Document:

EXHIBIT 4.7

 

SCHEDULE
to the

Master Agreement

 

dated as of August 7, 2003

 

between

 

	
  JPMorgan Chase Bank

  Card

  	
  and

  	
  World Financial Network Credit

  Master Note Trust

  
	
   

  	
   

  	
   

  
	
  (“Morgan”)

  	
   

  	
  (the
  “Counterparty”)

  

 

The only Transaction that will
be governed by the terms of this Agreement will be the Class A-2 Swap (as
defined in the Indenture).  References
in the Agreement to “Transactions” or “Transaction” shall be deemed to be
references to the Class A-2 Swap.

 

Part 1

 

Termination Provisions

 

In this Agreement:-

 

(1)                                  “Specified
Entity” shall not apply.

 

(2)                                  The
“Breach of Agreement” provisions of Section 5(a)(ii) will apply to Morgan and
will not apply to the Counterparty.

 

(3)                                  The
“Credit Support Default” provisions of Section 5(a)(iii) will apply to Morgan
and will not apply to the Counterparty.

 

(4)                                  The
“Misrepresentation” provisions of Section 5(a)(iv) will apply to Morgan and
will not apply to the Counterparty.

 

(5)                                  The
“Default Under Specified Transaction” provisions of Section 5(a)(v) will not
apply to Morgan and will not apply to the Counterparty.

 

(6)                                  The
“Cross Default” provisions of Section 5(a)(vi) will not apply to Morgan and
will not apply to the Counterparty.

 

(7)                                  The “Merger Without Assumption” provisions of
Section 5(a)(viii) will apply to Morgan and will not apply to the Counterparty.

 

(8)                                  The “Tax Event” provisions of Section 5(b)(ii)
will apply not to Morgan and will not apply to the Counterparty.

 

Copyright © 1992 by International Swap Dealers Association, Inc.

 

 

(9)                                  The “Tax Event Upon Merger” provisions of Section
5(b)(iii) will not apply to Morgan and will not apply to the Counterparty.

 

(10)                            The “Credit Event Upon Merger” provisions of
Section 5(b)(iv) will not apply to Morgan and will not apply to the
Counterparty.

 

(11)                            The “Additional Termination Event” provisions of
Section 5(b)(v) will apply as set forth in Part 1(15) hereof.

 

(12)                            The
“Automatic Early Termination” provisions of Section 6(a) will not apply to
Morgan and will not apply to the Counterparty.

 

(13)                            “Termination
Currency” means United States Dollars.

 

(14)                            For
purposes of computing amounts payable on early termination:

 

(a)                                  Market
Quotation will apply to this Agreement; and

 

(b)                                 The
Second Method will apply to this Agreement.

 

(15)                            The
occurrence of the following event shall constitute an “Additional Termination
Event” for purposes of Section 5(b)(v):

 

(a) the
occurrence of an Additional Termination Event as forth in Part 5 (10)
hereof.  If this Additional Termination
Event occurs, Morgan shall be the sole Affected Party and all Transactions then
outstanding between the parties shall be Affected Transactions.

 

Upon the occurrence of an
Additional Termination Event, Morgan shall notify the Rating Agencies of such
occurrence.

 

Part 2

 

Tax Representations

 

(1)                                  Payer
Tax Representation:

 

For the
purpose of Section 3(e) of this Agreement, Morgan and Counterparty each make
the following representation:

 

It is not
required by any applicable law, as modified by the practice of any relevant
governmental revenue authority, of any Relevant Jurisdiction to make any
deduction or withholding for or on account of any Tax from any payment (other
than interest under Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to be
made by it to the other party under this Agreement.  In making this representation, it may rely on:

 

(i)                                     the
accuracy of any representations made by the other party pursuant to Section
3(f) of this Agreement;

 

(ii)                                  the
satisfaction of the agreement of the other party contained in Section 4(a)(i)
or 4(a)(iii) of this Agreement and the accuracy and effectiveness of any
document

 

2

 

provided by
the other party pursuant to Section 4(a)(i) or 4(a)(iii) of this Agreement; and

 

(iii)                               the
satisfaction of the agreement of the other party contained in Section 4(d) of
this Agreement, provided that it shall not be a breach of this representation
where reliance is placed on clause (ii) and the other party does not deliver a
form or document under Section 4(a)(iii) of this Agreement by reason of material
prejudice to its legal or commercial position.

 

(2)                                  Payee
Tax Representation:

 

For the
purpose of Section 3(f), Morgan and the Counterparty each represent,
respectively, that it is a United States Person for U.S. federal income tax
purposes and either (a) is a financial institution or (b) is not acting as an
agent for a person that is not a United States Person for U.S. federal income
tax purposes.

 

Part 3

 

Agreement to Deliver
Documents

 

For the purpose of Sections
4(a)(i) and (ii), each party agrees to deliver the following documents, as
applicable:

 

(1)                                  For
the purpose of Sections 4(a)(i) and (ii) of this Agreement, Counterparty agrees
to deliver a complete and accurate United States Internal Revenue Service Form
W-9 (or any applicable successor form), in a manner reasonably satisfactory to
Morgan, (I) upon execution of this Agreement; (II) promptly upon reasonable
demand of Morgan, and (III) promptly upon learning that any such form
previously filed by Counterparty has become obsolete or incorrect.

 

(2)                                  Morgan
will, on demand, deliver a certificate (or, if available, the current
authorized signature book of Morgan) specifying the names, title and specimen
signatures of the persons authorized to execute this Agreement and each
Confirmation on its behalf.

 

(3)                                  The
Counterparty will, on demand, deliver a certificate (or, if available, the
current authorized signature book of the Counterparty) specifying the names,
title and specimen signatures of the persons authorized to execute this
Agreement and each Confirmation on its behalf.

 

(4)                                  The
Counterparty will, upon execution of this Agreement, deliver a conformed copy
of the Indenture, the Indenture Supplement and, when available, any Issuance
Supplement to the Indenture Supplement.

 

(5)                                  Each
party will, upon execution of this Agreement, deliver a legal opinion of
counsel in form and substance satisfactory to the other party regarding this
Agreement and any other matters as such other party may reasonably request.

 

(6)                                  The
Counterparty shall supply (and/or shall instruct the Trustee to supply) Morgan
with copies of the monthly servicing reports delivered to the Series 2003-A
Noteholders in the form specified in the Indenture.  Copies of such accountings and/or reports shall be delivered to
Morgan at the following address:

 

3

 

JPMorgan Chase Bank

c/o John Coffey

270 Park Avenue

New York, New York 10017

e-mail address:                                                           john.j.coffey@jpmorgan.com

 

Each of the foregoing documents
(other than the legal opinions described in (5) above) is covered by the
representation contained in Section 3(d) of this Agreement.

 

Part 4

 

Miscellaneous

 

(1)                                  Governing Law.  This Agreement will be governed by and
construed in accordance with the laws of the State of New York without reference
to choice of law doctrine.

 

(2)                                  Notices.

 

(a)                                  In
connection with Section 12(a), all notices to Morgan shall, with respect to any
particular Transaction, be sent to the address, telex number or facsimile
number specified in the relevant Confirmation and any notice for purposes of
Sections 5 or 6 of the Agreement shall be sent to the address or telex number
specified below:

 

JPMorgan Chase
Bank

Attention:  Legal Department-Capital
Markets Group

270 Park Avenue, 40th Floor

New York, New York  10017-2070

Telex No.: 232337; Answerback:  CBC UR

Facsimile No.:  (212) 270-7468

 

(b)                                 In
connection with Section 12(a), all notices to the Counterparty shall, with
respect to any particular  Transaction,
be sent to the address, telex number or facsimile number specified in the
relevant Confirmation and any notice for purposes of Sections 5 or 6 of the
Agreement shall be sent to the address or telex number specified below:

 

World
Financial Network Credit Card Master Note Trust

c/o JP Morgan Chase Bank

450 West 33rd  

14th Floor

New York, NY  10001

Attention: Institutional Trust Services

Telephone No.:

Facsimile No.:

 

With a copy
to:

 

World
Financial Network National Bank

800 Techcenter Drive

Gahanna, OH 43230

Attention:  Treasurer

 

4

 

Telephone
No.:  614-729-4723

Facsimile No.:  614-729-4899

 

(3)                                  Netting of Payments.  Section 2(c)(ii) of this Agreement will
apply, with the effect that payment netting will not take place with respect to
amounts due and owing in respect of more than one Transaction.

 

(4)                                  Offices; Multibranch Party.  For purposes of Section 10:

 

(a)                                  Section
10(a) will apply; and

 

(b)                                 For
the purpose of Section 10(c):

 

(i) Morgan is
a Multibranch Party and may act through its London and New York Offices.

 

(ii) The
Counterparty is not a Multibranch Party.

 

(5)                                  Credit Support Documents.

 

With respect
to Morgan, if applicable, any Third Party Credit Support Document delivered by
Morgan shall constitute a Credit Support Document.

 

With respect
to Morgan and the Counterparty, if applicable, any Approved Credit Support
Document shall constitute a Credit Support Document.

 

(6)                                  Credit Support Provider.

 

With respect
to Morgan, the party guaranteeing Morgan’s obligations pursuant to a Third
Party Credit Support Document, if any, shall be a Credit Support Provider.

 

(7)                                  Process Agents.  The Counterparty appoints as its Process
Agent for the purpose of Section 13(c):

Not applicable

 

Part 5

 

Other Provisions

 

(1)                                  ISDA Definitions.  Reference is hereby made to the 2000 ISDA
Definitions (the “ISDA Definitions”) each as published by the International
Swaps and Derivatives Association, Inc., which are hereby incorporated by
reference herein.  Any terms used and
not otherwise defined herein which are contained in the ISDA Definitions shall
have the meaning set forth therein.

 

(2)                                  Scope of Agreement.  Notwithstanding anything contained in the
Agreement to the contrary, if the parties enter into any Specified Transaction,
such Specified Transaction shall be subject to, governed by and construed in
accordance with the terms of this Agreement unless the Confirmation relating
thereto shall specifically state to the contrary.  Each such Specified Transaction shall be a Transaction for the
purposes of this Agreement.

 

5

 

(3)                                  Inconsistency.  In the event of any inconsistency between
any of the following documents, the relevant document first listed below shall
govern:  (i) a Confirmation; (ii) the
Schedule; (iii) the ISDA Definitions; and (iv) the printed form of ISDA Master
Agreement.

 

(4)                                  Calculation Agent.  The Calculation Agent will be Morgan.

 

(5)                                  Waiver of Jury Trial.  Each party waives, to the fullest extent
permitted by applicable law, any right it may have to a trial by jury in
respect of any suit, action or proceeding relating to this Agreement or any
Credit Support Document.  Each party (i)
certifies that no representative, agent or attorney of the other party or any
Credit Support Provider has represented, expressly or otherwise, that such
other party would not, in the event of such a suit, action or proceeding, seek
to enforce the foregoing waiver and (ii) acknowledges that it and the other
party have been induced to enter into this Agreement and provide for any Credit
Support Document, as applicable, by, among other things, the mutual waivers and
certifications in this Section.

 

(6)                                  Severability.  In the event any one or more of the
provisions contained in this Agreement should be held invalid, illegal, or
unenforceable (in whole or in part) in any respect, the remaining terms,
provisions, covenants and conditions hereof shall continue in full force and
effect as if this Agreement had been executed with the invalid or unenforceable
portion eliminated, so long as this Agreement as so modified continues to
express, without material change the original intentions of the parties as to
the subject matter of this Agreement and the deletion of such portion of this
Agreement will not substantially impair the respective benefits or expectations
of the parties to this Agreement; provided, however, that this severability
provision shall not be applicable if any provision of Section 2, 5, 6 or 13 (or
any definition or provision in Section 14 to the extent it relates to, or is
used in or in connection with any such Section) shall be so held to be invalid
or unenforceable.

 

(7)                                  No Gross-up for Counterparty.  Section 2(d) of the Agreement shall not
apply with respect to the Counterparty so that the Counterparty shall not be
obligated to gross up pursuant thereto.

 

(8)                                  Morgan Acknowledgment.  Notwithstanding anything to the contrary in
this Agreement, Morgan hereby

 

(a)
acknowledges and agrees that the Counterparty has pledged its rights under this
Agreement to the Trustee pursuant to the Indenture and that in the event of an
Event of Default (as defined in the Indenture) the Trustee shall be entitled to
exercise all rights and remedies of a secured party with respect to this
Agreement; and

 

(b) agrees
that, unless notified in writing by the Trustee of other payment instructions,
any and all amounts payable by Morgan to the Counterparty shall be paid to the
Trustee.

 

(9)                                  No Petition; Limited Recourse.  Morgan hereby agrees that it
shall not institute against, or join any other Person in instituting against
the Counterparty any bankruptcy, reorganization, arrangement, insolvency,
moratorium or liquidation proceedings or other proceedings under U.S. federal
or state or other bankruptcy or similar laws. 
Notwithstanding the foregoing, nothing herein shall prevent Morgan from
participating in any such proceeding once commenced.

 

6

 

Morgan hereby
acknowledges and agrees that the Counterparty’s obligations hereunder will be
solely the limited recourse obligations of the Counterparty, and that Morgan
will not have any recourse to any of the directors, officers, employees,
shareholders or affiliates of the Counterparty with respect to any claims,
losses, damages, liabilities, indemnities or other obligations in connection with
any transactions contemplated hereby. 
Notwithstanding any other provisions hereof, recourse in respect of any
obligations of the Counterparty to Morgan hereunder or thereunder will be
limited to the Collateral, subject to and in accordance with the terms of the
priority of payments set forth in Section 4.4 of the Indenture Supplement, and
on the exhaustion thereof all claims against the Counterparty arising from this
Agreement or any other transactions contemplated hereby or thereby shall be
extinguished.

 

(10)                            Ratings
Downgrade Provisions.   Unless
written notification to the contrary has been received from the Rating
Agencies, following the occurrence of a Ratings Event I and/or a Ratings Event
II, the parties shall comply with the following provisions, as applicable.

 

I.                                         If
a Ratings Event I shall occur and be continuing with respect to Morgan, then
Morgan shall, within 5 Local Business Days of the occurrence of such Ratings
Event I, give notice of the occurrence of such Ratings Event I to Counterparty.  Following such notice, Morgan may either

 

(A) at its
sole option and expense, provide, or cause to be provided, a Third Party Credit
Support Document to Counterparty; or

 

(B) at its
sole option and expense, use reasonable efforts to transfer Morgan’s rights and
obligations under the Agreement and all Confirmations to another party.

 

Each of I(A)
and I(B) above shall be subject to satisfaction of the Rating Agency Condition.

 

If, on or
prior to the date that is 30 calendar days after the occurrence of a Ratings
Event I, Morgan has provided a Third Party Credit Support Document as provided
in I(A) above and the Rating Agency Condition has been satisfied, then, for so
long as such Third Party Credit Support Document is in effect and the Rating
Agency Condition continues to be satisfied, Morgan shall have no further
obligations in respect of this Part 5(10)(I).

 

If,

(i)  on or prior to the date that is 30 calendar
days after the occurrence of a Ratings Event I, Morgan has not provided a Third
Party Credit Support Document as provided in I(A) above or transferred its
rights and obligations as provided in I(B) above, or

 

(ii)  Morgan has provided a Third Party Credit
Support Document as provided in I(A) above but such Third Party Credit Support
Document has ceased to be in effect and/or the Rating Agency Condition is no
longer satisfied,

 

then, on the
first Local Business Day following the date that is 30 calendar days after the
occurrence of the Ratings Event I (in respect of (i) above) or on the first
Local Business Day following the date on which the Third Party Credit Support
Document referred to in (ii) above has ceased to be in effect and/or fails to
satisfy the Rating Agency Condition, Counterparty may demand that Morgan
deliver Eligible Collateral to Counterparty in

 

7

 

accordance
with the terms of an Approved Credit Support Document.  Notwithstanding the foregoing, Morgan’s
obligations under this Part 5(10)(I) to post Eligible Collateral under the
Approved Credit Support Document shall remain in effect only for so long as a
Ratings Event I is continuing with respect to Morgan.

 

The failure by
Morgan to comply with the provisions hereof shall constitute an Additional
Termination Event, with Morgan as the sole Affected Party and all Transactions
then outstanding between the parties as Affected Transactions.

 

II.                                     If
a Ratings Event II shall occur and be continuing with respect to Morgan, then
Morgan shall, within 5 Local Business Days of the occurrence of such Ratings
Event II, give notice of the occurrence of such Ratings Event II to
Counterparty.  Following such notice,
Morgan shall either

 

(A) to the
extent that is has not already done so in accordance with Part 5(10)(I), at its
sole option and expense, provide, or cause to be provided, a Third Party Credit
Support Document to Counterparty; or

 

(B) at its
sole option and expense, use reasonable efforts to transfer Morgan’s rights and
obligations under the Agreement and all Confirmations to another party.

 

Each of II(A)
and II(B) above shall be subject to satisfaction of the Rating Agency
Condition.

 

If, on or
prior to the date that is 30 calendar days after the occurrence of a Ratings
Event II, Morgan has provided a Third Party Credit Support Document as provided
in II(A) or I(A) above and the Rating Agency Condition has been satisfied,
then, for so long as such Third Party Credit Support Document is in effect and
the Rating Agency Condition continues to be satisfied, then, (i) Morgan shall
have no further obligations in respect of this Part 5(10)(II) and, (ii) if
Morgan was delivering Eligible Collateral to Counterparty in accordance with
the terms of an Approved Credit Support Document pursuant to the provisions of
Part 5(10)(I) hereof, Morgan shall have no further obligations to deliver
Eligible Collateral under the Approved Credit Support Document.

 

If,

(i)  on or prior to the date that is 30 calendar
days after the occurrence of a Ratings Event II, Morgan has not provided a
Third Party Credit Support Document as provided in II(A) above or transferred
its rights and obligations as provided in II(B) above, or

 

(ii)  Morgan has provided a Third Party Credit
Support Document as provided in II(A) or I(A) above but such Third Party Credit
Support Document has ceased to be in effect and/or the Rating Agency Condition
is no longer satisfied,

 

then, on the
first Local Business Day following the date that is 30 calendar days after the
occurrence of the Ratings Event II (in respect of (i) above) or on the first
Local Business Day following the date on which the Third Party Credit Support
Document referred to in (ii) above has ceased to be in effect and/or fails to
satisfy the Rating Agency Condition, and only to the extent that Morgan is not
already delivering Eligible Collateral to Counterparty in accordance with the
terms of an Approved Credit Support Document pursuant to the provisions of Part
5(10)(I) hereof, Morgan will deliver Eligible Collateral to Counterparty in
accordance with the terms of an Approved Credit Support Document.

 

8

 

Notwithstanding
Morgan’s posting of Eligible Collateral in accordance with the terms of the
Approved Credit Support Document, Morgan shall use best efforts to either
transfer its rights and obligations to an acceptable third party or to provide
a Third Party Credit Support Document. 
Notwithstanding the foregoing, Morgan’s obligations under this Part
5(10)(II) to find a transferee or provide a Third Party Credit Support Document
and to post Eligible Collateral under the Approved Credit Support Document
shall remain in effect only for so long as a Ratings Event II is continuing
with respect to Morgan.

 

The failure by
Morgan to comply with the provisions hereof shall constitute an Additional
Termination Event, with Morgan as the sole Affected Party and all Transactions
then outstanding between the parties as Affected Transactions.

 

As used
herein:

 

“Approved Credit Support
Document” means a security agreement in the form of the 1994 ISDA Credit Support
Annex (ISDA Agreements Subject to New York Law Only), as modified by the
Paragraph 13 thereto, which Paragraph 13 will be in the form of Annex A to this
Agreement;

 

“Indenture”
means the Master Indenture dated as of August 1, 2001, between World Financial
Network Credit Card Master Note Trust, as Issuer, and BNY Midwest Trust
Company, as Indenture Trustee, as supplemented by the Series 2003-A Indenture
Supplement dated as of June 19, 2003, between World Financial Network Credit
Card Master Note Trust, as the Issuer, and BNY Midwest Trust Company, as the
Indenture Trustee (the “Indenture Supplement”), and as supplemented by the
Issuance Supplement, dated as of August 14, 2003, between World Financial
Network Credit Card Master Note Trust, as the Issuer, and BNY Midwest Trust
Company, as the Indenture Trustee (the “Issuance Supplement”), in each case, as
amended, modified, supplemented, restated or replaced from time to time.

 

“Moody’s”
means Moody’s Investors Service, Inc. or any successor thereto;

 

“Rating
Agencies” means S&P and Moody’s;

 

“Rating Agency
Condition” has the meaning specified in the Indenture;

 

“Ratings Event I” shall occur with respect to
Morgan (to the extent that Morgan’s relevant obligations are rated by Moody’s)
if Morgan’s long-term senior unsecured debt rating by Moody’s is lower than A1
or is A1 on negative watch or Morgan’s short-term senior unsecured debt rating
by Moody’s is lower than P-1 or is P-1 on negative watch;

 

“Ratings Event
II” shall occur with respect to Morgan (to the extent that Morgan’s relevant
obligations are rated by S&P and/or Moody’s) if (a) Morgan’s short-term
senior unsecured debt rating by S&P is lower than A-1 or (b) Morgan’s
long-term senior unsecured debt rating by Moody’s is A3 or lower or Morgan’s
short-term senior unsecured debt rating by Moody’s is P-2 or lower;

 

“S&P”
means by Standard & Poor’s Ratings Service or any successor thereto; and

 

“Third Party
Credit Support Document” means any agreement or instrument (including any
guarantee, insurance policy, security agreement or pledge agreement) whose
terms provide for the guarantee of Morgan’s obligations under this Agreement by
a third party.

 

9

 

(11)                            Additional Representations.  Section 3 is hereby amended by adding at the
end thereof the following paragraphs:

 

“(g)  It is an “eligible contract participant”
under, and as defined in, Section 1a(12) of the Commodity Exchange Act, as
amended.

 

(h)  Each party will be deemed to represent to
the other party on the date on which it enters into a Transaction that (absent
a written agreement between the parties that expressly imposes affirmative
obligations to the contrary for that Transaction):

 

(i)                                     Non-Reliance.  It is acting for its own account, and it has
made its own independent decisions to enter into that Transaction and as to
whether that Transaction is appropriate or proper for it based upon its own
judgment and upon advice from such advisers as it has deemed necessary.  It is not relying on any communication
(written or oral) of the other party as investment advice or as a
recommendation to enter into that Transaction; it being understood that
information and explanations related to the terms and conditions of a
Transaction shall not be considered investment advice or a recommendation to
enter into that Transaction.  No
communication (written or oral) received from the other party shall be deemed
to be an assurance or guarantee as to the expected results of that Transaction.

 

(ii)                                  Assessment
and Understanding.  It is
capable of assessing the merits of and understanding (on its own behalf or
through independent professional advice), and understands and accepts, the
terms, conditions and risks of that Transaction.  It is also capable of assuming, and assumes, the risks of that
Transaction.

 

(iii)                               Status of
Parties.  The other party is
not acting as a fiduciary for or an adviser to it in respect of that
Transaction.”

 

(12)                            Amendment to Section 7 of the
Agreement.  Section 7 of
the Agreement is hereby amended by:

 

(i) adding the
words “and the confirmation of the Rating Agencies” immediately following the
word “party” in the third line thereof; and

 

(ii) adding
the following sentence immediately following the final sentence thereof:

 

“In addition,
no transfer shall be effective unless it satisfies the Rating Agency
Condition.”.

 

(13)                            Events of Default.  Section 5(a)(i) of the Agreement is amended
by substituting the following therefor: 
“Failure by the party to make, when due, any payment under this
Agreement or delivery under Section 2(a)(i) or 2(e) required to be made by it
if such failure is not remedied on or before the fifth Local Business Day after
notice of such failure is given to the party.”

 

(14)                            Owner Trustee.  It is expressly understood and agreed by the
parties hereto that (a) this Agreement is executed and delivered by Chase
Manhattan Bank USA, National Association, not individually or personally but
solely as trustee of the Counterparty in the exercise of the powers and
authority conferred and vested in it under the Amended and Restated Trust
Agreement (as defined in the Indenture), (b) each of the representations,
undertakings and agreements herein made on the part of the Counterparty are
made and

 

10

 

intended not
as personal representations, undertakings and agreements by Chase Manhattan
Bank USA, National Association, but are made and intended for the purpose of
binding only the Counterparty, and (c) under no circumstances shall Chase
Manhattan Bank USA, National Association be personally liable for the payment
of any indebtedness or expenses of the Counterparty or be liable for the breach
or failure of any obligation, representations, warranty or covenant made or
undertaken by the Counterparty under this Agreement.

 

(15)                            Amendment to Section 9(b) of the
Agreement.  Section 9(b)
of the Agreement is amended by adding the following sentence immediately
following the end of the first sentence thereof:

 

“In addition,
no amendment modification or waiver in respect of this Agreement will be
effective unless it satisfied the Rating Agency Condition.”

 

(16)                            Amendment to Section 6(e) of the
Agreement.  Section 6(e)
of the Agreement is amended by deleting the last sentence of the introductory
paragraph thereof.

 

(17)                            The
parties agree that there will be no Set-off with respect to this Agreement.

 

11

 

Please confirm
your agreement to the terms of the foregoing Schedule by signing below.

 

	
   

  	
  JPMORGAN
  CHASE BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Don Thompson

  
	
   

  	
   

  	
  Name: 
  Don Thompson

  
	
   

  	
   

  	
  Title: 
  Managing Director and

  Associate General Counsel

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WORLD
  FINANCIAL NETWORK CREDIT

  CARD MASTER NOTE TRUST

  
	
   

  	
  By:  Chase Manhattan Bank USA, National

  Association, not in its individual capacity, but

  solely as Owner Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John J. Cashin

  
	
   

  	
   

  	
  Name: 
  John J. Cashin

  
	
   

  	
   

  	
  Title: 
  Vice-President

  
				

 

CLASS A-2 SWAP

 

12

 

ANNEX A

 

PARAGRAPH 13 TO

CREDIT SUPPORT ANNEX

 

to the Schedule to the

Master Agreement

 

dated as of August 7, 2003

 

between

 

	
  JPMorgan Chase Bank

  (“Morgan”)

  	
  and

  	
  WORLD FINANCIAL NETWORK

  CREDIT CARD MASTER NOTE TRUST

  (“Counterparty”)

  

 

Paragraph 13. Elections and
Variables

 

(a)                                  Security
Interest for “Obligations”.  The term
“Obligations” as used in this Annex includes no additional obligations with
respect to either party.

 

(b)                                 Credit
Support Obligations.

 

(i)                                     Delivery
Amount, Return Amount and Credit Support Amount.

 

(A)                              “Delivery
Amount” has the meaning specified in Paragraph 3(a).

 

(B)                                “Return
Amount” has the meaning specified in Paragraph 3(b).

 

(C)                                “Credit Support Amount” shall not have the
meaning specified in Paragraph 3(b) and, instead, will have the following
meaning:

 

“Credit Support Amount” means, for any Valuation Date, (i) the Secured
Party’s Modified Exposure for that Valuation Date minus (ii) the Pledgor’s
Threshold; provided, however, that the Credit Support Amount will be
deemed to be zero whenever the calculation of Credit Support Amount yields a
number less than zero.

 

(ii)                                  Eligible
Collateral.  The following items will
qualify as “Eligible Collateral”:

 

	
   

  	
   

  	
   

  	
   

  	
  Morgan

  	
   

  	
  “Valuation

  Percentage”

  	
   

  
	
  (A)

  	
   

  	
  USD Cash

  	
   

  	
  X

  	
   

  	
  100

  	
  %

  
	
  (B)

  	
   

  	
  Negotiable
  debt obligations issued by the U.S. Treasury Department having a remaining
  maturity of one year or less from the Valuation Date

  	
   

  	
  X

  	
   

  	
  98.6

  	
  %

  

 

13

 

	
  (C)

  	
   

  	
  Negotiable
  debt obligations issued by the U.S. Treasury Department having a remaining
  maturity of more than one year but less than ten years from the Valuation
  Date

  	
   

  	
  X

  	
   

  	
  90.7

  	
  %

  
	
  (D)

  	
   

  	
  Negotiable
  debt obligations issued by the U.S. Treasury Department having a remaining
  maturity of ten years or more from the Valuation Date

  	
   

  	
  X

  	
   

  	
  85.3

  	
  %

  
	
  (E)

  	
   

  	
  Agency
  Securities having a remaining maturity of one year or less from the Valuation
  Date

  	
   

  	
  X

  	
   

  	
  98.1

  	
  %

  
	
  (F)

  	
   

  	
  Agency
  Securities having a remaining maturity of more than one year but less than
  ten years from the Valuation Date

  	
   

  	
  X

  	
   

  	
  88

  	
  %

  
	
  (G)

  	
   

  	
  Agency
  Securities having a remaining maturity of ten years or more from the Valuation
  Date

  	
   

  	
  X

  	
   

  	
  79.8

  	
  %

  
	
  (H)

  	
   

  	
  USD
  denominated Commercial Paper rated A1/P1 by S&P and Moody’s respectively,
  that (a) settles within DTC, (b) is not issued by Morgan or any of its
  Affiliates and (c) has a remaining maturity of 30 days or less from the
  Valuation Date

  	
   

  	
  X

  	
   

  	
  98

  	
  %

  

 

 

For purposes
of the foregoing:

 

(a) “Agency
Securities” means negotiable debt obligations which are fully guaranteed as to
both principal and interest by the Federal National Mortgage Association, the
Government National Mortgage Association or the Federal Home Loan Mortgage
Corporation, but excluding (i) interest only and principal only securities and
(ii) Collateralized Mortgage Obligations, Real Estate Mortgage Investment
Conduits and similar derivative securities.

 

(b) “DTC”
shall mean The Depository Trust & Clearing Corporation, or its successor.

 

(c) “Moody’s”
shall mean Moody’s Investors Service, Inc., or its successor.

 

(d) “S&P”
shall mean Standard & Poor’s Ratings Group, or its successor.

 

(e) Eligible
Collateral of the type described in Paragraph 13(b)(ii)(H) may never constitute
more than 20% of the total Value of Posted Collateral.

 

(f) With
respect to Posted Collateral consisting of Eligible Collateral of the type
described in Paragraph 13(b)(ii)(H), the aggregate Value of such Posted
Collateral issued by the same issuer may never be greater than 33% of the
aggregate Value of all Posted Collateral consisting of Eligible Collateral of
the type described in Paragraph 13(b)(ii)(H).

 

14

 

(iii)                               Other
Eligible Support.  There shall be no
“Other Eligible Support” for purposes of this Annex, unless agreed in writing
between the parties.

 

(iv)                              Thresholds.

 

(A)                              “Independent
Amount” means zero.

 

(B)                                “Threshold”
shall not apply with respect to the Counterparty and, with respect to Morgan,
shall mean the amounts determined on the basis of the lower of the Credit
Ratings set forth in the following table, provided, however, that
if (i) Morgan has no Credit Rating, or (ii) an Event of Default has occurred
and is continuing with respect to Morgan, Morgan’s Threshold shall be U.S.$0:

 

	
  CREDIT
  RATING

  (S&P /Moody’s/Fitch)

  	
   

  	
  THRESHOLD

  Morgan

  
	
   

  	
   

  	
   

  
	
  S&P: A-1
  or above.

  	
   

  	
  Infinity

  
	
   

  	
   

  	
   

  
	
  Moody’s
  (long-term senior unsecured debt of Morgan): A1 or above.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Moody’s
  (short-term senior unsecured debt of Morgan): P-1 or above.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  S&P:
  Below A-1.

  	
   

  	
  US$0

  
	
   

  	
   

  	
   

  
	
  Moody’s
  (long-term senior unsecured debt of Morgan): Below A1 or A1 on negative
  watch.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Moody’s
  (short-term senior unsecured debt of Morgan): Below P-1 or P-1 on negative
  watch.

  	
   

  	
   

  

 

As used
herein:

 

“Credit Rating” means, with respect to (a) S&P, the rating assigned
by S&P to the short-term senior unsecured debt of Morgan, and (b) Moody’s,
the rating assigned by Moody’s to the long-term senior unsecured debt of Morgan
or to the short-term senior unsecured debt of Morgan, as applicable.

 

(C)                                “Minimum
Transfer Amount”, with respect to a party on any Valuation Date, means U.S.
$250,000.

 

Rounding.  The Delivery Amount and the Return Amount
will be rounded up and down to the nearest integral multiple of $100,000,
respectively.

 

(c)                                  Valuation
and Timing.

 

(i)                                     “Valuation
Agent” means Morgan.

 

15

 

(ii)                                  “Valuation
Date” means weekly on the last Local Business Day of each week or more
frequently if agreed in writing by the parties.

 

(iii)                               “Valuation
Time” means the close of business in the city of the Valuation Agent on the
Valuation Date or date of calculation, as applicable.

 

(iv)                              “Notification
Time” means 12:00 p.m., New York time, on a Local Business Day.

 

(d)                                 Conditions
Precedent.  With respect to Morgan,
any Additional Termination Event (if Morgan is the Affected Party with respect
to such Termination Event) will be a “Specified Condition”.

 

(e)                                  Substitution.

 

(i)                                     “Substitution
Date” has the meaning specified in Paragraph 4(d)(ii).

 

(ii)                                  Consent.  Inapplicable.

 

(f)                                    Dispute
Resolution.

 

(i)                                     “Resolution
Time” means 1:00 p.m., New York time, on the Local Business Day following the
date on which the notice is given that gives rise to a dispute under Paragraph
5.

 

(ii)                                  Value.  For the purposes of Paragraphs 5(i)(C) and
5(ii), the Value of Posted Credit Support other than Cash will be calculated as
follows:

 

(A) with respect to any Eligible Collateral except Cash, the sum of (I)
(x) the mean of the high bid and low asked prices quoted on such date by any
principal market maker for such Eligible Collateral chosen by the Disputing
Party, or (y) if no quotations are available from a principal market maker for
such date, the mean of such high bid and low asked prices as of the first day
prior to such date on which such quotations were available, plus (II) the
accrued interest on such Eligible Collateral (except to the extent Transferred
to a party pursuant to any applicable provision of this Agreement or included
in the applicable price referred to in (I) of this clause (A)) as of such date;
multiplied by the applicable Valuation Percentage.

 

(iii)                               Alternative.  The provisions of Paragraph 5 will apply.

 

(g)                                 Holding
and Using Posted Collateral.

 

(i)                                     Eligibility
to Hold Posted Collateral; Custodians. 
Counterparty and its Custodian will be entitled to hold Posted
Collateral pursuant to Paragraph 6(b); provided that the following conditions
applicable to it are satisfied:

 

(1)                                  Counterparty
is not a Defaulting Party and

 

(2)                                  Posted
Collateral may be held only in the following jurisdictions: New York State.

 

Initially, the
Custodian for Counterparty is: None

 

16

 

(ii)                                  Use
of Posted Collateral.  The provisions of
Paragraph 6(c)(i) will not apply to Counterparty but the provisions of
Paragraph 6(c)(ii) will apply to the Counterparty.

 

(h)                                 Distributions
and Interest Amount.

 

(i)                                     Interest
Rate.  “Interest Rate” for any day
means, the Federal Funds Overnight Rate. 
For the purposes hereof, “Federal Funds Overnight Rate” means, for any
day, an interest rate per annum equal to the rate published as the Federal
Funds Effective Rate that appears on Telerate Page 118 for such day.

 

(ii)                                  Transfer
of Interest Amount.  The Transfer of the
Interest Amount will be made monthly on the second Local Business Day of each
calendar month.

 

(iii)                               Alternative
to Interest Amount.  The provisions of
Paragraph 6(d)(ii) will apply.

 

(i)                                     Additional
Representation(s).  Not Applicable.

 

(j)                                     Other
Eligible Support and Other Posted Support.

 

(i)                                     “Value”
with respect to Other Eligible Support and Other Posted Support means: Not
Applicable.

 

(ii)                                  “Transfer”
with respect to Other Eligible Support and Other Posted Support means: Not
Applicable

 

(k)                                  Demands
and Notices.

 

All demands, specifications and
notices under this Annex will be made pursuant to the Notices Section of this
Agreement, unless otherwise specified here:

 

Counterparty:

 

 

Morgan:

 

 

(l)                                     Addresses
for Transfers.

 

Counterparty:
as set forth in notices to Morgan from time to time

 

Morgan:

 

(m)                               Other
Provisions:

 

(i)                                     Modification
to Paragraph 1: The following subparagraph (b) is substituted for
subparagraph (b) of this Annex:

 

17

 

(b) Secured
Party and Pledgor.  All
references in this Annex to the “Secured Party” will be to Counterparty and all
corresponding references to the “Pledgor” will be to Morgan.

 

(ii)                                  Modification
to Paragraph 2:  The following
Paragraph 2 is substituted for Paragraph 2 of this Annex:

 

Paragraph 2.  Security Interest.  The Pledgor hereby pledges to the Secured
Party, as security for its Obligations, and grants to the Secured Party a first
priority continuing security interest in and lien on against all Posted
Collateral Transferred to or received by the Secured Party hereunder.  Upon the Transfer by the Secured Party to
the Pledgor of Posted Collateral, the security interest and lien granted
hereunder on that Posted Collateral will be released immediately and, to the
extent possible, without any further action by either party.

 

(iii)                               Modification
to Paragraph 8(a):  Paragraph 8(a)
is modified by deleting the text of clause (iii) thereof and replacing such
text with the word “Reserved”.

 

(iv)                              Modification
to Paragraph 8(b)(iv):  Paragraph
8(b)(iv) is modified and restated in its entirety to read as follows:

 

“(iv) to the
extent that Posted Collateral or the Interest Amount is not so Transferred
pursuant to (iii) above, the Pledgor may withhold payment of any remaining
amounts payable by the Pledgor with respect to any Obligations, up to the Value
of any remaining Posted Collateral held by the Secured Party, until that Posted
Collateral is Transferred to the Pledgor.”

 

(v)                                 Modification
to Paragraph 8(c):  Paragraph 8(c) is
modified and restated in its entirety to read as follows:

 

“(c)                            Deficiencies and Excess Proceeds.  The Secured Party will Transfer to the
Pledgor any proceeds and Posted Credit Support remaining after liquidation
and/or application under Paragraphs 8(a) and 8(b) after satisfaction in full of
all amounts payable by the Pledgor with respect to any Obligations; the Pledgor
in all events will remain liable for any amounts remaining unpaid after any
liquidation and/or application under Paragraphs 8(a) and 8(b).”

 

(vi)                              Modification
to Paragraph 9:  The following first
clause of Paragraph 9 is substituted for the first clause of Paragraph 9 of
this Annex:

 

Paragraph 9.   Representations.  The Pledgor represents to the Secured Party
(which representations will be deemed to be repeated as of each date on which
it Transfers Eligible Collateral) that:

 

(vii)                           Modifications
to Paragraph 12:  The following
definitions of “Pledgor” and “Secured Party” are substituted for the
definitions of those terms contained in Paragraph 12 of this Annex:

 

“Pledgor”
means Morgan, when that party (i) receives a demand for or is required to
Transfer Eligible Credit Support under Paragraph 3(a) or (ii) has Transferred
Eligible Credit Support under Paragraph 3(a).

 

18

 

“Secured
Party” means Counterparty, when that party (i) makes a demand for or is
entitled to receive Eligible Credit Support under Paragraph 3(a) or (ii) holds
or is deemed to hold Posted Credit Support.

 

(viii)                        Addition
to Paragraph 12:  The following
definitions of “Modified Exposure” shall be added immediately after the
definition of the term “Minimum Transfer Amount” and immediately prior to the
definition of the term “Notification Time” in Paragraph 12 of this Annex:

 

“Modified Exposure” means, for any Valuation Date, an amount equal to
the greater of (i) the Secured Party’s Exposure for that Valuation Date, (ii)
the amount of the next scheduled payment that is required to be made by Morgan
pursuant to the Transaction and (iii) one percent of the outstanding Notional
Amount of the Transaction.

 

(ix)                                Modification
to Paragraph 12:  Clause “(B)” of the
definition of “Value” will be substituted to read in its entirety as follows:

 

“(B) a security, the bid price obtained by the Valuation Agent from one
of the Pricing Sources multiplied by the applicable Valuation Percentage, if
any;”

 

(x)                                   Addition
to Paragraph 12:  The following
definition of “Pricing Sources” shall be added immediately after the definition
of the term “Posted Credit Support” and immediately prior to the definition of
the term “Recalculation Date” in Paragraph 12 of this Annex:

 

“Pricing Sources” means the sources of financial information commonly
known as Bloomberg, Bridge Information Services, Data Resources Inc.,
Interactive Data Services, International Securities Market Association, Merrill
Lynch Securities Pricing Service, Muller Data Corporation, Reuters, Wood Gundy,
Trepp Pricing, JJ Kenny, S&P and Telerate.

 

Accepted and Agreed:

 

JPMORGAN CHASE BANK

 

 

	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

 

WORLD FINANCIAL NETWORK CREDIT CARD MASTER
NOTE TRUST

 

	
  By:

  	
  Chase Manhattan Bank USA, National

  Association, not in its individual capacity, but

  solely as Owner Trustee

  

 

 

	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

19EXHIBIT 4.8

 

SCHEDULE

to the

Master Agreement

 

dated as of August 7, 2003

 

between

 

	
  JPMorgan Chase Bank

  	
   

  	
  and

  	
   

  	
  World Financial Network Credit Card

  Master Note Trust

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (“Morgan”)

  	
   

  	
   

  	
   

  	
  (the “Counterparty”)

  

 

The only Transaction that will be governed by the terms of this
Agreement will be the Class B Swap (as defined in the Indenture). References in
the Agreement to “Transactions” or “Transaction” shall be deemed to be
references to the Class B Swap.

 

Part 1

 

Termination Provisions

 

In this Agreement:-

 

(1)                                  “Specified
Entity” shall not apply.

 

(2)                                  The
“Breach of Agreement” provisions of Section 5(a)(ii) will apply to Morgan
and will not apply to the Counterparty.

 

(3)                                  The
“Credit Support Default” provisions of Section 5(a)(iii) will apply to
Morgan and will not apply to the Counterparty.

 

(4)                                  The
“Misrepresentation” provisions of Section 5(a)(iv) will apply to Morgan
and will not apply to the Counterparty.

 

(5)                                  The
“Default Under Specified Transaction” provisions of Section 5(a)(v) will
not apply to Morgan and will not apply to the Counterparty.

 

(6)                                  The
“Cross Default” provisions of Section 5(a)(vi) will not apply to Morgan
and will not apply to the Counterparty.

 

(7)                                  The
“Merger Without Assumption” provisions of Section 5(a)(viii) will apply to
Morgan and will not apply to the Counterparty.

 

(8)                                  The
“Tax Event” provisions of Section 5(b)(ii) will apply not to Morgan and
will not apply to the Counterparty.

 

(9)                                  The
“Tax Event Upon Merger” provisions of Section 5(b)(iii) will not apply to
Morgan and will not apply to the Counterparty.

 

(10)                            The
“Credit Event Upon Merger” provisions of Section 5(b)(iv) will not apply
to Morgan and will not apply to the Counterparty.

 

(11)                            The
“Additional Termination Event” provisions of Section 5(b)(v) will apply as
set forth in Part 1(15) hereof.

 

Copyright Ó
1992 Internation Swap Dealers Association, Inc.

 

 

(12)                            The
“Automatic Early Termination” provisions of Section 6(a) will not apply to
Morgan and will not apply to the Counterparty.

 

(13)                            “Termination
Currency” means United States Dollars.

 

(14)                            For
purposes of computing amounts payable on early termination:

 

(a)                                  Market
Quotation will apply to this Agreement; and

 

(b)                                 The
Second Method will apply to this Agreement.

 

(15)                            The
occurrence of the following event shall constitute an “Additional Termination
Event” for purposes of Section 5(b)(v):

 

(a) the occurrence of an Additional
Termination Event as forth in Part 5 (10) hereof. If this Additional
Termination Event occurs, Morgan shall be the sole Affected Party and all
Transactions then outstanding between the parties shall be Affected
Transactions.

 

Upon the occurrence of an Additional Termination Event, Morgan shall
notify the Rating Agencies of such occurrence.

 

Part 2

 

Tax Representations

 

(1)                                  Payer
Tax Representation:

 

For the
purpose of Section 3(e) of this Agreement, Morgan and Counterparty each
make the following representation:

 

It is not
required by any applicable law, as modified by the practice of any relevant
governmental revenue authority, of any Relevant Jurisdiction to make any
deduction or withholding for or on account of any Tax from any payment (other
than interest under Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to
be made by it to the other party under this Agreement. In making this
representation, it may rely on:

 

(i)                                     the
accuracy of any representations made by the other party pursuant to
Section 3(f) of this Agreement;

 

(ii)                                  the
satisfaction of the agreement of the other party contained in
Section 4(a)(i) or 4(a)(iii) of this Agreement and the accuracy and
effectiveness of any document provided by the other party pursuant to
Section 4(a)(i) or 4(a)(iii) of this Agreement; and

 

(iii)                               the
satisfaction of the agreement of the other party contained in Section 4(d)
of this Agreement, provided that it shall not be a breach of this
representation where reliance is placed on clause (ii) and the other party does
not deliver a form or document under Section 4(a)(iii) of this Agreement
by reason of material prejudice to its legal or commercial position.

 

(2)                                  Payee
Tax Representation:

 

For the
purpose of Section 3(f), Morgan and the Counterparty each represent,
respectively, that it is a United States Person for U.S. federal income tax
purposes and either (a) is a financial institution or (b) is not acting as an
agent for a person that is not a United States Person for U.S. federal income
tax purposes.

 

2

 

Part 3

 

Agreement to Deliver Documents

 

For the purpose of Sections 4(a)(i) and (ii), each party agrees to deliver
the following documents, as applicable:

 

(1)                                  For
the purpose of Sections 4(a)(i) and (ii) of this Agreement, Counterparty agrees
to deliver a complete and accurate United States Internal Revenue Service Form
W-9 (or any applicable successor form), in a manner reasonably satisfactory to
Morgan, (I) upon execution of this Agreement; (II) promptly upon reasonable
demand of Morgan, and (III) promptly upon learning that any such form
previously filed by Counterparty has become obsolete or incorrect.

 

(2)                                  Morgan
will, on demand, deliver a certificate (or, if available, the current
authorized signature book of Morgan) specifying the names, title and specimen
signatures of the persons authorized to execute this Agreement and each
Confirmation on its behalf.

 

(3)                                  The
Counterparty will, on demand, deliver a certificate (or, if available, the
current authorized signature book of the Counterparty) specifying the names,
title and specimen signatures of the persons authorized to execute this
Agreement and each Confirmation on its behalf.

 

(4)                                  The
Counterparty will, upon execution of this Agreement, deliver a conformed copy
of the Indenture, the Indenture Supplement and, when available, any Issuance
Supplement to the Indenture Supplement.

 

(5)                                  Each
party will, upon execution of this Agreement, deliver a legal opinion of
counsel in form and substance satisfactory to the other party regarding this
Agreement and any other matters as such other party may reasonably request.

 

(6)                                  The
Counterparty shall supply (and/or shall instruct the Trustee to supply) Morgan
with copies of the monthly servicing reports delivered to the Series 2003-A
Noteholders in the form specified in the Indenture. Copies of such accountings
and/or reports shall be delivered to Morgan at the following address:

 

JPMorgan Chase Bank

c/o John Coffey

270 Park Avenue

New York, New York 10017

e-mail address:                                                                 john.j.coffey@jpmorgan.com

 

Each of the foregoing documents (other than the legal opinions
described in (5) above) is covered by the representation contained in
Section 3(d) of this Agreement.

 

Part 4

 

Miscellaneous

 

(1)                                  Governing Law. This
Agreement will be governed by and construed in accordance with the laws of the
State of New York without reference to choice of law doctrine.

 

(2)                                  Notices.

 

(a)                                  In
connection with Section 12(a), all notices to Morgan shall, with respect
to any particular Transaction, be sent to the address, telex number or
facsimile number specified in the relevant Confirmation and any notice for
purposes of Sections 5 or 6 of the Agreement shall be sent to the address or
telex number specified below:

 

3

 

JPMorgan Chase Bank

Attention: Legal Department-Capital Markets Group

270 Park Avenue, 40th Floor

New York, New York 10017-2070

Telex No.: 232337; Answerback: CBC UR

Facsimile No.: (212) 270-7468

 

(b)                                 In
connection with Section 12(a), all notices to the Counterparty shall, with
respect to any particular Transaction, be sent to the address, telex number or
facsimile number specified in the relevant Confirmation and any notice for
purposes of Sections 5 or 6 of the Agreement shall be sent to the address or
telex number specified below:

 

World Financial Network Credit Card Master Note Trust

c/o JP Morgan Chase Bank

450 West 33rd 

14th Floor

New York, NY 10001

Attention: Institutional Trust Services

Telephone No.: 

Facsimile No.:

 

With a copy to:

 

World Financial Network National Bank

800 Techcenter Drive

Gahanna, OH 43230

Attention: Treasurer

Telephone No.: 614-729-4723

Facsimile No.: 614-729-4899

 

(3)                                  Netting of Payments.
Section 2(c)(ii) of this Agreement will apply, with the effect that
payment netting will not take place with respect to amounts due and owing in
respect of more than one Transaction.

 

(4)                                  Offices; Multibranch Party.
For purposes of Section 10:

 

(a)                                  Section 10(a)
will apply; and

 

(b)                                 For
the purpose of Section 10(c):

 

(i) Morgan is a Multibranch Party and may act through its London and
New York Offices.

 

(ii) The Counterparty is not a Multibranch Party.

 

(5)                                  Credit Support Documents.

 

With respect to Morgan, if applicable, any Third Party Credit Support
Document delivered by Morgan shall constitute a Credit Support Document.

 

With respect to Morgan and the Counterparty, if applicable, any
Approved Credit Support Document shall constitute a Credit Support Document.

 

(6)                                  Credit Support Provider.

 

With respect to Morgan, the party guaranteeing Morgan’s obligations
pursuant to a Third Party Credit Support Document, if any, shall be a Credit
Support Provider.

 

4

 

(7)                                  Process Agents. The
Counterparty appoints as its Process Agent for the purpose of
Section 13(c):

 

Not applicable

 

Part 5

 

Other Provisions

 

(1)                                  ISDA Definitions.
Reference is hereby made to the 2000 ISDA Definitions (the “ISDA Definitions”)
each as published by the International Swaps and Derivatives Association, Inc.,
which are hereby incorporated by reference herein. Any terms used and not
otherwise defined herein which are contained in the ISDA Definitions shall have
the meaning set forth therein.

 

(2)                                  Scope of Agreement.
Notwithstanding anything contained in the Agreement to the contrary, if the
parties enter into any Specified Transaction, such Specified Transaction shall
be subject to, governed by and construed in accordance with the terms of this
Agreement unless the Confirmation relating thereto shall specifically state to
the contrary. Each such Specified Transaction shall be a Transaction for the
purposes of this Agreement.

 

(3)                                  Inconsistency. In the
event of any inconsistency between any of the following documents, the relevant
document first listed below shall govern: (i) a Confirmation; (ii) the
Schedule; (iii) the ISDA Definitions; and (iv) the printed form of ISDA Master
Agreement.

 

(4)                                  Calculation Agent.
The Calculation Agent will be Morgan.

 

(5)                                  Waiver of Jury Trial.
Each party waives, to the fullest extent permitted by applicable law, any right
it may have to a trial by jury in respect of any suit, action or proceeding
relating to this Agreement or any Credit Support Document. Each party (i)
certifies that no representative, agent or attorney of the other party or any
Credit Support Provider has represented, expressly or otherwise, that such
other party would not, in the event of such a suit, action or proceeding, seek
to enforce the foregoing waiver and (ii) acknowledges that it and the other
party have been induced to enter into this Agreement and provide for any Credit
Support Document, as applicable, by, among other things, the mutual waivers and
certifications in this Section.

 

(6)                                  Severability. In the
event any one or more of the provisions contained in this Agreement should be
held invalid, illegal, or unenforceable (in whole or in part) in any respect,
the remaining terms, provisions, covenants and conditions hereof shall continue
in full force and effect as if this Agreement had been executed with the
invalid or unenforceable portion eliminated, so long as this Agreement as so
modified continues to express, without material change the original intentions
of the parties as to the subject matter of this Agreement and the deletion of
such portion of this Agreement will not substantially impair the respective
benefits or expectations of the parties to this Agreement; provided, however,
that this severability provision shall not be applicable if any provision of
Section 2, 5, 6 or 13 (or any definition or provision in Section 14
to the extent it relates to, or is used in or in connection with any such
Section) shall be so held to be invalid or unenforceable.

 

(7)                                  No Gross-up for Counterparty.
Section 2(d) of the Agreement shall not apply with respect to the
Counterparty so that the Counterparty shall not be obligated to gross up
pursuant thereto.

 

(8)                                  Morgan Acknowledgment.
Notwithstanding anything to the contrary in this Agreement, Morgan hereby

 

(a) acknowledges and agrees that the Counterparty has pledged its
rights under this Agreement to the Trustee pursuant to the Indenture and that
in the event of an Event of Default (as defined in the Indenture) the Trustee
shall be entitled to exercise all rights and remedies of a secured party with
respect to this Agreement; and

 

(b) agrees that, unless notified in writing by the Trustee of other
payment instructions, any and all amounts payable by Morgan to the Counterparty
shall be paid to the Trustee.

 

5

 

(9)                                  No Petition; Limited Recourse.
Morgan hereby agrees that it shall not institute against, or join any other
Person in instituting against the Counterparty any bankruptcy, reorganization,
arrangement, insolvency, moratorium or liquidation proceedings or other
proceedings under U.S. federal or state or other bankruptcy or similar laws.
Notwithstanding the foregoing, nothing herein shall prevent Morgan from
participating in any such proceeding once commenced.

 

Morgan hereby acknowledges and agrees that the Counterparty’s
obligations hereunder will be solely the limited recourse obligations of the
Counterparty, and that Morgan will not have any recourse to any of the
directors, officers, employees, shareholders or affiliates of the Counterparty
with respect to any claims, losses, damages, liabilities, indemnities or other
obligations in connection with any transactions contemplated hereby.
Notwithstanding any other provisions hereof, recourse in respect of any
obligations of the Counterparty to Morgan hereunder or thereunder will be
limited to the Collateral, subject to and in accordance with the terms of the
priority of payments set forth in Section 4.4 of the Indenture Supplement,
and on the exhaustion thereof all claims against the Counterparty arising from
this Agreement or any other transactions contemplated hereby or thereby shall
be extinguished.

 

(10)                            Ratings Downgrade Provisions.
Unless written notification to the contrary has been received from the Rating
Agencies, following the occurrence of a Ratings Event I and/or a Ratings Event
II, the parties shall comply with the following provisions, as applicable.

 

I.                                         If
a Ratings Event I shall occur and be continuing with respect to Morgan, then
Morgan shall, within 5 Local Business Days of the occurrence of such Ratings
Event I, give notice of the occurrence of such Ratings Event I to Counterparty.
Following such notice, Morgan may either

 

(A) at its sole option and expense, provide, or cause to be provided, a
Third Party Credit Support Document to Counterparty; or

 

(B) at its sole option and expense, use reasonable efforts to transfer
Morgan’s rights and obligations under the Agreement and all Confirmations to
another party.

 

Each of I(A) and I(B) above shall be subject to satisfaction of the
Rating Agency Condition.

 

If, on or prior to the date that is 30 calendar days after the
occurrence of a Ratings Event I, Morgan has provided a Third Party Credit
Support Document as provided in I(A) above and the Rating Agency Condition has
been satisfied, then, for so long as such Third Party Credit Support Document
is in effect and the Rating Agency Condition continues to be satisfied, Morgan
shall have no further obligations in respect of this Part 5(10)(I).

 

If,

 

(i) on or prior to the date that is 30 calendar days after the
occurrence of a Ratings Event I, Morgan has not provided a Third Party Credit
Support Document as provided in I(A) above or transferred its rights and
obligations as provided in I(B) above, or

 

(ii) Morgan has provided a Third Party Credit Support Document as
provided in I(A) above but such Third Party Credit Support Document has ceased
to be in effect and/or the Rating Agency Condition is no longer satisfied,

 

then, on the first Local Business Day following the date that is 30
calendar days after the occurrence of the Ratings Event I (in respect of (i)
above) or on the first Local Business Day following the date on which the Third
Party Credit Support Document referred to in (ii) above has ceased to be in
effect and/or fails to satisfy the Rating Agency Condition, Counterparty may
demand that Morgan deliver Eligible Collateral to Counterparty in accordance
with the terms of an Approved Credit Support Document. Notwithstanding the
foregoing, Morgan’s obligations under this Part 5(10)(I) to post Eligible
Collateral under the Approved Credit

6

 

Support Document shall remain in effect only for so long as a Ratings
Event I is continuing with respect to Morgan.

 

The failure by Morgan to comply with the provisions hereof shall
constitute an Additional Termination Event, with Morgan as the sole Affected
Party and all Transactions then outstanding between the parties as Affected
Transactions.

 

II.                                     If
a Ratings Event II shall occur and be continuing with respect to Morgan, then
Morgan shall, within 5 Local Business Days of the occurrence of such Ratings
Event II, give notice of the occurrence of such Ratings Event II to
Counterparty. Following such notice, Morgan shall either

 

(A) to the extent that is has not already done so in accordance with
Part 5(10)(I), at its sole option and expense, provide, or cause to be
provided, a Third Party Credit Support Document to Counterparty; or

 

(B) at its sole option and expense, use reasonable efforts to transfer
Morgan’s rights and obligations under the Agreement and all Confirmations to
another party.

 

Each of II(A) and II(B) above shall be subject to satisfaction of the
Rating Agency Condition.

 

If, on or prior to the date that is 30 calendar days after the
occurrence of a Ratings Event II, Morgan has provided a Third Party Credit
Support Document as provided in II(A) or I(A) above and the Rating Agency
Condition has been satisfied, then, for so long as such Third Party Credit
Support Document is in effect and the Rating Agency Condition continues to be
satisfied, then, (i) Morgan shall have no further obligations in respect of
this Part 5(10)(II) and, (ii) if Morgan was delivering Eligible Collateral to
Counterparty in accordance with the terms of an Approved Credit Support
Document pursuant to the provisions of Part 5(10)(I) hereof, Morgan shall have
no further obligations to deliver Eligible Collateral under the Approved Credit
Support Document.

 

If,

 

(i) on or prior to the date that is 30 calendar days after the
occurrence of a Ratings Event II, Morgan has not provided a Third Party Credit
Support Document as provided in II(A) above or transferred its rights and
obligations as provided in II(B) above, or

 

(ii) Morgan has provided a Third Party Credit Support Document as
provided in II(A) or I(A) above but such Third Party Credit Support Document
has ceased to be in effect and/or the Rating Agency Condition is no longer
satisfied,

 

then, on the first Local Business Day following the date that is 30
calendar days after the occurrence of the Ratings Event II (in respect of (i)
above) or on the first Local Business Day following the date on which the Third
Party Credit Support Document referred to in (ii) above has ceased to be in
effect and/or fails to satisfy the Rating Agency Condition, and only to the
extent that Morgan is not already delivering Eligible Collateral to
Counterparty in accordance with the terms of an Approved Credit Support
Document pursuant to the provisions of Part 5(10)(I) hereof, Morgan will
deliver Eligible Collateral to Counterparty in accordance with the terms of an
Approved Credit Support Document. Notwithstanding Morgan’s posting of Eligible
Collateral in accordance with the terms of the Approved Credit Support
Document, Morgan shall use best efforts to either transfer its rights and
obligations to an acceptable third party or to provide a Third Party Credit
Support Document. Notwithstanding the foregoing, Morgan’s obligations under
this Part 5(10)(II) to find a transferee or provide a Third Party Credit
Support Document and to post Eligible Collateral under the Approved Credit
Support Document shall remain in effect only for so long as a Ratings Event II
is continuing with respect to Morgan.

 

7

 

The failure by Morgan to comply with the provisions hereof shall
constitute an Additional Termination Event, with Morgan as the sole Affected
Party and all Transactions then outstanding between the parties as Affected
Transactions.

 

As used herein:

 

“Approved Credit Support Document” means a security agreement in the
form of the 1994 ISDA Credit Support Annex (ISDA Agreements Subject to New York
Law Only), as modified by the Paragraph 13 thereto, which Paragraph 13 will be
in the form of Annex A to this Agreement;

 

“Indenture” means the Master Indenture dated as of August 1, 2001,
between World Financial Network Credit Card Master Note Trust, as Issuer, and
BNY Midwest Trust Company, as Indenture Trustee, as supplemented by the Series
2003-A Indenture Supplement dated as of June 19, 2003, between World
Financial Network Credit Card Master Note Trust, as the Issuer, and BNY Midwest
Trust Company, as the Indenture Trustee (the “Indenture Supplement”), and as
supplemented by the Issuance Supplement, dated as of August 14, 2003,
between World Financial Network Credit Card Master Note Trust, as the Issuer,
and BNY Midwest Trust Company, as the Indenture Trustee (the “Issuance
Supplement”), in each case, as amended, modified, supplemented, restated or
replaced from time to time.

 

“Moody’s” means Moody’s Investors Service, Inc. or any successor
thereto;

 

“Rating Agencies” means S&P and Moody’s;

 

“Rating Agency Condition” has the meaning specified in the Indenture;

 

“Ratings Event I” shall occur with respect to Morgan (to the extent
that Morgan’s relevant obligations are rated by Moody’s) if Morgan’s long-term
senior unsecured debt rating by Moody’s is lower than A1 or is A1 on negative
watch or Morgan’s short-term senior unsecured debt rating by Moody’s is lower
than P-1 or is P-1 on negative watch;

 

“Ratings Event II” shall occur with respect to Morgan (to the extent
that Morgan’s relevant obligations are rated by S&P and/or Moody’s) if (a)
Morgan’s short-term senior unsecured debt rating by S&P is lower than A-1
or (b) Morgan’s long-term senior unsecured debt rating by Moody’s is A3 or
lower or Morgan’s short-term senior unsecured debt rating by Moody’s is P-2 or
lower;

 

“S&P” means by Standard & Poor’s Ratings Service or any
successor thereto; and

 

“Third Party Credit Support Document” means any agreement or instrument
(including any guarantee, insurance policy, security agreement or pledge
agreement) whose terms provide for the guarantee of Morgan’s obligations under
this Agreement by a third party.

 

(11)                            Additional Representations.
Section 3 is hereby amended by adding at the end thereof the following
paragraphs:

 

“(g) It is an “eligible contract participant” under, and as defined in,
Section 1a(12) of the Commodity Exchange Act, as amended.

 

(h) Each party will be deemed to represent to the other party on the
date on which it enters into a Transaction that (absent a written agreement
between the parties that expressly imposes affirmative obligations to the
contrary for that Transaction):

 

(i)                                     Non-Reliance. It is acting for its own
account, and it has made its own independent decisions to enter into that
Transaction and as to whether that Transaction is appropriate or proper for it
based upon its own judgment and upon advice from such advisers as it has deemed
necessary. It is not relying on any communication (written or oral) of the
other party as

 

8

 

investment advice or as a recommendation to enter into that
Transaction; it being understood that information and explanations related to
the terms and conditions of a Transaction shall not be considered investment
advice or a recommendation to enter into that Transaction. No communication
(written or oral) received from the other party shall be deemed to be an
assurance or guarantee as to the expected results of that Transaction.

 

(ii)                                  Assessment and Understanding. It is capable
of assessing the merits of and understanding (on its own behalf or through
independent professional advice), and understands and accepts, the terms,
conditions and risks of that Transaction. It is also capable of assuming, and
assumes, the risks of that Transaction.

 

(iii)                               Status of Parties. The other party is not
acting as a fiduciary for or an adviser to it in respect of that Transaction.”

 

(12)                            Amendment to Section 7 of the
Agreement. Section 7 of the Agreement is hereby amended by:

 

(i) adding the words “and the confirmation of the Rating Agencies”
immediately following the word “party” in the third line thereof; and

 

(ii) adding the following sentence immediately following the final
sentence thereof:

 

“In addition, no transfer shall be effective unless it satisfies the
Rating Agency Condition.”.

 

(13)                            Events of Default.
Section 5(a)(i) of the Agreement is amended by substituting the following
therefor: “Failure by the party to make, when due, any payment under this
Agreement or delivery under Section 2(a)(i) or 2(e) required to be made by
it if such failure is not remedied on or before the fifth Local Business Day
after notice of such failure is given to the party.”

 

(14)                            Owner Trustee. It is
expressly understood and agreed by the parties hereto that (a) this Agreement
is executed and delivered by Chase Manhattan Bank USA, National Association,
not individually or personally but solely as trustee of the Counterparty in the
exercise of the powers and authority conferred and vested in it under the
Amended and Restated Trust Agreement (as defined in the Indenture), (b) each of
the representations, undertakings and agreements herein made on the part of the
Counterparty are made and intended not as personal representations,
undertakings and agreements by Chase Manhattan Bank USA, National Association,
but are made and intended for the purpose of binding only the Counterparty, and
(c) under no circumstances shall Chase Manhattan Bank USA, National Association
be personally liable for the payment of any indebtedness or expenses of the
Counterparty or be liable for the breach or failure of any obligation,
representations, warranty or covenant made or undertaken by the Counterparty
under this Agreement.

 

(15)                            Amendment to Section 9(b) of
the Agreement. Section 9(b) of the Agreement is amended by
adding the following sentence immediately following the end of the first
sentence thereof:

 

“In addition, no amendment modification or waiver in respect of this
Agreement will be effective unless it satisfied the Rating Agency Condition.”

 

(16)                            Amendment
to Section 6(e) of the Agreement. Section 6(e) of the Agreement is
amended by deleting the last sentence of the introductory paragraph thereof.

 

(17)                            The
parties agree that there will be no Set-off with respect to this Agreement.

 

9

 

Please confirm
your agreement to the terms of the foregoing Schedule by signing below.

 

	
   

  	
  JPMORGAN CHASE BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Don Thompson

  
	
   

  	
   

  	
  Name: Don Thompson

  
	
   

  	
   

  	
  Title: Managing Director and Associate General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WORLD FINANCIAL NETWORK CREDIT CARD MASTER
  NOTE TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
  By: Chase Manhattan Bank USA, National Association, not in its
  individual capacity, but solely as Owner Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John J. Cashin

  
	
   

  	
   

  	
  Name: John J. Cashin

  
	
   

  	
   

  	
  Title: Vice-President

  

 

CLASS B SWAP

 

10

 

ANNEX A

 

PARAGRAPH 13 TO

CREDIT SUPPORT ANNEX

 

to the Schedule to the

Master Agreement

 

dated as of August 7, 2003

 

between

 

	
  JPMorgan Chase Bank

  (“Morgan”)

  	
   

  	
  and

  	
   

  	
  WORLD FINANCIAL NETWORK CREDIT

  CARD MASTER NOTE TRUST

  (“Counterparty”)

  

Paragraph 13. Elections and Variables

 

(a)                                  Security
Interest for “Obligations”. The term “Obligations” as used in this Annex
includes no additional obligations with respect to either party.

 

(b)                                 Credit
Support Obligations.

 

(i)                                     Delivery
Amount, Return Amount and Credit Support Amount.

 

(A)                              “Delivery
Amount” has the meaning specified in Paragraph 3(a).

 

(B)                                “Return
Amount” has the meaning specified in Paragraph 3(b).

 

(C)                                “Credit
Support Amount” shall not have the meaning specified in Paragraph 3(b) and,
instead, will have the following meaning:

 

“Credit Support Amount” means, for any Valuation Date, (i) the Secured
Party’s Modified Exposure for that Valuation Date minus (ii) the Pledgor’s
Threshold; provided, however, that the Credit Support Amount will be deemed to
be zero whenever the calculation of Credit Support Amount yields a number less
than zero.

 

(ii)                                  Eligible
Collateral. The following items will qualify as “Eligible Collateral”:

 

	
   

  	
   

  	
   

  	
   

  	
  Morgan

  	
   

  	
  “Valuation

  Percentage”

  	
   

  
	
  (A)

  	
   

  	
  USD Cash

  	
   

  	
  X

  	
   

  	
  100%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (B)

  	
   

  	
  Negotiable debt obligations issued by the U.S. Treasury Department
  having a remaining maturity of one year or less from the Valuation Date

  	
   

  	
  X

  	
   

  	
  98.6%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (C)

  	
   

  	
  Negotiable debt obligations issued by the U.S. Treasury Department
  having a remaining maturity of more than one year but less than ten years
  from the Valuation Date

  	
   

  	
  X

  	
   

  	
  90.7%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (D)

  	
   

  	
  Negotiable debt obligations issued by the U.S. Treasury Department
  having a remaining maturity of ten years or more from the Valuation Date

  	
   

  	
  X

  	
   

  	
  85.3%

  	
   

  

 

11

 

	
  (E)

  	
   

  	
  Agency Securities having a remaining maturity of one year or less
  from the Valuation Date

  	
   

  	
  X

  	
   

  	
  98.1%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (F)

  	
   

  	
  Agency Securities having a remaining maturity of more than one year
  but less than ten years from the Valuation Date

  	
   

  	
  X

  	
   

  	
  88%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (G)

  	
   

  	
  Agency Securities having a remaining maturity of ten years or more
  from the Valuation Date

  	
   

  	
  X

  	
   

  	
  79.8%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (H)

  	
   

  	
  USD denominated Commercial Paper rated A1/P1 by S&P and Moody’s
  respectively, that (a) settles within DTC, (b) is not issued by Morgan or any
  of its Affiliates and (c) has a remaining maturity of 30 days or less from
  the Valuation Date

  	
   

  	
  X

  	
   

  	
  98%

  	
   

  

 

For purposes
of the foregoing:

 

(a) “Agency
Securities” means negotiable debt obligations which are fully guaranteed as to
both principal and interest by the Federal National Mortgage Association, the
Government National Mortgage Association or the Federal Home Loan Mortgage
Corporation, but excluding (i) interest only and principal only securities and
(ii) Collateralized Mortgage Obligations, Real Estate Mortgage Investment
Conduits and similar derivative securities.

 

(b) “DTC”
shall mean The Depository Trust & Clearing Corporation, or its successor.

 

(c) “Moody’s”
shall mean Moody’s Investors Service, Inc., or its successor.

 

(d) “S&P”
shall mean Standard & Poor’s Ratings Group, or its successor.

 

(e) Eligible
Collateral of the type described in Paragraph 13(b)(ii)(H) may never constitute
more than 20% of the total Value of Posted Collateral.

 

(f) With
respect to Posted Collateral consisting of Eligible Collateral of the type
described in Paragraph 13(b)(ii)(H), the aggregate Value of such Posted
Collateral issued by the same issuer may never be greater than 33% of the
aggregate Value of all Posted Collateral consisting of Eligible Collateral of
the type described in Paragraph 13(b)(ii)(H).

 

(iii)                               Other
Eligible Support. There shall be no “Other Eligible Support” for purposes of
this Annex, unless agreed in writing between the parties.

 

(iv)                              Thresholds.

 

(A)                              “Independent
Amount” means zero.

 

(B)                                “Threshold”
shall not apply with respect to the Counterparty and, with respect to Morgan,
shall mean the amounts determined on the basis of the lower of the Credit
Ratings set forth in the following table, provided, however, that
if (i) Morgan has no Credit Rating, or (ii) an Event of Default has occurred
and is continuing with respect to Morgan, Morgan’s Threshold shall be U.S.$0:

 

12

 

	
  CREDIT RATING

  (S&P /Moody’s/Fitch)

  	
   

  	
  THRESHOLD

  Morgan

  
	
   

  	
   

  	
   

  
	
  S&P: A-1 or above.

  	
   

  	
  Infinity

  
	
   

  	
   

  	
   

  
	
  Moody’s (long-term senior unsecured debt of Morgan): A1 or above.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Moody’s (short-term senior unsecured debt of Morgan): P-1 or above.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  S&P: Below A-1.

  	
   

  	
  US$0

  
	
   

  	
   

  	
   

  
	
  Moody’s (long-term senior unsecured debt of Morgan): Below A1 or A1
  on negative watch.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Moody’s (short-term senior unsecured debt of Morgan): Below P-1 or
  P-1 on negative watch.

  	
   

  	
   

  

 

As used
herein:

 

“Credit Rating” means, with respect to (a) S&P, the rating assigned
by S&P to the short-term senior unsecured debt of Morgan, and (b) Moody’s,
the rating assigned by Moody’s to the long-term senior unsecured debt of Morgan
or to the short-term senior unsecured debt of Morgan, as applicable.

 

(C)                                “Minimum Transfer
Amount”, with respect to a party on any Valuation Date, means U.S. $250,000.

 

Rounding. The Delivery Amount and the Return Amount will be rounded up
and down to the nearest integral multiple of $100,000, respectively.

 

(c)                                  Valuation
and Timing.

 

(i)                                     “Valuation
Agent” means Morgan.

 

(ii)                                  “Valuation
Date” means weekly on the last Local Business Day of each week or more
frequently if agreed in writing by the parties.

 

(iii)                               “Valuation
Time” means the close of business in the city of the Valuation Agent on the
Valuation Date or date of calculation, as applicable.

 

(iv)                              “Notification
Time” means 12:00 p.m., New York time, on a Local Business Day.

 

(d)                                 Conditions
Precedent. With respect to Morgan, any Additional Termination Event (if Morgan
is the Affected Party with respect to such Termination Event) will be a
“Specified Condition”.

 

(e)                                  Substitution.

 

(i)                                     “Substitution
Date” has the meaning specified in Paragraph 4(d)(ii).

 

(ii)                                  Consent.
Inapplicable.

 

(f)                                    Dispute
Resolution.

 

(i)                                     “Resolution
Time” means 1:00 p.m., New York time, on the Local Business Day following the
date on which the notice is given that gives rise to a dispute under Paragraph
5.

 

13

 

(ii)                                  Value.
For the purposes of Paragraphs 5(i)(C) and 5(ii), the Value of Posted Credit
Support other than Cash will be calculated as follows:

 

(A)                              with respect to any
Eligible Collateral except Cash, the sum of (I) (x) the mean of the high bid
and low asked prices quoted on such date by any principal market maker for such
Eligible Collateral chosen by the Disputing Party, or (y) if no quotations are
available from a principal market maker for such date, the mean of such high
bid and low asked prices as of the first day prior to such date on which such
quotations were available, plus (II) the accrued interest on such Eligible
Collateral (except to the extent Transferred to a party pursuant to any
applicable provision of this Agreement or included in the applicable price
referred to in (I) of this clause (A)) as of such date; multiplied by the
applicable Valuation Percentage.

 

(iii)                               Alternative.
The provisions of Paragraph 5 will apply.

 

(g)                                 Holding
and Using Posted Collateral.

 

(i)                                     Eligibility
to Hold Posted Collateral; Custodians. Counterparty and its Custodian will be
entitled to hold Posted Collateral pursuant to Paragraph 6(b); provided that
the following conditions applicable to it are satisfied:

 

(1)                                  Counterparty is not a
Defaulting Party and

 

(2)                                  Posted Collateral may
be held only in the following jurisdictions:

 

New York State.

 

Initially, the Custodian for Counterparty is:
None

 

(ii)                                  Use
of Posted Collateral. The provisions of Paragraph 6(c)(i) will not apply to
Counterparty but the provisions of Paragraph 6(c)(ii) will apply to the
Counterparty.

 

(h)                                 Distributions
and Interest Amount.

 

(i)                                     Interest
Rate. “Interest Rate” for any day means, the Federal Funds Overnight Rate. For
the purposes hereof, “Federal Funds Overnight Rate” means, for any day, an
interest rate per annum equal to the rate published as the Federal Funds
Effective Rate that appears on Telerate Page 118 for such day.

 

(ii)                                  Transfer
of Interest Amount. The Transfer of the Interest Amount will be made monthly on
the second Local Business Day of each calendar month.

 

(iii)                               Alternative
to Interest Amount. The provisions of Paragraph 6(d)(ii) will apply.

 

(i)                                     Additional
Representation(s). Not Applicable.

 

(j)                                     Other
Eligible Support and Other Posted Support.

 

(i)                                     “Value”
with respect to Other Eligible Support and Other Posted Support means: Not Applicable.

 

(ii)                                  “Transfer”
with respect to Other Eligible Support and Other Posted Support means: Not
Applicable

 

14

 

(k)                                  Demands
and Notices.

 

All demands, specifications and notices under this Annex will be made
pursuant to the Notices Section of this Agreement, unless otherwise
specified here:

 

Counterparty:

 

 

Morgan:

 

 

(l)                                     Addresses
for Transfers.

 

Counterparty:
as set forth in notices to Morgan from time to time

 

Morgan:

 

(m)                               Other
Provisions:

 

(i)                                     Modification
to Paragraph 1: The following subparagraph (b) is substituted for
subparagraph (b) of this Annex:

 

(b) Secured Party and Pledgor. All references
in this Annex to the “Secured Party” will be to Counterparty and all
corresponding references to the “Pledgor” will be to Morgan.

 

(ii)                                  Modification
to Paragraph 2: The following Paragraph 2 is substituted for Paragraph 2 of
this Annex:

 

Paragraph 2. Security Interest.
The Pledgor hereby pledges to the Secured Party, as security for its
Obligations, and grants to the Secured Party a first priority continuing
security interest in and lien on against all Posted Collateral Transferred to
or received by the Secured Party hereunder. Upon the Transfer by the Secured
Party to the Pledgor of Posted Collateral, the security interest and lien
granted hereunder on that Posted Collateral will be released immediately and,
to the extent possible, without any further action by either party.

 

(iii)                               Modification
to Paragraph 8(a): Paragraph 8(a) is modified by deleting the text of
clause (iii) thereof and replacing such text with the word “Reserved”.

 

(iv)                              Modification
to Paragraph 8(b)(iv): Paragraph 8(b)(iv) is modified and restated in its
entirety to read as follows:

 

“(iv) to the
extent that Posted Collateral or the Interest Amount is not so Transferred
pursuant to (iii) above, the Pledgor may withhold payment of any remaining
amounts payable by the Pledgor with respect to any Obligations, up to the Value
of any remaining Posted Collateral held by the Secured Party, until that Posted
Collateral is Transferred to the Pledgor.”

 

(v)                                 Modification
to Paragraph 8(c): Paragraph 8(c) is modified and restated in its entirety
to read as follows:

 

15

 

“(c)                            Deficiencies and Excess Proceeds.
The Secured Party will Transfer to the Pledgor any proceeds and Posted Credit
Support remaining after liquidation and/or application under Paragraphs 8(a)
and 8(b) after satisfaction in full of all amounts payable by the Pledgor with
respect to any Obligations; the Pledgor in all events will remain liable for
any amounts remaining unpaid after any liquidation and/or application under
Paragraphs 8(a) and 8(b).”

 

(vi)                              Modification
to Paragraph 9: The following first clause of Paragraph 9 is substituted
for the first clause of Paragraph 9 of this Annex:

 

Paragraph 9. Representations.
The Pledgor represents to the Secured Party (which representations will be
deemed to be repeated as of each date on which it Transfers Eligible
Collateral) that:

 

(vii)                           Modifications
to Paragraph 12: The following definitions of “Pledgor” and “Secured Party”
are substituted for the definitions of those terms contained in Paragraph 12 of
this Annex:

 

“Pledgor” means Morgan, when that party (i) receives a demand for or is
required to Transfer Eligible Credit Support under Paragraph 3(a) or (ii) has
Transferred Eligible Credit Support under Paragraph 3(a).

 

“Secured Party” means Counterparty, when that party (i) makes a demand
for or is entitled to receive Eligible Credit Support under Paragraph 3(a) or
(ii) holds or is deemed to hold Posted Credit Support.

 

(viii)                        Addition
to Paragraph 12: The following definitions of “Modified Exposure” shall be
added immediately after the definition of the term “Minimum Transfer Amount”
and immediately prior to the definition of the term “Notification Time” in
Paragraph 12 of this Annex:

 

“Modified Exposure” means, for any Valuation Date, an amount equal to
the greater of (i) the Secured Party’s Exposure for that Valuation Date, (ii)
the amount of the next scheduled payment that is required to be made by Morgan
pursuant to the Transaction and (iii) one percent of the outstanding Notional
Amount of the Transaction.

 

(ix)                                Modification
to Paragraph 12: Clause “(B)” of the definition of “Value” will be substituted
to read in its entirety as follows:

 

“(B) a security, the bid price obtained by the Valuation Agent from one
of the Pricing Sources multiplied by the applicable Valuation Percentage, if
any;”

 

(x)                                   Addition
to Paragraph 12: The following definition of “Pricing Sources” shall be
added immediately after the definition of the term “Posted Credit Support” and
immediately prior to the definition of the term “Recalculation Date” in
Paragraph 12 of this Annex:

 

“Pricing Sources” means the sources of financial information commonly
known as Bloomberg, Bridge Information Services, Data Resources Inc.,
Interactive Data Services, International Securities Market Association, Merrill
Lynch Securities Pricing Service, Muller Data Corporation, Reuters, Wood Gundy,
Trepp Pricing, JJ Kenny, S&P and Telerate.

 

16

 

Accepted and Agreed:

 

JPMORGAN CHASE BANK

 

 

	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
  WORLD FINANCIAL NETWORK CREDIT CARD MASTER
  NOTE TRUST

  
	
   

  	
   

  	
   

  
	
  By:

  	
  Chase Manhattan Bank USA, National

  Association, not in its individual capacity, but

  solely as Owner Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  

 

17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]