used in this Series Supplement or such
other Basic Documents shall mean (i) to the extent Moody’s and/or Standard & Poor’s has
assigned a rating to any class of Series 2008-CP-2 Notes, Moody’s and/or Standard & Poor’s,
as applicable and (ii) in all other circumstances with respect to Series 2008-CP-2, the
Series 2008-CP-2 Noteholders. As used in this Series Supplement and the other Basic
Documents with respect to Series 2008-CP-2, “highest investment category” means (i) in the
case of Standard & Poor’s, A-1+ or AAA, as applicable, and (ii) in the case of Moody’s, P-1
or Aaa, as applicable.

     (c) All capitalized terms used herein and not otherwise defined herein have the
meanings ascribed to them in the Agreement. The definitions in this Section 1.01
are applicable

Series 2008-CP-2 Supplement

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to the singular as well as to the plural forms of such terms and to the masculine as
well as to the feminine and neuter genders of such terms.

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

ARTICLE II

Creation of the Series 2008-CP-2 Notes

     Section 2.01 Designation. (a) There is hereby created a Series of Investor
Interests to be issued pursuant to the Indenture and this Series Supplement and shall be comprised
of two classes: the Class A Floating Rate Floorplan Receivables Secured Notes, Series 2008-CP-2
(the “Class A Notes”), and the Class B Floating Rate Floorplan Receivables Secured Notes,
Series 2008-CP-2 (the “Class B Notes”; and together with the Class A Notes, the “Series
2008-CP-2 Notes”.

     (b) If any term or provision contained herein shall conflict with or be inconsistent
with any term or provision contained in the Indenture, the terms and provisions of this
Series Supplement shall govern.

     (c) As described in Section 2.15 of the Indenture, the Series 2008-CP-2 Notes shall be
Unregistered Interests.

     (d) Series 2008-CP-2 shall be included in Group One and shall be a Principal Sharing
Series. Series 2008-CP-2 shall be an Excess Allocation Series with respect to Group One
only. Series 2008-CP-2 shall not be subordinated to any other Series.

     Section 2.02 Form, Execution, Authentication and Delivery of Series 2008-CP-2 Notes.

     (a) The Class A and Class B Notes shall be represented by notes in substantially the
forms set forth in Exhibits A and B, respectively, with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by the Indenture.
The terms of the Series 2008-CP-2 Notes set forth in Exhibits A and B are part of
the terms of this Series Supplement and the Indenture.

     (b) The Issuer shall execute and issue and the Indenture Trustee shall authenticate and
deliver the Class A Note with a maximum principal amount of $375,000,000 and the Class B
Note with a maximum principal amount of $43,995,000.

     (c) Each Class A Note shall be issued in minimum denominations of $1,000,000 and
integral multiples of $1,000 in excess thereof and the Class B Notes shall be issued in
minimum denominations of $1,000.

     Section 2.03 Issuance of Additional Series 2008-CP-2 Notes. At the request of the
Series 2008-CP-2 Noteholders from time to time and with the consent of the Issuer, the Issuer shall
issue additional principal amounts of Series 2008-CP-2 Notes and this Series Supplement may be
amended to reflect such issuance by the Servicer, the Indenture Trustee and the Issuer, such
amendment to be subject to the approval of the Series 2008-CP-2 Noteholders but without the consent
of the Residual Interestholder.

Series 2008-CP-2 Supplement

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     (a) Prior to the issuance of any additional principal amount of Series 2008-CP-2 Notes,
the following conditions shall have been satisfied: (i) the Rating Agency Condition shall
have been satisfied with respect to such issuance and amendment; and (ii) after giving
effect to the issuance of such additional Series 2008-CP-2 Notes, the Subordinated Interest
Percentage shall be equal to or greater than the Required Subordination Percentage; and
(iii) the Net Pool Balance shall be not less than the Required Net Pool Balance after giving
effect to the issuance of such additional Series 2008-CP-2 Notes.

     (b) The Issuer hereby covenants to take all action necessary to satisfy the conditions
precedent specified in clause (a) above to effect an increase in the principal amount of the
Series 2008-CP-2 Notes.

     (c) Upon the issuance of any additional Series 2008-CP-2 Notes, the Issuer, the
Indenture Trustee and the Servicer shall each make notations in its records to evidence such
increase.

     Section 2.04 Incremental Fundings. The Issuer may increase the principal amount
outstanding under the Series 2008-CP-2 Notes by requesting Incremental Fundings under the Series
2008-CP-2 Notes pursuant to the terms of the Note Purchase Agreements.

     Section 2.05 Procedure for Decreasing the Invested Amount. On any Payment Date
during the Revolving Period, upon the written request of the Servicer or the Issuer, the Invested
Amount may be reduced (a “Decrease”) which Decrease shall be allocated by the Servicer or
the Issuer between (a) the amount to be used to ratably reduce the outstanding principal balance of
the Class A Notes (such amount, the “Class A Decrease”) and (b) the amount to be used to
reduce the outstanding principal balance of the Class B Notes (such amount, the “Class B
Decrease”) and such allocation shall be set forth in such notice; provided that (i) the
Servicer or the Issuer shall have given the Indenture Trustee and each applicable Class A
Noteholder (or its agent) irrevocable written notice (effective upon receipt) thereof, prior to
12:00 noon, New York time, no later than the third Business Day preceding the date of such
Decrease, if the requested amount of the Class A Decrease is $20,000,000 or less, or no later than
the fifth Business Day preceding the date of such Decrease in all other cases, (ii) the minimum
amount of such Decrease shall be $1,000,000; (iii) no Decrease may be made if, after giving effect
to the reduction of the Invested Amount that would result from such requested Decrease, the
Subordinated Interest Percentage would be less than the Required Subordination Percentage.

     Section 2.06 Transfer of Class B Notes. Neither the Class B Notes nor any interest
therein may be sold, pledged, participated, transferred, disposed of or otherwise alienated (each,
a “Transfer”), and the Registrar will not recognize any Transfer or purported Transfer of a
Class B Note, unless prior to such Transfer or purported Transfer the Indenture Trustee and the
Registrar have received an Opinion of Counsel to the effect that, for federal income tax purposes,
such Transfer will not cause the Issuer to be characterized as an association or publicly traded
partnership as a corporation. Any Transfer or purported Transfer of a Class B Note in violation of
the preceding sentence shall be void ab initio and of no effect.

ARTICLE III

Servicing Fee

     Section 3.01 Servicing Compensation. The Monthly Servicing Fee with respect to
Series 2008-CP-2 (the “Investor Monthly Servicing Fee”) shall be payable to the Servicer,
in arrears, on each Payment Date in respect of any Collection Period (or portion thereof) occurring
prior to the earlier of the first Payment Date following the Series 2008-CP-2 Stated Maturity Date
and the first Payment Date on which

Series 2008-CP-2 Supplement

13

 

the Invested Amount is permanently reduced to zero, in an amount equal to the product of
(a) the Servicing Fee Rate, (b) the Invested Amount as of the last day of such Collection Period
and (c) a fraction, the numerator of which is the actual number of days elapsed in the related
Collection Period and the denominator of which is 360; provided, however, that with
respect to the first Payment Date, the Investor Monthly Servicing Fee shall be equal to the product
of (a) the Servicing Fee Rate, (b) Invested Amount as of the Closing Date and (c) a fraction, the
numerator of which is the number of days from and including the Closing Date to and including the
last day of the Collection Period immediately preceding the first Payment Date occurs and the
denominator of which is 360. The Investor Monthly Servicing Fee shall be payable to the Servicer
solely to the extent amounts are available for distribution therefor in accordance with the terms
of this Series Supplement.

ARTICLE IV

Rights of Series 2008-CP-2 Noteholders and

Allocation and Application of Collections

     Section 4.01 Daily Allocations; Payments to Residual Interestholder. On each Deposit
Date, Non-Principal Collections, Principal Collections and Miscellaneous Payments will be allocated
to Series 2008-CP-2 based on the Series 2008-CP-2 Allocation Percentage and shall be further
allocated and distributed as set forth in this Section 4.01.

     (a) Non-Principal Collections. On each Deposit Date, the Servicer shall
allocate to Series 2008-CP-2 and retain in the Collection Account (until applied as provided
herein) an amount equal to the Floating Allocation Percentage then in effect of Allocable
Non-Principal Collections deposited in the Collection Account for such Deposit Date.

     (b) Principal Collections — Revolving Period. On each Deposit Date during the
Revolving Period, the Servicer shall cause an amount equal to the Investor Principal
Collections for such Deposit Date to be allocated to Series 2008-CP-2 and such amount shall
be applied as provided in Section 4.05(b).

     (c) Principal Collections — Scheduled Amortization Period, Partial Amortization
Period and Early Amortization Period. On each Deposit Date during the Scheduled
Amortization Period, the Partial Amortization Period and the Early Amortization Period, the
Servicer shall cause an amount equal to the Investor Principal Collections for such Deposit
Date to be allocated to Series 2008-CP-2 for application as provided in Section
4.05(c).

     (d) Miscellaneous Payments. On each Deposit Date, the Servicer shall treat any
Allocable Miscellaneous Payments as Investor Principal Collections and apply them as
provided in Section 4.01(b) or 4.01(c), as appropriate, except that any
Allocable Miscellaneous Payments consisting of (i) Adjustment Payments that were paid after
their due date as per Section 3.9(a) of the Agreement, if the amount of such overdue
Adjustment Payments has been included in the Investor Dilution Amount for any prior
Collection Period and (ii) the interest portion of Transfer Deposit Amounts resulting from
the Servicer’s purchase of Receivables pursuant to Section 3.3(d) of the Agreement, shall,
in each case, be treated as Allocable Non-Principal Collections and applied as provided in
Section 4.01(a).

     The withdrawals to be made from the Collection Account pursuant to this Section 4.01
do not apply to deposits into the Collection Account that do not represent Collections, including
payment of the Redemption Price for the Series 2008-CP-2 Notes pursuant to Section 10.1(b) of the
Indenture and

Series 2008-CP-2 Supplement

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Section 7.01 of this Series Supplement and proceeds from the sale, disposition or
liquidation of Conveyed Receivables pursuant to Section 5.4 of the Indenture.

     Section 4.02 Monthly Interest.

     (a) The amount of monthly interest (“Class A Monthly Interest”) accrued during
any Interest Period with respect to the Class A Notes, shall be equal to the product of
(A) the Class A Interest Rate, (B) the average daily Outstanding Amount of the Class A Notes
during such Interest Period and (C) a fraction, the numerator of which is the actual number
of days elapsed in the related Interest Period and the denominator of which is 360
plus amounts payable pursuant to Section 2.05(c) of the Class A Note Purchase
Agreement; provided, however that with respect to the first such
Payment Date, Class A Monthly Interest shall be calculated based on the outstanding
principal amount of the Class A Notes on the Closing Date.

     On the Determination Date preceding each Payment Date, the Servicer shall determine the
excess, if any (the “Class A Interest Shortfall”), of (x) the aggregate Class A
Monthly Interest for the Interest Period applicable to such Payment Date over (y) the amount
that will be available to be distributed to Class A Noteholders on such Payment Date in
respect thereof pursuant to this Series Supplement. If the Class A Interest Shortfall with
respect to any Payment Date is greater than zero, an additional amount (“Class A
Additional Interest”) equal to the product of (A) the Class A Interest Rate for the
Interest Period commencing on such Payment Date (or, for subsequent Interest Periods, the
Class A Interest Rate for such subsequent Interest Period), (B) such Class A Interest
Shortfall (or the portion thereof that has not been paid to Class A Noteholders) and (C) a
fraction, the numerator of which is the amount of days elapsed in such Interest Period (or
in a subsequent Interest Period) and the denominator of which is 360, shall be payable as
provided herein with respect to Class A Notes on each Payment Date following such Payment
Date to and including the Payment Date on which such Class A Interest Shortfall is paid to
Class A Noteholders. Notwithstanding anything to the contrary herein, Class A Additional
Interest shall be payable or distributed to Class A Noteholders only to the extent permitted
by applicable law.

     (b) The amount of monthly interest (“Class B Monthly Interest”) accrued during
any Interest Period with respect to the Class B Notes, shall be equal to the product of
(A) the Class B Interest Rate in effect on the first Business Day of such Interest Period,
(B) the Outstanding Amount of the Class B Notes as of the close of business on the last day
of the preceding Interest Period and (C) a fraction, the numerator of which is the actual
number of days elapsed in the related Interest Period and the denominator of which is 360;
provided, however that with respect to the first such Payment Date,
Class B Monthly Interest shall be calculated based on the outstanding principal amount of
the Class B Notes on the Closing Date.

     On the Determination Date preceding each Payment Date, the Servicer shall determine the
excess, if any (the “Class B Interest Shortfall”), of (x) the aggregate Class B
Monthly Interest for the Interest Period applicable to such Payment Date over (y) the amount
that will be available to be distributed to Class B Noteholders on such Payment Date in
respect thereof pursuant to this Series Supplement.

     Section 4.03 Determination of Monthly Principal. Beginning with the Payment Date in
the month following the month in which a Partial Amortization Period, the Scheduled Amortization
Period or the Early Amortization Period begins, the amount of principal with respect to Series
2008-CP-2 on each Payment Date (the “Monthly Principal”) shall be equal to (a) in the case
of a Partial Amortization Period the lesser of (i) the Available Investor Principal Collections on
deposit in the Collection Account with

Series 2008-CP-2 Supplement

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respect to such Payment Date and (ii) an amount equal to the aggregate Group Purchase Limit
Excess that exists prior to any deposit into the Collection Account on such Payment Date and (b) in
the case of a Scheduled Amortization Period or an Early Amortization Period, the least of (i) the
Outstanding Amount of the Series 2008-CP-2 Notes on such Payment Date (minus, during the Scheduled
Amortization Period, any amount already in the Principal Account on such Payment Date); and (ii)
the Invested Amount (after taking into account any adjustments to be made to the Invested Amount on
such Payment Date pursuant to Section 4.07). Subject to Section 4.2(b) of the Agreement,
during the Scheduled Amortization Period and the Early Amortization Period, Investor Principal
Collections shall be deposited into the Collection Account on a daily basis in accordance with and
subject to the provisions of Section 4.2 of the Agreement and the Scheduled Amortization Period
shall be treated as a Controlled Accumulation Period for purposes of Section 4.2(c)(ii)(b) of the
Agreement.

     Section 4.04 Establishment of Accounts. The Issuer has previously caused to be
established and covenants to hereafter maintain the Collection Account and the Excess Funding
Account. The Issuer hereby establishes and covenants to hereafter maintain the Principal Account
and the Reserve Account which shall be Trust Accounts and Eligible Deposit Accounts in accordance
with Section 4.1 of the Agreement under the sole dominion and control of the Indenture Trustee for
the benefit of the Series 2008-CP-2 Noteholders and the Residual Interestholder.

     Section 4.05 Application of Collections.

     (a) Available Investor Non-Principal Collections and Investment Proceeds. On
each Payment Date, the Servicer shall direct the Indenture Trustee in writing to apply an
amount equal to the sum of Available Investor Non-Principal Collections, any Investment
Proceeds deposited in the Collection Account for the related Collection Period, any amounts
on deposit in the Reserve Account and Excess Non-Principal Collections allocated to Series
2008-CP-2 in accordance with Section 4.10 for distribution, to the extent of funds available
therefor, in the following priority:

     (i) first, an amount equal to the Investor Monthly Servicing Fee for such
Payment Date (to the extent not previously paid), plus any unpaid Servicer Advances and
accrued and unpaid interest thereon, shall be distributed to the Servicer;

     (ii) second, an amount equal to Class A Monthly Interest for such Payment Date,
plus the amount of any Class A Monthly Interest previously due but not distributed
to the Class A Noteholders on a prior Payment Date, plus the amount of any Class A
Additional Interest for such Payment Date and any Class A Additional Interest previously due
but not distributed to the Class A Noteholders on a prior Payment Date; plus the
Other Monthly Amounts constituting Other Fees previously due but not distributed to the
Class A Noteholders on a prior Payment Date (in an amount which does not exceed the Senior
Monthly Amount Limit), shall be paid to the Class A Noteholders, pro rata;

     (iii) third, an amount equal to Class B Monthly Interest for such Payment Date,
plus the amount of any Class B Monthly Interest previously due but not distributed
to the Class B Noteholders on a prior Payment Date, shall be paid to the Class B
Noteholders, pro rata;

     (iv) fourth, an amount equal to the Investor Defaulted Amount and the Investor
Dilution Amount, if any, for such Payment Date shall be treated as a portion of Available
Investor Principal Collections for such day and, during a Partial Amortization Period, the
Scheduled Amortization Period or the Early Amortization Period, shall be deposited into the
Principal Account;

Series 2008-CP-2 Supplement

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     (v) fifth, an amount equal to the remaining Other Monthly Amounts not paid
pursuant to clause (ii) above, previously due but not distributed to the Class A Noteholders
on a prior Payment Date;

     (vi) sixth, an amount equal to the aggregate amount of Investor Charge-Offs
that have not been previously reimbursed as provided in Section 4.07 and this
Section 4.05(a)(vi) shall be treated as Available Investor Principal Collections
with respect to such day and shall increase the Invested Amount and, during a Partial
Amortization Period, the Scheduled Amortization Period or the Early Amortization Period,
shall be deposited into the Principal Account;

     (vii) seventh, an amount, if any, equal to the amount required to be deposited
in the Reserve Account pursuant to Section 4.12 shall be deposited into the Reserve
Account during the Revolving Period and the Scheduled Amortization Period;

     (viii) eighth, if none of a Partial Amortization Period, the Scheduled
Amortization Period or the Early Amortization Period has occurred and is continuing, the
balance, if any, will constitute a portion of Excess Non-Principal Collections for such
Payment Date and will be applied in accordance with Section 4.3 of the Agreement;

     (ix) ninth, during a Partial Amortization Period, the balance, if any, shall be
used to make principal payments to the Class A Notes (with application of such amount being
made pro rata among the Class A Noteholders based upon each of their respective Group
Purchase Limit Excess, if any, rather than based upon the Outstanding Amount of the Class A
Notes) until no Group Purchase Limit Excess shall exist, and the remaining amount, if any,
will constitute a portion of Excess Non-Principal Collections for such Payment Date and will
be applied in accordance with Section 4.3 of the Agreement; and

     (x) tenth, during the Scheduled Amortization Period or the Early Amortization
Period, the remaining balance, if any, will be used to make principal payments first, to the
Class A Notes until the Class A Note Principal Balance is paid in full and, second, to the
Class B Notes until the Class B Note Principal Balance is paid in full.

     On each Payment Date, to the extent that there is a shortfall (a “Payment Date
Shortfall”) in the amounts to be paid or deposited pursuant to clauses(a)(ii)
and (a)(iii) of this Section 4.05, the Paying Agent on behalf of the Issuer,
shall withdraw from the Collection Account, from any Servicer Advance on deposit therein, an
amount equal to the lesser of (i) the Payment Date Shortfall for such Payment Date and (ii)
the product of (x) such Servicer Advance and (y) the Floating Allocation Percentage for the
previous Collection Period, and apply such withdrawn amount to make the payments and
deposits contemplated by such clauses of this Section 4.05.

     (b) Available Investor Principal Collections — Revolving Period. On each
Payment Date during the Revolving Period, an amount equal to the Available Investor
Principal Collections deposited into the Collection Account for the related Collection
Period shall be applied as follows:

     (i) first, an amount equal to the Reallocated Principal Collections for the
related Payment Date shall be made available on that Payment Date for application in
accordance with Section 4.09;

Series 2008-CP-2 Supplement

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     (ii) second, such amount shall be deposited into the Excess Funding Account to
the extent necessary so that the amount on deposit in the Excess Funding Account plus the
Net Pool Balance is at least equal to the Required Net Pool Balance;

     (iii) third, to the Class A Noteholders, the amount of any Class A Decrease
(which satisfies the requirements of Section 2.05) to reduce the outstanding
principal amount of the Class A Notes;

     (iv) fourth, to the Class B Noteholders, the amount of any Class B Decrease
(which satisfies the requirements of Section 2.05) to reduce the outstanding
principal amount of the Class B Notes;

     (v) fifth, shall be treated as Excess Principal Collections and applied in
accordance with Section 4.3 of the Agreement.

     (c) Available Investor Principal Collections — Partial Amortization Period,
Scheduled Amortization Period or Early Amortization Period. On each Payment Date during
a Partial Amortization Period, the Scheduled Amortization Period or the Early Amortization
Period, an amount equal to Available Investor Principal Collections deposited in the
Collection Account for the related Collection Period plus Excess Principal Collections
allocated to Series 2008-CP-2 in accordance with Section 4.11 shall be applied as
follows:

     (i) during a Partial Amortization Period, first, until no Group Purchase Limit Excess
exists (with application of such amount being made pro rata among the Class A Noteholders
based upon each of their respective Group Purchase Limit Excess, if any, rather than based
upon the Outstanding Amount of the Class A Notes); and second, until the Outstanding Amount
of the Class B Notes has been reduced to the extent necessary to reduce the Subordinated
Interest Percentage to the Required Subordination Percentage (but not less than the Required
Subordination Percentage);

     (ii) during the Scheduled Amortization Period or the Early Amortization Period, an
amount equal to the least of (a) the Available Investor Principal Collections on deposit in
the Collection Account for the related Collection Period and (b) the Monthly Principal for
such Payment Date shall be distributed on each Payment Date and on the related Payment Date:
first, to the Class A Noteholders on the related Payment Date until the Class A Note
Principal Balance has been paid in full; and second, to the Class B Noteholders until the
Class B Note Principal Balance has been paid in full; and

     (iii) the balance of such Available Investor Principal Collections remaining after
application in accordance with clauses (i) and (ii) above and subject to the prior payment
of any outstanding unpaid obligations of the Issuer pursuant to Section 6.7 of the
Indenture, any remaining amount shall be paid to the Residual Interestholder.

     (d) Payment of Available Investor Principal Collections. On the Series
2008-CP-2 Stated Maturity Date, the Servicer shall pay all Available Investor Principal
Collections first, to the Class A Noteholders, until the Class A Note Principal Balance is
paid in full, and second to the Class B Noteholders until the Class B Note Principal Balance
is paid in full.

     Section 4.06 Distributions to Series 2008-CP-2 Noteholders.  On each Payment Date,
the Servicer shall direct the Indenture Trustee in writing to make the following distributions at
the following

Series 2008-CP-2 Supplement

18

 

times from the Collection Account, the Reserve Account, the Principal Account and the Excess
Funding Account, as applicable:

     (a) on each Payment Date, all amounts on deposit in such Trust Accounts that are
payable to the Class A Noteholders with respect to accrued interest and principal shall be
distributed to the Class A Noteholders in accordance with Section 4.05; and

     (b) on each Payment Date, all amounts on deposit in such Trust Accounts that are
payable to the Class B Noteholders with respect to accrued interest and principal shall be
distributed to the Class B Noteholders in accordance with Section 4.05.

     Section 4.07 Investor Charge-Offs. On each Determination Date, the Servicer shall
calculate the Investor Defaulted Amount and the Investor Dilution Amount, if any, for the related
Payment Date. If, on any Payment Date, the sum of the Investor Defaulted Amount, the Investor
Dilution Amount and Reallocated Principal Collections for such Payment Date exceeds the sum of
Available Investor Non-Principal Collections, amounts withdrawn from the Reserve Account on such
Payment Date and Investment Proceeds allocated with respect thereto pursuant to
Section 4.05(a)(iv) on such Payment Date (after giving effect to the allocations,
distributions, withdrawals and deposits to be made on such Payment Date), the Invested Amount shall
be reduced by the amount of such excess, but not by more than the lesser of (i) the sum of the
Investor Defaulted Amount, the Investor Dilution Amount and Reallocated Principal Collections for
such Payment Date, and (ii) the Invested Amount on such Payment Date (an “Investor
Charge-Off”). Investor Charge-Offs shall thereafter be reimbursed and the Invested Amount
increased (but not by an amount in excess of the aggregate unreimbursed Investor Charge-Offs on any
Payment Date) by the amount of Available Investor Non-Principal Collection and Investment Proceeds
allocated and available for that purpose pursuant to Section 4.05(a)(vi).

     Section 4.08 Excess Funding Account. On the business day after the last day of the
Revolving Period, the Series 2008-CP-2 Excess Funding Amount shall, pursuant to Servicer written
instruction, be deposited in the Collection Account on such date and distributed in accordance with
Section 4.06. Thereafter, the Series 2008-CP-2 Noteholders shall not be entitled to any
funds on deposit in the Excess Funding Account.

     Section 4.09 Reallocated Principal Collections. On each Payment Date, after giving
effect to Section 4.12(a), the Servicer shall apply Reallocated Principal Collections with
respect to that Payment Date to fund any deficiency pursuant to and in the priority set forth in
Sections 4.05(a)(i) through (ii). On each Payment Date, the Invested Amount shall
be reduced by the amount of Reallocated Principal Collections for such Payment Date. Reallocated
Principal Collections shall become part of Investor Charge-Offs pursuant to Section 4.07.

     Section 4.10 Excess Non-Principal Collections. Series 2008-CP-2 shall be an Excess
Allocation Series with respect to Group One only. Subject to Section 4.3 of the Agreement, Excess
Non-Principal Collections with respect to the Excess Allocation Series in Group One for any Payment
Date will be allocated to Series 2008-CP-2 in an amount equal to the product of (x) the aggregate
amount of Excess Non-Principal Collections with respect to all the Excess Allocation Series in
Group One for the related Payment Date and (y) a fraction, the numerator of which is the Series
2008-CP-2 Non-Principal Shortfall for such Payment Date and the denominator of which is the
aggregate amount of Non-Principal Shortfalls for all the Excess Allocation Series in Group One for
such Payment Date.

     Section 4.11 Excess Principal Collections. Subject to Section 4.3 of the Agreement,
Excess Principal Collections allocable to Series 2008-CP-2 on any Payment Date will be equal to the
product of (x) the aggregate amount of Excess Principal Collections with respect to all Principal
Sharing Series for

Series 2008-CP-2 Supplement

19

 

such Payment Date and (y) a fraction, the numerator of which is the Series 2008-CP-2 Principal
Shortfall for such Payment Date and the denominator of which is the aggregate amount of Principal
Shortfalls for all the Series which are Principal Sharing Series for such Payment Date.

     Section 4.12 Reserve Account.

     (a) On each Payment Date, if the aggregate amount of Available Investor Non-Principal
Collections is less than the aggregate amount required to be paid or deposited pursuant to
clauses (i) through (v) of Section 4.05(a), the Issuer shall
withdraw from the Reserve Account the amount of such deficiency up to the Available Reserve
Account Amount and shall apply such amount in accordance with such clauses of Section
4.05(a).

     (b) On the Series 2008-CP-2 Stated Maturity Date, and on any day following the
occurrence of an Event of Default with respect to Series 2008-CP-2 that has resulted in the
acceleration of the Series 2008-CP-2 Notes, the Servicer shall withdraw from the Reserve
Account the Available Reserve Account Amount for payment to the Series 2008-CP-2 Noteholders
to fund any shortfalls in amounts owed to the Series 2008-CP-2 Noteholders.

     (c) If on any Payment Date, after giving effect to all withdrawals from the Reserve
Account, the Available Reserve Account Amount is less than the Required Reserve Account
Amount then in effect, Available Investor Non-Principal Collections shall be deposited into
the Reserve Account pursuant to Section 4.05(a)(vii) up to the amount of the Reserve
Account Deficiency.

     (d) If, after giving effect to all deposits to and withdrawals from the Reserve Account
with respect to any Payment Date, the amount on deposit in the Reserve Account exceeds the
Required Reserve Account Amount, the Servicer shall withdraw an amount equal to such excess
from the Reserve Account and distribute such amount to the Residual Interestholder on the
related Payment Date. On the date on which the Reserve Account has been terminated, after
giving effect to any withdrawal on such date pursuant to Section 4.12(a) and making
any payments to the Series 2008-CP-2 Noteholders required pursuant to this Series
Supplement, all amounts then remaining in the Reserve Account shall be released to the
Residual Interestholder.

     (e) The Reserve Account will terminate on the earliest to occur of (i) the date on
which the Outstanding Amount of the Series 2008-CP-2 Notes has been reduced to zero and all
other amounts payable to the Series 2008-CP-2 Noteholders have been paid in full and (ii)
the Series 2008-CP-2 Stated Maturity Date.

     Section 4.13 Investment of Amounts on Deposit in Series Accounts.

     (a) To the extent there are uninvested amounts deposited in the Series Accounts, the
Servicer shall cause such amounts to be invested in Eligible Investments selected by the
Servicer that mature no later than the following Payment Date.

     (b) On each Payment Date, the Investment Proceeds, if any, accrued since the preceding
Payment Date on funds on deposit in the Reserve Account or the Principal Account shall be
treated as Available Investor Non-Principal Collections and paid or deposited in accordance
with Section 4.05(a). Subject to the foregoing, for purposes of determining the
availability of funds or the balance in the Reserve Account for any reason under this Series
Supplement, all Investment Proceeds shall be deemed not to be available or on deposit.

Series 2008-CP-2 Supplement

20

 

     Section 4.14 Scheduled Amortization Period. The Scheduled Amortization Period shall
commence on the Scheduled Termination Date and shall continue until the earliest of (i) the date on
which an Early Amortization Period commences and (ii) the Final Payment Date.

ARTICLE V

Distributions and Reports to Series 2008-CP-2 Noteholders

     Section 5.01 Distributions. (a) On each Payment Date, the Indenture Trustee
shall distribute to each Series 2008-CP-2 Noteholder of record on the preceding Record Date
(other than as provided in Section 2.7(c) of the Indenture with respect to a final
distribution) such Interestholder’s pro rata share (based on the aggregate fractional
undivided interests represented by the Series 2008-CP-2 Notes held by such Interestholder,
except during a Partial Amortization Period to the extent provided in Section 4.05(c)(i)) of
the amounts on deposit in the Collection Account, the Excess Funding Account, the Principal
Account or the Reserve Account as is payable to the Series 2008-CP-2 Noteholders on such
Payment Date according to the written instructions of the Servicer given pursuant to
Sections 4.05 and 4.06.

     (b) Except as provided in Section 2.7(c) of the Indenture with respect to a final
distribution, distributions to Series 2008-CP-2 Noteholders hereunder shall be made in
immediately available funds wired to each Series 2008-CP-2 Interestholder in accordance with
such Interestholder’s wiring information appearing in the Register without presentation or
surrender of any Series 2008-CP-2 Notes or the making of any notation thereon.

     Section 5.02 Reports and Statements to Series 2008-CP-2 Noteholders. (a)  At
least two Business Days prior to each Payment Date, the Servicer will provide to the
Indenture Trustee, and on each such Payment Date, the Indenture Trustee shall forward to
each Series 2008-CP-2 Interestholder of record a statement (the “Payment Date
Statement”) prepared by the Servicer setting forth certain information relating to the
Issuer, the Series 2008-CP-2 Notes and the Required Net Pool Balance.

     (b) A copy of each statement provided pursuant to paragraph (a) will be made available
for inspection by any Series 2008-CP-2 Interestholder at the Corporate Trust Office.

     (c) Within the prescribed period for tax reporting purposes after the end of each
calendar year, the Indenture Trustee shall furnish or cause to be furnished to each Person
who at any time during the preceding calendar year was a Series 2008-CP-2 Noteholder and the
Residual Interestholder, a statement prepared by the Servicer containing such information as
may be required by the Code and applicable U.S. treasury regulations to enable the Series
2008-CP-2 Noteholders or Residual Interestholder to prepare their federal income tax
returns. Such obligation of the Indenture Trustee shall be deemed to have been satisfied to
the extent that substantially comparable information shall be provided by the Indenture
Trustee pursuant to any requirements of the Code as from time to time in effect.

ARTICLE VI

Early Amortization Events

     Section 6.01 Additional Early Amortization Events. (a) In addition to the Early
Amortization Events set forth in Section 5.17 of the Indenture and except as provided in
Section 6.01(b), the occurrence of any of the following events shall, immediately upon the
occurrence thereof without notice or other

Series 2008-CP-2 Supplement

21

 

action on the part of the Indenture Trustee or the Series 2008-CP-2 Noteholders, be deemed to
be an Early Amortization Event solely with respect to Series 2008-CP-2:

     (i) on any Determination Date, the average of the Monthly Payment Rates for the three
preceding Collection Periods is less than 12% for the Determination Dates falling in
February through May, less than 14% for the Determination Date falling in June, less than
16% for the Determination Dates falling in July through October, or less than 14%, for the
Determination Dates falling in November through January;

     (ii) any Servicing Default occurs;

     (iii) the occurrence of an Event of Default with respect to the Series 2008-CP-2 Notes
and the declaration that the Series 2008-CP-2 Notes are due and payable pursuant to
Section 5.2 of the Indenture;

     (iv) on the Series 2008-CP-2 Stated Maturity Date, the Series 2008-CP-2 Notes are not
paid in full;

     (v) the sum of all investments (other than Receivables) held in Trust Accounts of the
Issuer and, without duplication, amounts held in the Excess Funding Account, represents more
than fifty percent (50%) of the dollar amount of the assets of the Issuer on each of six (6)
or more consecutive monthly Determination Dates, after giving effect to all payments made or
to be made on the Payment Dates relating to those Determination Dates;

     (vi) on any Payment Date, (a) there exists (x) Investor Charge-Offs or (y) a withdrawal
from the Reserve Account, in each case relating to a shortfall in Non-Principal Collections
on a prior Payment Date that has not been reimbursed as of such Payment Date after
application of all Collections on such date or (b) there exists (x) Investor Charge-Offs or
(y) a withdrawal from the Reserve Account, in an aggregate amount in excess of 0.25% of the
Initial Invested Amount, in each case relating to a shortfall in Non-Principal Collections
on such Payment Date;

     (vii) the Subordinated Interest Percentage is less than the Required Subordinated
Interest Percentage for five consecutive Business Days;

     (viii) on any Payment Date after the occurrence of an Enhancement Trigger Event under
clause (b) of the definition thereof, the Seller has not deposited an amount into the
Reserve Account equal to 1.0% of the Initial Invested Amount; or

     (ix) on any Payment Date, the amount on deposit in the Reserve Account is less than the
Required Reserve Account Amount for such Payment Date after application of all Collections
on such date and for the two consecutive Payment Dates immediately preceding such Payment
Date.

     (b) In the case of any event described in Section 6.01(a)(ii) above or in
Section 5.17(d) or (e) of the Indenture, an Early Amortization Event with respect to Series
2008-CP-2 shall be deemed to have occurred only if either (i) the Indenture Trustee or
(ii) the Control Investors, by written notice to the Issuer, the Seller and the Servicer
(and the Indenture Trustee, if such notice is given by Series 2008-CP-2 Noteholders) declare
that an Early Amortization Event has occurred as of the date of such notice. In the case of
any other event described above or in Section 5.17 of the Indenture, an Early Amortization
Event will occur without any notice or other

Series 2008-CP-2 Supplement

22

 

action on the part of the Indenture Trustee or the Series 2008-CP-2 Noteholders
immediately upon the occurrence of such event.

     Section 6.02 Recommencement of the Revolving Period. If any Early Amortization Event
(other than an Early Amortization Event described in Section 5.17(a) of the Indenture) occurs, the
Revolving Period shall recommence following satisfaction of the Rating Agency Condition and if the
Control Investors consent thereto; provided, however, that no other Early
Amortization Event that has not been cured or waived as described herein has occurred and the
scheduled termination of the Revolving Period has not occurred.

ARTICLE VII

Optional Purchase

     Section 7.01 Optional Purchase.

     (a) On any Payment Date occurring after the date on which the aggregate outstanding
principal amount of the Series 2008-CP-2 Notes is reduced to an amount less than or equal to
10% of the maximum outstanding principal amount of the Series 2008-CP-2 Notes as of the date
hereof, the Servicer shall have the option to purchase the Series 2008-CP-2 Notes in whole
but not in part at a purchase price equal to the Redemption Price for such Payment Date.

     (b) The Servicer shall give the Indenture Trustee at least 20 days’ prior written
notice of the Payment Date on which the Servicer intends to exercise such purchase option.
Not later than 12:00 noon, New York City time, on such Payment Date, the Servicer shall
deposit an amount equal to the sum of (i) the Series 2008-CP-2 Excess Funding Amount (in a
maximum amount not exceeding the Redemption Price), (ii) the Reserve Account Amount (in a
maximum amount not exceeding the Redemption Price), (iii) the amount on deposit in the
Principal Account (in a maximum amount not exceeding the Redemption Price) and (iv) the
excess, if any, of the Redemption Price over the amounts calculated in clauses (i), (ii) and
(iii) into the Collection Account in immediately available funds. Such purchase option is
subject to payment in full of the Redemption Price. The Redemption Price shall be
distributed as set forth in Section 8.01.

ARTICLE VIII

Final Distributions

     Section 8.01 Acquisition of Notes Pursuant to Section 10.1 of the Indenture;
Distributions pursuant to Section 7.01 of this Series Supplement or Section 5.4 of the
Indenture.

     (a) The amount to be paid by the Seller to the Collection Account with respect to
Series 2008-CP-2 Notes in connection with a redemption of the Series 2008-CP-2 Notes
pursuant to Section 10.1(b) of the Indenture shall equal the Redemption Price for the
Payment Date on which such redemption occurs.

     (b) With respect to the Redemption Price deposited into the Collection Account pursuant
to Section 7.01 or 8.01(a) of this Series Supplement or any amount
distributable to the Series 2008-CP-2 Noteholders pursuant to Section 5.4(a)(iv) or 5.4(b)
of the Indenture following a sale of Receivables by the Issuer, the Indenture Trustee shall,
not later than 12:00 noon, New York City time, on the Payment Date on which such amounts are
deposited (or, if such date is not a Payment Date, on the immediately following Payment
Date), based upon information provided

Series 2008-CP-2 Supplement

23

 

by the Servicer (which shall include specific instructions with respect to the
following amounts), make distributions of the following amounts (in the priority set forth
below and, in each case, after giving effect to any deposits and distributions otherwise to
be made on such date) in immediately available funds:

     (i) first, (x) an amount equal to the Outstanding Amount of the Class A Notes shall be
distributed to the Class A Noteholders and (y) an amount equal to the sum of (A) Class A
Monthly Interest for such Payment Date, (B) any Class A Monthly Interest previously due but
not distributed on a prior Payment Date, (C) the amount of Class A Additional Interest, if
any, for such Payment Date and any Class A Additional Interest previously due but not
distributed on a prior Payment Date, shall be distributed to the Class A Noteholders and (D)
any Other Monthly Amounts owing to the Class A Noteholders which are due and unpaid;

     (ii) second, (x) an amount equal to the Outstanding Amount of the Class B Notes shall
be distributed to the Class B Noteholders and (y) an amount equal to the sum of (A) Class B
Monthly Interest for such Payment Date and (B) any Class B Monthly Interest previously due
but not distributed on a prior Payment Date, shall be distributed to the Class B
Noteholders; and

     (iii) third, any excess will be released to the Residual Interestholder.

     (c) Notwithstanding anything to the contrary in this Series Supplement or the
Indenture, any distribution made pursuant to Section 8.01(b) shall be deemed to be a
final distribution pursuant to Section 2.7(c) of the Indenture with respect to the Series
2008-CP-2 Notes.

     Section 8.02 Series Termination. On any Payment Date occurring on or following the
Series 2008-CP-2 Stated Maturity Date, if the Invested Amount is greater than zero (after giving
effect to deposits and distributions otherwise to be made on such Series 2008-CP-2 Stated Maturity
Date), the Indenture Trustee may, at the direction of the Funding Agent, sell or cause to be sold
on such date in accordance with the Indenture an amount of Principal Receivables (or interests
therein) equal to 110% of the Invested Amount on such date (after giving effect to such deposits
and distributions); provided, however, that in no event shall the amount of
Principal Receivables sold exceed the product of the Series 2008-CP-2 Allocation Percentage (for
the Collection Period in which such Payment Date occurs) and Principal Receivables on such Payment
Date. The proceeds from such sale shall be paid first, to the Class A Noteholders until the
outstanding principal amount and unpaid interest on the Class A Notes is paid in full; second, to
the Class B Noteholders until the outstanding principal amount and unpaid interest on the Class B
Notes is paid in full; and then any remaining proceeds shall be allocated and distributed as
Principal Collections in accordance with the terms of Section 4.06. On and after the
Termination Date, no distributions will be made pursuant to this Supplement except as otherwise
expressly provided for in the Indenture.

ARTICLE IX

Other Series Provisions

     Section 9.01 Additional Covenants. Except for the conveyance hereunder to the
Indenture Trustee, the Issuer shall not sell, pledge, assign or transfer to any other Person any
rights it might have to funds on deposit in the Collection Account, the Principal Account, the
Reserve Account or the Excess Funding Account or Investment Proceeds with respect thereto.

Series 2008-CP-2 Supplement

24

 

     Section 9.02 Tax Treatment of the Class A Notes. The Issuer and the purchasers of
the Class A Notes intend, and will take all actions consistent with and refrain from any action
inconsistent with the intention, that the Class A Notes be treated as indebtedness which is solely
secured by the Collateral for all federal, state, local, and foreign income and franchise tax
purposes and that the Issuer be disregarded as an entity separate from the Seller for federal
income tax purposes. The Issuer, by entering into this Series Supplement, and each Class A
Noteholder, by its acceptance of its Class A Note, agrees to treat the Class A Notes for federal,
state and local income, single business and franchise tax purposes as indebtedness of the Issuer.

     Section 9.03 Supplemental Indentures. It is expressly understood by the parties
hereto that with respect to Series 2008-CP-2, no action may be taken under Section 9.1(b) of the
Indenture unless the Rating Agency Condition has been satisfied.

     Section 9.04 Waiver of Past Defaults. Any default by the Servicer as described in
Section 7.4 of the Agreement may be waived by only by the Control Investors.

ARTICLE X

Miscellaneous Provisions

     Section 10.01 Ratification of Agreement. As supplemented by this Series Supplement,
the Agreement is in all respects ratified and confirmed and the Agreement as so supplemented by
this Series Supplement shall be read, taken and construed as one and the same instrument.

     Section 10.02 Counterparts. This Series Supplement may be executed by the parties
hereto in any number of counterparts, each of which shall be an original, but all of which together
shall constitute one and the same instrument.

     Section 10.03 GOVERNING LAW. THIS SERIES SUPPLEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PRINCIPLES
THEREOF (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS,
RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

[signature pages follow]

Series 2008-CP-2 Supplement

25

 

     IN WITNESS WHEREOF, the Issuer, the Servicer and the Indenture Trustee have caused this Series
Supplement to be duly executed by their respective officers as of the day and year first above
written.

	 	 	 	 	 	 	 
	 	 	TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST, as Issuer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	U.S. Bank Trust National Association, not in its individual
capacity, but solely as Owner Trustee on behalf of the Trust	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jack Ellerin	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Jack Ellerin	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	TEXTRON FINANCIAL CORPORATION, as Servicer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Paul Rerick	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Paul Rerick	 	 
	 

	 	 	 	Title: Assistant Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,
not in its individual capacity but solely as Indenture Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jacqueline Kuhn	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Jacqueline Kuhn	 	 
	 

	 	 	 	Title: Assistant Treasurer	 	 

Series 2008-CP-2 Supplement

 

 

EXHIBIT A

FORM OF CLASS A NOTE

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT
(A) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A UNDER THE SECURITIES ACT IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A WHO IS PURCHASING THE NOTE FOR HIS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER OR (B) TO AN ACCREDITED INVESTOR THAT IS NOT A QUALIFIED INSTITUTIONAL BUYER (SUBJECT IN THE
CASE OF CLAUSE (B) TO RECEIPT BY THE INDENTURE TRUSTEE OF SUCH CERTIFICATES AND OTHER DOCUMENTS AS
ARE REQUIRED UNDER THE INDENTURE), IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS
OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION.

 

 

TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST

CLASS A FLOATING RATE FLOORPLAN RECEIVABLES SECURED NOTE,

SERIES 2008-CP-2

			
	 	 	 
	Note A-1
	 	The Amount Set Forth on Schedule 1 as the
	 
	 	“Current Maximum Principal Amount”

          TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST, a Delaware statutory trust, (the “Issuer”) for
value received, hereby promises to pay to Société Générale, as the Managing Agent for the SG
Ownership Group, or registered assigns, upon presentation and surrender to this Note (except as
otherwise permitted by the Indenture referred to below), the principal sum equal to the Maximum
Principal Amount (or such lesser amount as shall equal the aggregate outstanding principal under
this Note) on the Series 2008-CP-2 Stated Maturity Date except as provided in the Indenture
referred to herein.

          This Note is one of a duly authorized issue of Class A Floating Rate Floorplan Receivables
Secured Note, Series 2008-CP-2 (the “Class A Notes”) issued and to be issued under the Amended and
Restated Indenture, dated as of May 26, 2005 (as supplemented by the Series 2008-CP-2 Supplement
dated as of May 13, 2008 (as such Series 2008-CP-2 Supplement may be amended, restated,
supplemented or otherwise modified from time to time, the “Supplement”) and as it may be amended,
restated, supplemented or otherwise modified from time to time in accordance with its terms, the
“Indenture”) among the Issuer and The Bank of New York, a New York banking corporation, as
Indenture Trustee (the “Indenture Trustee”, which term includes any successor trustee as permitted
under the Indenture). Reference is hereby made to the Indenture for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Issuer, the Indenture
Trustee and the Holders of the Class A Notes and the terms upon which the Class A Notes are, and
are to be, authenticated and delivered. Capitalized terms used herein and not otherwise defined
shall have the meanings set forth in the Indenture or the Supplement or the Class A Note Purchase
Agreement as the case may be.

          The Issuer promises to pay interest, if any, at the Class A Interest Rate from time to time,
on the thirteenth calendar day of each month, or, if such day is not a Business Day, on the next
succeeding Business Day, commencing June 13, 2008 (each, a “Payment Date”) in each case on the
outstanding principal balance hereunder until such outstanding principal balance is paid or until
the Termination Date as provided in the Supplement. To the extent lawful and enforceable, interest
on any Class A Interest Shortfall shall accrue hereon to the extent provided in the Supplement.
The interest and other amounts so payable, and punctually paid, on any Payment Date will, as
provided in the Indenture, be paid to the Person in whose name this Note (or one or more
predecessor Notes) is registered at the close of business on the Record Date for such interest,
which shall be the last day of the Collection Period preceding such Payment Date.

2

 

          The principal of this Note shall be payable on each Payment Date on which funds are permitted
or required to be used for such purpose in accordance with the Supplement and the Indenture. The
principal of this Note shall be due and payable no later than the Series 2008-CP-2 Stated Maturity
Date, unless previously repaid prior thereto as described in the Indenture.

          The obligations of the Issuer under this Note and the Indenture are limited recourse
obligations of the Issuer as provided in the Indenture. The payments of principal of, and interest
and other amounts with respect to, this Note are subject to the priority of payments as provided in
the Indenture and Supplement.

          Unless the certificate of authentication hereon has been executed by the Indenture Trustee by
the manual signature of one of its Authorized Officers, this Note shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose.

          If an Event of Default shall occur and be continuing, this Note may become or be declared due
and payable in the manner and with the effect provided in the Indenture.

          Title to Notes shall pass solely by registration in the Register kept by the Registrar, which
for the Class A Notes initially shall be the Indenture Trustee.

          No service charge shall be made for any registration of transfer or exchange of this Note, but
the Indenture Trustee or any Registrar may require payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any other reasonable expenses
(including all fees and expenses of the Indenture Trustee) connected therewith.

          The Issuer has structured the Indenture and the Class A Notes with the intention that the
Class A Notes will qualify under applicable tax law as indebtedness, and the Issuer, the Residual
Interestholder, the Servicer and each Holder of a Class A Note or holder of any interest in a Class
A Note by acceptance of its Class A Note (or interest therein), agrees to treat and to take no
action inconsistent with the treatment of the Class A Notes (or interest therein) for purposes of
federal, state, local and foreign income or franchise taxes and any other tax imposed on or measure
by income, as indebtedness. Each Holder of a Class A Note agrees that it will cause any holder of
an interest therein acquiring such interest through it to comply with the Indenture as to treatment
as indebtedness for certain tax purposes.

          For the avoidance of doubt, this Note has been countersigned by U.S. Bank Trust National
Association not in its individual capacity but solely in its capacity as Owner Trustee of the
Issuer, and in no event shall U.S. Bank Trust National Association in its individual capacity have
any liability with respect to the obligations hereunder as to all of which recourse shall be had
solely to the assets of the Issuer as provided in the Indenture.

          AS PROVIDED IN THE INDENTURE, THE INDENTURE AND THE NOTES SHALL BE CONSTRUED IN ACCORDANCE
WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF THE GENERAL
OBLIGATION LAW OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT REGARD TO CONFLICT OF LAWS
PRINCIPLES).

 

 

     IN WITNESS WHEREOF, the Issuer has caused this Class A Floating Rate Floorplan Receivables
Secured Note, Series 2008-CP-2, to be signed, manually or in facsimile, by its Authorized Officer.

Dated: May 13, 2008

	 	 	 	 	 	 	 
	 	 	TEXTRON FINANCIAL
FLOORPLAN MASTER NOTE TRUST, as the Issuer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	U.S. Bank Trust National Association, not
in its individual capacity, but solely as
Owner Trustee on behalf of the Trust	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:

Title:	 	 

 

 

     INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Notes designated above and referred to in the within-mentioned Indenture.

Dated: May 13, 2008

THE BANK OF NEW YORK, not in its individual capacity

but solely as Indenture Trustee

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	Name:	  	 	 
	 	Title:	  	 	 
	 

 

 

Schedule 1

INCREMENTAL FUNDINGS AND REPAYMENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Amount of	 	 	 	 	 	 	 	 	 
	Incremental	 	Principal	 	 	Outstanding	 	 	Current Maximum	 
	Funding	 	Amount Repaid	 	 	Principal Balance	 	 	Principal Amount	 
	 
	 	 	 	 	 	 	 	 	 	$	375,000,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 

 

 

EXHIBIT B

FORM OF CLASS B NOTE

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT
(A) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A UNDER THE SECURITIES ACT IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A WHO IS PURCHASING THE NOTE FOR HIS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER OR (B) TO AN ACCREDITED INVESTOR THAT IS NOT A QUALIFIED INSTITUTIONAL BUYER (SUBJECT IN THE
CASE OF CLAUSE (B) TO RECEIPT BY THE INDENTURE TRUSTEE OF SUCH CERTIFICATES AND OTHER DOCUMENTS AS
ARE REQUIRED UNDER THE INDENTURE), IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS
OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION.

 

 

TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST

CLASS B FLOATING RATE FLOORPLAN RECEIVABLES SECURED NOTE,

SERIES 2008-CP-2

			
	 	 	 
	Note B-1	 	The Amount Set Forth on Schedule 1 as the 
	 	 	“Current Maximum Principal Amount”

     TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST, a Delaware statutory trust, (the “Issuer”) for
value received, hereby promises to pay to TEXTRON RECEIVABLES CORPORATION III, or its registered
assigns, upon presentation and surrender to this Note (except as otherwise permitted by the
Indenture referred to below), the principal sum equal to the Maximum Principal Amount (or such
lesser amount as shall equal the aggregate outstanding principal under this Note) on the Series
2008-CP-2 Stated Maturity Date except as provided in the Indenture referred to herein.

          This Note is one of a duly authorized issue of Class B Floating Rate Floorplan Receivables
Secured Note, Series 2008-CP-2 (the “Class B Notes”) issued and to be issued under the Amended and
Restated Indenture, dated as of May 26, 2005 (as supplemented by the Series 2008-CP-2 Supplement
dated as of May 13, 2008 (as such Series 2008-CP-2 Supplement may be amended, restated,
supplemented or otherwise modified from time to time, the “Supplement”) and as it may be amended,
restated, supplemented or otherwise modified from time to time in accordance with its terms, the
“Indenture”) among the Issuer and The Bank of New York, a New York banking corporation, as
Indenture Trustee (the “Indenture Trustee”, which term includes any successor trustee as permitted
under the Indenture). Reference is hereby made to the Indenture for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Issuer, the Indenture
Trustee and the Holders of the Class B Notes and the terms upon which the Class B Notes are, and
are to be, authenticated and delivered. Capitalized terms used herein and not otherwise defined
shall have the meanings set forth in the Indenture or the Supplement or the Class B Note Purchase
Agreement as the case may be.

          The Issuer promises to pay interest, if any, at the Class B Interest Rate from time to time,
on the thirteenth calendar day of each month, or, if such day is not a Business Day, on the next
succeeding Business Day, commencing June 13, 2008 (each, a “Payment Date”) in each case on the
outstanding principal balance hereunder until such outstanding principal balance is paid or until
the Termination Date as provided in the Supplement. To the extent lawful and enforceable, interest
on any Class B Interest Shortfall shall accrue hereon to the extent provided in the Supplement.
The interest and other amounts so payable, and punctually paid, on any Payment Date will, as
provided in the Indenture, be paid to the Person in whose name this Note (or one or more
predecessor Notes) is registered at the close of business on the Record Date for such interest,
which shall be the last day of the Collection Period preceding such Payment Date.

 

 

          The principal of this Note shall be payable on each Payment Date on which funds are permitted
or required to be used for such purpose in accordance with the Supplement and the Indenture. The
principal of this Note shall be due and payable no later than the Series 2008-CP-2 Stated Maturity
Date, unless previously repaid prior thereto as described in the Indenture.

          The obligations of the Issuer under this Note and the Indenture are limited recourse
obligations of the Issuer as provided in the Indenture. The payments of principal of, and interest
and other amounts with respect to, this Note are subject to the priority of payments as provided in
the Indenture and Supplement.

          Unless the certificate of authentication hereon has been executed by the Indenture Trustee by
the manual signature of one of its Authorized Officers, this Note shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose.

          If an Event of Default shall occur and be continuing, this Note may become or be declared due
and payable in the manner and with the effect provided in the Indenture.

          Title to Notes shall pass solely by registration in the Register kept by the Registrar, which
for the Class B Notes initially shall be the Indenture Trustee.

          No service charge shall be made for any registration of transfer or exchange of this Note, but
the Indenture Trustee or any Registrar may require payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any other reasonable expenses
(including all fees and expenses of the Indenture Trustee) connected therewith.

          Neither this Class B Note nor any interest herein may be sold, pledged, participated,
transferred, disposed of or otherwise alienated (each, a “Transfer”), and the Registrar will not
recognize any Transfer or purported Transfer of this Class B Note”, unless prior to such Transfer
or purported Transfer the Indenture Trustee and the Registrar have received an Opinion of Counsel
to the effect that, for federal income tax purposes, such Transfer will not cause the Issuer to be
characterized as an association or publicly traded partnership taxable as a corporation. Any
Transfer or purported Transfer of this Class B Note in violation of the preceding sentence shall be
void ab initio and of no effect.

          For the avoidance of doubt, this Note has been countersigned by U.S. Bank Trust National
Association not in its individual capacity but solely in its capacity as Owner Trustee of the
Issuer, and in no event shall U.S. Bank Trust National Association in its individual capacity have
any liability with respect to the obligations hereunder as to all of which recourse shall be had
solely to the assets of the Issuer as provided in the Indenture.

          AS PROVIDED IN THE INDENTURE, THE INDENTURE AND THE NOTES SHALL BE CONSTRUED IN ACCORDANCE
WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF THE GENERAL
OBLIGATION LAW OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT REGARD TO CONFLICT OF LAWS
PRINCIPLES).

2

 

     IN WITNESS WHEREOF, the Issuer has caused this Class B Floating Rate Floorplan Receivables
Secured Note, Series 2008-CP-2, to be signed, manually or in facsimile, by its Authorized Officer.

Dated: May 13, 2008

	 	 	 	 	 	 	 
	 	 	TEXTRON FINANCIAL
FLOORPLAN MASTER NOTE TRUST, as the Issuer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	U.S. Bank Trust National Association, not
in its individual capacity, but solely as
Owner Trustee on behalf of the Trust	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:

Title:	 	 

 

 

     INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Notes designated above and referred to in the within-mentioned Indenture.

Dated: May 13, 2008

THE BANK OF NEW YORK, not in its individual capacity

but solely as Indenture Trustee

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	Name:	  	 	 
	 	Title:	  	 	 
	 

 

 

Schedule 1

INCREMENTAL FUNDINGS AND REPAYMENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Amount of	 	 	 	 	 	 	 	 	 
	Incremental	 	Principal	 	 	Outstanding	 	 	Current Maximum	 
	Funding	 	Amount Repaid	 	 	Principal Balance	 	 	Principal Amount	 
	 
	 	 	 	 	 	 	 	 	 	$	43,995,000exv4w2

Exhibit 4.2

AMENDMENT NO. 1 TO SERIES 2008-CP-1 SUPPLEMENT

     This Amendment No. 1 to Series 2008-CP-1 Supplement (this “Amendment”) is entered into
as of May 13, 2008 by and between Textron Financial Floorplan Master Note Trust (the
“Issuer”) and The Bank of New York, as Indenture Trustee (as indenture trustee and not in
its individual capacity, the “Indenture Trustee”).

RECITALS

     A. The Issuer and the Indenture Trustee are parties to that certain Amended and Restated
Indenture dated as of May 26, 2005 (as amended, restated, supplemented or otherwise modified from
time to time, the “Indenture”).

     B. The Issuer, Textron Financial Corporation, as Servicer, and the Indenture Trustee are
parties to that certain Series 2008-CP-1 Supplement, dated as of March 20, 2008, to the Indenture
(the “Series Supplement”).

     C. The Issuer and the Indenture Trustee desire to amend the Series Supplement on the terms and
conditions set forth below.

     Now, therefore, in consideration of the mutual execution hereof and other good and valuable
consideration, the parties hereto agree as follows:

     1. Amendment to Series Supplement. Pursuant to Section 9.1(a)(v) of the Indenture,
the Series Supplement is hereby amended as follows:

     (a) The definition of “Required Reserve Account Amount” contained in the Series
Supplement is hereby deleted in its entirety, and the following substituted therefor:

“Required Reserve Account Amount” means, for any day, an amount equal to (a)
(i) at any time during the Revolving Period, the product of (x) the Required Reserve
Account Percentage and (y) the then aggregate Outstanding Amount of the Series
2008-CP-1 Notes (after application of any Collections on such date) and (ii)
otherwise, the product of (x) the Required Reserve Account Percentage and (y) the
aggregate Outstanding Amount of the Series 2008-CP-1 Notes on the last day of the
Revolving Period (after application of any Collections on such date), or (b) any
other amount designated by the Seller; provided, however, that if such designation
is of a lesser amount, the Seller shall (i) provide the Indenture Trustee with
evidence that the Rating Agency Condition shall have been satisfied and (ii) deliver
to the Indenture Trustee a certificate of an Authorized Officer to the effect that,
based on the facts known to such officer at such time, in the reasonable belief of
the Seller, such designation will not cause an Early Amortization Event to occur
with respect to Series 2008-CP-1.

     (b) Section 4.05(b) of the Series Supplement is hereby amended to insert the following
as clause first thereunder, and to re-number the subsequent clauses appropriately:

 

 

(i) first, an amount equal to the Reallocated Principal Collections for the
related Payment Date shall be made available on that Payment Date for application in
accordance with Section 4.09;

     (c) Section 4.09 of the Series Supplement is hereby deleted in its entirety, and the
following substituted therefor:

Section 4.09 Reallocated Principal Collections. On each Payment Date,
after giving effect to Section 4.12(a), the Servicer shall apply Reallocated
Principal Collections with respect to that Payment Date to fund any deficiency
pursuant to and in the priority set forth in Sections 4.05(a)(i) through
(ii). On each Payment Date, the Invested Amount shall be reduced by the
amount of Reallocated Principal Collections for such Payment Date. Reallocated
Principal Collections shall become part of Investor Charge-Offs pursuant to
Section 4.07.

     2. Confirmation of Series Supplement. Except as herein expressly amended, the Series
Supplement is hereby ratified and confirmed in all respects and shall remain in full force and
effect in accordance with its terms.

     3. Effectiveness. This Amendment shall become effective as of the date hereof upon
execution and delivery hereof by the Issuer and the Indenture Trustee.

     4. Headings. Section headings in this Amendment are included herein for convenience
of reference only and shall not constitute a part of this Amendment for any other purpose.

     5. Execution in Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which taken together shall
constitute but one and the same instrument.

     6. GOVERNING LAW. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PRINCIPLES THEREOF (OTHER THAN
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES
OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     7. Limitation of Liability of Owner Trustee. This Amendment has been executed by U.S.
Bank Trust National Association, not in its individual capacity, but solely in its capacity as
Owner Trustee of the Issuer, and in no event shall U.S. Bank Trust National Association in it is
individual capacity have any liability for the agreements or obligations of the Issuer hereunder,
as to all of which recourse shall be had solely to the assets of the Issuer. For all purposes of
this Amendment, in the performance of any duties or obligations of the Issuer hereunder, the Owner
Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of the Trust
Agreement.

[signature page follows]

2

 

     IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date first above
written.

	 	 	 	 	 
	 	 	TEXTRON FINANCIAL FLOORPLAN MASTER
	 	 	NOTE TRUST, as Issuer
	 
	 	 	 	 
	 

	 	By:
	 	U.S. Bank Trust National Association, not in
	 

	 	 	 	its individual capacity, but solely as Owner
	 

	 	 	 	Trustee on behalf of the Trust

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Jack Ellerin
 	 
	 	 	Name:  	Jack Ellerin 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK, not in its individual

capacity but solely as Indenture Trustee

 	 
	 	By:  	/s/ Jacqueline Kuhn
 	 
	 	 	Name:  	Jacqueline Kuhn 	 
	 	 	Title:  	Assistant Treasurer 	 
	 

Amendment No. 1 to Series 2008-CP-1 Supplement

 

 

Acknowledged and Consented to this

13th day of May, 2008:

	 	 	 	 	 
	THE BANK OF TOKYO-MITSUBISHI UFJ,

LTD., NEW YORK BRANCH, as the Class A

Noteholder	 	 
	 
	 	 	 	 
	By:
	 	/s/ Aditya Reddy 	 	 
	 

	 	 	 	 
	 

	 	Name: Aditya Reddy	 	 
	 

	 	Title: Vice President and Manager	 	 

Amendment No. 1 to Series 2008-CP-1 Supplement

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