Document:

Exhibit
4.1

GE CAPITAL CREDIT CARD
MASTER NOTE TRUST,

as Issuer

And

DEUTSCHE BANK TRUST
COMPANY AMERICAS,

as Indenture Trustee

Series 2006-1 INDENTURE
SUPPLEMENT

Dated as of September 27, 2006

TABLE OF
CONTENTS

	
  

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  DEFINITIONS

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.1.

  	
   

  	
  Definitions

  	
  1

  
	
  SECTION 1.2.

  	
   

  	
  Incorporation of Terms

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  CREATION OF THE SERIES 2006-1 NOTES

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.1.

  	
   

  	
  Designation

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  REPRESENTATIONS, WARRANTIES AND COVENANTS

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.1.

  	
   

  	
  Representations, Warranties and Covenants with
  respect to Net Swap Receipts

  	
  16

  
	
  SECTION 3.2.

  	
   

  	
  Representations, Warranties and Covenants with
  respect to Receivables

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  RIGHTS OF SERIES 2006-1 NOTEHOLDERS AND ALLOCATION
  AND APPLICATION OF COLLECTIONS

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.1.

  	
   

  	
  Determination of Interest and Principal

  	
  16

  
	
  SECTION 4.2.

  	
   

  	
  Establishment of Accounts

  	
  18

  
	
  SECTION 4.3.

  	
   

  	
  Calculations and Series Allocations

  	
  19

  
	
  SECTION 4.4.

  	
   

  	
  Application of Available Finance Charge Collections
  and Available Principal Collections

  	
  21

  
	
  SECTION 4.5.

  	
   

  	
  Distributions

  	
  25

  
	
  SECTION 4.6.

  	
   

  	
  Investor Charge-Offs

  	
  25

  
	
  SECTION 4.7.

  	
   

  	
  Reallocated Principal Collections

  	
  26

  
	
  SECTION 4.8.

  	
   

  	
  Excess Finance Charge Collections

  	
  26

  
	
  SECTION 4.9.

  	
   

  	
  Shared Principal Collections

  	
  26

  
	
  SECTION 4.10.

  	
   

  	
  Reserve Account

  	
  26

  
	
  SECTION 4.11.

  	
   

  	
  Spread Account

  	
  27

  
	
  SECTION 4.12.

  	
   

  	
  Investment of Accounts

  	
  28

  
	
  SECTION 4.13.

  	
   

  	
  Controlled Accumulation Period

  	
  29

  
	
  SECTION 4.14.

  	
   

  	
  Determination of LIBOR

  	
  29

  
	
  SECTION 4.15.

  	
   

  	
  Swaps

  	
  30

  
	
  SECTION 4.16.

  	
   

  	
  Deposit of Collections

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  DELIVERY OF SERIES 2006-1 NOTES; REPORTS TO SERIES
  2006-1 NOTEHOLDERS

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.1.

  	
   

  	
  Delivery and Payment for the Series 2006-1 Notes

  	
  31

  
	
  SECTION 5.2.

  	
   

  	
  Reports and Statements to Series 2006-1 Noteholders

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  SERIES 2006-1 EARLY AMORTIZATION EVENTS

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.1.

  	
   

  	
  Series 2006-1 Early Amortization Events

  	
  31

  
					

 

 i
 

 

	
  

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  REDEMPTION OF SERIES 2006-1 NOTES; FINAL
  DISTRIBUTIONS; SERIES TERMINATION

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.1.

  	
   

  	
  Optional Redemption of Series 2006-1 Notes; Final
  Distributions

  	
  33

  
	
  SECTION 7.2.

  	
   

  	
  Series Termination

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  MISCELLANEOUS PROVISIONS

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.1.

  	
   

  	
  Ratification of Indenture; Amendments

  	
  34

  
	
  SECTION 8.2.

  	
   

  	
  Form of Delivery of the Series 2006-1 Notes

  	
  35

  
	
  SECTION 8.3.

  	
   

  	
  Counterparts

  	
  35

  
	
  SECTION 8.4.

  	
   

  	
  GOVERNING LAW

  	
  35

  
	
  SECTION 8.5.

  	
   

  	
  Limitation of Liability

  	
  36

  
	
  SECTION 8.6.

  	
   

  	
  Rights of the Indenture Trustee

  	
  36

  
	
  SECTION 8.7.

  	
   

  	
  Notice Address for Rating Agencies

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  FASIT MATTERS

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.1.

  	
   

  	
  FASIT Administration

  	
  37

  
	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT A-1

  	
  FORM OF CLASS A NOTE

  	
   

  
	
  EXHIBIT A-2

  	
  FORM OF CLASS B NOTE

  	
   

  
	
  EXHIBIT A-3

  	
  FORM OF CLASS C NOTE

  	
   

  
	
  EXHIBIT B

  	
  FORM OF MONTHLY NOTEHOLDER’S STATEMENT

  	
   

  
	
  EXHIBIT C-1

  	
  FORM OF CLASS B SWAP

  	
   

  
	
  EXHIBIT C-2

  	
  FORM OF CLASS C SWAP

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULES

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE I

  	
  PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS
  (WITH RESPECT TO NET
  SWAP RECEIPTS)

  	
   

  
	
  SCHEDULE II

  	
  PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS
  (WITH RESPECT TO RECEIVABLES)

  	
   

  
					

 

 ii

SERIES 2006-1 INDENTURE SUPPLEMENT, dated as of
September 27, 2006 (the “Indenture Supplement”),
between GE CAPITAL CREDIT CARD MASTER NOTE TRUST, a Delaware statutory trust
(herein, the “Issuer” or the “Trust”), and DEUTSCHE BANK TRUST COMPANY
AMERICAS, a New York banking corporation, not in its individual capacity, but
solely as indenture trustee (herein, together with its successors in the trusts
thereunder as provided in the Master Indenture referred to below, the “Indenture Trustee”) under the Master Indenture,
dated as of September 25, 2003 (the “Indenture”),
between the Issuer and the Indenture Trustee, as amended by the Omnibus
Amendment No.1 to Securitization Documents, dated as of February 9, 2004, among
RFS Holding, L.L.C., RFS Funding Trust, the Issuer, Deutsche Bank Trust Company
Delaware, as trustee of RFS Funding Trust, RFS Holding, Inc., and the Indenture
Trustee, as further amended by the Second Amendment to Master Indenture, dated
as of June 17, 2004 between the Issuer and the Indenture Trustee, and as
further amended by the Third Amendment to Master Indenture, dated as of August
31, 2006 between the Issuer and the Indenture Trustee (the Indenture, together
with this Indenture Supplement, the “Agreement”).

The Principal Terms of this Series are set forth in
this Indenture Supplement to the Indenture.

ARTICLE I

DEFINITIONS

SECTION 1.1.  Definitions.

(a)           Capitalized terms used and not
otherwise defined herein are used as defined in Section
1.1 of the Indenture. This Indenture Supplement shall be interpreted
in accordance with the conventions set forth in Section
1.2 of the Indenture.

(b)           Each capitalized term defined herein
relates only to Series 2006-1 and to no other Series.  Whenever used in this Indenture Supplement,
the following words and phrases shall have the following meanings:

“Accumulation Shortfall”
means (a) for the first Payment Date during the Controlled Accumulation Period,
zero; and (b) thereafter, for any Payment Date during the Controlled
Accumulation Period, the excess, if any, of the Controlled Deposit Amount for
the previous Payment Date over the amount deposited into the Principal
Accumulation Account pursuant to Section 4.4(c)(i)
for the previous Payment Date.

“Addition Date”
means an “Addition Date” as such term is defined in the Transfer Agreement.

“Additional Interest”
means, for any Payment Date, Class A Additional Interest, Class B Additional
Interest and Class C Additional Interest for such Payment Date.

“Administration Agreement”
means the Administration Agreement, dated as of September 25, 2003, between the
Administrator and the Issuer.

 

“Administrator”
means General Electric Capital Corporation, in its capacity as Administrator
under the Administration Agreement or any other Person designated as an
Administrator under the Administration Agreement.

“Agreement” is
defined in the preamble.

“Allocation Percentage”
means, with respect to any Monthly Period, the percentage equivalent of a
fraction:

(a)   the numerator of which shall be equal to:

(i)  for Principal Collections during the
Revolving Period and for Finance Charge Collections and Default Amounts at any
time, the Collateral Amount at the end of the last day of the prior Monthly
Period (or, in the case of the first Monthly Period, on the Closing Date); or

(ii)  for Principal Collections during the Early
Amortization Period and the Controlled Accumulation Period, the Collateral
Amount at the end of the last day of the Revolving Period; provided that
on and after the date on which the Principal Accumulation Account Balance
equals the Note Principal Balance, the numerator shall equal zero; and

(b)   the denominator of which shall be the greater
of (x) the Aggregate Principal Receivables determined as of the close of
business on the last day of the prior Monthly Period (or, in the case of the
first Monthly Period, on the Closing Date) and (y) the sum of the
numerators used to calculate the allocation percentages for allocations with
respect to Finance Charge Collections, Principal Collections or Default
Amounts, as applicable, for all outstanding Series on such date of
determination; provided
that if one or more Reset Dates occur in a Monthly Period, the denominator
determined pursuant to clause (x) of this clause (b) shall be (A) the Aggregate
Principal Receivables as of the close of business on the last day of the prior
Monthly Period for the period from and including the first day of the current
Monthly Period, to but excluding such Reset Date and (B) the Aggregate
Principal Receivables as of the close of business on such Reset Date, for the
period from and including such Reset Date to the earlier of the last day of
such Monthly Period (in which case such period shall include such day) or the
next succeeding Reset Date (in which case such period shall not include such
succeeding Reset Date); and provided, further, that
notwithstanding the preceding proviso, if a Reset Date occurs during any
Monthly Period and the Issuer is permitted to make a single monthly deposit to
the Collection Account pursuant to Section 8.4 of the Indenture for such
Monthly Period, then the denominator determined pursuant to clause (x) of this
clause (b) for each day during such Monthly Period shall equal the Average
Principal Balance for such Monthly Period.

“Available Finance Charge
Collections” means, for any Monthly Period, an amount equal to the
sum of (a) the Investor Finance Charge Collections for such Monthly Period, (b)
the Series 2006-1 Excess Finance Charge Collections for such Monthly Period,
(c) Principal Accumulation Investment Proceeds, if any, with respect to the
related Transfer Date, (d) interest and earnings 

 2
 

 

on funds on deposit in
the Reserve Account which will be deposited into the Finance Charge Account on
the related Payment Date to be treated as Available Finance Charge Collections pursuant
to Section 4.10(a), (e) amounts, if
any, to be withdrawn from the Reserve Account which will be deposited into the
Finance Charge Account on the related Transfer Date to be treated as Available
Finance Charge Collections pursuant to Section
4.10(c), and (f) any Net Swap Receipts for the related Transfer
Date.

“Available Principal
Collections” means, for any Monthly Period, an amount equal to the
sum of (a) the Investor Principal Collections for such Monthly Period, minus (b) the amount of Reallocated Principal
Collections with respect to such Monthly Period which pursuant to Section 4.7 are required to be applied
on the related Payment Date, plus (c) the sum of (i) any Shared
Principal Collections with respect to other Principal Sharing Series (including
any amounts on deposit in the Excess Funding Account that are allocated to
Series 2006-1 for application as Shared Principal Collections), (ii) the
aggregate amount to be treated as Available Principal Collections pursuant to Sections
4.4(a)(vi), (vii) and (x), and (iii) during an Early
Amortization Event, the amount of Available Finance Charge Collections used to
pay principal on the Notes pursuant to Section
4.4(a)(xiii) for the related Payment Date.

“Available Reserve
Account Amount” means, for any Transfer Date, the lesser of (a) the
amount on deposit in the Reserve Account (after taking into account any
interest and earnings retained in the Reserve Account pursuant to Section 4.10(b) on such date, but before
giving effect to any deposit made or to be made pursuant to Section 4.4(a)(viii) to the Reserve Account
on such date) and (b) the Required Reserve Account Amount.

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

“Average Principal Balance” means for any
Monthly Period in which a Reset Date occurs, the sum of (i) the Aggregate
Principal Receivables determined as of the close of business on the last day of
the prior Monthly Period, multiplied by a fraction the numerator of
which is the number of days from and including the first day of such Monthly
Period, to but excluding the related Reset Date, and the denominator of which
is the number of days in such Monthly Period, and (ii) for each such Reset Date,
the product of the Aggregate Principal Receivables determined as of the close
of business on such Reset Date, multiplied by a fraction, the numerator
of which is the number of days from and including such Reset Date, to the
earlier of the last day of such Monthly Period (in which case such period shall
include such date) or the next succeeding Reset Date (in which case such period
shall exclude such date), and the denominator of which is the number of days in
such Monthly Period.

“Base Rate”
means, for any Monthly Period, the annualized percentage equivalent of a
fraction, the numerator of which is equal to the sum of (a) the Net Interest
Obligation, (b) the amount required to be paid pursuant to Section 4.4(a)(i)
and (c) the Noteholder Servicing Fee, each with respect to the related Payment
Date, and the denominator of which is the Collateral 

 3
 

 

Amount plus amounts on
deposit in the Principal Accumulation Account, each as of the close of business
on the last day of such Monthly Period.

“Business Day” means any day that is not a
Saturday, a Sunday or a day on which banks are required or permitted to be
closed in the State of New York or the State of Connecticut.

“Class A Additional
Interest” is defined in Section 4.1(a).

“Class A Deficiency
Amount” is defined in Section 4.1(a).

“Class A Monthly Interest”
is defined in Section 4.1(a).

“Class A Net Interest
Obligation” means, for any Payment Date, the Class A Monthly
Interest for that Payment Date.

“Class A Note Initial
Principal Balance” means $812,500,000.

“Class A Note Interest
Rate” means a per annum rate of 5.08%.

“Class A Note Principal
Balance” means, on any date of determination, an amount equal to (a)
the Class A Note Initial Principal Balance, minus
(b) the aggregate amount of principal payments made to the Class A Noteholders
on or prior to such date.

“Class A Noteholder”
means the Person in whose name a Class A Note is registered in the Note
Register.

“Class A Notes”
means any one of the Notes executed by the Issuer and authenticated by or on
behalf of the Indenture Trustee, substantially in the form of Exhibit A-1.

“Class A Regular Interest” is defined in Section
9.1(b).

“Class A Required Amount”
means, for any Payment Date, an amount equal to the excess of the amounts
described in Sections 4.4(a)(i), (ii)
and (iii) over Available Finance Charge
Collections applied to pay such amount pursuant to Section
4.4(a).

“Class B Additional
Interest” is defined in Section 4.1(b).

“Class B Counterparty”
means Bank of America, N.A. or the counterparty under any interest rate swap
with respect to the Class B Notes obtained pursuant to Section 4.15.

“Class B Deficiency
Amount” is defined in Section 4.1(b).

“Class B Monthly Interest”
is defined in Section 4.1(b).

“Class B Net Interest
Obligation” means, for any Payment Date (a) if there are Class B Net
Swap Payments due on that Payment Date, the sum of the Class B Net Swap
Payments and the Class B Monthly Interest for that Payment Date; (b) if there
are Class B Net Swap Receipts due on that Payment Date, the result of the Class
B Monthly Interest for that Payment Date, 

 4
 

 

minus
the Class B Net Swap Receipts for that Payment Date; and (c) if the Class B
Swap has terminated for any reason, the Class B Monthly Interest for that
Payment Date.

“Class B Net Swap Payment”
means, with respect to any Payment Date, any net amount payable by the Issuer
under the Class B Swap as a result of LIBOR being less than the Class B Swap
Rate.  For the avoidance of doubt, Class
B Net Swap Payments do not include early termination payments or payment of
breakage or other miscellaneous costs.

“Class B Net Swap Receipt”
means, with respect to any Payment Date, any net amount payable by the Class B
Counterparty as a result of LIBOR being greater than the Class B Swap
Rate.  For the avoidance of doubt, Class
B Net Swap Receipts do not include early termination payments.

“Class B Note Initial
Principal Balance” means $92,500,000.

“Class B Note Interest
Rate” means a per annum rate of 0.11% in excess of LIBOR as
determined on the LIBOR Determination Date for the applicable Interest Period.

“Class B Note Principal
Balance” means, on any date of determination, an amount equal to (a)
the Class B Note Initial Principal Balance, minus
(b) the aggregate amount of principal payments made to the Class B Noteholders
on or prior to such date.

“Class B Noteholder”
means the Person in whose name a Class B Note is registered in the Note
Register.

“Class B Notes”
means any one of the Notes executed by the Issuer and authenticated by or on
behalf of the Indenture Trustee, substantially in the form of Exhibit A-2.

“Class B Regular Interest” is defined in Section
9.1(b).

“Class B Required Amount”
means, for any Payment Date, an amount equal to the excess of the amount
described in Section 4.4(a)(iv) over
Available Finance Charge Collections applied to pay such amount pursuant to Section 4.4(a).

“Class B Swap”
means an interest rate swap agreement between the Trust and the Class B
Counterparty substantially in the form of Exhibit
C-1 to this Indenture Supplement, or such other form as shall have
satisfied the Rating Agency Condition.

“Class B Swap Rate”
means 4.9905% per annum.

“Class C Additional
Interest” is defined in Section 4.1(c).

“Class C Counterparty”
means Bank of America, N.A. or the counterparty under any interest rate swap
with respect to the Class C Notes obtained pursuant to Section 4.15.

“Class C Deficiency
Amount” is defined in Section 4.1(c).

“Class C Monthly Interest”
is defined in Section 4.1(c).

 5
 

 

“Class C Net Interest
Obligation” means, for any Payment Date: (a) if there are Class C
Net Swap Payments due on that Payment Date, the sum of the Class C Net Swap
Payments and the Class C Monthly Interest for that Payment Date; (b) if there
are Class C Net Swap Receipts due on that Payment Date, the result of the Class
C Monthly Interest for that Payment Date, minus
the Class C Net Swap Receipts for that Payment Date; and (c) if the Class C
Swap has terminated for any reason, the Class C Monthly Interest for that
Payment Date.

“Class C Net Swap Payment”
means, with respect to any Payment Date, any net amount payable by the Issuer
under the Class C Swap as a result of LIBOR being less than the Class C Swap
Rate.  For the avoidance of doubt, Class
C Net Swap Payments do not include early termination payments or payment of
breakage or other miscellaneous costs.

“Class C Net Swap Receipt”
means, with respect to any Payment Date, any net amount payable by the Class C
Counterparty as a result of LIBOR being greater than the Class C Swap
Rate.  For the avoidance of doubt, Class
C Net Swap Receipts do not include early termination payments.

“Class C Note Initial
Principal Balance” means $65,000,000.

“Class C Note Interest
Rate” means a per annum rate of 0.24% in excess of LIBOR as
determined on the LIBOR Determination Date for the applicable Interest Period.

“Class C Note Principal
Balance” means, on any date of determination, an amount equal to (a)
the Class C Note Initial Principal Balance, minus
(b) the aggregate amount of principal payments made to the Class C Noteholders
on or prior to such date.

“Class C Noteholder”
means the Person in whose name a Class C Note is registered in the Note
Register.

“Class C Notes”
means any one of the Notes executed by the Issuer and authenticated by or on
behalf of the Indenture Trustee, substantially in the form of Exhibit A-3.

“Class C Regular Interest” is defined in Section
9.1(b).

“Class C Required Amount”
means with respect to any Payment Date, an amount equal to the excess of the
amount described in Section 4.4(a)(v) over
Available Finance Charge Collections applied to pay such amount pursuant to Section 4.4(a).

“Class C Swap”
means an interest rate swap agreement with respect to the Class C Notes between
the Trust and the Class C Counterparty substantially in the form of Exhibit C-2 to this Indenture Supplement, or
such other form as shall have satisfied the Rating Agency Condition.

“Class C Swap Rate”
means 4.9905% per annum.

“Closing Date”
means September 27, 2006.

“Collateral Amount”
means, as of any date of determination, an amount equal to the excess of (a)
the Initial Collateral Amount, over (b)
the sum of (i) the amount of principal 

 6
 

 

previously paid to the
Series 2006-1 Noteholders (other than any principal payments made from funds on
deposit in the Spread Account), (ii) reductions in the Excess Collateral Amount
due to reductions in the Required Excess Collateral Amount, (iii) the Principal
Accumulation Account Balance, and (iv) the excess, if any, of the aggregate
amount of Investor Charge-Offs and Reallocated Principal Collections over the reimbursements of such amounts
pursuant to Section 4.4(a)(vii) prior
to such date.

“Controlled Accumulation
Amount” means, for any Payment Date with respect to the Controlled
Accumulation Period, $97,000,000; provided,
however, that if the Controlled
Accumulation Period Length is determined to be less than or more than ten
months pursuant to Section 4.13, the
Controlled Accumulation Amount for each Payment Date with respect to the
Controlled Accumulation Period will be equal to (i) the initial Note Principal
Balance divided by (ii) the Controlled
Accumulation Period Length; provided, further, that the Controlled Accumulation
Amount for any Payment Date shall not exceed the Note Principal Balance minus
any amount already on deposit in the Principal Accumulation Account on such
Payment Date.

“Controlled Accumulation
Period” means, unless an Early Amortization Event shall have
occurred prior thereto, the period commencing at the opening of business on
October 22, 2008 or such other date as is determined in accordance with Section 4.13 and ending on the first to occur
of (a) the commencement of the Early Amortization Period and (b) the Final
Payment Date.

“Controlled Accumulation
Period Length” is defined in Section
4.13.

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

“Counterparty”
means the Class B Counterparty or the Class C Counterparty.

“Covered Amount”
means an amount, determined as of each Transfer Date for any Interest Period,
equal to the sum of:

(a) the product of (i)
the Class A Net Interest Obligation and (ii) a fraction (A) the numerator of
which is equal to the lesser of the Principal Accumulation Account Balance and
the Class A Note Principal Balance, each as of the last day of the calendar
month preceding such Transfer Date, and (B) the denominator of which is equal
to the Class A Note Principal Balance as of the last day of the calendar month
preceding such Transfer Date;

(b) the product of (i)
the Class B Net Interest Obligation and (ii) a fraction (A) the numerator of
which is equal to the lesser of (x) the excess of the Principal Accumulation
Account Balance over the Class A Note Principal Balance as of the last day of
the calendar month preceding such Transfer Date and (y) the Class B Note
Principal Balance, as of the last day of the calendar month preceding such
Transfer Date, and (B) the denominator of which is equal to the Class B Note
Principal Balance as of the last day of the calendar month preceding such
Transfer Date; and

 7
 

 

(c) the product of (i)
the Class C Net Interest Obligation and (ii) a fraction (A) the numerator of
which is equal to the lesser of (x) the excess of the Principal Accumulation
Account Balance over the sum of the Class A Note Principal Balance and the
Class B Note Principal Balance, each as of the last day of the calendar month
preceding such Transfer Date and (y) the Class C Note Principal Balance, as of
the last day of the calendar month preceding such Transfer Date, and (B) the
denominator of which is equal to the Class C Note Principal Balance as of the
last day of the calendar month preceding such Transfer Date.

“Default Amount”
means, as to any Defaulted Account, the amount of Principal Receivables (other
than Ineligible Receivables, unless there is an Insolvency Event with respect
to Originator or the Transferor) in such Defaulted Account on the day it became
a Defaulted Account.

“Defaulted Account”
means an Account in which there are Charged-Off Receivables.

“Designated Maturity” means, for any LIBOR
Determination Date, one month; provided that LIBOR for the initial
Distribution Period will be determined by straight-line interpolation (based on
the actual number of days in the initial Interest Period) between two rates
determined in accordance with the definition of LIBOR, one of which will be
determined for a Designated Maturity of one month and the other of which will be
determined for a Designated Maturity of two months.

“Dilution”
means any downward adjustment made by Servicer in the amount of any Transferred
Receivable (a) because of a rebate, refund or billing error to an
accountholder, (b) because such Transferred Receivable was created in respect
of merchandise which was refused or returned by an accountholder or (c) for any
other reason other than receiving Collections therefor or charging off such
amount as uncollectible.

“Distribution Account”
means the account designated as such, established and owned by the Issuer and
maintained in accordance with Section 4.2.

“Early Amortization
Period” means the period commencing on the date on which a Trust
Early Amortization Event or a Series 2006-1 Early Amortization Event is deemed
to occur and ending on the Final Payment Date.

“Excess Collateral Amount”
means, at any time, the excess of (a) the sum of (i) the Collateral Amount, and
(ii) the Principal Accumulation Account Balance, over (b) the Note Principal
Balance.

“Excess Spread Percentage”
means, for any Monthly Period, a percentage equal to (a) the Portfolio Yield
for such Monthly Period, minus (b) the Base Rate for such Monthly
Period.

“Expected Principal
Payment Date” means the September 2009 Payment Date.

“FASIT” means a “financial asset securitization
investment trust” within the meaning of section 860L of the Code.

 8

 

“Final Payment Date”
means the earliest to occur of (a) the date on which the Note Principal Balance
is paid in full, (b) the date on which the Collateral Amount is reduced to zero
and (c) the Series Maturity Date.

“Finance Charge Account”
means the account designated as such, established and owned by the Issuer and
maintained in accordance with Section 4.2.

“Finance Charge Shortfall”
is defined in Section 4.8.

“Group One”
means Series 2006-1 and each other outstanding Series previously or hereafter
specified in the related Indenture Supplement to be included in Group One.

“Indenture” is
defined in the preamble.

“Indenture Trustee”
is defined in the preamble.

“Initial Collateral
Amount” means $1,000,000,000, which equals the sum of (i) the Class
A Note Initial Principal Balance, (ii) the Class B Note Initial Principal
Balance, (iii) the Class C Note Initial Principal Balance and (iv) the Initial
Excess Collateral Amount.

“Initial Excess
Collateral Amount” means $30,000,000.

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

“Investment Earnings”
means, for any Payment Date, all interest and earnings on Permitted Investments
included in the Spread Account (net of losses and investment expenses) during
the period commencing on and including the Payment Date immediately preceding
such Payment Date and ending on but excluding such Payment Date.

“Investor Charge-Offs”
is defined in Section 4.6.

“Investor Default Amount”
means, for any Monthly Period, the sum for all Accounts that became Defaulted
Accounts during such Monthly Period, of the following amount:  the product of (a) the Default Amount with
respect to each such Defaulted Account and (b) the Allocation Percentage on the
day such Account became a Defaulted Account.

“Investor Finance Charge
Collections” means, for any Monthly Period, an amount
equal to the aggregate amount of Finance Charge Collections retained or
deposited in the Finance Charge Account for Series 2006-1 pursuant to Section 4.3(b)(i) for such Monthly Period.

“Investor Principal
Collections” means, for any Monthly Period, an amount equal to the
aggregate amount of Principal Collections retained or deposited in the
Principal Account for Series 2006-1 pursuant to Section
4.3(b)(ii) for such Monthly Period.

“Investor Uncovered
Dilution Amount” means, for any Monthly Period, an amount equal to
the product of (a) the Series Allocation Percentage for such Monthly Period
(determined on a 

 9
 

 

weighted average basis,
if a Reset Date occurs during that Monthly Period), and (b) the aggregate
Dilutions occurring during such Monthly Period as to which any deposit is required
to be made but has not been made, provided
that, if the Free Equity Amount is greater than zero at the time the deposit
referred to in clause (b) is required
to be made, the Investor Uncovered Dilution Amount shall be deemed to be zero.

“Issuer” is
defined in the preamble.

“LIBOR” means,
for any Interest Period, the London interbank offered rate for one-month United
States dollar deposits determined by the Indenture Trustee for each Interest
Period in accordance with the provisions of Section 4.14.

“LIBOR Determination Date”
means (i) September 25, 2006 for the period from and including the Closing Date
through and including November 14, 2006 and (ii) the second London Business Day
prior to the commencement of the second and each subsequent Interest Period.

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

“Minimum Free Equity
Percentage” means, for purposes of Series 2006-1, 4%; provided that,
at any time that GE Capital’s long-term unsecured debt is rated Aa2 or lower by
Moody’s or AA or lower by S&P, the Minimum Free Equity Percentage shall be
7.0%.

“Monthly Interest”
means, for any Payment Date, the sum of the Class A Monthly Interest, the Class
B Monthly Interest and the Class C Monthly Interest for such Payment Date.

“Monthly Period”
means, as to the November 2006 Payment Date, the period beginning on the
Closing Date and ending on October 21, 2006, and as to each Payment Date
thereafter, the period beginning on the 22nd day of the second preceding calendar month and
ending on the 21st day of the immediately preceding calendar
month.

“Monthly Principal”
is defined in Section 4.1(d).

“Monthly Principal Reallocation Amount” means,
for any Monthly Period, an amount equal to the sum of:

(a)           the lesser of (i) the Class A
Required Amount and (ii) $187,500,000 minus
the sum of (x) the amount of unreimbursed Investor Charge-Offs (after giving
effect to Investor Charge-Offs for the related Monthly Period) and unreimbursed
Reallocated Principal Collections (as of the previous Payment Date) and (y) any
reductions to the Collateral Amount on account of reductions to the Required
Excess Collateral Amount, but not less than zero;

(b)           the lesser of (i) the Class B
Required Amount and (ii) $95,000,000 minus
the sum of (x) the amount of unreimbursed Investor Charge-Offs (after giving
effect to Investor Charge-Offs for the related Monthly Period) and unreimbursed
Reallocated Principal Collections (as of the previous Payment Date and as
required in clause (a)  

 10
 

 

above) and (y) any reductions to the Collateral Amount
on account of reductions to the Required Excess Collateral Amount, but not less
than zero; and

(c)           the lesser of (i) the Class C
Required Amount and (ii) $30,000,000 minus
the sum of (x) the amount of unreimbursed Investor Charge-Offs after giving
effect to Investor Charge-Offs for the related Monthly Period) and unreimbursed
Reallocated Principal Collections (as of the previous Payment Date and as
required in clauses (a) and (b) above) and (y) any reduction to the
Collateral Amount on account of reductions to the Required Excess Collateral
Amount, but not less than zero.

“Net Interest Obligation”
means, for any Payment Date, the sum of the Class A Net Interest Obligation, the
Class B Net Interest Obligation and the Class C Net Interest Obligation for
such Payment Date.

“Net Swap Payments”
means, for any Payment Date, collectively, the Class B Net Swap Payment and the
Class C Net Swap Payment for such Payment Date.

“Net Swap Receipts”
means, for any Payment Date, collectively, the Class B Net Swap Receipt and the
Class C Net Swap Receipt for such Payment Date.

“Note Principal Balance”
means, on any date of determination, an amount equal to the sum of the Class A
Note Principal Balance, the Class B Note Principal Balance and the Class C Note
Principal Balance.

“Noteholder Servicing Fee”
means, for any Transfer Date, an amount equal to one-twelfth of the product of
(a) the Series Servicing Fee Percentage and (b) the Collateral Amount as of the
last day of the Monthly Period preceding such Transfer Date; provided, however,
that with respect to the first Transfer Date, the Noteholder Servicing Fee
shall be calculated based on the Collateral Amount as of the Closing Date and
shall be prorated for the number of days in the first Monthly Period.

“Ownership Interest” means the interest issued
by the RFS FASIT which (i) represents solely the right to receive amounts
specified in Section 4.4(a)(xiii) to be paid to the Issuer and (ii)
represents the sole “ownership interest” in the RFS FASIT within the meaning of
section 860L of the Code.

“Payment Date”
means November 15, 2006 and the 15th day of each calendar month thereafter, or if
such 15th day is not a Business Day, the next succeeding Business Day.

“Percentage Allocation”
is defined in Section 4.3(b)(ii)(y).

“Portfolio Yield”
means, for any Monthly Period, the annualized percentage equivalent of a
fraction, (a) the numerator of which is equal to the excess of (i) the
Available Finance Charge Collections (excluding any Excess Finance Charge
Collections and Net Swap Receipts), over (ii) the Investor Default Amount and
the Investor Uncovered Dilution Amount for such Monthly Period and (b) the
denominator of which is the Collateral Amount plus amounts on deposit in
Principal Accumulation Account, each as of the close of business on the last
day of such Monthly Period.

 11
 

 

“Principal Account”
means the account designated as such, established and owned by the Issuer and
maintained in accordance with Section 4.2.

“Principal Accumulation
Account” means the account designated as such, established and owned
by the Issuer and maintained in accordance with Section 4.2.

“Principal Accumulation
Account Balance” means, for any date of determination, the principal
amount, if any, on deposit in the Principal Accumulation Account on such date
of determination.

“Principal Accumulation
Investment Proceeds” means, with respect to each Transfer Date, the
investment earnings on funds in the Principal Accumulation Account (net of
investment expenses and losses) for the period from and including the
immediately preceding Transfer Date to but excluding such Transfer Date.

“Principal Shortfall”
is defined in Section 4.9.

“Qualifying Substitute Arrangement” means, with
respect to the Class B Notes or Class C Notes, as applicable, any interest rate
swap agreement that shall have satisfied the Rating Agency Condition or any
other hedging arrangement or alternative arrangement that shall have satisfied
the Rating Agency Condition in the event of the termination of any Class B Swap
or Class C Swap.

“Quarterly Excess Spread
Percentage” means (a) with respect to the November 2006 Payment
Date, the Excess Spread Percentage for the Monthly Period relating to such
Payment Date, (b) with respect to the December 2006 Payment Date, the
percentage equivalent of a fraction the numerator of which is the sum of (i)
the Excess Spread Percentage for the Monthly Period relating to the November
2006 Payment Date and (ii) the Excess Spread Percentage for the Monthly Period
relating to the December 2006 Payment Date and the denominator of which is two,
and (c) with respect to the January 2007 Payment Date and each Payment Date
thereafter, the percentage equivalent of a fraction the numerator of which is
the sum of the Excess Spread Percentages determined with respect to the Monthly
Periods relating to such Payment Date and the immediately preceding two Payment
Dates and the denominator of which is three.

“Rating Agency”
means each of Fitch, Moody’s and S&P.

“Reallocated Principal
Collections” means, for any Transfer Date, Investor Principal
Collections applied in accordance with Section 4.7 in an amount not to exceed the Monthly
Principal Reallocation Amount for the related Monthly Period.

“Redemption Amount”
means, for any Transfer Date, after giving effect to any deposits and payments
otherwise to be made on the related Payment Date, the sum of (i) the Note
Principal Balance on the related Payment Date, (ii) Monthly Interest for the
related Payment Date and any Monthly Interest previously due but not
distributed to the Series 2006-1 Noteholders, (iii) the amount of Additional
Interest, if any, for the related Payment Date and any Additional Interest
previously due but not distributed to the Series 2006-1 Noteholders on a prior
Payment Date and (iv) any amounts owing to any Counterparty pursuant to the
terms of the Class B Swap or Class C Swap.

 12
 

 

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

“Related Interest” is defined in Section
9.1(b).

“Removal Date”
means a “Removal Date” as such term is defined in the Transfer Agreement.

“Required Excess Collateral Amount” means, at
any time, 3.0% of the Collateral Amount; provided that:

(a)           except as provided
in clause (c), the Required Excess
Collateral Amount shall never be less than 3.0% of the Initial Collateral
Amount;

(b)           except as provided
in clause (c), the Required Excess
Collateral Amount shall not decrease during an Early Amortization Period; and

(c)           the Required Excess
Collateral Amount shall never be greater than the excess of the Note Principal
Balance over the balance on deposit in the Principal Accumulation Account.

“Required Reserve Account
Amount” means, for any Transfer Date on or after the Reserve Account
Funding Date, an amount equal to (a) 0.50% of the Note Principal Balance or (b)
any other amount designated by the Issuer; provided, however, that if such designation is of a
lesser amount, the Issuer 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 Issuer, such designation will not cause an Early Amortization
Event or an event that, after the giving of notice or the lapse of time, would
cause an Early Amortization Event to occur with respect to Series 2006-1.

“Required Spread Account
Amount” means, for any Payment Date, the product of (i) the Spread
Account Percentage in effect on such date and (ii) during (x) the Revolving
Period, the Collateral Amount, and (y) during the Controlled Accumulation
Period or the Early Amortization Period, the Collateral Amount as of the last
day of the Revolving Period; provided that, prior to the occurrence of
an Event of Default and acceleration of the Series 2006-1 Notes the Required
Spread Account Amount will never exceed the Class C Note Principal Balance
(after taking into account any payments to be made on such Payment Date).

“Reserve Account”
means the account designated as such, established and owned by the Issuer and
maintained in accordance with Section 4.2.

“Reserve Account Funding
Date” means the Payment Date selected by the Servicer on behalf of
the Issuer which occurs not later than the earliest of the Payment Date with
respect to the Monthly Period which commences three months prior to the
commencement of the Controlled Accumulation Period (which commencement shall be
subject to postponement pursuant to Section 4.14);
provided, however,
if the Rating Agency Condition is satisfied, the Issuer may postpone the
Reserve Account Funding Date.

 13
 

 

“Reserve Account Surplus”
means, as of any Transfer Date following the Reserve Account Funding Date, the
amount, if any, by which the amount on deposit in the Reserve Account exceeds
the Required Reserve Account Amount.

“Reserve Draw Amount”
means, with respect to each Transfer Date relating to the Controlled
Accumulation Period or the first Transfer Date relating to the Early
Amortization Period, the amount, if any, by which the Principal Accumulation
Investment Proceeds for such Payment Date are less than the Covered Amount
determined as of such Transfer Date.

“Reset Date” means:

(a)           each Addition Date;

(b)           each Removal Date on
which, if any Series of Notes has been paid in full, Principal Receivables for
that Series are removed from the Trust;

(c)           each date on which
there is an increase in the outstanding balance of any Variable Interest; and

(d)           each date on which a
new Series or Class of Notes is issued.

“Revolving Period”
means the period beginning on the Closing Date and ending at the close of
business on the day immediately preceding the earlier of the day the Controlled
Accumulation Period commences or the day the Early Amortization Period
commences.

“RFS FASIT” means the Trust Estate designated
as a FASIT within the meaning of section 860L of the Code.

“Series Accounts” is defined in Section 4.2.

“Series Allocation Percentage”
means, with respect to any Monthly Period, the percentage equivalent of a
fraction, the numerator of which is the numerator used in determining the
Allocation Percentage for Finance Charge Collections for that Monthly Period
and the denominator of which is the sum of the numerators used in determining
the Allocation Percentage for Finance Charge Collections for all outstanding
Series on such date of determination; provided
that if one or more Reset Dates occur in a Monthly Period, the Series Allocation
Percentage for the portion of the Monthly Period falling on and after each such
Reset Date and prior to any subsequent Reset Date will be determined using a
denominator which is equal to the sum of the numerators used in determining the
Allocation Percentage for Finance Charge Collections for all outstanding Series
as of the close of business on the subject Reset Date.

“Series Maturity Date”
means, with respect to Series 2006-1, the September 2012 Payment Date.

“Series Servicing Fee
Percentage” means 2% per annum.

 14
 

 

“Series 2006-1”
means the Series of Notes the terms of which are specified in this Indenture
Supplement.

“Series 2006-1 Early
Amortization Event” is defined in Section 6.1.

“Series 2006-1
Excess Finance Charge Collections” means Excess Finance Charge Collections
allocated from other Series in Group One to Series 2006-1 pursuant to Section
8.6 of the Indenture.

“Series 2006-1 Note”
means a Class A Note, a Class B Note or a Class C Note.

“Series 2006-1 Noteholder”
means a Class A Noteholder, a Class B Noteholder or a Class C Noteholder.

“Spread Account”
means the account designated as such, established and owned by the Issuer and
maintained in accordance with Section 4.2.

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

“Spread Account
Percentage” means, (i) 0% if the Quarterly Excess Spread Percentage
on such Payment Date is greater than or equal to 5.00%, (ii) 2.00% if the
Quarterly Excess Spread Percentage on such Payment Date is less than 5.00% and
greater than or equal to 4.50%, (iii) 2.50% if the Quarterly Excess Spread
Percentage on such Payment Date is less than 4.50% and greater than or equal
4.00%, (iv) 3.50% if the Quarterly Excess Spread Percentage on such Payment
Date is less than 4.00% and greater than or equal to 3.50%, (v) 4.50% if the
Quarterly Excess Spread Percentage on such Payment Date is less than 3.50% and
greater than or equal to 3.00%, (vi) 5.50% if the Quarterly Excess Spread
Percentage on such Payment Date is less than 3.00% and greater than or equal to
2.50%, (vii) 6.50% if the Quarterly Excess Spread Percentage on such Payment
Date is less than 2.50% and greater than or equal to 1.50%, (viii) 7.50% if the
Quarterly Excess Spread Percentage on such Payment Date is less than 1.50% and
greater than or equal to 0.50% and (ix) 8.50% if the Quarterly Excess Spread
Percentage on such Payment Date is less than 0.50%.

“Surplus Collateral
Amount” means, at any time, the excess, if any, of the Excess
Collateral Amount over the Required Excess Collateral Amount.

“Target Amount”
is defined in Section 4.3(b)(i).

“Trust” is
defined in the preamble.

SECTION 1.2.  Incorporation of Terms.  The terms of the Indenture are incorporated
in this Supplement as if set forth
in full herein. As supplemented by this Supplement, the Indenture is in all
respects ratified and confirmed and both together shall be read, taken and
construed as one and the same agreement. If the terms of this Supplement and
the terms of the Indenture conflict, the terms of this Supplement shall control
with respect to the Series 2006-1.

 15
 

 

 

ARTICLE II

CREATION OF THE SERIES 2006-1 NOTES

SECTION 2.1.  Designation.

(a)           There is hereby created and
designated a Series of Notes to be issued pursuant to the Indenture and this
Indenture Supplement to be known as “GE Capital
Credit Card Master Note Trust, Series 2006-1” or the “Series 2006-1 Notes.”  The Series 2006-1 Notes shall be issued in
three Classes, known as the “Class A Series 2006-1
5.08% Asset Backed Notes,” the “Class B
Series 2006-1 Floating Rate Asset Backed Notes,” and the “Class C Series 2006-1 Floating Rate Asset Backed Notes.”

(b)           Series 2006-1 shall be included in
Group One and shall be a Principal Sharing Series.  Series 2006-1 shall be an Excess Allocation
Series with respect to Group One only. 
Series 2006-1 shall not be subordinated to any other Series.

(c)           The Series 2006-1 Notes shall be
issued in minimum denominations of $100,000 and in integral multiples of
$1,000.

ARTICLE III

REPRESENTATIONS, WARRANTIES AND COVENANTS

SECTION 3.1.  Representations, Warranties and Covenants
with respect to Net Swap Receipts. 
The parties hereto agree that the
representations, warranties and covenants set forth in Schedule I shall be a part of this Indenture
Supplement for all purposes.

SECTION 3.2.  Representations, Warranties and Covenants
with respect to Receivables.   The
parties hereto agree that the representations,
warranties and covenants set forth in Schedule II shall be a part of
this Indenture Supplement for all purposes.

ARTICLE IV

RIGHTS OF SERIES 2006-1 NOTEHOLDERS AND ALLOCATION
AND APPLICATION OF COLLECTIONS

SECTION 4.1.  Determination of Interest and Principal.

(a)           The amount of monthly interest (“Class A Monthly Interest”) due and payable
with respect to the Class A Notes on any Payment Date shall be an amount equal
to the product of (i) a fraction, the numerator of which is 30 and the
denominator of which is 360, (ii) the Class A Note Interest Rate and (iii) the
Class A Note Principal Balance as of the close of business on the last day of
the preceding Monthly Period (or, with respect to the initial Payment Date, the
Class A Note Initial Principal Balance); provided, that the Class A
Monthly Interest for the November 2006 Payment Date shall be $5,503,333.33.

With respect to each Payment Date, the Issuer shall
determine the excess, if any (the “Class A
Deficiency Amount”), of (x) the aggregate amount of Class A Monthly
Interest payable pursuant to this Section 4.1(a) as of the prior Payment
Date over (y) the amount of Class A
Monthly Interest actually paid on such Payment Date.  If the Class A Deficiency Amount for any 

 16
 

 

Payment Date is greater
than zero, on each subsequent Payment Date until such Class A Deficiency Amount
is fully paid, an additional amount (“Class A
Additional Interest”) equal to the product of (i) a fraction, the
numerator of which is 30 and the denominator of which is 360, (ii) the Class A
Note Interest Rate plus 2% per annum
and (iii) such Class A Deficiency Amount (or the portion thereof which has not
been paid to the Class A Noteholders) shall be payable as provided herein with
respect to the Class A Notes. 
Notwithstanding anything to the contrary herein, Class A Additional Interest
shall be payable or distributed to the Class A Noteholders only to the extent
permitted by applicable law.

(b)           The amount of monthly interest (“Class B Monthly Interest”) due and payable
with respect to the Class B Notes on any Payment Date shall be an amount equal
to the product of (i) a fraction, the numerator of which is the actual number
of days in the related Interest Period and the denominator of which is 360,
(ii) the Class B Note Interest Rate in effect with respect to the related
Interest Period and (iii) the Class B Note Principal Balance as of the close of
business on the last day of the preceding Monthly Period (or, with respect to
the initial Payment Date, the Class B Note Initial Principal Balance).

With respect to each Payment Date, the Issuer shall
determine the excess, if any (the “Class B
Deficiency Amount”), of (x) the aggregate amount of Class B Monthly
Interest payable pursuant to this Section 4.1(b) as of the prior Payment
Date over (y) the amount of Class B
Monthly Interest actually paid on such Payment Date.  If the Class B Deficiency Amount for any
Payment Date is greater than zero, on each subsequent Payment Date until such
Class B Deficiency Amount is fully paid, an additional amount (“Class B Additional Interest”) equal to the
product of (i) a fraction, the numerator of which is the actual number of days
in the related Interest Period and the denominator of which is 360, (ii) the
Class B Note Interest Rate in effect with respect to the related Interest
Period plus 2% per annum and (iii) such
Class B Deficiency Amount (or the portion thereof which has not been paid to
the Class B Noteholders) shall be payable as provided herein with respect to
the Class B Notes.  Notwithstanding
anything to the contrary herein, Class B Additional Interest shall be payable
or distributed to the Class B Noteholders only to the extent permitted by
applicable law.

(c)           The amount of monthly interest (“Class C Monthly Interest”) due and payable
with respect to the Class C Notes on any Payment Date shall be an amount equal
to the product of (i) a fraction, the numerator of which is the actual number
of days in the related Interest Period and the denominator of which is 360,
(ii) the Class C Interest Rate in effect with respect to the related Interest
Period and (iii) the Class C Note Principal Balance as of the close of business
on the last day of the preceding Monthly Period (or, with respect to the
initial Payment Date, the Class C Note Initial Principal Balance).

With respect to each Payment Date, the Issuer shall
determine the excess, if any (the “Class C
Deficiency Amount”), of (x) the aggregate amount of Class C
Monthly Interest payable pursuant to this Section 4.1(c) as of the
prior Payment Date over (y) the
amount of Class C Monthly Interest actually paid on such Payment Date.  If the Class C Deficiency Amount for any
Payment Date is greater than zero, on each subsequent Payment Date until such
Class C Deficiency Amount is fully paid, an additional amount (“Class C Additional Interest”) equal to the
product of (i) a fraction, the numerator of which is the actual number of days
in the related Interest Period and the denominator of which is 360, (ii) the Class
C Note Interest Rate in effect 

 17
 

 

with respect to the
related Interest Period plus 2% per
annum and (iii) such Class C Deficiency Amount (or the portion thereof which
has not been paid to the Class C Noteholders) shall be payable as provided
herein with respect to the Class C Notes. 
Notwithstanding anything to the contrary herein, Class C Additional
Interest shall be payable or distributed to the Class C Noteholders only to the
extent permitted by applicable law.

(d)           The amount of monthly principal to be
transferred from the Principal Account with respect to the Notes on each
Payment Date (the “Monthly Principal”),
beginning with the Payment Date in the Monthly Period following the Monthly
Period in which the Controlled Accumulation Period or, if earlier, the Early
Amortization Period, begins, shall be equal to the least of (i) the Available
Principal Collections on deposit in the Principal Account with respect to the
related Monthly Period, (ii) for each Payment Date with respect to the
Controlled Accumulation Period, the Controlled Deposit Amount for such Payment
Date, (iii) the Collateral Amount (after taking into account any adjustments to
be made on such Payment Date pursuant to Sections
4.6 and 4.7) prior to any
deposit into the Principal Accumulation Account on such Payment Date, and (iv)
the Note Principal Balance, minus any amount already on deposit in the
Principal Accumulation Account on such Payment Date.

SECTION 4.2.  Establishment of Accounts.

(a)           As of the Closing Date, the Issuer
covenants to have established and shall thereafter maintain the Finance Charge
Account, the Principal Account, the Principal Accumulation Account, the
Distribution Account, the Reserve Account and the Spread Account (collectively,
the “Series Accounts”) each of which shall be an Eligible Deposit
Account.

(b)           If the depositary institution wishes
to resign as depositary of any of the Series Accounts for any reason or fails
to carry out the instructions of the Issuer for any reason, then the Issuer
shall promptly notify the Indenture Trustee on behalf of the Noteholders.

(c)           On or before the Closing Date, the
Issuer shall enter into a depositary agreement to govern the Series Accounts
pursuant to which such accounts are continuously identified in the depositary
institution’s books and records as subject to a security interest in favor of
the Indenture Trustee on behalf of the Noteholders and, except as may be
expressly provided herein to the contrary, in order to perfect the security
interest of the Indenture Trustee on behalf of the Noteholders under the UCC,
the Indenture Trustee on behalf of the Noteholders shall have the power to
direct disposition of the funds in the Series Accounts without further consent
by the Issuer; provided  however, that prior to the delivery by
the Indenture Trustee on behalf of the Noteholders of notice otherwise, the
Issuer shall have the right to direct the disposition of funds in the Series
Accounts; provided  further that the Indenture Trustee on behalf
of the Noteholders agrees that it will not deliver such notice or exercise its
power to direct disposition of the funds in the Series Accounts unless an Event
of Default has occurred and is continuing.

(d)           The Issuer shall not close any of the
Series Accounts unless it shall have (i) received the prior consent of the
Indenture Trustee on behalf of the Noteholders, (ii) established a new Eligible
Deposit Account with the depositary institution or with a new depositary
institution satisfactory to the Indenture Trustee on behalf of the Noteholders,
(iii) entered into a depositary agreement to govern such new account(s) with
such new depositary institution which

 18

 

agreement is satisfactory in all respects to the
Indenture Trustee on behalf of the Noteholders (whereupon such new account(s)
shall become the applicable Series Account(s) for all purposes of this
Indenture Supplement), and (iv) taken all such action as the Indenture Trustee
on behalf of the Noteholders shall reasonably require to grant and perfect a
first priority security interest in such account(s) under this Indenture
Supplement.

SECTION 4.3.  Calculations and Series Allocations.

(a)           Allocations.  Finance Charge Collections, Principal
Collections and Charged-Off Receivables allocated to Series 2006-1 pursuant to Article VIII of the Indenture shall be
allocated and distributed as set forth in this Article.  Notwithstanding anything to the contrary in
Section 4.3(b), during any period when the Issuer is permitted by Section 8.4 of the Indenture to make a single
monthly deposit to the Collection Account, amounts allocated to the Noteholders
pursuant to Section 4.3(b) with respect
to any Monthly Period need not be deposited into the Collection Account or any
Series Account prior to the related Payment Date, and, when so deposited, (x)
may be deposited net of any amounts required to be distributed to Transferor
and, if the Originator is Servicer, any amounts owed to the Servicer, and (y)
shall be deposited into the Finance Charge Account (in the case of Collections
of Finance Charge Receivables) and the Principal Account (in the case of
Collections of Principal Receivables (not including any Shared Principal Collections
allocated to Series 2006-1 pursuant to Section 8.5
of the Indenture)).

(b)           Allocations to the Series 2006-1
Noteholders.  The Issuer shall on
each Date of Processing, allocate to the Series 2006-1 Noteholders the
following amounts as set forth below:

(i)            Allocations
of Finance Charge Collections. 
The Issuer shall allocate to the Series 2006-1 Noteholders an amount
equal to the product of (A) the Allocation Percentage and (B) the aggregate
Finance Charge Collections processed on such Date of Processing and, subject to
Section 4.16, shall deposit such amount into the Finance Charge Account; provided that, with respect to each Monthly
Period falling in the Revolving Period (and with respect to that portion of
each Monthly Period in the Controlled Accumulation Period falling on or after
the day on which Collections of Principal Receivables equal to the related
Controlled Deposit Amount have been allocated pursuant to Section 4.3(b)(ii) and deposited pursuant to Section 4.3(a)), Collections of Finance
Charge Receivables shall be transferred into the Finance Charge Account only
until such time as the aggregate amount so deposited equals the sum (the “Target Amount”) of (A) the fees payable to
the Indenture Trustee, the Trustee and the Administrator on the related Payment
Date, (B) the Net Interest Obligation on the related Payment Date, (C) if the
Originator is not the Servicer, the Noteholder Servicing Fee (and if the
Originator is the Servicer, then the Issuer covenants to pay directly to the
Servicer as payment of the Noteholder Servicing Fee amounts that otherwise
would have been transferred into the Finance Charge Account pursuant to this clause (C)), and (D) any amount required to
be deposited in the Reserve Account and the Spread Account on the related
Transfer Date; provided  further, that, notwithstanding the preceding
proviso, if on any Business Day the Issuer determines that the Target Amount
for a Monthly Period exceeds the Target Amount for that Monthly Period as
previously calculated by Issuer, then (x) Issuer shall (on the same Business
Day) inform Transferor of such determination, and (y) within two Business Days
thereafter cause Transferor to deposit into the Finance 

 19
 

 

Charge Account funds in
an amount equal to the amount of Collections of Finance Charge Receivables
allocated to the Noteholders for that Monthly Period but not deposited into the
Finance Charge Account due to the operation of the preceding proviso (but not
in excess of the amount required so that the aggregate amount deposited for the
subject Monthly Period equals the Target Amount); and provided, further, if on any Transfer Date the Free
Equity Amount is less than the Minimum Free Equity Amount after giving effect
to all transfers and deposits on that Transfer Date, the Issuer shall cause
Transferor, on that Transfer Date, to deposit into the Principal Account funds
in an amount equal to the amounts of Available Finance Charge Collections that
are required to be treated as Available Principal Collections pursuant to Section 4.4(a)(vi) and (vii) but are not available from funds in the
Finance Charge Account as a result of the operation of the second preceding
proviso.

With respect to any Monthly Period when deposits of
Collections of Finance Charge Receivables into the Finance Charge Account are
limited to deposits up to the Target Amount in accordance with clause (i) above, notwithstanding such
limitation: (1) “Reallocated Principal Collections”
for the related Transfer Date shall be calculated as if the full amount of
Finance Charge Collections allocated to the Noteholders during that Monthly
Period had been deposited in the Finance Charge Account and applied on the
related Payment Date in accordance with Section
4.4(a); and (2) Collections of Finance Charge Receivables released
to Transferor pursuant to clause (i) above shall be deemed, for purposes
of all calculations under this Indenture Supplement, to have been applied to
the items specified in Section 4.4(a)
to which such amounts would have been applied (and in the priority in which
they would have been applied) had such amounts been available in the Finance
Charge Account on the related Payment Date. 
To avoid doubt, the calculations referred to in the preceding clause (2) include the calculations required
by clause (b)(iv) of the definition of
Collateral Amount.

(ii)           Allocations
of Principal Collections.  The
Issuer shall allocate to the Series 2006-1 Noteholders the following amounts as
set forth below:

(x)            Allocations During the
Revolving Period.

(1)           During the Revolving Period an amount
equal to the product of the Allocation Percentage and the aggregate amount of
Principal Collections processed on such Date of Processing, shall be allocated
to the Series 2006-1 Noteholders and first, if any other Principal Sharing
Series is outstanding and in its accumulation period or amortization period,
retained in the Principal Account for application, to the extent necessary, as
Shared Principal Collections to other Principal Sharing Series on the related
Payment Date, second deposited in the Excess Funding Account to the extent
necessary so that the Free Equity Amount is not less than the Minimum Free
Equity Amount and third paid to the holders of the Transferor Interest.

(2)           With respect to each Monthly Period
falling in the Revolving Period, to the extent that Collections of Principal
Receivables allocated to the Series 2006-1 Noteholders pursuant to this Section 4.3(b)(ii) are paid 

 20
 

 

to Transferor, the Issuer
shall cause Transferor to make an amount equal to the Reallocated Principal Collections
for the related Transfer Date available on that Transfer Date for application
in accordance with Section  4.7.

(y)           Allocations
During the Controlled Accumulation Period.  During the Controlled Accumulation Period an
amount equal to the product of  the
Allocation Percentage and the aggregate amount of Principal Collections
processed on such Date of Processing (the product for any such date is
hereinafter referred to as a “Percentage
Allocation”) shall be allocated to the Series 2006-1 Noteholders and
transferred to the Principal Account until applied as provided herein; provided, however, that if the sum of such
Percentage Allocation and all preceding Percentage Allocations with respect to
the same Monthly Period exceeds the Controlled Deposit Amount during the
Controlled Accumulation Period for the related Payment Date, then such excess
shall not be treated as a Percentage Allocation and shall be first, if any
other Principal Sharing Series is outstanding and in its accumulation period or
amortization period, retained in the Principal Account for application, to the
extent necessary, as Shared Principal Collections to other Principal Sharing
Series on the related Payment Date, second deposited in the Excess Funding
Account to the extent necessary so that the Free Equity Amount is not less than
the Minimum Free Equity Amount and third paid to the holders of the Transferor
Interest.

(z)            Allocations
During the Early Amortization Period.  During the Early Amortization Period, an
amount equal to the product of  the
Allocation Percentage and the aggregate amount of Principal Collections
processed on such Date of Processing shall be allocated to the 2006-1
Noteholders and transferred to the Principal Account until applied as provided
herein; provided, however, that after the date on which an
amount of such Principal Collections equal to the Note Principal Balance has
been deposited into the Principal Account such amount shall be first, if any
other Principal Sharing Series is outstanding and in its accumulation period or
amortization period, retained in the Principal Account for application, to the
extent necessary, as Shared Principal Collections to other Principal Sharing
Series on the related Payment Date, second deposited in the Excess Funding
Account to the extent necessary so that the Free Equity Amount is not less than
the Minimum Free Equity Amount and third paid to the holders of the Transferor
Interest.

SECTION 4.4.  Application of Available Finance Charge
Collections and Available Principal Collections.  On each Transfer
Date or related Payment Date, as applicable, the Issuer shall withdraw, to the
extent of available funds, the amount required to be withdrawn from the Finance
Charge Account, the Principal Accumulation Account, the Principal Account and
the Distribution Account as follows:

 21
 

 

(a)           On each Payment Date, an amount equal
to the Available Finance Charge Collections with respect to the related Payment
Date will be paid or deposited in the following priority:

(i)            to pay, on a pari passu basis, the
following amounts, to the extent allocated to Series 2006-1 pursuant to Section
8.4(d) of the Indenture: (A) the payment to the Indenture Trustee of the
accrued and unpaid fees and other amounts owed to the Indenture Trustee up to a
maximum amount of $25,000 for each calendar year, (B) the payment to the
Trustee of the accrued and unpaid fees and other amounts owed to the Trustee up
to a maximum amount of $25,000 for each calendar year and (C) the payment to
the Administrator of the accrued and unpaid fees and other amounts owed to the
Administrator up to a maximum amount of $25,000 for each calendar year;

(ii)           an amount equal to the Noteholder
Servicing Fee for such Transfer Date, plus
the amount of any Noteholder Servicing Fee previously due but not paid to the
Issuer on a prior Transfer Date, shall be paid to the Servicer;

(iii)          an amount equal to Class A Monthly
Interest for such Payment Date, plus
any Class A Deficiency Amount, plus the
amount of any Class A Additional Interest for such Payment Date, plus the amount of any Class A Additional
Interest previously due but not paid to Class A Noteholders on a prior Payment
Date, shall be deposited into the Distribution Account;

(iv)          on a pari passu basis based on the
amounts owing to the Class B Noteholders and each Class B Counterparty pursuant
to this Section 4.4(a)(iv): (A) an amount equal to Class B Monthly
Interest for such Payment Date, plus
any Class B Deficiency Amount, plus the
amount of any Class B Additional Interest for such Payment Date, plus the amount of any Class B Additional
Interest previously due but not paid to Class B Noteholders on a prior Payment
Date, shall be deposited into the Distribution Account, and (B) any Class B Net
Swap Payment for such Payment Date shall be paid to the Class B Counterparty
and any unpaid Class B Net Swap Payments owed to the Class B Counterparty in
respect of any prior Payment Date;

(v)           on a pari passu basis based on the
amounts owing to the Class C Noteholders and each Class C Counterparty pursuant
to this Section 4.4(a)(v): (A) an amount equal to Class C Monthly
Interest for such Payment Date, plus
any Class C Deficiency Amount, plus the
amount of any Class C Additional Interest for such Payment Date, plus the amount of any Class C Additional
Interest previously due but not paid to the Class C Noteholders on a prior
Payment Date shall be deposited into the Distribution Account, and (B) any
Class C Net Swap Payment for such Payment Date and any unpaid Class C Net Swap
Payments owed to the Class C Counterparty in respect of any prior Payment Date
shall be paid to the Class C Counterparty;

(vi)          (A) first, an amount equal to
the Investor Default Amount for such Payment Date shall be treated as a portion
of Available Principal Collections for such Payment Date and (B) second,
an amount equal to any Investor Uncovered Dilution Amount for such Payment Date
shall be treated as a portion of Available Principal 

 22
 

 

Collections for such
Payment Date, and any amounts treated as Available Principal Collections
pursuant to subclause (A) or (B) of this clause (vi) during the Controlled
Accumulation Period or the Early Amortization Period, shall be deposited into
the Principal Account on the related Payment Date;

(vii)         an amount equal to the sum of the
aggregate amount of Investor Charge-Offs and the amount of Reallocated
Principal Collections which have not been previously reimbursed pursuant to
this Section 4.4(a)(vii) shall be
treated as a portion of Available Principal Collections for such Payment Date
and during the Controlled Accumulation Period or Early Amortization Period
shall be deposited into the Principal Account on the related Payment Date;

(viii)        on each Transfer Date from and after the
Reserve Account Funding Date, but prior to the date on which the Reserve
Account terminates as described in Section 4.10(e),
an amount up to the excess, if any, of the Required Reserve Account Amount over the Available Reserve Account Amount
shall be deposited into the Reserve Account;

(ix)           an amount equal to the amounts
required to be deposited in the Spread Account pursuant to Section 4.11(e) shall be deposited into
the Spread Account;

(x)            without duplication of the amount
specified in clause (vi)(B) of this Section 4.4(a), an amount
equal to the Series Allocation Percentage (calculated by excluding all
outstanding Series of Notes issued on any date prior to September 22, 2004 and
any Series of Notes excluded from this calculation pursuant to the terms of the
Indenture Supplement for such Series) of the excess, if any, of the Minimum Free
Equity Amount over the Free Equity Amount, shall be treated as a portion of
Available Principal Collections for such Payment Date and, during the
Controlled Accumulation Period or the Early Amortization Period, deposited into
the Principal Account on the related Payment Date;

(xi)           on a pari passu basis (A) an amount
equal to any partial or early termination payments or other additional payments
owed to the Class B Counterparty under the Class B Swap shall be paid to the
Class B Counterparty and (B) an amount equal to any partial or early
termination payments or other additional payments owed to the Class C
Counterparty under the Class C Swap shall be paid to the Class C Counterparty;

(xii)          unless an Early Amortization Event
shall have occurred and be continuing, on a pari passu basis any amounts owed
to such Persons listed in clause (i) above that have been allocated to
Series 2006-1 pursuant to Section 8.4(d) of the Indenture and that have
not been paid pursuant to clause (i) above shall be paid to such Persons;
and

(xiii)         the balance, if any, will constitute a
portion of Excess Finance Charge Collections for such Payment Date and will be
applied in accordance with Section 8.6 of the Indenture; provided
that during an Early Amortization Period, if any such Excess Finance Charge
Collections would be paid to the Transferor in accordance with Section 8.6

 23
 

 

of the Indenture, the
portion of such Excess Finance Charge Collections that would otherwise be
payable to the Transferor, first shall be used to pay Monthly Principal
pursuant to Section 4.4(c) to the extent not paid in full from Available
Principal Collections (calculated without regard to amounts available to be
treated as Available Principal Collections pursuant to this clause (xiii)), second,
shall be used to pay on a pari passu basis any amounts owed to such Persons
listed in clause (i) above that have been allocated to Series 2006-1
pursuant to Section 8.4(d) of the Indenture and that have not been paid
pursuant to clauses (i) and (xii) above, and, third, any amounts
remaining after payment in full of the Monthly Principal and amounts owed to
such Persons listed in clause (i) above shall be paid to the Issuer in
respect of the Ownership Interest.

(b)           On each Transfer Date with respect to
the Revolving Period, an amount equal to the Available Principal Collections
for the related Monthly Period shall be treated as Shared Principal Collections
and applied in accordance with Section 8.5
of the Indenture.

(c)           On each Transfer Date or Payment
Date, as applicable, with respect to the Controlled Accumulation Period or the
Early Amortization Period, an amount equal to the Available Principal
Collections for the related Monthly Period shall be paid or deposited in the
following order of priority:

(i)            during the Controlled Accumulation
Period, an amount equal to the Monthly Principal for each Transfer Date shall
be deposited into the Principal Accumulation Account on the related Payment
Date;

(ii)           during the Early Amortization Period,
an amount equal to the Monthly Principal for each Transfer Date shall be
deposited into the Distribution Account on the related Payment Date and on such
Payment Date shall be paid, first to the Class A Noteholders on the
related Payment Date until the Class A Note Principal Balance has been paid in
full; second to the Class B Noteholders until the Class B Note Principal
Balance has been paid in full; and third to the Class C Noteholders
until the Class C Note Principal Balance has been paid in full; and

(iii)          in the case of each of the Controlled
Accumulation Period and the Early Amortization Period, the balance of such
Available Principal Collections remaining after application in accordance with clauses
(i) and (ii) above shall be treated as Shared Principal Collections
and applied in accordance with Section 8.5 of the Indenture.  As of any Payment Date during the Controlled
Accumulation Period or Early Amortization Period on which Available Principal
Collections are treated as Shared Principal Collections, the Collateral Amount
shall be reduced by an amount equal to the lesser of (x) the amount of
Available Principal Collections applied as Shared Principal Collections and (y)
the Surplus Collateral Amount.

(d)           On each Payment Date, the Issuer
shall pay in accordance with Section 4.5 to the Class A Noteholders from
the Distribution Account, the amount deposited into the Distribution Account
pursuant to Section 4.4(a)(iii) on such Payment Date, to the Class B
Noteholders from the Distribution Account, the amount deposited into the
Distribution Account pursuant to Section 4.4(a)(iv) on such Payment Date
and to the Class C Noteholders from the Distribution Account, 

 24
 

 

the amount deposited into the Distribution Account
pursuant to Section 4.4(a)(v) on such Payment Date.

(e)           On the earlier to occur of (i) the
first Payment Date with respect to the Early Amortization Period and (ii) the
Expected Principal Payment Date, the Issuer shall withdraw from the Principal
Accumulation Account and deposit into the Distribution Account the amount
deposited into the Principal Accumulation Account pursuant to Section 4.4(c)(i) and on such Payment Date
shall pay such amount first to the
Class A Noteholders, until the Class A Note Principal Balance is paid in full; second to the Class B Noteholders until the
Class B Principal Balance is paid in full; and third
to the Class C Noteholders until the Class C Note Principal Balance is paid in
full.

(f)            The Issuer shall distribute any
funds received in respect of the Ownership Interest to RFS Holding, L.L.C. as a
distribution on RFS Holding, L.L.C.’s beneficial interest in the Issuer.

SECTION
4.5.  Distributions.

(a)           On each Payment Date, the Issuer
shall pay to each Class A Noteholder of record on the related Record Date such
Class A Noteholder’s pro  rata share of the amounts on deposit in
the Distribution Account that are allocated and available on such Payment Date
and as are payable to the Class A Noteholders pursuant to this Indenture
Supplement.

(b)           On each Payment Date, the Issuer
shall pay to each Class B Noteholder of record on the related Record Date such
Class B Noteholder’s pro  rata share of the amounts on deposit in
the Distribution Account that are allocated and available on such Payment Date
and as are payable to the Class B Noteholders pursuant to this Indenture
Supplement.

(c)           On each Payment Date, the Issuer
shall pay to each Class C Noteholder of record on the related Record Date such
Class C Noteholder’s pro  rata share of the amounts on deposit in
the Distribution Account (including amounts withdrawn from the Spread Account
(at the times and in the amounts specified in Section 4.11)) that are
allocated and available on such Payment Date and as are payable to the Class C
Noteholders pursuant to this Indenture Supplement.

(d)           The payments to be made pursuant to
this Section 4.5 are subject to the provisions of Section 7.1 of
this Indenture Supplement.

(e)           All payments to Noteholders hereunder
shall be made by (i) check mailed to each Series 2006-1 Noteholder (at such
Noteholder’s address as it appears in the Note Register), except that for any
Series 2006-1 Notes registered in the name of the nominee of a Clearing Agency,
such payment shall be made by wire transfer of immediately available funds and
(ii) except as provided in Section 2.7(b) of the Indenture, without
presentation or surrender of any Series 2006-1 Note or the making of any
notation thereon.

SECTION 4.6.  Investor Charge-Offs.  On each Determination Date, the Issuer shall
calculate the Investor Default Amount
and any Investor Uncovered Dilution Amount for the preceding Monthly
Period.  If, on any Transfer Date, the
sum of the Investor Default Amount and any Investor Uncovered Dilution Amount
for the preceding Monthly Period exceeds the 

 25
 

 

amount of Available
Finance Charge Collections allocated with respect thereto pursuant to Section 4.4(a)(vi) with respect to such
Transfer Date, the Collateral Amount will be reduced (but not below zero) by
the amount of such excess (such reduction, an “Investor
Charge-Off”).

SECTION 4.7.  Reallocated Principal Collections.  On each Transfer Date, the Issuer shall apply
Reallocated Principal Collections with respect
to that Transfer Date, to fund any deficiency pursuant to and in the priority
set forth in Sections 4.4(a)(i), (ii), (iii),
(iv) and (v).  On each Transfer Date, the Collateral Amount
shall be reduced by the amount of Reallocated Principal Collections for such
Transfer Date.

SECTION 4.8.  Excess Finance Charge Collections.  Series 2006-1 shall be an Excess Allocation
Series with respect to Group One only.  Subject to Section 8.6
of the Indenture, Excess Finance Charge Collections with respect to the Excess
Allocation Series in Group One for any Transfer Date will be allocated to
Series 2006-1 in an amount equal to the product of (x) the aggregate amount of
Excess Finance Charge Collections with respect to all the Excess Allocation
Series in Group One for such Payment Date and (y) a fraction, the numerator of
which is the Finance Charge Shortfall for Series 2006-1 for such Payment Date
and the denominator of which is the aggregate amount of Finance Charge
Shortfalls for all the Excess Allocation Series in Group One for such Payment
Date.  The “Finance
Charge Shortfall” for Series 2006-1 for any Payment Date will be
equal to the excess, if any, of (a) the full amount required to be paid,
without duplication, pursuant to Sections
4.4(a)(i) through (xii) on
such Payment Date over (b) the
Available Finance Charge Collections with respect to such Payment Date
(excluding any portion thereof attributable to Excess Finance Charge
Collections).

SECTION 4.9.  Shared Principal Collections.  Subject to Section 8.5
of the Indenture, Shared Principal Collections allocable to Series 2006-1 on any Transfer
Date will be equal to the product of (x) the aggregate amount of Shared Principal
Collections with respect to all Principal Sharing Series for such Transfer Date
and (y) a fraction, the numerator of which is the Principal Shortfall for
Series 2006-1 for such Transfer Date and the denominator of which is the
aggregate amount of Principal Shortfalls for all the Series which are Principal
Sharing Series for such Transfer Date. 
The “Principal Shortfall” for
Series 2006-1 will be equal to (a) for any Transfer Date with respect to the
Revolving Period or any Transfer Date during the Early Amortization Period
prior to the Transfer Date relating to the earlier of (i) the Expected
Principal Payment Date and (ii) the date on which all outstanding Series are in
early amortization periods, zero, (b) for any Transfer Date with respect to the
Controlled Accumulation Period, the excess, if any, of the Controlled Deposit
Amount with respect to such Transfer Date over
the amount of Available Principal Collections for such Transfer Date (excluding
any portion thereof attributable to Shared Principal Collections or amounts
available to be treated as Available Principal Collections pursuant to clause
(xiii) of Section 4.4(a)) and (c) for any Transfer Date relating to
any Payment Date on or after the earlier of (i) the Expected Principal Payment
Date and (ii) the date on which all outstanding Series are in early
amortization periods, the Note Principal Balance.

SECTION 4.10.  Reserve Account.

(a)           On each Transfer Date, all interest
and earnings (net of losses and investment expenses) accrued since the preceding
Transfer Date on funds on deposit in the Reserve Account shall be retained in
the Reserve Account (to the extent that the Available Reserve Account 

 26
 

 

Amount is less than the Required Reserve Account
Amount) and any remaining interest and earnings (net of losses and investment
expenses) shall be deposited into the Finance Charge Account and included in
Available Finance Charge Collections for the related Monthly Period.  For purposes of determining the availability
of funds or the balance in the Reserve Account for any reason under this
Indenture Supplement, except as otherwise provided in the preceding sentence,
investment earnings on such funds shall be deemed not to be available or on
deposit.

(b)           On or before each Transfer Date with
respect to the Controlled Accumulation Period and on or before the first
Transfer Date with respect to the Early Amortization Period, the Issuer shall
calculate the Reserve Draw Amount; provided,
however, that such amount will be
reduced to the extent that funds otherwise would be available for deposit in
the Reserve Account under Section 4.4(a)(viii)  on the following Payment Date.

(c)           If for any Transfer Date the Reserve
Draw Amount is greater than zero, the Reserve Draw Amount, up to the Available
Reserve Account Amount, shall be withdrawn from the Reserve Account on such
Transfer Date by the Issuer and deposited into the Finance Charge Account for
application as Available Finance Charge Collections on the following Payment
Date.

(d)           If the Reserve Account Surplus on any
Transfer Date, after giving effect to all deposits to and withdrawals from the
Reserve Account with respect to such Transfer Date, is greater than zero, the
Indenture Trustee, acting in accordance with the written instructions of the
Issuer, shall withdraw from the Reserve Account an amount equal to such Reserve
Account Surplus and distribute any such amounts to the holders of the
Transferor Interest.

(e)           Upon the earliest to occur of (i) the
termination of the Trust pursuant to Article VIII
of the Trust Agreement, (ii) the first Transfer Date relating to the Early
Amortization Period and (iii) the Expected Principal Payment Date for the Class
C Notes, the Issuer, after the prior payment of all amounts owing to the Series
2006-1 Noteholders that are payable from the Reserve Account as provided
herein, shall withdraw from the Reserve Account all amounts, if any, on deposit
in the Reserve Account and distribute any such amounts to the holders of the
Transferor Interest.  The Reserve Account
shall thereafter be deemed to have terminated for purposes of this Indenture
Supplement.

SECTION 4.11.  Spread Account.

(a)           On or before each Transfer Date, if
the aggregate amount of Available Finance Charge Collections available for
application pursuant to Section 4.4(a)(v) is less than the aggregate
amount required to be deposited pursuant to Section 4.4(a)(v), the
Issuer shall withdraw from the Spread Account the amount of such deficiency up
to the Available Spread Account Amount and if the Available Spread Account Amount
is less than such deficiency, Investment Earnings credited to the Spread
Account and shall apply such amount in accordance with Section 4.4(a)(v).

(b)           Unless an Early Amortization Event
occurs, the Issuer will withdraw from the Spread Account and deposit in the
Collection Account for payment to the Class C Noteholders on the Expected
Principal Payment Date for the Class C Notes an amount equal to the lesser
of:  

 27
 

 

(i) the amount on deposit in the Spread Account after
application of any amounts set forth in clause (a) above and (ii) the Class C
Note Principal Balance.

(c)           Upon an Early Amortization Event, the
amount, if any, remaining on deposit in the Spread Account, after making the
payments described in clause (a) above, shall be applied to pay principal on
the Class C Notes on the earlier of the Series Maturity Date and the first
Payment Date on which the Class A Note Principal Balance and the Class B Note
Principal Balance have been paid in full.

(d)           On any day following the occurrence
of an Event of Default with respect to Series 2006-1 that has resulted in the
acceleration of the Series 2006-1 Notes, the Issuer shall withdraw from the
Spread Account the Available Spread Account Amount and deposit such amount in
the Distribution Account for payment to the Series 2006-1 Notes in the
following order of priority until all amounts owed to such Noteholders have
been paid in full: (i) the Class C Noteholders, (ii) the Class A Noteholders
and (iii) the Class B Noteholders.

(e)           If on any Payment Date, after giving
effect to all withdrawals from the Spread Account, the Available Spread Account
Amount is less than the Required Spread Account Amount then in effect,
Available Finance Charge Collections shall be deposited into the Spread Account
pursuant to Section 4.4(a)(ix) up to
the amount of the Spread Account Deficiency.

(f)            If, after giving effect to all
deposits to and withdrawals from the Spread Account with respect to any Payment
Date, the amount on deposit in the Spread Account exceeds the Required Spread Account
Amount, the Issuer shall withdraw an amount equal to such excess from the
Spread Account and distribute such amount to the Transferor.  On the date on which the Class C Note
Principal Balance has been paid in full, after making any payments to the Noteholders
required pursuant to Sections 4.11(a), (b), (c) and (d),
the Issuer shall withdraw from the Spread Account all amounts then remaining in
the Spread Account and pay such amounts to the holders of the Transferor
Interest.

SECTION 4.12.  Investment of Accounts.  (a)  To
the extent there are uninvested amounts deposited in the Series Accounts, the Issuer shall cause such amounts to
be invested in Permitted Investments selected by the Issuer that mature no
later than the immediately preceding Transfer Date.

(b)           On each Transfer Date with respect to
the Controlled Accumulation Period and on the first Transfer Date with respect
to the Early Amortization Period, the Issuer shall transfer from the Principal
Accumulation Account to the Finance Charge Account the Principal Accumulation
Investment Proceeds on deposit in the Principal Accumulation for application as
Available Finance Charge Collections in accordance with Section 4.4.

(c)           Principal Accumulation Investment
Proceeds (including reinvested interest) shall not be considered part of the
amounts on deposit in the Principal Accumulation Account for purposes of this
Indenture Supplement.

(d)           On each Transfer Date (but subject to
Section 4.11(a)), the Investment
Earnings, if any, credited since the preceding Transfer Date on funds on
deposit in the Spread Account shall be retained in the Spread Account (to the
extent that the Available Spread Account Amount

 28

 

is less than the Required Spread Account Amount) and
the balance, if any, shall be paid to the holders of the Transferor
Interest.  For purposes of determining
the availability of funds or the balance in the Spread Account for any reason
under this Indenture Supplement (subject to Section
4.11(a)), all Investment Earnings shall be deemed not to be
available or on deposit; provided that
after the maturity of the Series 2006-1 Notes has been accelerated as a result
of an Event of Default, all Investment Earnings shall be added to the balance
on deposit in the Spread Account and treated like the rest of the Available
Spread Account Amount.

SECTION 4.13.  Controlled Accumulation Period.  The Controlled Accumulation Period is
scheduled to commence at the beginning of
business on October 22, 2008; provided
that if the Controlled Accumulation Period Length (determined as described
below) on any Determination Date is less than or more than the number of months
in the scheduled Controlled Accumulation Period, upon written notice to the
Indenture Trustee, with a copy to each Rating Agency, the Issuer shall either
postpone or accelerate, as applicable, the date on which the Controlled
Accumulation Period actually commences, so that, as a result, the number of
Monthly Periods in the Controlled Accumulation Period will equal the Controlled
Accumulation Period Length; provided that the length of the Controlled
Accumulation Period will not be less than one month.  The “Controlled
Accumulation Period Length” will mean a number of whole months such
that the amount available for payment of principal on the Notes on the Expected
Principal Payment Date is expected to equal or exceed the Note Principal
Balance, assuming for this purpose that (1) the payment rate with respect to Principal
Collections remains constant at the lowest level of such payment rate during
the twelve preceding Monthly Periods, (2) the total amount of Principal
Receivables in the Trust (and the principal amount on deposit in the Excess
Funding Account, if any) remains constant at the level on such date of
determination, (3) no Early Amortization Event with respect to any Series will
subsequently occur and (4) no additional Series (other than any Series being
issued on such date of determination) will be subsequently issued.  Any notice by Issuer modifying the
commencement of the Controlled Accumulation Period pursuant to this Section 4.13 shall specify (i) the Controlled
Accumulation Period Length, (ii) the commencement date of the Controlled
Accumulation Period and (iii) the Controlled Accumulation Amount with respect
to each Monthly Period during the Controlled Accumulation Period.

SECTION 4.14.  Determination of LIBOR.

(a)           On each LIBOR Determination Date in
respect of an Interest Period, the Indenture Trustee shall determine LIBOR on
the basis of the rate per annum displayed in the Bloomberg Financial Markets
system as the composite offered rate for London interbank deposits for a period
of the Designated Maturity, as of 11:00 a.m., London time, on that date.  If that rate does not appear on that display
page, LIBOR for that Interest Period will be the rate per annum shown on page
3750 of the Moneyline Telerate Services Report screen or any successor page as
the composite offered rate for London interbank deposits for a one-month
period, as shown under the heading “USD” as of 11:00 a.m., London time, on the
LIBOR Determination Date.  If no rate is
shown as described in the preceding two sentences, LIBOR for that Interest
Period will be the rate per annum based on the rates at which Dollar deposits
for a period of the Designated Maturity are displayed on page “LIBOR” of the
Reuters Monitor Money Rates Service or such other page as may replace the LIBOR
page on that service for the purpose of displaying London interbank offered
rates of major banks as of 11:00 a.m., London time, on the 

 29
 

 

LIBOR Determination Date; provided that if at
least two rates appear on that page, the rate will be the arithmetic mean of
the displayed rates and if fewer than two rates are displayed, or if no rate is
relevant, the rate for that Interest Period shall be determined on the basis of
the rates at which deposits in United States dollars are offered by the
Reference Banks at approximately 11:00 a.m., London time, on that day to prime
banks in the London interbank market for period of the Designated
Maturity.  The Indenture Trustee shall
request the principal London office of each of the Reference Banks to provide a
quotation of its rate.  If at least two
(2) such quotations are provided, the rate for that Interest Period shall be
the arithmetic mean of the quotations. 
If fewer than two (2) quotations are provided as requested, the rate for
that Interest Period will be the arithmetic mean of the rates quoted by major
banks in New York City, selected by the Servicer, at approximately 11:00 a.m.,
New York City time, on that day for loans in United States dollars to leading
European banks for a period of the Designated Maturity.

(b)           The Class B Note Interest Rate and
Class C Note Interest Rate applicable to the then current and the immediately
preceding Interest Periods may be obtained by telephoning the Indenture Trustee
at its corporate trust office at (800) 735-7777 or such other telephone number
as shall be designated by the Indenture Trustee for such purpose by prior
written notice by the Indenture Trustee to each Series 2006-1 Noteholder from
time to time.

(c)           On each LIBOR Determination Date, the
Indenture Trustee shall send to the Issuer by facsimile transmission,
notification of LIBOR for the following Interest Period.

SECTION 4.15.  Swaps. 
(a) On or prior to the Closing Date, the Issuer shall enter into a Class
B Swap with the Class B Counterparty and a
Class C Swap with the Class C Counterparty for the benefit of the Class B
Noteholders and the Class C Noteholders, respectively.  The aggregate notional amount under the Class
B Swap shall, at any time, be equal to the Class B Note Principal Balance at
such time.  The aggregate notional amount
under the Class C Swap shall, at any time, be equal to the Class C Note
Principal Balance.  The Issuer shall
cause the Class B Counterparty or the Class C Counterparty to deposit Net Swap
Receipts payable in the Collection Account. 
On any Payment Date when there shall be a Class B Net Swap Payment, the
Issuer shall pay such Class B Net Swap Payment subject to the priority of
payments set forth in Section 4.4(a)(iv).  On any Payment Date when there shall be a
Class C Net Swap Payment, the Issuer shall pay such Class C Net Swap Payment
subject to the priority of payments set forth in Section
4.4(a)(v).  On any Payment
Date when there shall be early termination payments or any other miscellaneous
payments payable by the Issuer to the Counterparties, the Issuer shall pay such
amounts subject to the priority of payments set forth in Section 4.4(a)(xi).

(b)           When
required under the terms of the existing Class B Swap or Class C Swap, the
Issuer shall obtain a Qualifying Substitute Arrangement.

SECTION 4.16.  Deposit of Collections.  Notwithstanding anything to the contrary in
the Indenture, for any Monthly Period
during which the Issuer is permitted to make a single monthly deposit to the
Collection Account pursuant to Section 8.4 of the Indenture for such
Monthly Period, the Issuer need not make the daily deposits of Collections into
the Collection Account as provided in Section 8.4 of the Indenture, but
may make a single deposit in the Collection Account in immediately available
funds not later than 12:00 noon., New York City time, on the related Payment
Date.

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ARTICLE V

DELIVERY OF SERIES 2006-1 NOTES;

REPORTS TO SERIES 2006-1 NOTEHOLDERS

SECTION 5.1.  Delivery and Payment for the Series 2006-1
Notes.

The Issuer shall execute and issue, and the Indenture
Trustee shall authenticate, the Series 2006-1 Notes in accordance with Section 2.2 of the Indenture.  The Indenture Trustee shall deliver the
Series 2006-1 Notes to or upon the written order of the Issuer when so
authenticated.

SECTION
5.2.  Reports and Statements to Series
2006-1 Noteholders.

(a)           Not later than the second Business
Day preceding each Payment Date, the Issuer shall deliver or cause the Servicer
to deliver to the Trustee, the Indenture Trustee and each Rating Agency a
statement substantially in the form of Exhibit B
prepared by the Servicer; provided that
the Issuer may amend the form of Exhibit B
from time to time, with the prior written consent of the Indenture
Trustee.  On each Payment Date, the
Issuer shall forward to each Series 2006-1 Noteholder a statement substantially
in the form of Exhibit B.

(b)           A copy of each statement or
certificate provided pursuant to Section 5.2(a) may be obtained by any Series
2006-1 Noteholder by a request in writing to the Issuer.

(c)           On or before January 31 of each
calendar year, beginning with January 31, 2006, the Issuer shall furnish or
cause to be furnished to each Person who at any time during the preceding
calendar year was a Series 2006-1 Noteholder the information for the preceding
calendar year, or the applicable portion thereof during which the Person was a
Noteholder, as is required to be provided by an issuer of indebtedness under
the Code to the holders of the Issuer’s indebtedness and such other customary
information as is necessary to enable such Noteholder to prepare its federal
income tax returns.  Notwithstanding
anything to the contrary contained in this Agreement, the Issuer shall, to the
extent required by applicable law, from time to time furnish to the appropriate
Persons, at least five Business Days prior to the end of the period required by
applicable law, the informed required to complete a Form 1099-INT.

ARTICLE VI

SERIES 2006-1 EARLY AMORTIZATION EVENTS

SECTION 6.1.  Series 2006-1 Early Amortization Events.  If any one of the following events shall
occur with respect to the Series 2006-1 Notes:

(a)           (i) 
failure on the part of Transferor to make any payment or deposit
required to be made by it by the terms of the Trust Receivables Purchase
Agreement or the Transfer Agreement on or before the date occurring five (5)
Business Days after the date such payment or deposit is required to be made
therein or herein or (ii) failure of the Transferor duly to observe or perform
in any material respect any other of its covenants or agreements set forth in
the Trust Receivables Purchase Agreement or the Transfer Agreement which
failure has a material adverse effect on the Series 2006-1 Noteholders and
which continues unremedied for a period of sixty days after the date on which
written notice of such failure, requiring the same to be remedied, shall have 

 31
 

 

been given to the Transferor by the Indenture Trustee,
or to the Transferor and the Indenture Trustee by any Noteholder of the Series
2006-1 Notes;

(b)           any representation or warranty made
by Transferor in the Transfer Agreement or the Trust Receivables Purchase
Agreement or any information contained in an account schedule required to be
delivered by it pursuant to Section 2.1
or Section 2.6(c) of the Transfer
Agreement, Trust Agreement or the Bank Receivables Sale Agreement shall prove
to have been incorrect in any material respect when made or when delivered,
which continues to be incorrect in any material respect for a period of sixty
days after the date on which written notice of such failure, requiring the same
to be remedied, shall have been given to the Transferor by the Indenture
Trustee, or to the Transferor and the Indenture Trustee by any Noteholder of
the Series 2006-1 Notes and as a result of which the interests of the Series
2006-1 Noteholders are materially and adversely affected for such period; provided,
however, that a Series 2006-1 Early Amortization Event pursuant to
this Section 6.1(b) shall not be deemed
to have occurred hereunder if the Transferor has accepted reassignment of the
related Transferred Receivable, or all of such Transferred Receivables, if
applicable, during such period in accordance with the provisions of the
Transfer Agreement or the Trust Receivables Purchase Agreement;

(c)           a failure by Transferor under the
Transfer Agreement to convey Transferred Receivables in Additional Accounts or
Participations to the Trust when it is required to convey such Transferred
Receivables pursuant to Section 2.6(a)
of the Transfer Agreement;

(d)           any Servicer Default or any Indenture
Servicer Default shall occur;

(e)           the Portfolio Yield averaged over
three consecutive Monthly Periods is less than the Base Rate averaged over the
same Monthly Periods;

(f)            the Note Principal Balance shall not
be paid in full on the Expected Principal Payment Date;

(g)           the Class B Counterparty or the Class
C Counterparty shall fail to pay any net amount payable by such Counterparty
under the Class B Swap or the Class C Swap, as applicable, as a result of LIBOR
being greater than the Class B Swap Rate or the Class C Swap Rate, as
applicable, and such failure is not cured within five Business Days;

(h)           the Class B Swap shall terminate
prior to the earlier of the payment in full of the Class B Notes and the Series
Maturity Date if the Issuer shall fail to enter into a replacement Class B Swap
or other Qualifying Substitute Arrangement in accordance with subsection
4.15(b) within ten Business Days; or the Class C Swap shall terminate prior
to the earlier of the payment in full of the Class C Notes and the Series
Maturity Date if the Issuer shall fail to enter into a replacement Class C Swap
or other Qualifying Substitute Arrangement in accordance with subsection
4.15(b) within ten Business Days; or

(i)            without limiting the foregoing, the
occurrence of an Event of Default with respect to Series 2006-1 and
acceleration of the maturity of the Series 2006-1 Notes pursuant to Section 5.3 of the Indenture;

 32
 

 

then, in the case of any event described in subsection (a), (b)
or (d), after the applicable grace
period, if any, set forth in such subparagraphs, either the Indenture Trustee
or the holders of Series 2006-1 Notes evidencing more than 50% of the aggregate
unpaid principal amount of Series 2006-1 Notes by notice then given in writing
to the Issuer (and to the Indenture Trustee if given by the Series 2006-1
Noteholders) may declare that a “Series Early Amortization Event” with respect
to Series 2006-1 (a “Series 2006-1 Early
Amortization Event”) has occurred as of the date of such notice,
and, in the case of any event described in subsection (c), (e), (f),
(g), (h) or (i) a Series 2006-1 Early Amortization Event
shall occur without any notice or other action on the part of the Indenture
Trustee or the Series 2006-1 Noteholders immediately upon the occurrence of
such event.

ARTICLE VII

REDEMPTION OF SERIES 2006-1 NOTES; FINAL DISTRIBUTIONS;
SERIES TERMINATION

SECTION 7.1.  Optional Redemption of Series 2006-1
Notes; Final Distributions.

(a)           On any day occurring on or after the
date on which the outstanding principal balance of the Series 2006-1 Notes is
reduced to 10% or less of the initial outstanding principal balance of Series
2006-1 Notes, Transferor has the option pursuant to the Trust Agreement to
reduce the Collateral Amount to zero by paying a purchase price equal to the
greater of (x) the Collateral Amount, plus the applicable Allocation Percentage
of outstanding Finance Charge Receivables and (y) a minimum amount equal to (i)
if such day is a Payment Date, the Redemption Amount for such Payment Date or
(ii) if such day is not a Payment Date, the Redemption Amount for the Payment
Date following such day.  If Transferor
exercises such option, Issuer will apply such purchase price to repay the Notes
in full as specified below.

(b)           Issuer shall give the Indenture
Trustee at least thirty (30) days prior written notice of the date on which
Transferor intends to exercise such optional redemption.  Not later than 12:00 noon, New York City
time, on such day Transferor shall deposit into the Distribution Account in
immediately available funds the excess of the Redemption Amount over the
amount, if any, on deposit in the Principal Accumulation Account.  Such redemption option is subject to payment
in full of the Redemption Amount. 
Following such deposit into the Distribution Account in accordance with
the foregoing, the Collateral Amount for Series 2006-1 shall be reduced to zero
and the Series 2006-1 Noteholders shall have no further security interest in
the Transferred Receivables.  The
Redemption Amount shall be paid as set forth in Section
7.1(d).

(c)           (i) 
The amount to be paid by the Transferor with respect to Series 2006-1 in
connection with a reassignment of Transferred Receivables to the Transferor
pursuant to Section 6.1(e) of the
Transfer Agreement shall not be less than the Redemption Amount for the first
Payment Date following the Monthly Period in which the reassignment obligation
arises under the Transfer Agreement.

(ii)           The amount to be paid by the Issuer
with respect to Series 2006-1 in connection with a repurchase of the Notes
pursuant to Section 10.1 of the Trust
Agreement shall not be less than the Redemption Amount for the Payment Date of
such repurchase.

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(d)           With respect to (i) the Redemption
Amount deposited into the Distribution Account pursuant to Section 7.1 or (ii) the proceeds of any
sale of Transferred Receivables pursuant to Section
5.3 of the Indenture with respect to Series 2006-1, the Indenture
Trustee shall, in accordance with the written direction of the Issuer, not
later than 12:00 noon, New York City time, on the related Payment Date, make
payments of the following amounts (in the priority set forth below and, in each
case, after giving effect to any deposits and payments otherwise to be made on
such date) in immediately available funds: 
(i) (x) the Class A Note Principal Balance on such Payment Date will be
paid to the Class A Noteholders and (y) an amount equal to the sum of (A) Class
A Monthly Interest due and payable on such Payment Date or any prior Payment
Date, (B) any Class A Deficiency Amount for such Payment Date and (C) the
amount of Class A Additional Interest, if any, for such Payment Date and any
Class A Additional Interest previously due but not paid to the Class A
Noteholders on any prior Payment Date, will be paid to the Class A Noteholders,
(ii) (x) the Class B Note Principal Balance on such Payment Date will be
paid to the Class B Noteholders and (y) an amount equal to the sum of (A) Class
B Monthly Interest due and payable on such Payment Date or any prior Payment
Date, (B) any Class B Deficiency Amount for 
such Payment Date and (C) the amount of Class B Additional Interest, if
any, for such Payment Date and any Class B Additional Interest previously due
but not paid to the Class B Noteholders on any prior Payment Date, will be paid
to the Class B Noteholders, (iii)  (x) the Class C Note Principal Balance
on such Payment Date will be paid to the Class C Noteholders and (y) an amount
equal to the sum of (A) Class C Monthly Interest due and payable on such
Payment Date or any prior Payment Date, (B) any Class C Deficiency Amount for
such Payment Date, and (C) the amount of Class C Additional Interest, if any,
for such Payment Date and any Class C Additional Interest previously due but
not paid to the Class C Noteholders on any prior Payment Date will be paid to
the Class C Noteholders, (iv) on a pari passu basis, (A) any amounts owed to
the Class  B Counterparty under the Class
B Swap will be paid to the Class B Counterparty and (B) any amounts owed to the
Class C Counterparty under the Class C Swap will be paid to the Class C
Counterparty and (v) any excess shall be released to the Issuer.

SECTION 7.2.  Series Termination.

On the Series Maturity Date, the unpaid principal
amount of the Series 2006-1 Notes shall be due and payable.

ARTICLE VIII

MISCELLANEOUS PROVISIONS

SECTION 8.1.  Ratification of Indenture; Amendments.  (a)         As
supplemented by this Indenture Supplement, the Indenture is in all
respects ratified and confirmed and the Indenture as so supplemented by this
Indenture Supplement shall be read, taken and construed as one and the same
instrument.  This Indenture Supplement
may be amended only by a Supplemental Indenture entered in accordance with the
terms of Section 9.1 or 9.2 of the Indenture.  For purposes of the application of Section 9.2 to any amendment of this
Indenture Supplement, the Series 2006-1 Noteholders shall be the only
Noteholders whose vote shall be required.

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(b)           The Issuer shall not amend the Class
B Swap or the Class C Swap unless (i)(A) the amendment is being entered into to
cure any ambiguity or correct or supplement any provision of or to add or
change any provisions concerning matters or questions raised under the Class B
Swap or the Class C Swap, as applicable, (B) the Rating Agency Condition is
satisfied and (C) the Transferor has delivered an Officer’s Certificate to the
Issuer certifying the amendment will not cause an Adverse Effect; (ii) the
Rating Agency Condition is satisfied and the amendment is being entered into to
add, modify or eliminate provisions necessary or advisable in order to enable
(A) a FASIT election to be made with respect to all or part of RFS Funding
Trust or the Issuer, (B) so long as a FASIT Election is in effect, all or part
of RFS Funding Trust or the Issuer to qualify as a FASIT under the code, (C)
the termination of a FASIT election with respect to all or part of the Issuer
or (D) the Issuer to avoid the imposition of state or local income or franchise
taxes on the Issuer’s property or its income or (iii) the Issuer obtains the
consent of the 66 2/3% of the Outstanding Principal Balance of the Series
2006-1 Notes; provided that any such amendment shall not affect any cash
payment or receipt required under the existing terms of the affected Class B
Swap or Class C Swap.

SECTION 8.2.  Form of Delivery of the Series 2006-1
Notes.  The Class A Notes, the Class
B Notes and the Class C Notes shall be
Book-Entry Notes and shall be delivered as provided in Sections 2.1 and 2.2 of the Indenture.

SECTION 8.3.  Counterparts.  This Indenture Supplement may be executed in
two or more counterparts, and by different
parties on separate counterparts, each of which shall be an original, but all
of which shall constitute one and the same instrument.

SECTION 8.4.  GOVERNING LAW.  (a) THIS AGREEMENT AND THE OBLIGATIONS
ARISING HEREUNDER SHALL IN ALL
RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, BE
GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS
OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401(1) OF THE GENERAL
OBLIGATIONS LAW, BUT WITHOUT REGARD TO ANY OTHER CONFLICT OF LAW PROVISIONS
THEREOF) AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.  THIS INDENTURE SUPPLEMENT IS SUBJECT TO THE
TRUST INDENTURE ACT OF 1939, AS AMENDED, AND SHALL BE GOVERNED THEREBY AND
CONSTRUED IN ACCORDANCE THEREWITH.

(b)           EACH PARTY HERETO HEREBY CONSENTS AND
AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN THE BOROUGH OF MANHATTAN IN
NEW YORK CITY SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY
CLAIMS OR DISPUTES BETWEEN THEM PERTAINING TO THIS AGREEMENT OR TO ANY MATTER
ARISING OUT OF OR RELATING TO THIS AGREEMENT; PROVIDED, THAT EACH PARTY
HERETO ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY
A COURT LOCATED OUTSIDE OF THE BOROUGH OF MANHATTAN IN NEW YORK CITY; PROVIDED,
FURTHER, THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO
PRECLUDE THE INDENTURE TRUSTEE FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION
IN ANY OTHER JURISDICTION TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY
FOR THE NOTES, OR TO ENFORCE A 

 35
 

 

JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE
INDENTURE TRUSTEE.  EACH PARTY HERETO
SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT
COMMENCED IN ANY SUCH COURT, AND EACH PARTY HERETO HEREBY WAIVES ANY OBJECTION
THAT SUCH PARTY MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER
VENUE OR FORUM NON CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF
SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.  EACH PARTY HERETO HEREBY WAIVES PERSONAL
SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION
OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER PROCESS
MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH PARTY AT ITS
ADDRESS DETERMINED IN ACCORDANCE WITH SECTION 11.4 OF THE INDENTURE AND
THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH PARTY’S
ACTUAL RECEIPT THEREOF OR THREE DAYS AFTER DEPOSIT IN THE UNITED STATES MAIL,
PROPER POSTAGE PREPAID.  NOTHING IN THIS
SECTION SHALL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE LEGAL PROCESS IN
ANY OTHER MANNER PERMITTED BY LAW.

BECAUSE
DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST
QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE
PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN
ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A
JUDGE APPLYING SUCH APPLICABLE LAWS. 
THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE
JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL
BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE,
WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, ARISING OUT OF, CONNECTED
WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN
CONNECTION WITH THIS INDENTURE SUPPLEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

SECTION 8.5.  Limitation of Liability.  Notwithstanding any other provision herein or
elsewhere, this Agreement has been executed
and delivered by The Bank of New York (Delaware), not in its individual
capacity, but solely in its capacity as Trustee of the Trust, in no event shall
The Bank of New York (Delaware) in its individual capacity have any liability
in respect of the representations, warranties, or obligations of the Issuer
hereunder or under any other document, as to all of which recourse shall be had
solely to the assets of the Trust, and for all purposes of this Agreement and
each other document, the Trustee (as such or in its individual capacity) shall
be subject to, and entitled to the benefits of, the terms and provisions of the
Trust Agreement.

SECTION 8.6.  Rights of the Indenture Trustee.  The Indenture Trustee shall have herein the
same rights, protections, indemnities and immunities
as specified in the Master Indenture.

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SECTION 8.7.  Notice Address
for Rating Agencies.  Notices,
if any, required to be delivered to the Rating Agencies by the Issuer, the
Indenture Trustee or the Trustee shall be sent to the following address:

Fitch Ratings

One State Street Plaza

New York, NY 10004 

Facsimile: (212)-514-9879

Moody’s Rating Service

99 Church Street

New York, NY 10007 

Facsimile:  (212) 553-3856

Standard & Poor’s

Structured Finance Surveillance

55 Water Street

New York, NY 10041

Attention:  ABS Surveillance Group

Facsimile: (212) 438-2648

ARTICLE IX

FASIT MATTERS

SECTION
9.1.  FASIT Administration.

(a)           FASIT Matters.  An election has been made to treat the Trust
Estate as a FASIT known as the RFS FASIT. 
December 30, 2002 was designated as the “Startup Day” of the RFS FASIT
within the meaning of section 860L(d)(1) of the Code.  The Ownership Interest was designated as the
single class of “ownership interest” (within the meaning of section 860L(b)(2)
of the Code) in the RFS FASIT.  Notwithstanding
any provision of the Indenture or this Indenture Supplement to the contrary,
each class of Series 2006-1 Regular Interests shall mature on or before
December 1, 2020.

(b)           Series 2006-1 Regular Interests.  Each Class of Notes is hereby designated a
separate class of “regular interests” in the RFS FASIT within the meaning of
section 860L(b)(1)(A) of the Code and each Note is hereby designated a separate
“regular interest” within such Class. 
Each of the Class A Notes is hereby designated a “Class A Regular
Interest,” each of the Class B Notes is hereby designated a “Class B
Regular Interest” and each of the Class C Notes is hereby designated a “Class
C Regular Interest” (the Class A Regular Interests, the Class B Regular
Interests and the Class C Regular Interests being referred to collectively as
the “Series 2006-1 Regular Interests”). 
The Series 2006-1 Regular Interest shall bear interest at a rate equal
to the rate of interest on the related Class A Note, Class B Note or Class C
Note, as applicable (such related interest, a “Related Interest”).  The rate of interest on each Related Interest
is intended to qualify as a qualifying variable rate under section
860L(b)(1)(A)(ii) of the Code.  Interest
shall be paid on each Class of Series 2006-1 Regular Interest at the same times
as Interest is paid on the Class A Notes, Class B Notes and Class C Notes
(which Interest shall be 

 37
 

 

allocated among the Series 2006-1 Regular Interests in
proportion to the amount of Interest owning on the respective Related Interests
if there is more than one class of such Series 2006-1 Regular Interests and
Interest with respect to each class is not paid in full).  The principal amount of each Series 2006-1
Regular Interest shall equal the respective amount of the Class A Note
Principal Balance, Class B Note Principal Balance or Class C Note Principal
Balance, as applicable, with respect to the Related Interest for such Series
2006-1 Regular Interest.

(c)           Payment of Principal on Class A
Regular Interests.  On each Payment Date,
beginning with the Payment Date in the Monthly Period following the Monthly
Period in which the Controlled Accumulation Period or, if earlier, the Early
Amortization Period, begins, the principal amount of each Class A Regular
Interest related to a Class A Note shall be reduced by such Class A Note’s pro
rata share of an amount equal to the least of (i) the Available Principal
Collections on deposit in the Principal Account with respect to such Payment
Date, (ii) for each Payment Date with respect to the Controlled Accumulation
Period, the Controlled Deposit Amount for such Payment Date, (iii) the
Collateral Amount (after taking into account any adjustments to be made on such
Payment Date pursuant to Sections 4.6 and 4.7) prior to any
deposit into the Principal Accumulation Account on such Payment Date, and (iv)
the Note Principal Balance, minus any amount already on deposit in the
Principal Accumulation Account on such Payment Date.

(d)           Payment of Principal on Class B
Regular Interests.  On each Payment
Date, beginning with the Payment Date in the Monthly Period following the
Monthly Period in which the Controlled Accumulation Period or, if earlier, the
Early Amortization Period, begins, the principal amount of each Class B Regular
Interest related to a Class B Note shall be reduced by such Class B Note’s pro
rata share of an amount equal to the least of (i) the Available Principal
Collections on deposit in the Principal Account with respect to such Payment
Date, (ii) for each Payment Date with respect to the Controlled Accumulation
Period, the Controlled Deposit Amount for such Payment Date, (iii) the
Collateral Amount (after taking into account any adjustments to be made on such
Payment Date pursuant to Sections 4.6 and 4.7) prior to any
deposit into the Principal Accumulation Account on such Payment Date, and (iv)
the Note Principal Balance, minus any amount already on deposit in the
Principal Accumulation Account on such Payment Date.

(e)           Payment of Principal on Class C
Regular Interests. On each Payment Date, beginning with the Payment Date in
the Monthly Period following the Monthly Period in which the Controlled
Accumulation Period or, if earlier, the Early Amortization Period, begins, the
principal amount of each Class C Regular Interest related to a Class C Note
shall be reduced by such Class C Note’s pro rata share of an amount equal to
the least of (i) the Available Principal Collections on deposit in the
Principal Account with respect to such Payment Date, (ii) for each Payment Date
with respect to the Controlled Accumulation Period, the Controlled Deposit
Amount for such Payment Date, (iii) the Collateral Amount (after taking into
account any adjustments to be made on such Payment Date pursuant to Sections
4.6 and 4.7) prior to any deposit into the Principal Accumulation
Account on such Payment Date, and (iv) the Note Principal Balance, minus any
amount already on deposit in the Principal Accumulation Account on such Payment
Date.

 38
 

 

(f)            The Issuer hereby agrees to take
such further actions as may be required to effectuate this Article IX
and the intent that the RFS FASIT be treated as a FASIT.

(g)           Alternative Characterization.  The Issuer acknowledges that the American
Jobs Creation Act of 2004 (the “Jobs Act”) repealed the provisions of
the Code governing FASITs.  In the event
that the Internal Revenue Service issues guidance in the form of a Notice,
Revenue Procedure, Revenue Ruling, or Private Letter Ruling providing for
FASITs existing prior to October 22, 2004 to terminate and/or cease issuing regular
interests, then it is the intent of the parties hereto that, for federal income
tax purposes, (i) the Trust Estate be disregarded as an entity separate from
RFS Holding L.L.C. and (ii) the Notes be treated as debt.

[SIGNATURE PAGE FOLLOWS]

 39

 

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

	
   

  	
  GE CAPITAL CREDIT
  CARD MASTER NOTE

  TRUST, as Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  The Bank of New York (Delaware), not in

  its individual capacity, but as Trustee on

  behalf of Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Kristine Gullo

  
	
   

  	
  Name: Kristine
  K. Gullo

  
	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST COMPANY

  AMERICAS, as Indenture Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ William Schwerdtman

  
	
   

  	
  Name: WILLIAM
  SCHWERDTMAN

  
	
   

  	
  Title: ASSOCIATE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
    /s/ Aranka Paul

  
	
   

  	
  Name: ARANKA R.
  PAUL

  
	
   

  	
  Title: ASSISTANT
  VICE PRESIDENT

  
				

 

 S-1

EXHIBIT
A-1

FORM OF CLASS A SERIES 2006-1 5.08% ASSET BACKED NOTE

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE HOLDER OF THIS NOTE
BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME
DIRECTLY OR INDIRECTLY INSTITUTE OR CAUSE TO BE INSTITUTED AGAINST THE ISSUER
ANY BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION
PROCEEDING OR OTHER PROCEEDING UNDER ANY FEDERAL OR STATE BANKRUPTCY LAW UNLESS
NOTEHOLDERS OF NOT LESS THAN 662¤3% OF THE
OUTSTANDING PRINCIPAL AMOUNT OF EACH CLASS OF EACH SERIES HAS APPROVED SUCH
FILING AND IT WILL NOT DIRECTLY OR INDIRECTLY INSTITUTE OR CAUSE TO BE
INSTITUTE AGAINST THE TRANSFEROR ANY BANKRUPTCY, REORGANIZATION, ARRANGEMENT,
INSOLVENCY OR LIQUIDATION PROCEEDING OR OTHER PROCEEDING UNDER ANY FEDERAL OR
STATE BANKRUPTCY LAW IN ANY INSTANCE; PROVIDED, THAT
THE FOREGOING SHALL NOT IN ANYWAY LIMIT THE NOTEHOLDER’S RIGHTS TO PURSUE ANY
OTHER CREDITOR RIGHTS OR REMEDIES THAT THE NOTEHOLDERS MAY HAVE FOR CLAIMS
AGAINST THE ISSUER.

THE HOLDER OF THIS CLASS A NOTE, BY ACCEPTANCE OF THIS
NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE
CLASS A NOTES AS INDEBTEDNESS OF THE ISSUER FOR APPLICABLE FEDERAL, STATE, AND
LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED
ON, OR MEASURED BY, INCOME.

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE OF THIS
NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, SHALL BE DEEMED TO
REPRESENT AND WARRANT THAT EITHER (I) SUCH HOLDER IS NOT (AND FOR SO LONG AS IT
HOLDS SUCH NOTE WILL NOT BE), IS NOT ACTING ON BEHALF OF (AND FOR SO LONG AS IT
HOLDS SUCH NOTE WILL NOT BE ACTING ON BEHALF OF), AND IS NOT INVESTING THE
ASSETS OF (A) AN “EMPLOYEE BENEFIT PLAN” (AS DEFINED IN SECTION 3(3) OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”)) THAT IS
SUBJECT TO TITLE I OF ERISA, (B) A “PLAN” (AS DEFINED IN SECTION 4975 OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)) OR (C) AN ENTITY WHOSE
UNDERLYING ASSETS ARE DEEMED TO BE PLAN ASSETS OF A PLAN DESCRIBED 

 Exhibit A-1 (Page 1)
 

IN (A) OR (B) ABOVE OR
(II) ITS ACQUISITION, CONTINUED HOLDING AND DISPOSITION OF THIS NOTE WILL NOT
RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR
SECTION 4975 OF THE CODE.

 Exhibit A-1 (Page 2)
 

 

	
  REGISTERED

  	
   

  	
  $

  	
   

  	
   

  
	
  No. R-

  	
   

  	
   

  	
   

  	
  CUSIP NO.

  	
   

  
						

 

GE CAPITAL CREDIT CARD

MASTER NOTE TRUST SERIES 2006-1

CLASS A SERIES 2006-1 5.08% ASSET BACKED NOTE

GE Capital Credit Card Master Note Trust (herein
referred to as the “Issuer” or the “Trust”), a Delaware statutory trust
governed by a Trust Agreement dated as of September 25, 2003, for value
received, hereby promises to pay to Cede & Co., or registered assigns,
subject to the following provisions, the principal sum of                           DOLLARS,
or such greater or lesser amount as determined in accordance with the
Indenture, on the September 2012 Payment Date, except as otherwise provided
below or in the Indenture.  The Issuer
will pay interest on the unpaid principal amount of this Note at the Class A
Note Interest Rate on each Payment Date until the Final Payment Date (which is
the earlier to occur of (a) the Payment Date on which the Note Principal
Balance is paid in full, (b) the date on which the Collateral Amount is reduced
to zero and (c) the September 2012 Payment Date). Interest on this Note will
accrue for each Payment Date from and including the most recent Payment Date on
which interest has been paid to but excluding such Payment Date or, for the
initial Payment Date, from and including the Closing Date to but excluding such
Payment Date.  Interest will be computed
on the basis of a 360-day year and of twelve 30-day months.  Principal of this Note shall be paid in the
manner specified in the Indenture Supplement referred to on the reverse hereof.

The principal of and interest on this Note are payable
in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts.

Reference is made to the further provisions of this
Note set forth on the reverse hereof, which shall have the same effect as
though fully set forth on the face of this Note.

Unless the certificate of authentication hereon has
been executed by or on behalf of the Indenture Trustee, by manual signature,
this Note shall not be entitled to any benefit under the Indenture or the
Indenture Supplement referred to on the reverse hereof, or be valid for any
purpose.

 Exhibit A-1 (Page 3)
 

IN WITNESS WHEREOF, the
Issuer has caused this Class A Note to be duly executed.

	
   

  	
  GE CAPITAL CREDIT
  CARD MASTER NOTE

  TRUST, as Issuer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  THE BANK OF NEW YORK (DELAWARE),

  
	
   

  	
   

  	
  not in its
  individual capacity but solely as

  
	
   

  	
   

  	
  Trustee on
  behalf of Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  	
   

  	
   

  
							

 

 Exhibit A-1 (Page 4)
 

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class A Notes described in the
within-mentioned Indenture.

	
   

  	
  DEUTSCHE BANK TRUST COMPANY

  AMERICAS,

  
	
   

  	
  as Indenture
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

 Exhibit A-1 (Page 5)
 

 

GE CAPITAL CREDIT CARD

MASTER NOTE TRUST SERIES 2006-1

CLASS A SERIES 2006-1 5.08% ASSET BACKED NOTE

Summary of Terms and Conditions

This Class A Note is one of a duly authorized issue of
Notes of the Issuer, designated as GE Capital Credit Card Master Note Trust,
Series 2006-1 (the “Series 2006-1 Notes”),
issued under a Master Indenture dated as of September 25, 2003 (as amended, the
“Master Indenture”), between the Issuer
and Deutsche Bank Trust Company Americas, as indenture trustee (the “Indenture Trustee”), as supplemented by the
Indenture Supplement dated as of September 27, 2006 (the “Indenture Supplement”), and representing the
right to receive certain payments from the Issuer.  The term “Indenture,” unless the context
otherwise requires, refers to the Master Indenture as supplemented by the
Indenture Supplement.  The Notes are
subject to all of the terms of the Indenture. 
All terms used in this Note that are defined in the Indenture shall have
the meanings assigned to them in or pursuant to the Indenture.  In the event of any conflict or inconsistency
between the Indenture and this Note, the Indenture shall control.

The Class B Notes and the Class C Notes will also be
issued under the Indenture.

The Noteholder, by its acceptance of this Note, agrees
that it will look solely to the property of the Issuer allocated to the payment
of this Note for payment hereunder and that neither the Owner Trustee nor the
Indenture Trustee is liable to the Noteholders for any amount payable under the
Notes or the Indenture or, except in the case of the Indenture Trustee as
expressly provided in the Indenture, subject to any liability under the
Indenture.

This Note does not purport to summarize the Indenture
and reference is made to the Indenture for the interests, rights and
limitations of rights, benefits, obligations and duties evidenced thereby, and
the rights, duties and immunities of the Indenture Trustee.

THIS CLASS A NOTE DOES NOT REPRESENT AN OBLIGATION OF,
OR AN INTEREST IN, THE ISSUER, GE MONEY BANK, RFS HOLDING, L.L.C., OR ANY OF
THEIR AFFILIATES, AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

The Issuer, the Indenture Trustee and any agent of the
Issuer or the Indenture Trustee shall treat the person in whose name this Class
A Note is registered as the owner hereof for all purposes, and neither the
Issuer, the Indenture Trustee nor any agent of the Issuer or the Indenture
Trustee shall be affected by notice to the contrary.

THIS CLASS A NOTE SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF
LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 Exhibit A-1 (Page 6)
 

 

ASSIGNMENT

Social Security or other identifying number of
assignee 

FOR VALUE RECEIVED, the undersigned hereby sells,
assigns and transfers unto                           
(name and address of assignee) the within certificate and all rights
thereunder, and hereby irrevocably constitutes and appoints                            attorney,
to transfer said certificate on the books kept for registration thereof, with
full power of substitution in the premises.

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
  **

  
	
   

  	
   

  	
  Signature Guaranteed:

  	
   

  	
   

  

 

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

 Exhibit A-1 (Page 7)

 

EXHIBIT
A-2

FORM OF CLASS B SERIES 2006-1 FLOATING RATE ASSET BACKED NOTE

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF
COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME DIRECTLY OR INDIRECTLY
INSTITUTE OR CAUSE TO BE INSTITUTED AGAINST THE ISSUER ANY BANKRUPTCY,
REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDING OR OTHER
PROCEEDING UNDER ANY FEDERAL OR STATE BANKRUPTCY LAW UNLESS NOTEHOLDERS OF NOT
LESS THAN 662¤3%
OF THE OUTSTANDING PRINCIPAL AMOUNT OF EACH CLASS OF EACH SERIES HAS APPROVED
SUCH FILING AND IT WILL NOT DIRECTLY OR INDIRECTLY INSTITUTE OR CAUSE TO BE
INSTITUTE AGAINST THE TRANSFEROR ANY BANKRUPTCY, REORGANIZATION, ARRANGEMENT,
INSOLVENCY OR LIQUIDATION PROCEEDING OR OTHER PROCEEDING UNDER ANY FEDERAL OR
STATE BANKRUPTCY LAW IN ANY INSTANCE; PROVIDED, THAT
THE FOREGOING SHALL NOT IN ANYWAY LIMIT THE NOTEHOLDER’S RIGHTS TO PURSUE ANY
OTHER CREDITOR RIGHTS OR REMEDIES THAT THE NOTEHOLDERS MAY HAVE FOR CLAIMS
AGAINST THE ISSUER.

THE HOLDER OF THIS CLASS B NOTE, BY ACCEPTANCE OF THIS
NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE
CLASS B NOTES AS INDEBTEDNESS OF THE ISSUER FOR APPLICABLE FEDERAL, STATE, AND
LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED
ON, OR MEASURED BY, INCOME.

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE OF THIS
NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, SHALL BE DEEMED TO REPRESENT
AND WARRANT THAT EITHER (I) SUCH HOLDER IS NOT (AND FOR SO LONG AS IT HOLDS
SUCH NOTE WILL NOT BE), IS NOT ACTING ON BEHALF OF (AND FOR SO LONG AS IT HOLDS
SUCH NOTE WILL NOT BE ACTING ON BEHALF OF), AND IS NOT INVESTING THE ASSETS OF
(A) AN “EMPLOYEE BENEFIT PLAN” (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”)) THAT IS SUBJECT
TO TITLE I OF ERISA, (B) A “PLAN” (AS DEFINED IN SECTION 4975 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)) OR (C) AN ENTITY WHOSE
UNDERLYING ASSETS ARE DEEMED TO BE PLAN ASSETS OF A PLAN DESCRIBED 

 Exhibit A-2 (Page 1)
 

 

IN (A) OR (B) ABOVE OR (II) ITS ACQUISITION, CONTINUED HOLDING AND
DISPOSITION OF THIS NOTE WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION
UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE.

 Exhibit A-2 (Page 2)
 

 

 

	
  REGISTERED 

  	
   

  	
   

  	
  $

  	
   

  
	
  No. R-

  	
   

  	
   

  	
   

  	
  CUSIP NO.

  	
   

  
						

 

GE CAPITAL CREDIT CARD

MASTER NOTE TRUST SERIES 2006-1

CLASS B SERIES 2006-1 FLOATING RATE ASSET BACKED NOTE

GE Capital Credit Card Master Note Trust (herein
referred to as the “Issuer” or the “Trust”), a Delaware statutory trust
governed by a Trust Agreement dated as of September 25, 2003, for value
received, hereby promises to pay to Cede & Co., or registered assigns,
subject to the following provisions, the principal sum of               DOLLARS,
or such greater or lesser amount as determined in accordance with the
Indenture, on the September 2012 Payment Date, except as otherwise provided
below or in the Indenture.  The Issuer
will pay interest on the unpaid principal amount of this Note at the Class B
Note Interest Rate on each Payment Date until the Final Payment Date (which is
the earlier to occur of (a) the Payment Date on which the Note Principal
Balance is paid in full, (b) the date on which the Collateral Amount is reduced
to zero and (c) the September 2012 Payment Date).  Interest on this Note will accrue for each
Payment Date from and including the most recent Payment Date on which interest
has been paid to but excluding such Payment Date or, for the initial Payment
Date, from and including the Closing Date to but excluding such Payment
Date.  Interest will be computed on the
basis of a 360-day year and the actual number of days elapsed.  Principal of this Note shall be paid in the manner
specified in the Indenture Supplement referred to on the reverse hereof.

The principal of and interest on this Note are payable
in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts.

Reference is made to the further provisions of this
Note set forth on the reverse hereof, which shall have the same effect as
though fully set forth on the face of this Note.

Unless the certificate of authentication hereon has
been executed by or on behalf of the Indenture Trustee, by manual signature,
this Note shall not be entitled to any benefit under the Indenture or the
Indenture Supplement referred to on the reverse hereof, or be valid for any
purpose.

THIS CLASS B NOTE IS SUBORDINATED TO THE EXTENT
NECESSARY TO FUND PAYMENTS ON THE CLASS A NOTES TO THE EXTENT SPECIFIED IN THE
INDENTURE SUPPLEMENT.

 Exhibit A-2 (Page 3)
 

 

IN WITNESS WHEREOF, the
Issuer has caused this Class B Note to be duly executed.

	
   

  	
  GE CAPITAL CREDIT
  CARD MASTER NOTE

  TRUST, as Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  THE BANK OF NEW YORK (DELAWARE),

  not in its individual capacity but solely as

  Trustee on behalf of Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  	
   

  	
   

  
							

 

 Exhibit A-2 (Page 4)
 

 

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class B Notes described in the
within-mentioned Indenture.

	
   

  	
  DEUTSCHE BANK TRUST COMPANY

  AMERICAS,

  
	
   

  	
  as Indenture
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

 Exhibit A-2 (Page 5)
 

 

 

GE CAPITAL CREDIT CARD

MASTER NOTE TRUST SERIES 2006-1

CLASS B SERIES 2006-1 FLOATING RATE ASSET BACKED NOTE

Summary of Terms and Conditions

This Class B Note is one of a duly authorized issue of
Notes of the Issuer, designated as GE Capital Credit Card Master Note Trust,
Series 2006-1 (the “Series 2006-1 Notes”),
issued under a Master Indenture dated as of September 25, 2003 (as amended, the
“Master Indenture”), between the Issuer
and Deutsche Bank Trust Company Americas, as indenture trustee (the “Indenture Trustee”), as supplemented by the
Indenture Supplement dated as of September 27, 2006 (the “Indenture Supplement”), and representing the
right to receive certain payments from the Issuer.  The term “Indenture,” unless the context
otherwise requires, refers to the Master Indenture as supplemented by the
Indenture Supplement.  The Notes are
subject to all of the terms of the Indenture. 
All terms used in this Note that are defined in the Indenture shall have
the meanings assigned to them in or pursuant to the Indenture.  In the event of any conflict or inconsistency
between the Indenture and this Note, the Indenture shall control.

The Class A Notes and the Class C Notes will also be
issued under the Indenture.

The Noteholder, by its acceptance of this Note, agrees
that it will look solely to the property of the Issuer allocated to the payment
of this Note for payment hereunder and that neither the Owner Trustee nor the
Indenture Trustee is liable to the Noteholders for any amount payable under the
Notes or the Indenture or, except in the case of the Indenture Trustee as expressly
provided in the Indenture, subject to any liability under the Indenture.

This Note does not purport to summarize the Indenture
and reference is made to the Indenture for the interests, rights and
limitations of rights, benefits, obligations and duties evidenced thereby, and
the rights, duties and immunities of the Indenture Trustee.

THIS CLASS B NOTE DOES NOT REPRESENT AN OBLIGATION OF,
OR AN INTEREST IN, THE ISSUER, GE MONEY BANK, RFS HOLDING, L.L.C., OR ANY OF
THEIR AFFILIATES, AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

The Issuer, the Indenture Trustee and any agent of the
Issuer or the Indenture Trustee shall treat the person in whose name this Class
B Note is registered as the owner hereof for all purposes, and neither the
Issuer, the Indenture Trustee nor any agent of the Issuer or the Indenture
Trustee shall be affected by notice to the contrary.

THIS CLASS B NOTE SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF
LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 Exhibit A-2 (Page 6)
 

 

 

ASSIGNMENT

Social Security or other identifying number of
assignee 

FOR VALUE RECEIVED, the undersigned hereby sells,
assigns and transfers unto                     (name
and address of assignee) the within certificate and all rights thereunder, and
hereby irrevocably constitutes and appoints                      attorney,
to transfer said certificate on the books kept for registration thereof, with
full power of substitution in the premises.

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
  **

  
	
   

  	
   

  	
  Signature
  Guaranteed:

  	
   

  

 

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

 Exhibit A-2 (Page 7)

 

EXHIBIT
A-3

FORM OF CLASS C SERIES 2006-1 FLOATING RATE ASSET BACKED NOTE

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF
COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME DIRECTLY OR INDIRECTLY
INSTITUTE OR CAUSE TO BE INSTITUTED AGAINST THE ISSUER ANY BANKRUPTCY,
REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDING OR OTHER
PROCEEDING UNDER ANY FEDERAL OR STATE BANKRUPTCY LAW UNLESS NOTEHOLDERS OF NOT
LESS THAN 662/3% OF THE OUTSTANDING PRINCIPAL
AMOUNT OF EACH CLASS OF EACH SERIES HAS APPROVED SUCH FILING AND IT WILL NOT
DIRECTLY OR INDIRECTLY INSTITUTE OR CAUSE TO BE INSTITUTE AGAINST THE
TRANSFEROR ANY BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY OR
LIQUIDATION PROCEEDING OR OTHER PROCEEDING UNDER ANY FEDERAL OR STATE
BANKRUPTCY LAW IN ANY INSTANCE; PROVIDED, THAT THE FOREGOING SHALL NOT
IN ANYWAY LIMIT THE NOTEHOLDER’S RIGHTS TO PURSUE ANY OTHER CREDITOR RIGHTS OR
REMEDIES THAT THE NOTEHOLDERS MAY HAVE FOR CLAIMS AGAINST THE ISSUER.

THE HOLDER OF THIS CLASS C NOTE, BY ACCEPTANCE OF THIS
NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE
CLASS C NOTES AS INDEBTEDNESS OF THE ISSUER FOR APPLICABLE FEDERAL, STATE, AND
LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED
ON, OR MEASURED BY, INCOME.

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE OF THIS
NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, SHALL BE DEEMED TO REPRESENT
AND WARRANT THAT EITHER (I) SUCH HOLDER IS NOT (AND FOR SO LONG AS IT HOLDS
SUCH NOTE WILL NOT BE), IS NOT ACTING ON BEHALF OF (AND FOR SO LONG AS IT HOLDS
SUCH NOTE WILL NOT BE ACTING ON BEHALF OF), AND IS NOT INVESTING THE ASSETS OF
(A) AN “EMPLOYEE BENEFIT PLAN” (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”)) THAT IS SUBJECT
TO TITLE I OF ERISA, (B) A “PLAN” (AS DEFINED IN SECTION 4975 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)) OR (C) AN ENTITY WHOSE
UNDERLYING ASSETS ARE DEEMED TO BE PLAN ASSETS OF A PLAN DESCRIBED 

 Exhibit A-3 (Page 1)
 

 

IN (A) OR (B) ABOVE OR
(II) ITS ACQUISITION, CONTINUED HOLDING AND DISPOSITION OF THIS NOTE WILL NOT
RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR
SECTION 4975 OF THE CODE.

 Exhibit A-3 (Page 2)
 

 

 

	
  REGISTERED 

  	
   

  	
  $

  
	
  No. R-

  	
   

  	
   

  	
  CUSIP NO.

  

 

GE CAPITAL CREDIT CARD

MASTER NOTE TRUST SERIES 2006-1

CLASS C SERIES 2006-1 FLOATING RATE ASSET BACKED NOTE

GE Capital Credit Card Master Note Trust (herein
referred to as the “Issuer” or the “Trust”), a Delaware statutory trust governed
by a Trust Agreement dated as of September 25, 2003, for value received, hereby
promises to pay to Cede & Co., or registered assigns, subject to the
following provisions, the principal sum of                   
DOLLARS, or such greater or lesser amount as determined in accordance with the
Indenture, on the September 2012 Payment Date, except as otherwise provided
below or in the Indenture.  The Issuer
will pay interest on the unpaid principal amount of this Note at the Class C
Note Interest Rate on each Payment Date until the Final Payment Date (which is
the earlier to occur of (a) the Payment Date on which the Note Principal
Balance is paid in full, (b) the date on which the Collateral Amount is reduced
to zero and (c) the September 2012 Payment Date).  Interest on this Note will accrue for each
Payment Date from and including the most recent Payment Date on which interest has
been paid to but excluding such Payment Date or, for the initial Payment Date,
from and including the Closing Date to but excluding such Payment Date.  Interest will be computed on the basis of a
360-day year and the actual number of days elapsed.  Principal of this Note shall be paid in the
manner specified in the Indenture Supplement referred to on the reverse hereof.

The principal of and interest on this Note are payable
in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts.

Reference is made to the further provisions of this
Note set forth on the reverse hereof, which shall have the same effect as
though fully set forth on the face of this Note.

Unless the certificate of authentication hereon has
been executed by or on behalf of the Indenture Trustee, by manual signature,
this Note shall not be entitled to any benefit under the Indenture or the
Indenture Supplement referred to on the reverse hereof, or be valid for any
purpose.

THIS CLASS C NOTE IS SUBORDINATED TO THE EXTENT
NECESSARY TO FUND PAYMENTS ON THE CLASS A AND CLASS B NOTES TO THE EXTENT
SPECIFIED IN THE INDENTURE SUPPLEMENT.

 Exhibit A-3 (Page 3)
 

 

IN WITNESS WHEREOF, the Issuer has caused this Class C
Note to be duly executed.

	
  

  	
  GE CAPITAL
  CREDIT CARD MASTER NOTE 

  TRUST, as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  THE BANK OF NEW YORK (DELAWARE), not in its
  individual capacity but solely as

  
	
   

  	
   

  	
  Trustee on
  behalf of Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
  Dated:             ,
     

  	
   

  	
   

  

 

 Exhibit A-3 (Page 4)
 

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class C Notes described in the
within-mentioned Indenture.

	
   

  	
  DEUTSCHE BANK TRUST COMPANY 

  AMERICAS,

  
	
   

  	
  as Indenture
  Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized Signatory

  

 

 Exhibit A-3 (Page 5)
 

 

GE CAPITAL CREDIT CARD

MASTER NOTE TRUST SERIES 2006-1

CLASS C SERIES 2006-1 FLOATING RATE ASSET BACKED NOTE

Summary of Terms and Conditions

This Class C Note is one of a duly authorized issue of
Notes of the Issuer, designated as GE Capital Credit Card Master Note Trust,
Series 2006-1 (the “Series 2006-1 Notes”),
issued under a Master Indenture dated as of September 25, 2003 (as amended, the
“Master Indenture”), between the Issuer
and Deutsche Bank Trust Company Americas, as indenture trustee (the “Indenture Trustee”), as supplemented by the
Indenture Supplement dated as of September 27, 2006 (the “Indenture Supplement”), and representing the
right to receive certain payments from the Issuer.  The term “Indenture,” unless the context
otherwise requires, refers to the Master Indenture as supplemented by the
Indenture Supplement.  The Notes are
subject to all of the terms of the Indenture. 
All terms used in this Note that are defined in the Indenture shall have
the meanings assigned to them in or pursuant to the Indenture.  In the event of any conflict or inconsistency
between the Indenture and this Note, the Indenture shall control.

The Class A Notes and the Class B Notes will also be
issued under the Indenture.

The Noteholder, by its acceptance of this Note, agrees
that it will look solely to the property of the Issuer allocated to the payment
of this Note for payment hereunder and that neither the Owner Trustee nor the
Indenture Trustee is liable to the Noteholders for any amount payable under the
Notes or the Indenture or, except in the case of the Indenture Trustee as
expressly provided in the Indenture, subject to any liability under the
Indenture.

This Note does not purport to summarize the Indenture
and reference is made to the Indenture for the interests, rights and
limitations of rights, benefits, obligations and duties evidenced thereby, and
the rights, duties and immunities of the Indenture Trustee.

THIS CLASS C NOTE DOES NOT REPRESENT AN OBLIGATION OF,
OR AN INTEREST IN, THE ISSUER, GE MONEY BANK, RFS HOLDING, L.L.C., OR ANY OF
THEIR AFFILIATES, AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

The Issuer, the Indenture Trustee and any agent of the
Issuer or the Indenture Trustee shall treat the person in whose name this Class
C Note is registered as the owner hereof for all purposes, and neither the
Issuer, the Indenture Trustee nor any agent of the Issuer or the Indenture
Trustee shall be affected by notice to the contrary.

THIS CLASS C NOTE SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF
LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 Exhibit A-3 (Page 6)
 

 

ASSIGNMENT

Social Security or other identifying number of
assignee                                                              

FOR VALUE RECEIVED, the undersigned hereby sells,
assigns and transfers unto                                  
(name and address of assignee) the within certificate and all rights
thereunder, and hereby irrevocably constitutes and appoints                             
attorney, to transfer said certificate on the books kept for registration
thereof, with full power of substitution in the premises.

	
  Dated:

  	
  ,

  	
   

  	
   

  	
   

  	
  **

  
	
   

  	
   

  	
  Signature Guaranteed:

  	
   

  

 

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

 Exhibit A-3 (Page 7)

 

EXHIBIT B

FORM OF MONTHLY NOTEHOLDER’S STATEMENT

Monthly
Noteholder’s Statement

GE Capital Credit Card Master Note Trust

Series 2006 – 1

Class A 5.08 %
Notes

Class B LIBOR +
0.11% Notes

Class C LIBOR + 0.24% Notes

Pursuant to the Master Indenture, dated as of
September 25, 2003 (as amended and supplemented, the “Indenture”)
between GE Capital Credit Card Master Note Trust (the “Issuer”) and
Deutsche Bank Trust Company Americas, as indenture trustee (the “Indenture
Trustee”), as supplemented by the Series 2006-1 Indenture Supplement (the “Indenture
Supplement”), dated as of September 27, 2006, between the Issuer and the
Indenture Trustee, the Issuer is required to prepare, or cause the Servicer to
prepare, certain information each month regarding current distributions to the
Series 2006-1 Noteholders and the performance of the Trust during the previous
month.  The information required to be
prepared with respect to the Payment Date of November 15, 2006, and with
respect to the performance of the Trust during the Monthly Period ended October
21, 2006 is set forth below.  Capitalized
terms used herein are defined in the Indenture and the Indenture Supplement.
The undersigned, an Authorized Officer of the Servicer, does hereby certify as
follows:

	
  Record Date:

  	
   

  	
  [  ·  ],
  20[  ·  ]

  
	
  Monthly Period Beginning:

  	
   

  	
  [  ·  ],
  20[  ·  ]

  
	
  Monthly Period Ending:

  	
   

  	
  [  ·  ],
  20[  ·  ]

  
	
  Previous Payment Date:

  	
   

  	
  [  ·  ],
  20[  ·  ]

  
	
  Payment Date:

  	
   

  	
  [  ·  ],
  20[  ·  ]

  
	
  Interest Period Beginning:

  	
   

  	
  [  ·  ],
  20[  ·  ]

  
	
  Interest Period Ending:

  	
   

  	
  [  ·  ],
  20[  ·  ]

  
	
  Days in Monthly Period:

  	
   

  	
  [  ·  ]

  
	
  Days in Interest Period:

  	
   

  	
  [  ·  ]

  
	
  LIBOR Determination Date

  	
   

  	
  [  ·  ],
  20[  ·  ]

  
	
  LIBOR Rate

  	
   

  	
  [  ·  ]

  
	
  Is there a Reset Date?

  	
   

  	
  [No][Yes]

  

 

	
  I.

  	
   

  	
  Trust Receivables Information

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  a.

  	
  Number of Obligors (Total Securitized) Beginning

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  Number of Obligors (Total Securitized) Ending

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c.

  	
  Average Obligor Balance (q / b)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  d.

  	
  BOP Principal Receivables

  	
   

  	
   

  	
   

  	
   

  

 Exhibit B (Page 1)
 

 

 

	
  

  	
  e.

  	
  BOP Finance Charge Receivables

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  f.

  	
  BOP Total Receivables

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  g.

  	
  Increase in Principal Receivables from Additional
  Accounts

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  h.

  	
  Increase in Principal Activity on Existing
  Securitized Accounts

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  i.

  	
  Increase in Finance Charge Receivables from
  Additional Accounts

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  j.

  	
  Increase in Finance Charge Activity on Existing
  Securitized Accounts

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  k.

  	
  Increase in Total Receivables

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  l.

  	
  Decrease in Principal Receivables due to Account
  Removal

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  m.

  	
  Decrease in Principal Activity on Existing
  Securitized Accounts

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  n.

  	
  Decrease in Finance Charge Receivables due to
  Account Removal

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o.

  	
  Decrease in Finance Charge Activity on Existing
  Securitized Accounts

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  p.

  	
  Decrease in Total Receivables

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  q.

  	
  EOP Aggregate Principal Receivables

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  r.

  	
  EOP Finance Charge Receivables

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  s.

  	
  EOP Total Receivables

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  t.

  	
  Excess Funding Account Balance

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  u.

  	
  Required Principal Balance

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  v.

  	
  Minimum Free Equity Amount (EOP Aggregate Principal
  Receivables * 4.0%)

  
	
   

  	
  w.

  	
  Free Equity Amount (EOP Principal Receivables - EOP
  Collateral Amount (II.c.ii+II.a.ii+II.b.iii))

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
   

  	
  Investor Information (Trust Level)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  a.

  	
  Note Principal Balance (Sum of all Series)

  	
   

  	
   

  
	
   

  	
   

  	
  i.

  	
  Beginning of Interest Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  Increase in Note Principal Balance due to New
  Issuance

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  Decrease in Note Principal Balance due to Principal
  Paid

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iv.

  	
  End of Interest Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  Excess Collateral Amount (Sum of all Series)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  i.

  	
  Beginning of Interest Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  Additional Enhancement Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  Increase in Excess Collateral Amount due to New
  Issuance

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iv.

  	
  Reductions in Required Excess Collateral Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  v.

  	
  Increase in Unreimbursed Investor Charge-Off

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  vi.

  	
  Decrease in Unreimbursed Investor Charge-Off

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  vii.

  	
  Increase in Unreimbursed Reallocated Principal
  Collections

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  viii.

  	
  Decrease in Unreimbursed Reallocated Principal
  Collections

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ix.

  	
  End of Interest Period

  	
   

  	
   

  	
   

  
								

 

 Exhibit B (Page 2)
 

 

 

	
  

  	
  c.

  	
  Collateral Amount (Sum of all Series)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  i.

  	
  End of Prior Monthly Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  Beginning of Interest Period (a.i + b.i)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  Increase in Unreimbursed Investor Charge-Off

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iv.

  	
  Decrease in Unreimbursed Investor Charge-Off

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  v.

  	
  Increase in Unreimbursed Reallocated Principal
  Collections

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  vi.

  	
  Decrease in Unreimbursed Reallocated Principal
  Collections

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  vii.

  	
  End of Interest Period (c.ii + a.ii-a.iii + (b.ii
  through b.iv) - c.iii - c.iv)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  III.

  	
   

  	
  Trust Performance Data (Monthly Period)

  
	
   

  	
   

  
	
   

  	
  a.

  	
  Gross Trust Yield (Finance Charge Collections +
  Recoveries / BOP Principal Receivables)

  	
   

  	
   

  
	
   

  	
   

  	
  i.

  	
  Current

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  Prior Monthly
  Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  Two Months Prior
  Monthly Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iv.

  	
  Three-Month
  Average

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  Payment Rate (Principal Collections / BOP Principal
  Receivables)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  i.

  	
  Current

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  Prior Monthly Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  Two Months Prior Monthly Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iv.

  	
  Three-Month Average

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c.

  	
  Charge-Off Rate (Default Amount for Defaulted
  Accounts / BOP Principal Receivables)

  	
   

  	
   

  
	
   

  	
   

  	
  i.

  	
  Current

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  Prior Monthly Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  Two Months Prior Monthly Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iv.

  	
  Three-Month Average

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  d.

  	
  Default Amount for Defaulted Accounts

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  e.

  	
  Collections

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  i.

  	
  Total Trust Finance Charge Collections

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  Total Trust Principal Collections

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  Total Trust Collections

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  f.

  	
  Delinquency Data

  	
  Percentage

  	
   

  	
  Amount

  	
   

  
	
   

  	
   

  	
  i.

  	
  15-29 Days Delinquent

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  30-59 Days Delinquent

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  60-89 Days Delinquent

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iv.

  	
  90-119 Days Delinquent

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  v.

  	
  120-149 Days Delinquent

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  vi.

  	
  150 or Greater Days Delinquent

  	
   

  	
   

  	
   

  
												

 Exhibit B (Page 3)
 

 

 

	
  IV.

  	
   

  	
  Series Performance Data

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  a.

  	
  Portfolio Yield (Finance Charge Collections +
  Recoveries – Aggregate Investor Default Amount + PAA Inv Proceeds / BOP
  Collateral)

  
	
   

  	
   

  	
  i.

  	
  Current

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  Prior Monthly Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  Two Months Prior Monthly Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iv.

  	
  Three-Month Average

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  Base Rate (Noteholder Servicing Fee + Admin Fee +
  Monthly Interest + Swap Payments – Swap Receipts / BOP Collateral)

  
	
   

  	
   

  	
  i.

  	
  Current

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  Prior Monthly Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  Two Months Prior Monthly Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iv.

  	
  Three-Month Average

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c.

  	
  Excess Spread Percentage (Portfolio Yield – Base
  Rate)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  i.

  	
  Current

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  Prior Monthly Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  Two Months Prior Monthly Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iv.

  	
  Quarterly Excess Spread Percentage

  	
   

  	
   

  	
   

  
	
   

  
	
  V.

  	
   

  	
  Investor Information Regarding Distributions to
  Noteholders

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  a.

  	
  The total amount of the distribution to Class A
  Noteholders per $1000 Note Initial Principal Balance.

  
	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  The amount of the distribution set forth in
  paragraph a. above in respect of interest on the Class A Notes, per $1000
  Note Initial Principal Balance.

  
	
   

  	
   

  	
   

  
	
   

  	
  c.

  	
  The amount of the distribution set forth in
  paragraph a. above in respect of principal on the Class A Notes, per $1000
  Note Initial Principal Balance.

  
	
   

  	
   

  	
   

  
	
   

  	
  d.

  	
  The total amount of the distribution to Class B
  Noteholders per $1000 Note Initial Principal Balance.

  
	
   

  	
   

  	
   

  
	
   

  	
  e.

  	
  The amount of the distribution set forth in
  paragraph d. above in respect of interest on the Class B Notes, per $1000
  Note Initial Principal Balance.

  
	
   

  	
   

  	
   

  
	
   

  	
  f.

  	
  The amount of the distribution set forth in
  paragraph d. above in respect of principal on the Class B Notes, per $1000
  Note Initial Principal Balance.

  
	
   

  	
   

  	
   

  
	
   

  	
  g.

  	
  The total amount of the distribution to Class C
  Noteholders per $1000 Note Initial Principal Balance.

  
								

 Exhibit B (Page 4)
 

 

 

	
  

  	
  h.

  	
  The amount of the distribution set forth in
  paragraph g. above in respect of interest on the Class C Notes, per $1000
  Note Initial Principal Balance.

  
	
   

  	
   

  	
   

  
	
   

  	
  i.

  	
  The amount of the distribution set forth in
  paragraph g. above in respect of principal on the Class C Notes, per $1000
  Note Initial Principal Balance.

  
	
   

  	
   

  	
   

  
	
  VI.

  	
   

  	
  Investor Information

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  a.

  	
  Class A Note Initial Principal Balance

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  Class B Note Initial Principal Balance

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c.

  	
  Class C Note Initial Principal Balance

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  d.

  	
  Initial Excess Collateral Amount

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  e.

  	
  Initial Collateral Amount

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  f.

  	
  Class A Note Principal Balance

  
	
   

  	
   

  	
  i.

  	
  Beginning of Interest Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  Principal Payment

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  End of Interest Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  g.

  	
  Class B Note Principal Balance

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  i.

  	
  Beginning of Interest Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  Principal Payment

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  End of Interest Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  h.

  	
  Class C Note Principal Balance

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  i.

  	
  Beginning of Interest Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  Principal Payment

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  End of Interest Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  i.

  	
  Excess Collateral Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  i.

  	
  Beginning of Interest Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  Reduction in Excess Collateral Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  End of Interest Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  j.

  	
  Collateral Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  i.

  	
  Beginning of Interest Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  Increase/Decrease in Unreimbursed Investor
  Charge-Offs

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  Increase/Decrease in Reallocated Principal
  Collections

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iv.

  	
  Reduction in Excess Collateral Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  v.

  	
  Principal Accumulation Account Deposit

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  vi.

  	
  End of Interest Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  vii.

  	
  Collateral Amount as a Percentage of Note Trust
  Principal Balance

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  viii.

  	
  Amount by which Note Principal Balance exceeds
  Collateral Amount

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  k.

  	
  Required Excess Collateral Amount

  	
   

  	
   

  	
   

  
								

 Exhibit B (Page 5)
 

 

 

	
  VII.

  	
   

  	
  Investor Charge-Offs and Reallocated Principal
  Collections

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Section references relate to Indenture
  Supplement)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  a.

  	
  Beginning Unreimbursed Investor Charge-Offs

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  Current Unreimbursed Investor Defaults

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c.

  	
  Current Unreimbursed Investor Uncovered Dilution
  Amount

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  d.

  	
  Current Reimbursement of Investor Charge-Offs
  pursuant to Section 4.4(a(vii)

  	
   

  	
   

  
	
   

  	
  e.

  	
  Ending Unreimbursed Investor Charge-Offs

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  f.

  	
  Beginning Unreimbursed Reallocated Principal
  Collections

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  g.

  	
  Current Reallocated Principal Collections pursuant
  to Section 4.7

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  h.

  	
  Current Reimbursement of Reallocated Principal
  Collections pursuant to Section 4.4(a)(vii)

  	
   

  	
   

  
	
   

  	
  i.

  	
  Ending Unreimbursed Reallocated Principal Collections

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VIII.

  	
   

  	
  Investor Percentages –BOP Balance and Series
  Account Information

  	
   

  	
   

  
	
   

  	
  a.

  	
  Allocation Percentage Numerator – for Finance Charge
  Collections and Default Amounts

  	
   

  	
   

  
	
   

  	
  b.

  	
  Allocation Percentage Numerator – for Principal
  Collections

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c.

  	
  Allocation Percentage Denominator

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  i.

  	
  Aggregate Principal Receivables Balance

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ii.

  	
  Number of Days at Balance

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  iii.

  	
  Average Principal Balance

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  d.

  	
  Sum of Allocation Percentage Numerators for all
  outstanding Series with respect to Finance Charge Collections and Default
  Amounts

  
	
   

  	
  e.

  	
  Sum of Allocation Percentage Numerators for all
  outstanding Series with respect to Principal Collections

  
	
   

  	
  f.

  	
  Allocation Percentage, Finance Charge Collections
  and Default Amount (a./greater of c.iii. or d.)

  	
   

  	
   

  
	
   

  	
  g.

  	
  Allocation Percentage, Principal Collections (b./
  greater of c.iii. or e.)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  h.

  	
  Series Allocation Percentage

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IX.

  	
   

  	
  Collections and Allocations

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Trust

  	
   

  	
  Series

  	
   

  
	
   

  	
  a.

  	
  Finance Charge Collections

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  Recoveries

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c.

  	
  Principal Collections

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  d.

  	
  Default Amount

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  e.

  	
  Dilution

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  f.

  	
  Investor Uncovered Dilution Amount

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  g.

  	
  Available Finance Charge Collections

  	
   

  	
   

  	
   

  	
   

  
											

 Exhibit B (Page 6)
 

 

 

	
  

  	
   

  	
  i.

  	
  Investor Finance Charge Collections

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  Excess Finance Charge Collections allocable to
  Series 2006-1

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  Principal Accumulation Account Investment Proceeds

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iv.

  	
  Investment earnings in the Reserve Account

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  v.

  	
  Reserve Account Draw Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  vi.

  	
  Net Swap Receipts

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  vii.

  	
  Recoveries

  	
   

  	
   

  	
   

  
	
   

  	
  h.

  	
  Available Finance Charge Collections (Sum of g.i
  through g.vii)

  	
   

  	
   

  	
   

  
	
   

  	
  i.

  	
  Total Collections to Series th.)

  	
   

  	
   

  	
   

  
	
   

  	
  j.

  	
  Total Finance Charge Collections deposited in the
  Collection Account (net of any amounts distributed to Transferor and owed to
  Servicer)

  
	
   

  
	
  X.

  	
   

  	
  Application of Available Funds pursuant to
  Section 4.4(a) of the Indenture Supplement

  
	
   

  	
   

  	
   

  
	
   

  	
  a.

  	
  Available Finance Charge Collections

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  i.

  	
  On a pari passu basis:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  a.

  	
  Payment to the Indenture Trustee, to a maximum of
  $25,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  b.

  	
  Payment to the Trustee, to a maximum of $25,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  c.

  	
  Payment to the Administrator, to a maximum of
  $25,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  To the Servicer:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  a.

  	
  Noteholder Servicing Fee

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  b.

  	
  Noteholder Servicing Fee previously due but not paid

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  c.

  	
  Total Noteholder Servicing Fee

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  On a pari passu basis:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  a.

  	
  Class A Monthly Interest

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  b.

  	
  Class A Deficiency Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  c.

  	
  Class A Additional Interest

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  d.

  	
  Class A Additional Interest not paid on prior
  Payment Date

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  e.

  	
  Class A Net Swap Payments

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  f.

  	
  Class A Net Swap Payments not paid on a prior
  Payment Date

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iv.

  	
  On a pari passu basis:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  a.

  	
  Class B Monthly Interest

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  b.

  	
  Class B Deficiency Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  c.

  	
  Class B Additional Interest

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  d.

  	
  Class B Additional Interest not paid on prior
  Payment Date

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  e.

  	
  Class B Net Swap Payments

  	
   

  	
   

  	
   

  
										

 Exhibit B (Page 7)
 

 

 

	
  

  	
   

  	
   

  	
  f.

  	
  Class B Net Swap Payments not paid on a prior
  Payment Date

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  v.

  	
  On a pari passu basis:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  a.

  	
  Class C Monthly Interest

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  b.

  	
  Class C Deficiency Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  c.

  	
  Class C Additional Interest

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  d.

  	
  Class C Additional Interest not paid on prior
  Payment Date

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  e.

  	
  Class C Net Swap Payments

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  f.

  	
  Class C Net Swap Payments not paid on a prior
  Payment Date

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  vi.

  	
  To be treated as Available Principal Collections

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  a.

  	
  Aggregate Investor Default Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  b.

  	
  Aggregate Investor Uncovered Dilution Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  vii.

  	
  To be treated as Available Principal Collections, to
  the extent not previously reimbursed

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  a.

  	
  Investor Charge-offs

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  b.

  	
  Reallocated Principal Collections

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  viii.

  	
  Excess of Required Reserve Account Amount Over
  Available Reserve Account Amount

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ix.

  	
  Amounts required to be deposited to the Spread
  Account

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  x.

  	
  To be treated as Available Principal Collections:
  Series Allocation Percentage of Minimum Free Equity Shortfall

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  xi.

  	
  On a pari passu basis:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  a.

  	
  Partial or early termination or other additional
  amount owed to Class A Swap Counterparty

  
	
   

  	
   

  	
   

  	
  b.

  	
  Partial or early termination or other additional
  amount owed to Class B Swap Counterparty

  
	
   

  	
   

  	
   

  	
  c.

  	
  Partial or early termination or other additional
  amount owed to Class C Swap Counterparty

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  xii.

  	
  Unless an Early Amortization Event has occurred,
  amounts that have not been paid pursuant to (a)(i) above

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  xiii.

  	
  The balance, if any, will constitute a portion of
  Excess Finance Charge Collections for such Payment Date and first will be
  available for allocation to other Series in Group One and, second, paid to
  the Transferor, to be applied in accordance with Section 8.6 of the Indenture
  unless:

  
	
   

  	
   

  	
   

  	
  a.

  	
  There is an Early Amortization Period, in which case
  Excess Finance Charge Collections will be used to pay Monthly Principal; or

  

 Exhibit B (Page 8)
 

 

 

	
  

  	
   

  	
   

  	
  b.

  	
  GE Capital’s long-term unsecured debt rating is Aa2
  or lower by Moody’s or AA or lower by S&P and the Free Equity Amount is
  less than the Minimum Free Equity Amount, in which case Excess Finance Charge
  Collections will be deposited to the Excess Funding Account up to such
  shortfall

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  XI.

  	
   

  	
  Excess Finance Charge Collections (Group One)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  a.

  	
  Total Excess Finance Charge Collections in Group One

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  Finance Charge Shortfall for Series 2006–1

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c.

  	
  Finance Charge Shortfall for all Series in Group One

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  d.

  	
  Excess Finance Charges Collections Allocated to
  Series 2006–1

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  XII.

  	
   

  	
  Available Principal Collections and
  Distributions (Section references relate to Indenture Supplement)

  
	
   

  	
   

  	
   

  
	
   

  	
  a.

  	
  Investor Principal Collections

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  Less: Reallocated Principal Collections for the
  Monthly Period pursuant to Section 4.7

  
	
   

  	
   

  	
   

  
	
   

  	
  c.

  	
  Plus: Shared Principal Collections allocated to this
  Series

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  d.

  	
  Plus: Aggregate amount to be treated as Available
  Principal Collections pursuant to Section 4.4(a)(vi)

  
	
   

  	
   

  	
   

  
	
   

  	
  e.

  	
  Plus: Aggregate amount to be treated as Available
  Principal Collections pursuant to Section 4.4(a)(vii)

  
	
   

  	
   

  	
   

  
	
   

  	
  f.

  	
  Plus: During an Early Amortization Period, the
  amount of Available Finance Charge Collections used to pay principal on the
  Notes pursuant to Section 4.4(a)(xii)

  
	
   

  	
   

  	
   

  
	
   

  	
  g.

  	
  Available Principal Collections (Deposited to
  Principal Account)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  i.

  	
  During the Revolving Period, Available Principal
  Collections treated as Shared Principal Collections Pursuant to Section
  4.4(b)

  
	
   

  	
   

  	
  ii.

  	
  During the Controlled Accumulation Period, Available
  Principal Collections     deposited to the Principal
  Accumulation Account pursuant to Section 4.4(c)(i), (ii)

  
	
   

  	
   

  	
  iii.

  	
  During the Early Amortization Period, Available
  Principal Collections deposited to the Distribution Account pursuant to
  Section 4.4(c)

  
	
   

  	
   

  	
  iv.

  	
  Series Shared Principal Collections available to
  Group One pursuant to Section 4.4(c)(iii)

  
	
   

  	
   

  	
  v.

  	
  Principal Distributions pursuant to Section 4.4(e)
  in order of priority

  
									

 Exhibit B (Page 9)
 

 

 

 

	
  

  	
   

  	
   

  	
  a.

  	
  Principal paid to Class A Noteholders

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  b.

  	
  Principal paid to Class B Noteholders

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  c.

  	
  Principal paid to class C Noteholders

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  vi.

  	
  Total Principal Collections Available to Share
  (Inclusive of Series 2006–1)

  
	
   

  	
   

  	
  vii.

  	
  Series Principal Shortfall

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  viii.

  	
  Shared Principal Collections allocated to this
  Series from other Series

  
	
   

  	
   

  	
   

  	
   

  
	
  XIII.

  	
   

  	
  Series 2006-1 Accumulation

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  a.

  	
  Controlled Accumulation Period Length in months
  (scheduled)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  Controlled Accumulation Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c.

  	
  Controlled Deposit Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  d.

  	
  Accumulation Shortfall

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  e.

  	
  Principal Accumulation Account Balance

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  i.

  	
  Beginning of Interest Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  Controlled Deposit Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  Withdrawal for Principal Payment

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iv.

  	
  End of Interest Period

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  XIV.

  	
   

  	
  Reserve Account Funding (Section references
  relate to Indenture Supplement)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  a.

  	
  Reserve Account Funding Date (scheduled)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  Required Reserve Account Amount (.50% of Note
  Principal Balance beginning on Reserve Account Funding Date)

  
	
   

  	
   

  	
   

  
	
   

  	
  c.

  	
  Beginning Available Reserve Account Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  d.

  	
  Reserve Draw Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  e.

  	
  Deposit pursuant to 4.4(a)(viii) the excess of b.
  over c.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  f.

  	
  Withdrawal for Reserve Account Surplus paid to
  Transferor pursuant to Section 4.10(d)

  
	
   

  	
   

  	
   

  
	
   

  	
  g.

  	
  Withdrawal for Reserve Account Surplus paid to
  Transferor pursuant to Section 4.10(e)

  
	
   

  	
   

  	
   

  
	
   

  	
  h.

  	
  Ending Available Reserve Account Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  XV.

  	
   

  	
  Spread Account Funding (Section references
  relate to Indenture Supplement)

  
	
   

  	
   

  	
   

  
	
   

  	
  a.

  	
  Spread Account Percentage

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  Required Spread Account Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c.

  	
  Beginning Available Spread Account Amount

  	
   

  	
   

  	
   

  
									

 Exhibit B (Page 10)
 

 

 

	
  

  	
  d.

  	
  Withdrawal pursuant to 4.11(a) – Section 4.4(a)(v)
  Shortfall

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  e.

  	
  Withdrawal pursuant to 4.11(b) – Class C Expected
  Principal Payment Date

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  f.

  	
  Withdrawal pursuant to 4.11(c) – Early Amortization
  Event

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  g.

  	
  Withdrawal pursuant to 4.11(d) – Event of Default

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  h.

  	
  Deposit pursuant to 4.4(a)(ix) – Spread Account
  Deficiency

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  i.

  	
  Withdrawal pursuant to 4.11(f) – Spread Account
  Surplus Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  j.

  	
  Ending Available Spread Account Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  XVI.

  	
   

  	
  Series Early Amortization Events

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  a.

  	
  The Free Equity Amount is less than the Minimum Free
  Equity Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Free Equity:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  i.

  	
  Free Equity Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  Minimum Free Equity Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  Excess Free Equity Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  The Note Trust Principal Balance is less than the
  Required Principal Balance Note Trust Principal Balance:

  
	
   

  	
   

  	
  i.

  	
  Note Trust Principal Balance

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  Required Principal Balance

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  Excess Principal Balance

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c.

  	
  The three-month average Portfolio Yield is less than
  three-month average Base Rate Portfolio Yield:

  
	
   

  	
   

  	
  i.

  	
  Three month Average Portfolio Yield

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  Three month Average Base Rate

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iii.

  	
  Excess Spread over Base Rate

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  d.

  	
  The Note Principal Balance is outstanding beyond the
  Expected Principal Payment Date

  
	
   

  	
   

  	
  i.

  	
  Expected Principal Payment Date

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ii.

  	
  Current Payment Date

  	
   

  	
   

  	
   

  
									

 

IN WITNESS WHEREOF, the
undersigned has duly executed this Monthly Noteholder’s Statement as of the
13th day of November 2006.

	
  

  	
  GE
  MONEY BANK, as Servicer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 Exhibit B (Page 11)

 

SCHEDULE I

PERFECTION REPRESENTATIONS, WARRANTIES

AND COVENANTS (WITH RESPECT TO NET SWAP RECEIPTS)

(a)           In
addition to the representations, warranties and covenants contained in the
Indenture, the Issuer hereby represents, warrants and covenants to the Indenture
Trustee as follows as of the Closing Date:

(1)           The
Indenture creates a valid and continuing security interest (as defined in the
applicable UCC) in the Net Swap Receipts in favor of the Indenture Trustee,
which security interest is prior to all other Liens, and is enforceable as such
against creditors of and purchasers from Issuer.

(2)           The Net
Swap Receipts constitute “general intangibles” within the meaning of the
applicable UCC.

(3)           The Issuer
owns and has good and marketable title to the Net Swap Receipts free and clear
of any Lien, claim or encumbrance of any Person.

(4)           There are
no consents or approvals required by the terms of the Class B Swap or Class C
Swap for the pledge of the Net Swap Receipts to the Indenture Trustee pursuant
to the Indenture.

(5)           The Issuer
(or the Administrator on behalf of the Issuer) has caused the filing of all
appropriate financing statements in the proper filing office in the appropriate
jurisdictions under applicable law in order to perfect the security interest granted
to the Indenture Trustee under the Indenture in the Net Swap Receipts.

(6)           Other than
the pledge of the Net Swap Receipts to the Indenture Trustee pursuant to the
Indenture, the Issuer has not pledged, assigned, sold, granted a security
interest in, or otherwise conveyed the Net Swap Receipts.  The Issuer has not authorized the filing of
and is not aware of any financing statements against the Issuer that include a
description of the Net Swap Receipts, except for the financing statement filed
pursuant to the Indenture.

(7)           Notwithstanding
any other provision of the Indenture, the representations and warranties set
forth in this Schedule I shall be
continuing, and remain in full force and effect, until such time as the Series
2006-1 Notes are retired.

(b)           The
Indenture Trustee covenants that it shall not, without satisfying the Rating
Agency Condition, waive a breach of any representation or warranty set forth in
this Schedule I.

(c)           The Issuer
covenants that in order to evidence the interests of the Issuer and the
Indenture Trustee under the Indenture, the Issuer shall take such action, or
execute and deliver such instruments as may be necessary or advisable
(including, without limitation, such actions as are requested by the Indenture
Trustee) to maintain and perfect, as a first priority interest, the Indenture
Trustee’s security interest in the Net Swap Receipts.

 Schedule I (Page 1)

 

SCHEDULE II

PERFECTION REPRESENTATIONS, WARRANTIES

AND COVENANTS (WITH RESPECT TO RECEIVABLES)

(a)           In
addition to the representations, warranties and covenants contained in the
Indenture, the Issuer hereby represents, warrants and covenants to the
Indenture Trustee as follows as of the Closing Date:

(1)           The
Indenture creates a valid and continuing security interest (as defined in the
applicable UCC) in the Receivables in favor of the Indenture Trustee, which
security interest is prior to all other Liens, and is enforceable as such
against creditors of and purchasers from the Issuer.

(2)           The
Receivables constitute either “accounts” or “general intangibles” within the
meaning of the applicable UCC.

(3)           The Issuer
owns and has good and marketable title to the Receivables free and clear of any
Lien, claim or encumbrance of any Person.

(4)           There are
no consents or approvals required for the pledge of the Receivables to the
Indenture Trustee pursuant to the Indenture.

(5)           The Issuer
(or the Administrator on behalf of the Issuer) has caused the filing of all
appropriate financing statements in the proper filing office in the appropriate
jurisdictions under applicable law in order to perfect the security interest
granted to the Indenture Trustee under the Indenture in the Receivables.

(6)           Other than
the pledge of the Receivables to the Indenture Trustee pursuant to the
Indenture, the Issuer has not pledged, assigned, sold, granted a security
interest in, or otherwise conveyed the Receivables.  The Issuer has not authorized the filing of
and is not aware of any financing statements against the Issuer that include a
description of the Receivables, except for the financing statement filed
pursuant to the Indenture.

(7)           Notwithstanding
any other provision of the Indenture, the representations and warranties set
forth in this Schedule II shall be
continuing, and remain in full force and effect, until such time as the Series
2006-1 Notes are retired.

(b)           The
Indenture Trustee covenants that it shall not, without satisfying the Rating
Agency Condition, waive a breach of any representation or warranty set forth in
this Schedule II.

(c)           The Issuer
covenants that in order to evidence the interests of the Issuer and the
Indenture Trustee under the Indenture, the Issuer shall take such action, or
execute and deliver such instruments as may be necessary or advisable
(including, without limitation, such actions as are requested by the Indenture
Trustee) to maintain and perfect, as a first priority interest, the Indenture
Trustee’s security interest in the Receivables.

 Schedule II (Page 1)Exhibit
4.2

Series
2006-1 (Class B)

ISDA®

International
Swaps and Derivatives Association, lnc.

2002
MASTER AGREEMENT

dated as of
September 27, 2006

BANK OF AMERICA and GE CAPITAL CREDIT CARD MASTER NOTE TRUST
have entered and/or anticipate entering into one or more transactions (each a “Transaction”)
that are or will be governed by this 2002 Master Agreement, which includes the
schedule (the “Schedule”), and the documents and other confirming evidence
(each a “Confirmation”) exchanged between the parties or otherwise effective
for the purpose of confirming or evidencing those Transactions. This 2002
Master Agreement and the Schedule are together referred to as this “Master
Agreement”.

Accordingly,
the parties agree as follows:-

1.             Interpretation

(a)           Definitions. The terms defined in Section 14
and elsewhere in this Master Agreement will have the meanings therein specified
for the purpose of this Master Agreement.

(b)           Inconsistency. In the event of any
inconsistency between the provisions of the Schedule and the other provisions
of this Master Agreement, the Schedule will prevail. In the event of any
inconsistency between the provisions of any Confirmation and this Master
Agreement, such Confirmation will prevail for the purpose of the relevant
Transaction.

(c)           Single Agreement. All Transaction are entered
into the reliance on the fact that this Master Agreement and all Confirmations
form a single agreement between the parties (collectively referred to as this “Agreement”),
and the parties would not otherwise enter into any Transactions.

2.             Obligations

(a)           General Conditions.

(i)            Each party will make each payment or
delivery specified in each Confirmation to be made by it, subject to the other
provisions of this Agreement.

(ii)           Payments under this Agreement will be
made on the due date for value on that date in the place of the account
specified in the relevant Confirmation or otherwise pursuant to this Agreement,
in freely transferable funds and in the manner customary for payments in the
required currency. Where settlement is by delivery (that is, other than by
payment), such delivery will be made for receipt on the due date in the manner
customary for the relevant obligation unless otherwise specified in the
relevant Confirmation or elsewhere in this Agreement.

Class B Swap                        Copyright © 2002 by
International Swaps and Derivative Association, Inc.

 

(iii)          Each obligation of each party under
Section 2(a)(i) is subject to (1) the condition precedent that no Event of
Default or Potential Event of Default with respect to the other party has
occurred and is continuing, (2) the condition precedent that no Early
Termination Date in respect of the relevant Transaction has occurred or been
effectively designated and (3) each other condition specified in this Agreement
to be a condition precedent for the purpose of this Section 2(a)(iii).

(b)           Change
of Account. Either party may change its account
for receiving a payment or delivery by giving notice to the other party at
least five Local Business Days prior to the Scheduled Settlement Date for the
payment or delivery to which such change applies unless such other party gives
timely notice of a reasonable objection to such change.

(c)           Netting
of Payments. If on any date amounts would
otherwise be payable: —

(i)            in the same currency; and

(ii)           in respect of the same Transaction,

by
each party to the other, then, on such date, each party’s obligation to make
payment of any such amount will be automatically satisfied and discharged and,
if the aggregate amount that would otherwise have been payable by one party
exceeds the aggregate amount that would otherwise have been payable by the
other party, replaced by an obligation upon the party by which the larger
aggregate amount would have been payable to pay to the other party the excess
of the larger aggregate amount over the smaller aggregate amount.

The
parties may elect in respect of two or more Transactions that a net amount and
payment obligation will be determined in respect of all amounts payable on the
same date in the same currency in respect of those Transactions, regardless of
whether such amounts are payable in respect of the same Transaction. The
election may be made in the Schedule or any Confirmation by specifying that “Multiple
Transaction Payment Netting” applies to the Transactions identified as being
subject to the election (in which case clause (ii) above will not apply to such
Transactions). If Multiple Transaction Payment Netting is applicable to
Transactions, it will apply to those Transactions with effect from the starting
date specified in the Schedule or such Confirmation, or, if a starting date is
not specified in the Schedule or such Confirmation, the starting date otherwise
agreed by the parties in writing. This election may be made separately for
different groups of Transactions and with apply separately to each pairing of
Offices through which the parties make and receive payments or deliveries.

(d)           Deduction
or Withholding for Tax.

(i)            Gross-Up. All payments under this Agreement
will be made without any deduction or withholding for or on account of
any Tax unless such deduction or withholding is required by any applicable law,
as modified by the practice of any relevant governmental revenue authority,
then in effect. If a party is so required to deduct or withhold, then that
party (“X”) will: —

(1)           promptly notify the other party (“Y”)
of such requirement;

(2)           pay to the relevant authorities the
full amount required to be deducted or withheld (including the full amount
required to be deducted or withheld from any additional amount paid by X to Y
under this Section 2(d)) promptly upon the earlier of determining that such
deduction or withholding is required or receiving notice that such amount has
been assessed against Y;

(3)           promptly forward to Y an official receipt
(or a certified copy), or other documentation reasonably acceptable to Y,
evidencing such payment to such authorities; and

 	 
 	 2
 	 ISDA® 2002
 

  
 

 

(4)           if such Tax is an indemnifiable Tax,
pay to Y, in addition to the payment to which Y is otherwise entitled under
this Agreement, such additional amount as is necessary to ensure that the net
amount actually received by Y (free and clear of indemnifiable Taxes, whether
assessed against X or Y) will equal the full amount Y would have received had
no such deduction or withholding been required. However, X will not be required
to pay any additional amount to Y to the extent that it would not be required
to be paid but for: —

(A)          the failure by Y to comply with or
perform any agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d); or

(B)           the failure of a representation made
by Y pursuant to Section 3(f) to be accurate and true unless such failure would
not have occurred but for (I) any action taken by a taxing authority, or
brought in a court of competent jurisdiction, after a Transaction is entered
into (regardless of whether such action is taken or brought with respect to a
party to this Agreement) or (II) a Change in Tax Law.

(ii)           Liability. If:—

(1)           X is required by any applicable law,
as  modified by the practice of any
relevant governmental revenue authority, to make any deduction or withholding
in respect of which X would not be required to pay an additional amount to Y
under Section 2(d)(i)(4);

(2)           X does not so deduct or withhold; and

(3)           a liability resulting from such Tax
is assessed directly against X,

then, except to the
extent Y has satisfied or then satisfies the liability resulting from such Tax,
Y will promptly pay to X the amount of such liability (including any related
liability for interest, but including any related liability for penalties only
if Y has failed to comply with or perform any agreement contained in Section
4(a)(i), 4(a)(iii) or 4(d)).

3.             Representations

Each
party makes the representations contained in Sections 3(a), 3(b), 3(c), 3(d),
3(e) and 3(f) and, if specified in the Schedule as applying, 3(g) to the other
party (which representations will be deemed to be repeated by each party on
each date on which a Transaction is entered into and, in the case of the
representations in Section 3(f), at all times until the termination of this
Agreement). If any “Additional Representation” is specified in the Schedule or
any Confirmation as applying, the party or parties specified for such
Additional Representation will make and, if applicable, be deemed to repeat
such Additional Representation at the time or times specified for such
Additional Representation.

(a)           Basic
Representations.

(i)            Status. It is duly organised and validly
existing under the laws of the jurisdiction of its organization or
incorporation and, if relevant under such laws, in good standing;

(ii)           Powers. It has the power to execute this Agreement and any other documentation relating to this
Agreement to which it is a party, to deliver this Agreement and any other
documentation relating to this Agreement that it is required by this Agreement
to deliver and to perform its obligations under this Agreement and any
obligations it has under any Credit Support Document to which it is a party and
has taken all necessary action to authorise such execution, delivery and
performance;

 	 
 	 3
 	 ISDA® 2002
 

  
 

 

(iii)          No Violation or Conflict. Such execution, delivery and performance
do not violate or conflict with any law applicable to it, any provision of its
constitutional documents, any order or judgment of any court or other agency of
government applicable to it or any of its assets or any contractual restriction
binding on or affecting it or any of its assets;

(iv)          Consents. All
governmental and other consents that are required to have been obtained by it
with respect to this Agreement or any Credit Support Document to which it is a
party have been obtained and are in full force and effect and all conditions of
any such consents have been complied with; and

(v)           Obligations  Binding. Its obligations under this Agreement and
any Credit Support Document in which it is a party constitute its legal, valid
and binding obligations, enforceable in accordance with their respective terms
(subject to applicable bankruptcy, reorganisation, insolvency, moratorium or
similar laws affecting creditors’ rights generally and subject, as to
enforceability, to equitable principles of general application (regardless of
whether enforcement is sought in a proceeding in equity or at law)).

(b)           Absence of Certain Events.  No
Event or Default or Potential Event of Default or, to its knowledge,
Termination Event with respect to it has occurred and is continuing and no such
event or circumstance would occur as a result of its entering into or
performing its obligations under this Agreement or any Credit Support Document
to which it is a party.

(c)           Absence of Litigation.  There
is not pending or, to its knowledge, threatened against it, any of its Credit
Support Providers or any of its applicable to Specified Entities any action,
suit or proceeding at law or in equity or before any court, tribunal,
governmental body, agency or official or any arbitrator that is likely to
affect the legality, validity or enforceability against it of this Agreement or
any Credit Support Document to which it is a party or its ability to perform
its obligations under this Agreement or such Credit Support Document.

(d)           Accuracy of Specified Information. All applicable information that is
furnished in writing by or on behalf of it to the other party and is identified
for the purpose of this Section 3(d) in the Schedule is, as of the date of the
information, true, accurate and complete in every material respect.

(e)           Payer Tax Representation. Each representation specified in the
Schedule as being made by it for the purpose of this Section 3(e) is accurate
and true.

(f)            Payee Tax Representations. Each representation specified in the
Schedule as being made by it for the purpose of this Section 3(f) is accurate
and true.

(g)           No Agency. It is entering into this Agreement,
including each Transaction, as principal and not as agent of any person or
entity.

4.            Agreements

Each party agrees with the other that, so long as either party has or
may have any obligation under this Agreement or under any Credit Support
Document to which it is a party: —

(a)           Furnish Specified Information. It will deliver to the other party or, in
certain cases under clause (iii) below, to such government or taxing authority
as the other party reasonably directs: —

(i)            any forms, documents or certificates
relating to taxation specified in the Schedule or any Confirmation;

(ii)           any other documents specified in the
Schedule or any Confirmation; and

 	 
 	 4
 	 ISDA® 2002
 

  
 

 

(iii)          upon reasonable demand by such other
party, any form or document that may be required or reasonably requested in
writing in order to allow such other party or its Credit Support Provider to
make a payment under this Agreement or any applicable Credit Support Document
without any deduction or withholding for or on account of any Tax or with such
deduction or withholding at a reduced rate (so long as the completion,
execution or submission of such form or document would not materially prejudice
the legal or commercial position of the party in receipt of such demand), with
any such form or document to be accurate and completed in a manner reasonably
satisfactory to such other party and to be executed and to be delivered with
any reasonably required certification,

in each case by the date specified in the Schedule or such Confirmation
or, if none is specified, as soon as reasonably practicable.

(b)           Maintain Authorisations. It will use all reasonable efforts to
maintain in full force and effect all consents of any governmental or other
authority that are required to be obtained by it with respect to this Agreement
or any Credit Support Document to which it is a party and will use all
reasonable efforts to obtain any that may become necessary in the future.

(c)           Comply With Laws. It will comply in all material respects
with all applicable laws and orders to which it may be subject if failure so to
comply would materially impair its ability to perform its obligations under
this Agreement or any Credit Support Document to which it is a party.

(d)           Tax Agreement. It will give notice of any failure of a
representation made by it under Section 3(f) to be accurate and true promptly
upon learning of such failure.

(e)           Payment of Stamp Tax. Subject to Section 11, it will pay any
Stamp Tax levied or imposed upon it or in respect of its execution or
performance of this Agreement by a jurisdiction in which it is incorporated,
organised, managed and controlled or considered to have its seat, or where an
Office through which it is acting for the purpose of this Agreement is located
(“Stamp Tax Jurisdiction”), and will indemnify the other party against any
Stamp Tax levied or imposed upon the other party or in respect of the other
party’s execution or performance of this Agreement by any such Stamp Tax
Jurisdiction which is not also a Stamp Tax Jurisdiction with respect to the
other party.

5.            Events
of Default and Termination Events

(a)           Events of Default. The occurrence at any time with respect
to a party or, if applicable, any Credit Support Provider of such party or any
Specified Entity of such party of any of the following events constitutes
(subject to Sections 5(c) and 6(c)(iv)) an event of default (an “Event of
Default”) with respect to such party: —

(i)            Failure to Pay or Deliver. Failure by the party to make, when due,
any payment under this Agreement or delivery under Section 2(a)(i) or
9(h)(i)(2) or (4) required to be made by it if such failure is not remedied on or before the first Local
Business Day in the case of any such payment or the first Local Delivery Day in
the case of any such delivery after, in each case, notice of such failure is
given to the party;

(ii)           Breach of Agreement; Repudiation of Agreement.

(1)           Failure
by the party to comply with or perform any agreement or obligation (other than
an obligation to make any payment under this Agreement or delivery under
Section 2(a)(i) or 9(h)(i)(2) or (4) or to give notice of a Termination Event
or any agreement or obligation under Section 4(a)(i), 4(a)(iii) or 4(d)) to be
complied with or performed by the party in accordance with this Agreement if
such failure is not remedied within 30 days after notice of such failure is
given to the party; or

(2)           the
party disaffirms, disclaims, repudiates or rejects, in whole or in part, or
challenges the validity of, this Master Agreement, any Confirmation executed
and delivered by that party or any

 	 
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Transaction evidenced by such a Confirmation (or such action is taken by
any person or entity appointed or empowered to operate it or act on its
behalf);

(iii)          Credit Support Default,

(1)           Failure by the party or any Credit
Support Provider of such party to comply with or perform any agreement or
obligation to be complied with or performed by it in accordance with any Credit
Support Document if such failure is continuing after any applicable grace
period has elapsed;

(2)           the expiration or termination of such
Credit Support Document or the failing or ceasing of such Credit Support
Document, or any security interest granted by such party or such Credit Support
Provider to the other party pursuant to any such Credit Support Document, to be
in full force and effect for the purpose of this Agreement (in each case other
than in accordance with its terms) prior to the satisfaction of all obligations
of such party under each Transaction to which such Credit Support Document
relates without the written consent of the other party; or

(3)           the party or such Credit Support
Provider disaffirms, disclaims, repudiates or rejects, in whole or in part, or
challenges the validity of, such Credit Support Document (or such action is
taken by any person or entity appointed or empowered to operate it or act on
its behalf);

(iv)          Misrepresentation. A representation (other than a representation under Section 3(e) or
3(f)) made or repeated or deemed to have been made or repeated by the party or
any Credit Support Provider of such party in this Agreement or any Credit
Support Document proves to have been incorrect or misleading in any material
respect when made or repeated or deemed to have been made or repeated;

(v)           Default Under Specified Transaction. The party, any Credit Support Provider
of such party or any applicable Specified Entity of such party: —

(1)           defaults (other than by failing to
make a delivery) under a Specified Transaction or any credit support
arrangement relating to a Specified Transaction and, after giving effect to any
applicable notice requirement or grace period, such default result in a
liquidation of an acceleration of obligations under, or an early termination
of, that Specified Transaction;

(2)           defaults, after giving effect to any
applicable notice requirement or grace period, in making any payment due on the
last payment or exchange date of, or any payment on early termination of, a
Specified Transaction (or, if there is no applicable notice requirement or
grace period, such default continues for at least our Local Business Day);

(3)           defaults in making any delivery due
under (including any delivery due on the last delivery or exchange date of) a
Specified Transaction or any credit support arrangement relating to a Specified
Transaction and, after giving effect to any applicable notice requirement or
grace period, such default results in a liquidation of, an acceleration of
obligations under, or an early termination of, all transactions outstanding
under the documentation applicable to that Specified Transaction; or

(4)           disaffirms, disclaims, repudiates or
rejects, in whole or in part, or challenges the validity of, a Specified
Transaction or any credit support arrangement relating to a Specified
Transaction that is, in either case, confirmed or evidenced by a document or
other confirming evidence executed and delivered by that party. Credit Support
Provider or Specified Entity (or such action is taken by any person or entity
appointed or empowered to operate it or act on its behalf);

 	 
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(vi)          Cross-Default. If “Cross-Default” is specified in the Schedule as applying
to the party, the occurrence or existence of: —

(1)           a default, event of default or other
similar condition or event (however described) in respect of such party, any
Credit Support Provider of such party or any applicable Specified Entity of
such party under one or more agreements or instruments relating to Specified
Indebtedness of any of them (individually or collectively) where the aggregate
principal amount of such agreements or instruments, either alone or together
with the amount, if any, referred to in clause (2) below, is not less than the applicable Threshold Amount (as
specified in the Schedule) which has resulted in such Specified Indebtedness
becoming, or becoming capable at such time of being declared, due and payable
under such agreements or instruments before it would otherwise have been due
and payable; or

(2)           a default by such party, such Credit
Support Provider or such Specified Entity (individually or collectively) in
making one or more payment under such agreements or instruments on the due date
for payment (after giving effect to any applicable notice requirement or grace
period) in an aggregate amount, either alone or together with the amount, if
any, referred to in clause (1) above, of not less than the applicable Threshold
Amount;

(vii)         Bankruptcy. The party, any Credit Support Provider of such party or any
applicable Specified Entity
of such party; —

(1) is dissolved (other
than pursuant to a consolidation, amalgamation or merger); (2) becomes
insolvent or is unable to pay its debts or fails or admits in writing its
inability generally to pay its debts as they become due; (3) makes a general
assignment, arrangement or composition with or for the benefit of its
creditors; (4)(A) institutes or has instituted against it, by a regulator,
supervisor or any similar official with primary insolvency, rehabilitative or
regulatory jurisdiction over it in the jurisdiction of its incorporation or
organization or the jurisdiction of its head or home office, a proceeding seeking
a judgment of insolvency or bankruptcy or any other relief under any bankruptcy
or insolvency law or other similar law affecting creditors’ rights, or a
petition is presented for its winding-up or liquidation by it or such
regulator, supervisor or similar official, or (B) has instituted against it a
proceeding seeking a judgment of insolvency or bankruptcy or any other relief
under any bankruptcy or insolvency law or other similar law affecting creditors’
rights, or a petition is presented for its winding-up or liquidation, and such
proceeding or petition is instituted or presented by a person or entity not
described in clause (A) above and either (I) results in a judgment of
insolvency or bankruptcy or the entry of an order for relief or the making of
an order for its winding-up or liquidation or (II) is not dismissed,
discharged, stayed or restrained in each case within 15 days of the institution
or presentation thereof; (5) has a resolution passed for its winding-up
official management or liquidation (other than pursuant to a consolidation,
amalgamation or merger); (6) seeks or becomes subject to the appointment of an
administrator provisional liquidator, conservator, receiver, trustee, custodian
or other similar official for it or for all or substantially all its assets;
(7) has a secured party take possession of all or substantially all its assets
or has a distress, execution, attachment, sequestration or other legal process
levied, enforced or sued on or against all or substantially all its assets and
such secured party maintains possession, or any such process is not dismissed,
discharged, stayed or restrained, in each case within 15 days thereafter; (8)
causes or is subject to any event with respect to it which, under the
applicable laws of any jurisdiction, has an analogous effect to any of the
events specified in clauses (I) to (7) above (inclusive); or (9) takes any
action in furtherance of, or indicating its consent to, approval of, or
acquiescence in, any of the foregoing acts; or

 	 
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(viii)        Merger Without Assumption. The party or any Credit Support Provider
of such party consolidates or amalgamates with, or merges with or into, or
transfers all or substantially all its assets to, or reorganises,
reincorporates or reconstitutes into or as, another entity and, at the time of
such consolidation, amalgamation, merger, transfer, reorganisation,
reincorporation or reconstitution: —

(1)           the resulting, surviving or
transferee entity fails to assume all the obligations of such party or such
Credit Support Provider under this Agreement or any Credit Support Document to
which it or its predecessor was a party; or

(2)           the benefits of any Credit Support
Document fail to extend (without the content of the other party) to the
performance by such resulting, surviving or transferee entity of its
obligations under this Agreement.

(b)           Termination Events. The occurrence at any time with respect to a party or, if
applicable, any Credit Support Provider of such party or any Specified Entity
of such party of any event specified below constitutes (subject to Section
5(c)) an illegality if the event is specified in clause (i) below, a Force
Majeure Event if the event is specified in clause (ii) below, a Tax Event if
the event is specified in clause
(iii) below, a Tax Event Upon Merger if the event is specified in clause (iv)
below, and, if specified to be applicable, a Credit Event Upon Merger if the
event is specified pursuant to clause (v) below or an Additional Termination
Event if the event is specified pursuant to clause (vi) below:—

(i)            Illegality. After giving effect to any applicable provision, disruption fallback
or remedy specified in, or pursuant to, the relevant Confirmation or elsewhere
in this Agreement, due to an event or circumstance (other than any action taken
by a party or, if applicable, any Credit Support Provider of such party)
occurring after a Transaction is entered into, it becomes unlawful under any
applicable law (including without limitation the laws of any country in which
payment, delivery or compliance is required by either party or any Credit
Support Provider, as the case may be), on any day, or it would be unlawful if
the relevant payment, delivery or compliance were required on that day (in each
case, other than as a result of a breach by the party of Section 4(b)): —

(1)           for the Office through which such
party (which will be the Affected Party) makes and receives payments or
deliveries with respect to such Transaction to perform any absolute or
contingent obligation to make a payment or delivery in respect of such
Transaction, to receive a payment or delivery in respect of such Transaction or
to comply with any other material provision of this Agreement relating to such
Transaction; or

(2)           for such party or any Credit Support
Provider of such party (which will be the Affected Party) to perform any
absolute or contingent obligation to make a payment or delivery which such
party or Credit Support Provider has under any Credit Support Document relating
to such Transaction, to receive a payment or delivery under such Credit Support
Document or to comply with any other material provision of such Credit Support
Document;

(ii)           Force Majeure Event. After giving effect to any applicable
provision, disruption fallback or remedy specified in, or pursuant to, the
relevant Confirmation or elsewhere in this Agreement, by reason of force
majuere or act of state occurring after a Transaction is entered into, on any
day: —

(1)           the Office through which such party
(which will be the Affected Party) makes and receives payments or deliveries
with respect to such Transaction is prevented from performing any absolute or
contingent obligation to make a payment or delivery in respect of such
Transaction, from receiving a payment or delivery in respect of such
Transaction or from complying with any other material provision of this
Agreement relating to such Transaction (or would be so prevented if such
payment, delivery or compliance were required on that day), or it becomes
impossible or

 	 
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impracticable for such Office so to
perform, receive or comply (or it would be impossible or impracticable
for such Office so to perform, receive or comply if such payment, delivery of compliance were required on that
day); or

(2)           such party or any Credit Support
Provider of such party (which will be the Affected Party) is prevented from
performing any absolute or contingent obligation to make a payment or delivery
which such party or Credit Support Provider has under any Credit Support
Document relating to such Transaction, from receiving a payment or delivery
under such Credit Support Document or from complying with any other material
provision of Such Credit Support Document (or would be so prevented if such
payment, delivery or compliance were required on that day), or it becomes
impossible or impracticable for such party or Credit Support Provider so to
perform, receive or comply (or it would be impossible or impracticable for such
party or Credit Support Provider so to perform, receive or comply if such
payment, delivery or compliance were required on that day),

so long as the force
majeure or act of state is beyond the control of such Office, such party or
such Credit Support Provider, as appropriate, and such Office, party or Credit
Support Provider could not, after using all reasonable efforts (which will not
require such party or Credit Support Provider to incur a loss, other than immaterial, incidental expenses), overcome
such prevention, impossibility or impracticability;

(iii)          Tax Event. Due to (I) any action taken by a taxing authority, or brought in a
court of competent jurisdiction, after a Transaction is entered into
(regardless of whether such action is taken or brought with respect to a party
to this Agreement) or (2) a Change in Tax Law, the party (which will be the
Affected Party) will, or there is a substantial likelihood that it will, on the
next succeeding Scheduled
Settlement Date (A) be required to pay to the other party an additional amount
in respect of an indemnifiable Tax under Section 2(d)(i)(4) (except in respect
of interest under Section 9(h)) or (B) receive a payment from which an amount
is required to be deducted or withheld for or on account of a Tax (except in
respect of interest under Section 9(h)) and no additional amount is required to
be paid in respect of such Tax under Section 2(d)(i)(4) (other than by reason
of Section 2(d)(i)(4)(A) or (B));

(iv)          Tax Event Upon Merger. The party (the “Burdened Party”) on the
next succeeding Scheduled Settlement Date will either (1) be required to pay an
additional amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4)
(except in respect of interest under
Section 9(h)) or (2) receive a payment from which an amount has been deducted
or withheld for or on account of any Tax in respect of which the other party is
not required to pay an additional amount (other than by reason of Section
2(d)(i)(4)(A) or (B)), in either case as a result of a party consolidating or
amalgamating with, or merging with or into, or transferring all or
substantially all its assets (or any substantial part of the assets comprising the business conducted
by it as of the of this Master Agreement) to, or reorganising, reincorporating
or reconstituting into or as, another entity (which will be the Affected Party)
where such action does not constitute a Merger
Without Assumption;

(v)           Credit Event Upon Merger. If “Credit Event Upon Merger” is
specified in the Schedule as applying to the party, a Designated Event (as
defined below) occurs with respect to such party, any Credit Support Provider
of such party or any applicable Specified Entity of such party (in each case, “X”)
and such Designated Event docs not constitute a Merger Without Assumption, and
the creditworthiness of X or, if applicable, the successor, surviving or
transferee entity of X, after taking into account any applicable Credit Support
Document, is materially weaker
immediately after the occurrence of such Designated Event than that of X
immediately prior to the occurrence of such Designated Event (and, in any such
event, such party or its successor, surviving or transferee entity, as
appropriate, will be the Affected Party). A “Designated Event” with respect to
X means that: —

(1)           X consolidates or amalgamates with,
or merges with or into, or transfers all or substantially all its assets (or
any substantial part of the assets comprising the business conducted by X as of
the

 	 
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date of this Master Agreement) to, or
reorganises, reincorporates or reconstitutes into or as, another entity;

(2)           any person, related
group of persons or entity acquires directly or indirectly the beneficial
ownership of (A) equity securities having the power to elect a majority of the
board of directors (or its equivalent) of X or (B) any other ownership interest
enabling it to exercise control of X; or

(3)           X effects any
substantial change in its capital structure by means of the issuance,
incurrence or guarantee of debt or the issuance of (A) preferred stock or other
securities convertible into or exchangeable for debt or preferred stock or (B)
in the case of entities other than corporations, any other form of ownership interest; or

(vi)          Additional Termination Event. If
any “Additional Termination Event” is specified in the Schedule or any
Confirmation as applying, the occurrence of such event (and, in such event, the
Affected Party or Affected Parties will be as specified for such Additional
Termination Event in the Schedule or such Confirmation).

(c)           Hierarchy of Events.

(i)            An event or circumstance that
constitutes or gives rise to an Illegality or a Force Majeure Event will not,
for so long as that is the case, also constitute or give rise to an Event of
Default under Section 5(a)(i), 5(a)(ii)(1) or 5(a)(iii)(1) insofar as such
event or circumstance relates to the failure to make any payment or delivery or
a failure to comply with any other material provision of this Agreement or a
Credit Support Document, as the case may be.

(ii)           Except in circumstances contemplated
by clause (i) above, if an event or circumstance which would otherwise
constitute or give rise to an Illegality or a Force Majeure Event also
constitutes an Event of Default or any other Termination Event, it will be
treated as an Event of Default or such other Termination Event, as the case may
be, and will not constitute or give rise to an Illegality or a Force Majeure
Event.

(iii)          If an event or circumstance which
would otherwise constitute or give rise to a Force Majeure Event also
constitutes as Illegality, it will be treated as an Illegality, except as
described in clause (ii) above, and not a Force Majeure Event.

(d)           Deferral of Payment and Deliveries
During Waiting Period. If
an Illegality or a Force Majeure Event has occurred and is continuing with
respect to a Transaction, each payment or delivery which would otherwise be
required to be made under that Transaction will be deferred to, and will not be
due until: —

(i)            the first Local Business Day or, in
the case of a delivery, the first Local Delivery Day (or the first day that
would have been a Local Business Day or Local Delivery Day, as appropriate, but
for the occurrence of the event or circumstance constituting or giving rise to
that Illegality or Force Majeure Event) following the end of any applicable
Waiting Period in respect of that Illegality or Force Majeure Event, as the
case may be; or

(ii)           if earlier, the date on which the
event or circumstance constituting or giving rise to that Illegality or Force
Majeure Event ceases to exist or, if such date is not a Local Business Day or,
in the case of a delivery, a Local Delivery Day, the first following day that
is a Local Business Day or Local Delivery Day, as appropriate.

(e)           Inability of Head or Home Office to Perform Obligations of
Brunch. If (i) an
Illegality or a Force Majeure Event occurs under Section 5(b)(i)(1) or
5(b)(ii)(1) and the relevant Office is not the Affected Party’s head or home
office, (ii) Section 10(a) applies, (iii) the other party seeks performance of
the relevant obligation or

 	 
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compliance with the relevant provision by the
Affected Party’ s head or home office and (iv) the Affected Party’s head or
home office Falls so to perform or comply due to the occurrence of an event or
circumstance which would; if that head or home office were the Office through
which the Affected Party makes and receives payments and deliveries with
respect to the relevant Transaction, constitute or give rise to an Illegality
or a Force Majeure Event, and such failure would otherwise constitute an Event
of Default under Section 5(a)(i) or 5(a)(iii)(1) with respect to such party,
then, for so long as the relevant event or circumstance continues to exist with
respect to both the Office referred to in Section 5(b)(i)(1) or 5(b)(ii)(1), as
the case may be, and the Affected Party’s head or home office, such failure
will not constitute an Event of Default under Section 5(a)(i) or 5(a)(iii)(l).

6.             Early Termination; Close-Out Netting

(a)           Right to Terminate Following Event of Default. If at any time an Event of Default with
respect to a party (the “Defaulting Party”) has occurred and is then
continuing, the other party (the “Non-defaulting Party”) may, by not more than
20 days notice to the Defaulting Party specifying the relevant Event of
Default, designate a day not earlier than the day such notice is effective at
an Early Termination Date in respect of all outstanding Transactions. If, however, “Automatic Early Termination” is
specified in the Schedule as applying to a party, then an Early Termination
Date in respect of all outstanding Transactions will occur immediately upon the
occurrence with respect to such party of an Event of Default specified in
Section 5(a) (vii)(1), (3), (5), (6) or,
to the extent analogous thereto, (8), and as of the time immediately preceding
the institution of the relevant proceeding or the presentation of the relevant
petition upon the occurrence with respect to such party of an Event of Default
specified in Section 5(a)(vii)(4) or, to the extent analogous thereto, (8).

(b)           Right to Terminate Following Termination Event.

(i)            Notice. If a Termination Event other than a Force
Majeure Event occurs, an Affected Party will, promptly upon becoming aware of
it, notify the other party, specifying the nature of that Termination Event and
each Affected Transaction, and will also give the other party such other
information about that Termination Event as the other party may reasonably
require. If a Force Majeure Event occurs, each party will, promptly upon
becoming aware of it, use all reasonable efforts to notify the other party,
specifying the nature of that Force Majeure Event, and will also give the other
party such other information about that Force Majeure Event as the other party
may reasonably require.

(ii)           Transfer to Avoid Termination Event. If a Tax Event occurs and there is only
one Affected Party, or if a Tax Event Upon Merger occurs and the Burdened Party
is the Affected Party, the Affected Party will, as a condition to its right to designate an Early Termination
Date under Section 6(b)(iv), use all reasonable efforts (which will not require
such party to incur a loss, other than immaterial, incidental expenses) to
transfer within 20 days after it gives notice under Section 6(b)(i) all its
rights and obligations under this Agreement in respect of the Affected
Transactions to another of its Offices or Affiliates so that such Termination
Event ceases to exist.

If the Affected Party is not
able to make such a transfer it will give notice to the other party to that
effect within such 20 day period, whereupon the other party may effect such a
transfer within 30 days after the notice is given under Section 6(b)(i).

Any such transfer by a party
under this Section 6(b)(ii) will be subject to and conditional upon the prior
written consent of the other party, which consent will not be withheld if such
other party’s policies in effect at such time would permit it to enter into
transactions with the transferee on the terms proposed.

(iii)          Two
Affected Parties. If
a Tax Event occurs and there are two Affected Parties, each party will use all
reasonable efforts to reach agreement within 30 days after notice of such
occurrence is given under Section 6(b)(i) to avoid that Termination Event.

 	 
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(iv)          Right
to Terminate.

(1)           If
:—

(A)          a transfer under Section 6(b)(ii) or
an agreement under Section 6(b)(iii), as the case may be, has not been effected
with respect to all Affected Transactions within 30 days after an Affected
Party gives notice under Section 6(b)(i); or

(B)           a Credit Event Upon Merger or an
Additional Termination Event occurs, or a Tax Event Upon Merger occurs and the
Burdened Party is not the Affected Party.

the
Burdened Party in the case of a Tax Event Upon Merger, any Affected Party in
the case of a Tax Event or an Additional Termination Event if there are two
Affected Parties, or the Non- affected Party in the case of a Credit Event Upon
Merger or an Additional Termination Event if there is only one Affected Party
may, if the relevant Termination Event is then continuing, by not more than 20
days notice to the other party, designate a day not earlier than the day such
notice is effective as an Early Termination Date in respect of all Affected
Transaction.

(2)           If at any time an Illegality or a
Force Majeure Event has occurred and is then continuing and any applicable
Waiting Period has expired: —

(A)          Subject to clause (B) below, either
party may, by not more than 20 days notice to the other party, designate (I) a
day not earlier than the day on which such notice becomes effective as an Early
Termination Date in respect of all Affected Transactions or (II) by specifying
in that notice the Affected Transactions in respect of which it is designating
the relevant day as an Early Termination Date, a day not earlier than two Local
Business Days following the day on which such notice becomes effective as an
Early Termination Date in respect of less than all Affected Transactions. Upon
receipt of a notice designating an Early Termination Date in respect of less
than all Affected Transaction, the other party may, by notice to the
designating party, if such notice is effective on or before the day so
designated, designate that same day as an Early Termination Date in respect of
any or all other Affected Transactions.

(B)           An Affected Party (if the Illegality
or Force Majeure Event relates to performance by such party or any Credit
Support Provider of such party of an obligation to make any payment or delivery
under, or to compliance with any other material provision of, the relevant
Credit Support Document) will only have the right to designate an Early
Termination Data under Section 6(b)(iv)(2)(A) as a result of an Illegality
under Section 5(b)(i)(2) or a Force Majeure Event under Section 5(b)(ii)(2)
following the prior designation by the other party of an Early Termination
Date, pursuant to Section 6(b)(iv)(2)(A), in respect of less than all Affected
Transaction.

(c)           Effect of Designation.

(i)            If notice designating an Early Termination Date is given
under Section 6(a) or 6(b), the Early Termination Date will occur on the date
an designated, whether or not the relevant Event of Default or Termination
Event is then continuing.

(ii)           Upon the occurrence or effective designation of an Early
Termination Date, no further payments or deliveries under Section 2(a)(i)
or 9(h)(i) in respect of the
Terminated Transactions will be required to be made, but without prejudice to the other provisions of this Agreement.
The amount, if any, payable in respect of an Early Termination Date will be
determined pursuant to Sections 6(e) and 9(h)(ii).

 	 
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(d)           Calculations; Payment Date.

(i)            Statement.
On or as soon as reasonably practicable following the occurrence
of an Early Termination Date, each party will make the calculations on its
part, if any, contemplated by Section 6(e) and will provide to the other party
a statement (1) showing, in reasonable detail, such calculations (including any
quotations,  market data or information
from internal sources used in making such calculations), (2) specifying (except
where there are two Affected Parties) any Early Termination Amount payable and
(3) giving details of the relevant account to which any amount payable to it is
to be paid. In the absence of written confirmation from the source of a
quotation or market data obtained in determining a Close-out Amount, the
records of the party obtaining such quotation or market data will be conclusive
evidence of the existence and accuracy of such quotation or market data.

(ii)           Payment
Date. An Early
Termination Amount due in respect of any Early Termination Date will, together
with any amount of interest payable pursuant to Section 9(b)(ii)(2), be payable
(1) on the day on which notice of the amount payable is effective in the case
of an Early Termination Date which is designated or occurs as a result of an
Event of Default and (2) on the day which is two Local Business Days after the
day on which notice of the amount payable is effective (or, if there are two
Affected Parties, after the day on which the statement provided pursuant to
clause (i) above by the second party to provide such a statement is effective)
in the case of an Early Termination Date which is designated as a result of a
Termination Event.

(e)           Payments on Early Termination. If an Early Termination Date occurs, the
amount, if any, payable in respect of that Early Termination Date (the “Early
Termination Amount”) will be determined pursuant to this Section 6(e) and will
be subject to

Section 6(f).

(i)            Events
of Default. If the
Early Termination Date results from an Event of Default, the Early Termination
Amount will be an amount equal to (I) the sum of (A) the Termination Currency
Equivalent of the Close-out Amount or close-out Amounts (whether positive or
negative) determined by the Non- defaulting Party for each Terminated
Transaction or group of Terminated Transactions, as the case may be, and (B)
the Termination Currency Equivalent of the Unpaid Amounts owing to the
Non-defaulting Party less (2) the Termination Currency Equivalent of the Unpaid
Amounts owing to the Defaulting Party. If the Early Termination Amount is a
positive number, the Defaulting Party will pay it to the Non-defaulting Party;
if it is a negative number, the Non-defaulting Party will pay the absolute
value of the Early Termination Amount  to
the Defaulting Party.

(ii)           Termination
Events. If the
Early Termination Date results from a Termination Event: —

(1)           One Affected Party.  Subject
to clause (3) below, if there is one Affected Party, the Early Termination
Amount will be determined in accordance with Section 6(e)(i), except that references
to the Defaulting Party and to the Non-defaulting Party will be deemed to be
references to the Affected Party and to the Non-affected Party, respectively.

(2)           Two Affected Parties. Subject to clause (3) below, if there are two Affected Parties,
each party will determine an amount equal to the Termination Currency
Equivalent of the sum of the Close-out Amount or Close-out Amounts (whether
positive or negative) for each Terminated Transaction or group of Terminated
Transactions, as the case may be, and the Early Termination Amount will be an
amount equal to (A) the sum of (I) one-half of the difference between the
higher amount so determined (by party “X”) and the lower amount so determined
(by party “Y”) and (II) the Termination Currency Equivalent of the Unpaid
Amounts owing to X less (B) the Termination
Currency Equivalent of the Unpaid Amounts owing to Y. If the Early Termination
Amount is a positive number, Y will pay it to X; if it is a negative number, X
will pay the absolute value of the Early Termination Amount to Y.

 	 
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(3)           Mid-Market Events. If that Termination Event
is an Illegality or a Force Majeure Event, then the Early Termination Amount
will be determined in accordance with clause (I) or (2) above, as appropriate,
except that, for the purpose of determining a Close-out Amount or Close-out
Amounts, the Determining party will: —

(A)          if obtaining quotations from one or
more third parties (or from any of the Determining Party’s Affiliates), ask
each third party or Affiliate (I) not to take account of the current
creditworthiness of the Determining Party or any existing Credit Support
Document and (II) to provide mid-market quotations; and

(B)           in any other case, use mid-market
values without regard to the creditworthiness of the Determining Party.

(iii)          Adjustment
for Bankruptcy. In
circumstances where an Early Termination Date occurs because Automatic Early
Termination applies in respect of a party, the Early Termination Amount will be
subject to such adjustments as are appropriate and permitted by applicable law
to reflect any payments or deliveries made by one party to the other under this
Agreement (and retained by such other party) during the period from the
relevant Early Termination Date to the date for payment determined under
Section 6(d)(ii).

(iv)          Adjustment
for Illegality or  Force Majeure
Event. The failure
by a party or any Credit Support Provider of such party to pay, when due, any
Early Termination Amount will not constitute an Event of Default under Section
5(a)(i) or 5(a)(iii)(l) if such failure is due to the occurrence of an event or
circumstance which would, if it occurred with respect to payment, delivery or
compliance related to a Transaction, constitute or give rise to an Illegality
or a Force Majeure Event. Such amount will (I) accrue interest and otherwise be
treated as an Unpaid Amount owing to the other party if subsequently an Early
Termination Date results from an Event of Default, a Credit Event Upon Merger
or an Additional Termination Event in respect of which all outstanding
Transactions are Affected Transactions and (2) otherwise accrue interest in
accordance with Section 9(b)ii)(2).

(v)           Pre-Estimate. The parties agree that an amount
recoverable under this Section 6(e) is a reasonable pre-estimate of loss and
not a penalty. Such amount is payable for the loss of bargain and the loss of
protection against future risks, and, except as otherwise provided in this
Agreement, neither party will be entitled to recover any additional damages as
a consequence of the termination of the Terminated Transactions.

(f)            Set-off. Any
Early Termination Amount payable to on a party (the “Payee”) by the other party
(the “Payer”), in circumstances where there is a Defaulting Party or where
there is one Affected Party in the case where either a Credit Event Upon Merger
has occurred or any other Termination Event in respect of which all outstanding
Transactions are Affected Transactions has occurred, will, at the option of the
Non-defaulting Party or the Non-affected Party, as the case may be (“X”) (and
without prior notice to the Defaulting Party or the Affected Party, as the case
may be), be reduced by its set-off against any other amounts (“Other Amounts”)
payable by the Payee to the Payer (whether or not arising under this Agreement,
matured or contingent and irrespective of the currency, place of payment or
place of booking of the obligation). To the extent that any Other Amounts are
so set off, those Other Amounts will be discharged promptly and in all
respects. X will give notice to the other party of any set-off effected under
this Section 6(f).

For
this purpose, either the Early Termination Amount or the Other Amounts (or the
relevant portion of such amounts) may be converted by X into the currency in
which the other is denominated at the rate of exchange at which such party
would be able, in good faith and using commercially reasonable procedures, to
purchase the relevant amount of such currency.

 	 
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If an obligation is unascertained, X may in good
faith estimate that obligation and set off in respect of the estimate, subject
to the relevant party accounting to the other when the obligation is
ascertained.

Nothing in this Section 6(f) will be effective to
create a charge or other security interest. This Section 6(f) will be without
prejudice and in addition to any right of set-off, offset, combination of
accounts, lien, right of retention or withholding or similar right or
requirement to which any party is at any time otherwise entitled or subject
(whether by operation of law, contract or otherwise).

7.             Transfer

Subject to Section 6(b)(ii) and to the extent
permitted by applicable law, neither this Agreement nor any interest or
obligation in or under this Agreement may be transferred (whether by way of
security or otherwise) by either party without the prior written consent of the
other party, except that: —

(a)           a
party may make such a transfer of this Agreement pursuant to a consolidation or
amalgamation with, or merger with or into, or transfer of all or substantially
all its assets to, another entity (but without prejudice to any other right or
remedy under this Agreement); and

(b)           a
party may make such a transfer of all or any part of its interest in any Early
Termination Amount payable to it by a Defaulting Party, together with any
amounts payable on or with respect to that interest and any other rights
associated with that interest pursuant to Sections 8, 9(b) and 11.

Any purported transfer that is not in compliance with
this Section 7 will be void.

8.             Contractual
Currency

(a)           Payment in the Contractual Currency. Each payment under this Agreement will be
made in the relevant currency specified in this Agreement for that payment (the “Contractual Currency”). To the
extent permitted by applicable law, any obligation to make payments under this
Agreement in the Contractual Currency will not be discharged or satisfied by
any tender in any currency other than the Contractual Currency, except to the
extent such tender results in the actual receipt by the party to which payment
is owed, acting in good faith and using commercially reasonable procedures in
converting the currency so tendered into the Contractual Currency, of the full
amount in the Contractual Currency of all amounts payable in respect of this
Agreement.  If for any reason the amount
in the Contractual Currency so received falls short of the amount in the
Contractual Currency payable in respect of this Agreement, the party required
to make the payment will, to the extent permitted by applicable law,
immediately pay such additional amount in the Contractual Currency as may be
necessary to compensate for the shortfall. If for any reason the amount in the
Contractual Currency so received exceeds the amount in the Contractual Currency
payable in respect of this Agreement, the party receiving the payment will
refund promptly the amount of such excess.

(b)           Judgments. To the extent permitted by applicable
law, if any judgment or order expressed in a currency other than the
Contractual Currency is rendered (i) for the payment of any amount owing in respect
of this Agreement, (ii) for the payment of any amount relating to any early
termination in respect of this Agreement or (iii) in respect of a judgment or
order of another court for the payment of any amount described in clause (i) or
(ii) above, the party seeking recovery, after recovery in full of the aggregate
amount to which such party is entitled pursuant to the judgment or order, will
be entitled to receive immediately from the other party the amount of any
shortfall of the Contractual Currency received by such party as a consequence
of sums paid in such other currency and will refund promptly to the other party
any excess of the Contractual Currency received by such party as a consequence
of sums paid in such other currency if such shortfall or such excess arises or
results from any variation between the rate of exchange at which the
Contractual Currency is converted into the currency of the judgment or order
for the purpose of such judgment or order and the rate of exchange at which
such party is able, acting in good faith and using

 	 
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commercially
reasonable procedures in converting the currency received into the Contractual
Currency, to purchase the Contractual Currency with the amount of the currency
of the judgment or order actually received by such party.

(c)           Separate Indemnities. To
the extent permitted by applicable law, the indemnities in this Section 8
constitute separate and independent obligations from the other obligations in
this Agreement, will be enforceable as separate and independent cases of
action, will apply notwithstanding any indulgence granted by the party to which
any payment is owed and will not be affected by judgment being obtained or
claim or proof being made for any other sums payable in respect of this
Agreement.

(d)           Evidence of Loss. For
the purpose of this Section 8, it will be sufficient for a party to demonstrate
that it would have suffered a loss had an actual exchange or purchase been
made.

9.             Miscellaneous

(a)           Entire Agreement. This Agreement constitutes the
entire agreement and understanding of the parties with respect to its subject
matter. Each of the parties acknowledges that in entering into this Agreement
it has not relied on any oral or written representation, warranty or other
assurance (except as provided for or referred to in this Agreement) and waives
all rights and remedies which might or herwise be available to it in respect
thereof, except that nothing in this Agreement will limit or exclude any
liability of a party for fraud.

(b)           Amendments. 
An amendment, modification or waiver in respect of this Agreement will
only be effective if in writing (including a writing evidenced by a facsimile
transmission) and executed by each of the parties or confirmed by an exchange
of telexes or by an exchange of electronic messages on an electronic messaging
system.

(c)           Survival of Obligations.   Without prejudice to Sections 2(a)(iii) and
6(c)(ii), the obligations of the parties under this Agreement will survive the
termination of any Transaction.

(d)           Remedies Cumulative.  Except as provided in this
Agreement, the rights, powers, remedies and privileges provided in this
Agreement are cumulative and not exclusive of any rights, powers, remedies and
privileges provided by law.

(e)           Counterparts and Confirmations.

(i)            This
Agreement (and each amendment, modification and waiver in respect of it) may be
executed and delivered in counterparts (including by facsimile transmission and
by electronic messaging system), each of which will be deemed an original.

(ii)           The
parties intend that they are legally bound by the terms of each ransaction from
the moment they agree to those terms (whether orally or otherwise). A
Confirmation will be entered into as soon as practicable and may be executed
and delivered in counterparts (including by facsimile transmission) or be
created by an exchange of telexes, by an exchange of electronic messages on an
electronic messaging system or by an exchange of e-mails, which in each case
will be sufficient for all purposes to evidence a binding supplement to this
Agreement. The parties will specify therein or through another effective means
that any such counterpart, telex, electronic message or e-mail constitutes a
Confirmation.

(f)            No Waiver of Rights.  A failure or delay in exercising any right,
power or privilege in respect of this Agreement will not be presumed to operate
as a waiver, and a single or partial exercise of any right, power or privilege
will not be presumed to preclude any subsequent or further exercise, of that
right, power or privilege or the exercise of any other right, power or
privilege.

(g)           Headings.  The headings used in this
Agreement are for convenience of reference only and are not to affect the
construction of or to be taken into consideration in interpreting this
Agreement.

 	 
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(h)                                 Interest and Compensation.

(i)            Prior
to Early Termination.  Prior
to the occurrence or effective designation of an Early Termination Date in
respect of the relevant Transaction:—

(1)           Interest on Defaulted Payments.  If
a party defaults in the performance of any payment obligation, it will, to the
extent permitted by applicable law and subject to Section 6(c), pay interest
(before as well as after judgment) on the overdue amount to the other party on
demand in the same currency as the overdue amount, for the period from (and
including) the original due date for payment to (but excluding) the date of
actual payment (and excluding any period in respect of which interest or
compensation in respect of the over due amount is due pursuant to clause (3)(B)
or (C) below), at the Default Rate.

(2)           Compensation for Defaulted Deliveries.  If a party defaults in the performance of any
obligation required to be settled by delivery, it will on demand (A) compensate
the other party to the extent provided for in the relevant Confirmation or
elsewhere in this Agreement and (B) unless otherwise provided in the relevant
Confirmation or elsewhere in this Agreement, to the extent permitted by
applicable law and subject to Section 6(c), pay to the other party interest
(before as well as after judgment) on an amount equal to the fair market value
of that which was required to be delivered in the same currency as that amount,
for the period from (and including) the originally scheduled date for delivery
to (but excluding) the date of actual delivery (and excluding any period in
respect of which interest or compensation in respect of that amount is due
pursuant to clause (4) below), at the Default Rate. The fair market value of
any obligation referred to above will be determined as of the originally
scheduled date for delivery, in good faith and using commercially reasonable
procedures, by the party that was entitled to take delivery.

(3)           Interest on Deferred Payments.   If:—

(A)          a
party does not pay any amount that, but for Section 2(a)(iii), would have been
payable, it will, to the extent permitted by applicable law and subject to
Section 6(c) and clauses (B) and (C) below, pay interest (before as well as
after judgment) on that amount to the other party on demand (after such amount
becomes payable) in the same currency as that amount, for the period from (and
including) the date the amount would, but for Section 2(a)(iii), have been
payable to (but excluding) the date the amount actually becomes payable, at the
Applicable Deferral Rate;

(B)           a
payment is deferred pursuant to Section 5(d), the party which would otherwise
have been required to make that payment will, to the extent permitted by
applicable law, subject to Section 6(c) and for so long as no Event of Default
or Potential Event of Default with respect to that party has occurred and is
continuing, pay interest (before as well as after judgment) on the amount of
the deferred payment to the other party on demand (after such amount becomes
payable) in the same currency as the deferred payment, for the period from (and
including) the date the amount would, but for Section 5(d), have been payable
to (but excluding) the earlier of the date the payment is no longer deferred
pursuant to Section 5(d) and the date during the deferral period upon which an
Event of Default or Potential Event of Default with respect to that party
occurs, at the Applicable Deferral Rate; or

(C)           a
party fails to make any payment due to the occurrence of an Illegality or a
Force Majeure Event (after giving effect to any deferral period contemplated by
clause (B) above), it will, to the extent permitted by applicable law, subject
to Section 6(c) and for so long as the event or circumstance giving rise to
that Illegality or Force Majeure Event

 	 
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continues and no Event of Default or Potential Event
of Default with respect to that party has occurred and is continuing, pay
interest (before as well as after judgment) on the overdue amount to the other
party on demand in the same currency as the overdue amount, for the period from
(and including) the date the party fails to make the payment due to the
occurrence of the relevant illegality or Force Majeure Event (or, if later, the
date the payment is no longer deferred pursuant to Section 5(d)) to (but
excluding) the earlier of the date the event or circumstance giving rise to
that Illegality or Force Majeure Event ceases to exist and the date during the
period upon which an event of Default or Potential Event of Default with
respect to that party occurs (and excluding any period in respect of which
interest or compensation in respect of the overdue amount is due pursuant to
clause (B) above), at the Applicable Deferral Rate.

(4)           Compensation for Deferred Deliveries. If: —

(A)          a
party does not perform any obligation that, but for Section 2(a)(iii), would
have been required to be settled by delivery;

(B)           a
delivery is deferred pursuant to Section 5(d); or

(C)           a
party fails to make a delivery due to the occurrence of an Illegality or a
Force Majeure Event at a time when any applicable Waiting Period has expired.

the party required (or that would otherwise have been
required) to make the delivery will, to the extent permitted by applicable law
and subject to Section 6(c), compensate and pay interest to the other party on
demand (after, in the case of clauses (A) and (B) above, such delivery is
required) if and to the extent provided for in the relevant Confirmation or
elsewhere in this Agreement.

(ii)           Early Termination. 
Upon the occurrence or effective designation of an Early
Termination Date in respect of a Transaction: —

(1)           Unpaid Amounts. For the purpose of determining an Unpaid
Amount in respect of the relevant Transaction, and to the extent permitted by
applicable law, interest will accrue on the amount of any payment obligation or
the amount equal to the fair market value of any obligation required to be
settled by delivery included in such determination in the same currency as that
amount, for the period from (and including) the date the relevant obligation
was (or would have been but for Section 2(a)(iii) or 5(d)) required to have
been performed to (but excluding) the relevant Early Termination Date, at the
Applicable Close-out Rate.

(2)           Interest on Early Termination Amounts.  If an Early Termination Amount is due in
respect of such Early Termination Date, the amount will, to the extent
permitted by applicable law, be paid together with interest (before as well as
after judgment) on that amount in the Termination Currency, for the period from
(and including) such Early Termination Date to (but excluding) the date the
amount is paid, at the Applicable Close-out Rate.

(iii)          Interest Calculation.  Any interest pursuant to this
Section 9(h), will be calculated on the basis of daily compounding and the
actual member of days elapsed.

 	 
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10.          Offices; Multibranch Parties

(a)           If
Section 10(a) is specified in the Schedule as applying, each party that enters
into a Transaction through an Office other than is head or home office
represents to and agrees with the other party that, notwithstanding the place
of booking or its jurisdiction of incorporation or organisation, its
obligations are the same in terms of recourse against it as if it had entered
into the Transaction through its head or home office, except that a party will
not have recourse to the head or home office of the other party in respect of
any payment or delivery deferred pursuant to Section 5(d) for so long as the
payment or delivery is so deferred. This representation and agreement will be
deemed to be repeated each party on each date on which the parties enter into a
Transaction.

(b)           If a party is specified as a
Multibranch Party in the Schedule, such party may, subject to clause (c) below,
enter into a Transaction through, book a Transaction in and make and receive
payments and deliveries with respect to a Transaction through any Office listed
in respect of that party in the Schedule (but not any other Office unless
otherwise agreed by the parties in writing).

(c)           The Office through which a party
enters into a Transaction will be the Office specified for that party in the
relevant Confirmation or as otherwise agreed by the parties in writing, and, if
an Office for that party is not specified in the Confirmation or otherwise
agreed by the parties in writing, its head or home office. Unless the parties
otherwise agree in writing, the Office through which a party enters into a
Transaction will also be the Office in which it books the Transaction and the
Office through which it makes and receives payments and deliveries with respect
to the Transaction. Subject to Section 6(b)(ii), neither party may change the
Office in which it books the Transaction or the Office through which it makes
and receives payments or deliveries with respect to a Transaction without the
prior written consent of the other party.

11.          Expenses

A Defaulting Party
will on demand indemnify and hold harmless the other party for and against all
reasonable out-of-pocket expenses, including legal fees, execution fees and
Stamp Tax, incurred by such other party by reason of the enforcement and
protection of its rights under this Agreement or any Credit Support Document to
which the Defaulting Party is a party or by reason of the early termination of
any Transaction, including but not limited to, costs of collection.

12.          Notices

(a)           Effectiveness.
Any notice or other communication in respect of this Agreement may be given in
any manner described below (except that a notice or other communication under
Section 5 or 6 may not be given by electronic messaging system or e-mail) to
the address or number or in accordance with the electronic messaging system or
e-mail details provided (see the Schedule) and will be deemed effective as
indicated: —

(i)            if
in writing and delivered in person or by courier, on the date it is delivered;

(ii)           if
sent by telex, on the date the recipient’s answerback is received;

(iii)          if
sent by facsimile transmission, on the date it is received by a responsible
employee of the recipient in legible form (it being agreed that the burden of
proving receipt will be on the sender and will not be met by a transmission
report generated by the sender’s facsimile machine);

(iv)          if
sent by certified or registered mail (airmail, if overseas) or the equivalent
(return receipt requested), on the date it is delivered or its delivery is
attempted;

(v)           if
sent by electronic messaging a system, on the date it is received; or

 	 
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(vi)          if
sent by e-mail, on the date it is delivered,

unless the date of
that delivery (or attempted delivery) or that receipt, as applicable, is not a
Local Business Day or that communication is delivered (or attempted) or
received, as applicable, after the close of business on a Local Business Day,
in which case that communication will be deemed given and effective on the
first following day that is a Local Business Day.

(b)           Change
of Details. Either party may by notice to the other change the
address, telex or facsimile number or electronic messaging system or e-mail
details at which notices or other communications are to be given to it.

13.          Governing Law and Jurisdiction

(a)           Governing
Law.   This Agreement will
be governed by and construed in accordance with the law specified in the
Schedule.

(b)           Jurisdiction.         With respect to any suit, action or
proceedings relating to any dispute arising out of or in connection with this
Agreement (“Proceedings”), each party irrevocably:—

(i)            submits:—

(1)           if
this Agreement is expressed to be governed by English law, to (A) the
non-exclusive jurisdiction of the English courts if the Proceedings do not
involve a Convention Court and (B) the exclusive jurisdiction of the English
courts if the Proceedings do involve a Convention Court; or

(2)           if
this Agreement is expressed to be governed by the laws of the State of New
York, to the non-exclusive jurisdiction of the courts of the State of New York
and the United States District Court located in the Borough of Manhattan in New
York City;

(ii)           waives
any objection which it may have at any time to the laying of venue of any
Proceedings brought in any such court, waives any claim that such Proceedings
have been brought in an inconvenient forum and further waives the right to
object, with respect to such Proceedings, that such court does not have any
jurisdiction over such party: and

(iii)          agrees,
to the extent permitted by applicable law, that this bringing of Proceedings in
any one or more jurisdictions will not preclude the bringing of Proceedings in
any other jurisdiction.

(c)           Service
of Process.  Each party
irrevocably appoints the Process Agent, if any, specified opposite its name in
the Schedule to receive, for it and on its behalf, service of process in any
Proceedings. If for any reason any party’s Process Agent is unable to act as
such, such party will promptly notify the other party and within 30 days
appoint a substitute process agent acceptable to the other party. The parties
irrevocably consent to service or process given in the manner provided for
notices in Section 12(a)(i), 12(a)(iii) or 12(a)(iv). Nothing in this Agreement
will affect the right of either party to serve process in any other manner
permitted by applicable law.

(d)           Waiver
of Immunities.  Each party
irrevocably waives, to the extent permitted by applicable law, with respect to
itself and its revenues and assets (irrespective of their use or intended use),
all immunity on the grounds of sovereignty or other similar grounds from (i)
suit, (ii) jurisdiction of an court, (iii) relief by way of injunction or order
for specific performance or recovery of property, (iv) attachment of its assets
(whether before or after judgment) and (v) execution of enforcement of any
judgment to which it or its revenues or assets might otherwise be entitled in
any Proceedings in the courts of any jurisdiction and irrevocably agrees, to
the extent permitted by applicable law, that it will not claim any such
immunity in any Proceedings.

 	 
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14.          Definitions

As used in this
Agreement:—

“Additional Representation” has the meaning
specified in Section 3.

“Additional Termination Event” has the
meaning specified in Section 5(b).

“Affected Party” has the meaning specified
in Section 5(b).

“Affected Transactions” means (a) with
respect to any Termination Event consisting of an illegality, Force Majeure
Event, Tax Event or Tax Event Upon Merger, all Transactions affected by the
occurrence of such Termination Event (which, in the case of any illegality under
Section 5(b)(i)(2) or a Force Majeure Event under Section 5(b)(ii)(2), means
all Transactions unless the relevant Credit Support Document references only
certain Transactions, in which case those Transactions and, if the relevant
Credit Support Document constitutes a Confirmation for a Transaction, that
Transaction) and (b) with respect to any other Termination Event, all
Transactions.

“Affiliate” means, subject to the Schedule,
in relation to any person, any entity controlled, directly or indirectly, by
the person, any entity that controls, directly or indirectly, the person or any
entity directly or indirectly under common control with the person. For this
purpose, “control” of any entity or person means ownership of a majority of the
voting power of the entity or person.

“Agreement” has the meaning specified in
Section 1(c).

“Applicable Close-out Rate” means:—

(a)           in respect of the determination of an
Unpaid Amount:—

(i)            in
respect of obligations payable or deliverable (or which would have been but for
Section 2(a)(iii)) by a Defaulting Party, the Default Rate;

(ii)           in
respect of obligations payable or deliverable (or which would have been but for
Section 2(a)(iii))

(iii)          in
respect of obligations deferred pursuant of Sections 5(d), if there is no Defaulting
Party and for so long as the deferral period continues, the Applicable Deferred
Rate; and

(iv)          in
all other cases following the occurrence of a Termination Event (except where
interest accrues pursuant to clause (iii) above), the Applicable Deferral Rate;
and

(b)           in respect of an Early Termination
Amount:—

(i)            for
the period from (and including) the relevant Early Termination Date to (but
excluding) the date (determined in accordance with Section 6(d) (ii)) on which
that amount is payable:—

(1)           if
the Early Termination Amount is payable by a Defaulting Party, the Default
Rate;

(2)           if
the Early Termination Amount is payable by a Non-defaulting Party, the
Non-default Rate; and

(3)           in
all other cases, the Applicable Deferral Rate; and

 	 
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(ii)           for
the period from (and including) the date (determined in accordance with Section
6(d)(ii)) on which that amount is payable to (but excluding) the date of actual
payment:—

(1)           if
a party fails to pay the Early Termination a Amount due to the occurrence of an
event or circumstance which would, if it occurred with respect to a payment or
delivery under a Transaction, constitute or give rise to an Illegality or a
Force Majeure Event, and for so long as the Early Termination Amount remains
unpaid due to the continuing existence of such event or circumstance, the
Applicable Deferral Rate;

(2)           if
the Early Termination Amount is payable by a Defaulting Party (but excluding
any period in respect of which clause (1) above applies), the Default Rate;

(3)           if
the Early Terminations Amount is payable by a Non-defaulting Party (but
excluding any period in respect of which clause (1) above applies), the
Non-default Rate; and

(4)           in
all other cases, the Termination Rate.

“Applicable
Deferral Rate” means: —

(a)           for the purpose of Section
9(h)(i)(3)(A), the rate certified by the relevant payer to be a rate offered to
the payer by a major bank in a relevant interbank market for overnight deposits
in the applicable currency, such bank to be selected in good faith by the payer
for the purpose of obtaining a representative rate that will reasonably reflect
conditions prevailing at the time in that relevant market;

(b)           for purposes of Section
(9)(h)(i)(3)(B) and clause (a)(iii) of the definition of Applicable Close-out
Rate, the rate certified by the relevant payer to be a rate offered to prime
banks by a major bank in a relevant interbank market for overnight deposits in
the applicable currency, such bank to be selected in good faith by the payer
after consultation with the other party, if practicable, for the purpose of
obtaining a representative rate that will reasonably reflect conditions
prevailing at the time in that relevant market; and

(c)           for purposes of Section 9(h)(i)(3)(C)
and clause (a)(iv), (b)(i)(3) and (b)(ii)(l) of the definition of Applicable
Close-out Rate, a rate equal to the arithmetic mean of the rate determined
pursuant to clause (a) above and a rate per annum equal to the cost (without
proof or evidence of any actual cost) in the relevant payee (as certified by
it) if it were to fund or of funding the relevant amount.

“Automatic
Early Termination” has the meaning specified in Section
6(a).

“Burdened
Party” has the meaning specified in Section 5(b)(iv).

“Change
in Tax Law” means the enactment, promulgation, execution
or ratification of, or any change in or amendment to, any law (or in the
application or official interpretation of any law) that occurs after the
parties enter into the relevant Transaction.

“Close-out
Amount” means, with respect to each Terminated
Transaction or each group of Terminated Transactions and a Determining Party,
the amount of the losses or costs of the Determining Party that are or would be
incurred under then prevailing circumstances (expressed as a positive number)
or gains of the Determining Party that are or would be realised under then
prevailing circumstances (expressed as a negative number) in replacing, or in
providing for the Determining Party the economic equivalent of, (a) the
material terms of that Terminated Transaction or group of Terminated
Transactions, including the payments and deliveries by the parties under
Section (2)(a)(i) in respect of that Terminated Transaction or group of
Terminated Transactions that would, but for the occurrence of the relevant
Early Termination Date, have been required after that date (assuming
satisfaction of the conditions precedent in

 	 
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Section
(2)(a)(iii)) and (b) the option rights of the parties in respect of that
Terminated Transaction or group of Terminated Transactions.

Any Close-out
Amount will be determined by the Determining Party (or its agent), which will
act in good faith and use commercially reasonable procedures in order to
produce a commercially reasonable result. The Determining Party may determine a
Close-out Amount for any group of Terminated Transactions or any individual
Terminated Transaction but, in the aggregate, for not less than all Terminated
Transactions. Each Close-out Amount will be determined as of the Early
Termination Date or, if that would not be commercially reasonable, as of the
date or dates following the Early Termination Date as would be commercially
reasonable.

Unpaid amounts in
respect of a Terminated Transaction of group of Terminated Transactions and
legal fees and out-of-pocket expenses referred to in Section 11 are to be
excluded in all determination of Close-out Amounts.

In determining a
Close-out Amount, the Determining Party may consider any relevant information,
including, without limitation, one or more of the following types of
information: —

(i)            quotations (either firm or
indicative) for replacement transactions supplied by one or more third parties
that may take into account the creditworthiness of the Determining Party at the
time the quotation is provided and the terms of any relevant documentation,
including credit support documentation, between the Determining Party and the
third party providing the quotation;

(ii)           information consisting of relevant
market data in the relevant market supplied by one or more third parties
including, without limitation, relevant rates, prices, yields, yield curves,
volatilities, spreads, correlations or other relevant market data in the
relevant market; or

(iii)          information of the types described in
clause (i) or (ii) above from internal sources (including any of the Determining
Party’s Affiliates) if that information is of the same type used by the
Determining Party in the regular course of its business for the valuation of
similar transations.

The Determining
Party will consider, taking into account the standards and procedures described
in this definition, quotations pursuant to clause (i) above or relevant data
pursuant to clause (ii) above unless the Determining Party reasonably believes
in good faith that such quotations or relevant market data are not readily
available or would produce a result that would not satisfy those standards.
When considering information described in clause (i), (ii) or (iii) above, the
Determining Party may include costs of funding, to the extent costs of funding
are not and would not be a component of the other information being utilised.
Third parties supplying quotations pursuant to clause (i) above or market data
pursuant to clause (ii) above may include, without limitation, dealers in the
relevant markets, end-users of the relevant product, information vendors,
brokers and other sources of market information.

Without
duplication of amounts calculated based on information described in clause (i),
(ii) or (iii) above, or other relevant information, and when it is commercially
reasonable to do so, the Determining Party may in addition consider in
calculating a Close-out Amount any loss or cost incurred in connection with its
terminating, liquidating or re-establishing any hedge related to a Terminated
Transaction or group of Terminated Transactions (or any gain resulting from any
of them).

Commercially
reasonable procedures used in determining a Close-out Amount may include the
following: —

(1)           application to relevant market data
from third parties pursuant to clause (ii) above or information from internal
sources pursuant to clause (iii) above of pricing or other valuation models
that are, at the time of the determination of the Close-out Amount, used by the
Determining Party in the regular course of its business in pricing or valuing
transactions between the Determining Party and unrelated third parties that are
similar to the Terminated Transaction or group of Terminated Transactions; and

 	 
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(2)           application of different valuation
methods to Terminated Transactions or groups of Terminated Transactions depending
on the type, complexity, size or number of the Terminated Transactions or group
of Terminated Transactions.

“Confirmation”
has the meaning specified in the preamble.

“consent”
includes a consent, approval, action, authorisation, exemption, notice, filing,
registration or exchange control consent.

“Contractual
Currency” has the meaning specified in Section 8(a).

“Convention
Court” means any court which is bound to apply to the
Proceedings either Article 17 of the 1968 Brussels Convention on Jurisdiction
and the Enforcement of Judgments in Civil and Commercial Matters or Article 17
of the 1998 Lugano Convention on Jurisdiction and the Enforcement of Judgments
in Civil and Commercial Matters.

“Credit
Event Upon Merger” has the meaning specified is Section
5(b).

“Credit
Support Document” means any agreement or instrument that
is specified as such in this Agreement.

“Credit
Support Provider” has the meaning specified in the
Schedule.

“Cross-Default”
means the event specified in Section 5(a)(vi).

“Default
Rate” means a rate per annum equal to the cost (without
proof or evidence of any actual cost) to the relevant payee (as certified by
it) if it were to fund or of funding the relevant amount plus 1% per annum.

“Defaulting
Party” has the meaning specified in Section 6(a).

“Designated
Event” has the meaning specified in Section 5(b)(v).

“Determining
Party” means the party determining a Close-out Amount.

“Early
Termination Amount” has the meaning specified in Section
6(e).

“Early
Termination Date” means the date determined in accord and
with Section 6(a) or 6(b)(iv).

“electronic
messages” does not include e-mails but does include
documents expressed in markup languages, and “electronic
messaging system” will be continued accordingly.

“English
law” means the law of England and Wales, and “English” will be construed
accordingly.

“Event
of Default” has the meaning specified in Section 5(a)
and, if applicable, in the Schedule.

“Force
Majeure Event” has the meaning specified in Section 5(b).

“General
Business Day” means a day on which commercial banks are
open for general business (including dealings in foreign exchange and foreign
currency deposits).

“Illegality”
has the meaning specified in Section 5(b).

 	 
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“Identifiable
Tax” means any Tax
other than a Tax that would not be imposed in respect of a payment under this
Agreement but for a present or former connection between the jurisdiction of
the government or taxation authority imposing such Tax and the recipient of
such payment or a person related to such recipient (including, without
limitation, a connection arising from such recipient or related person being or
having been a citizen or resident of such jurisdiction, or being or having been
organised, present or engaged in a trade or business in such jurisdiction, or having
or having had a permanent establishment or fixed place of business in such
jurisdiction, but excluding a connection arising solely from such recipient or
related person having executed, delivered, performed its obligations or
received a payment under, or enforced, this Agreement or a Credit Support
Document).

“law” includes any treaty, law, rules or regulation (as modified,
in the case of tax matters, by the practice of any relevant governmental
revenue authority), and “unlawful” will be construed accordingly.

“Local
Business Day” means (a) in
relation to any obligation under Section 2(a)(i), a General Business Day in the
place or places specified in the relevant Confirmation and a day on which a
relevant settlement system is open or operating as specified in the relevant
Confirmation or, if a place or a settlement system is not so specified, as
otherwise agreed by the parties in writing or determined pursuant to provisions
contained, or incorporated by reference, in this Agreement, (b) for the purpose
of determining when a Waiting Period expires, a General Business Day in the
place where the event or circumstance that constitutes or gives rise to the
Illegality or Force Majeure Event, as the case may be, occurs, (c) in relation
to any other payment, a General Business Day in the place where the relevant
account is located and, if different, in the principal financial centre, if
any, of the currency of such payment and, if that currency does not have a
single recognized principal financial centre, a day on which the settlement
system necessary to accomplish such payment is open (d) in relation to any
notice or other communication, including notice contemplated under Section 5(a)
(i), a General Business Day (or a day that would have been a General Business
Day but for the occurrence of an event or circumstance which would, if it
occurred with respect to payment, delivery or compliance related to a
Transaction, constitute or give rise to an illegality or a Force Majeure Event)
in the place specified in the address for notice provided by the recipient and,
in the case of a notice contemplated by Section 2(b), in the place where the
relevant new account is to be located and (c) in relation to Section
5(a)(v)(2), a General Business Day in the relevant locations for performance
with respect to such Specified Transaction.

“Local
Delivery Day” means, for purposes of Sections 5(a)(i) and
5(d), a day on which settlement systems necessary to accomplish the relevant
delivery are generally open for business so that the delivery is capable of
being accomplished in accordance with customary market  practice, in the place specified in the
relevant Confirmation or, if not so specified, in a location as determined in
accordance with customary market practice for the relevant delivery.

“Master
Agreement” has the meaning specified in the preamble.

“Merger
Without Assumption” means the event specified in Section
5(a)(viii).

“Multiple
Transaction Payment Netting” has the meaning specified in
Section 2(c).

“Non-affected
Party” means, so long as there is only one Affected
Party, the other party.

“Non-default
Rate” means the rate certified by the Non-defaulting
Party to be a rate offered to the Non-defaulting Party by a major bank in a
relevant interbank market for overnight deposits in the applicable currency,
such bank to be selected in good faith by the Non-defaulting Party for the
purpose of obtaining a representative that will reasonably reflect conditions
prevailing at the time in that relevant market.

“Non-defaulting
Party” has the meaning specified in Section 6(a).

“Office”
means a branch or office of a party, which may be such
party’s head or home office.

“Other
Amounts” has the meaning specified in Section 6(f).

 	 
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“Payee”
has the meaning specified in Section 6(f).

“Payer”
has the meaning specified in Section 6(f).

“Potential
Event of Default” means any event which, with the giving
of notice or the lapse of time or both, would constitute an Event of Default.

“Proceedings”
has the meaning specified in Section 13(b).

“Process
Agent” has the meaning specified in the Schedule.

“rate
of exchange” includes, without limitation, any premiums
and costs of exchange payable in connection with the purchase of or conversion
into the Contractual Currency.

“Relevant
Jurisdiction” means, with respect to a party, the
jurisdiction (a) in which the party is incorporated, organised, managed and
controlled or considered to have its seat, (b) where an Office through which
the party is acting for purposes of this Agreement is located, (c) in which the
party executes this Agreement and (d) in relation to any payment, from or
through which such payment is made.

“Schedule”
has the meaning specified in the preamble.

“Scheduled
Settlement Date” means a date on which a payment or
delivery is to be made under Section 2(a)(i) with respect to a Transaction.

“Specified
Entity” has the meaning specified in the Schedule.

“Specified
Indebtedness” means, subject to the Schedule, any
obligation (whether present or future, contingent or otherwise, as principal or
surely or otherwise) in respect of borrowed money.

“Specified
Transaction” means, subject to the Schedule, (a) any
transaction (including an agreement with respect to any such transaction) now
existing or hereafter entered into between one party to this Agreement (or any
Credit Support Provider of such party or any applicable Specified Entity of
such party) and the other party to this Agreement (or any Credit Support
Provider of such other party or any applicable Specified Entity of such other
party) which is not a Transaction under this Agreement but (i) which is a rate
swap transaction, swap option, basis swap, forward rate transaction, commodity
swap, commodity option, equity or equity index swap, equity or equity index
option, bond option, interest rate option, foreign exchange transaction, cap
transaction, floor transaction, collar transaction, currency swap transaction,
cross-currency rate swap transaction, currency option, credit protection
transaction, credit swap, credit default swap, credit default option, total
return swap, credit spread transaction, repurchase transaction, reverse
repurchase transaction, buy/sell-back transaction, securities lending
transaction, weather index transaction or forward purchase or sale of a
security, commodity or other financial instrument or interest (including any
option with respect to any of these transactions) or (ii) which is a type of
transaction that is similar to any transaction referred to in clause (i) above
that is currently, or in the future becomes, recurrently entered into the
financial markets (including terms and conditions incorporated by reference in
such agreement) and which is a  forward,
swap, future, option or other derivative on one or more rates, currencies,
commodities, equity securities or other equity instruments, debt securities or
other debt instruments, economic indices or measures of economic risk or value,
or other benchmarks against which payments or deliveries are to be made, (b)
any combination of these transactions and (c) any other transaction identified
as a Specified Transaction in this Agreement or the relevant confirmation.

“Stamp
Tax” means any stamp, registration, documentation or
similar tax.

“Stamp
Tax Jurisdiction” has the meaning specified in Section
4(e).

 	 
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“Tax” means any present or future tax,
levy, impost, duty, charge, assessment or fee of any nature (including
interest, penalties and additions thereto) that is imposed by any government or
other taxing authority in respect of any payment under this Agreement other
than a stamp, registration, documentation or similar tax.

“Tax Event” has the meaning specified
in Section 5(b).

“Tax Event Upon Merger” has the
meaning specified in Section 5(b).

“Terminated Transactions” means, with
respect to any Early Termination Date, (a) if resulting from an illegality or a
Force Majeure Event, all Affected Transactions specified in the notice given
pursuant to Section 6(b)(iv), (b) if resulting from any other Termination
Event, all Affected Transactions and (c) if resulting from an Event of Default,
all Transactions in effect either immediately before the effectiveness of the
notice designating that Early Termination Date or, if Automatic Early
Termination applies, immediately before that Early Termination Date.

“Termination Currency” means (a) if a
Termination Currency is specified in the Schedule and that currency is freely
available, that currency, and (b) otherwise, euro if this Agreement is
expressed to be governed by English law or United States Dollars if this
Agreement is expressed to be governed by the laws of the State of New York.

“Termination Currency Equivalent”  means,
in respect of any amount denominated in the Termination Currency, such
Termination Currency amount and, in respect of any amount denominated in a
currency other than the Termination Currency (the “Other Currency”), the amount
in the Termination Currency determined by the party making the relevant
determination as being required to purchase such amount of such Other Currency
as at the relevant Early Termination Date, or, if the relevant Close-out Amount
is determined as of a later date, that later date, with the Termination
Currency at the rate equal to the spot exchange rate of the foreign exchange
agent (selected as provided below) for the purchase of such Other Currency with
the Termination Currency at or about 11:00 a.m. (in the city in which such
foreign exchange agent is located) on such date as would be customary for the
determination of such a rate for the purchase of such Other Currency for value
on the relevant Early Termination Date or that later date. The foreign exchange
agent will, if only one party is obliged to make a determination under Section
6(e), be selected in good faith by that party and otherwise will be agreed by
the parties.

“Termination Event” means an
illegality, a Force Majeure Event, a Tax Event, a Tax Event Upon Merger or, if
specified to be applicable, a Credit Event Upon Merger or an Additional
Termination Event.

“Termination Rate” means a rate per
annum equal to the arithmetic mean of the cost (without proof or evidence of
any actual cost) to each party (as certified by such party) if it were to fund
or of funding such amounts.

“Threshold Amounts” means the amount,
if any, specified as such in the Schedule.

“Transaction”  has the
meaning specified in the preamble.

“Unpaid Amounts” owing to any party
means, with respect to an Early Termination Date, the aggregate of (a) in
respect of all Terminated Transactions, the amounts that became payable (or
that would have become payable but for Section 2(a)(iii) or due but for Section
5(d)) to such party under Section 2(a)(i) or 2(d)(i)(4) on or prior to such
Early Termination Date and which remain unpaid as at such Early Termination
Date, (b), in respect of each Terminated Transaction, for each obligation under
Section 2(a)(i) which was (or would have been but for Section 2(a)(iii) or
5(d)) required to be settled by delivery to such party on or prior to such
Early Termination Date and which has not been so settled as at such Early
Termination Date, an amount equal to the fair market value of that which was
(or would have been) required to be delivered and (c) if the Early Termination
Date results from an Event of Default, a Credit Event Upon Merger or an
Additional Termination Event in respect of which all outstanding Transactions
are Affected Transactions, any Early Termination Amount due prior to such Early
Termination Date and which remains unpaid as of such Early Termination Date, in
each case together with any amount of interest accrued or other

 	 
 	 27
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compensation in
respect of that obligation or deferred obligation, as the case may be, pursuant
to Section 9(h)(ii)(1) or (2), as appropriate. The fair market value of any
obligation referred to in clause (b) above will be determined as of the
originally scheduled date for delivery, in good faith and using commercially
reasonable procedures, by the party obliged to make the determination under
Section 6(e) or, if each party is so obliged, it will be the average of the
Termination Currency Equivalents of the fair market values so determined by
both parties.

“Waiting Period” means:—

(a)           in respect of an event or
circumstance under Section 5(b)(i), other than in the case of Section
5(b)(i)(2) where the relevant payment, delivery or compliance is actually
required on the relevant day (in which case no Waiting Period will apply), a
period of three Local Business Days (or days that would have been Local
Business Days but for the occurrence of that event or circumstance) following
the occurrence of that event or circumstance: and

(b)           in respect of an event or
circumstance under Section 5(b)(ii), other than in the case of Section
5(b)(ii)(2) where the relevant payment, delivery or compliance is actually
required on the relevant day (in which case no Waiting Period will apply), a
period of eight Local Business Days (or days that would have been Local
Business Days but for the occurrence of that event or circumstance) following
the occurrence of that event or circumstance.

IN WITNESS WHEREOF
the parties have executed this document on the respective dated specified below
with effect from the date specified on the first page of this document.

 

	
  BANK OF AMERICA

  	
  GE CAPITAL CREDIT CARD MASTER NOTE

  
	
   

  	
  TRUST

  
	
   

  	
  By: The Bank of New York (Delaware), not in its

  
	
   

  	
  individual capacity, but solely as Trustee

  

 

 

	
  By:

  	
  /s/
  Roger Heintzelman

  	
   

  	
  By:

  	
  /s/
  Kristine Gullo

  	
   

  
	
   

  	
    Name:

  	
  Roger Heintzelman

  	
   

  	
   

  	
    Name:

  	
  Kristine K. Gullo

  	
   

  
	
   

  	
    Title:

  	
  Senior Vice President

  	
   

  	
   

  	
    Title:

  	
  Vice President

  	
   

  
	
   

  	
    Date:

  	
  9/26/06

  	
   

  	
   

  	
    Date:

  	
  9/27/2006

  	
   

  

 

 	 
 	 28
 	 ISDA® 2002

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