Document:

Exhibit 4.1

 

SYNCHRONY CREDIT CARD MASTER NOTE TRUST,

 

as Issuer

 

and

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

 

as Indenture Trustee

 

Series 2016-2 INDENTURE SUPPLEMENT

 

Dated as of May 26, 2016

 

     

     

    

  

Table
of Contents

 

	 	 	Page
	 	 	 
	ARTICLE I	Definitions	 
	 	 	 
	SECTION 1.1.	Definitions	1
	SECTION 1.2.	Incorporation of Terms	16
	 	 	 
	ARTICLE II	Creation of the Series 2016-2 Notes	 
	 	 	 
	SECTION 2.1.	Designation	16
	SECTION 2.2.	Transfer Restrictions Applicable to the Class B Notes, the Class C Notes and the Class D Notes	16
	 	 	 
	ARTICLE III	REPRESENTATIONS, WARRANTIES and Covenants	 
	 	 	 
	SECTION 3.1.	Representations, Warranties and Covenants with respect to Receivables	19
	SECTION 3.2.	Representations, Warranties and Covenants with respect to ERISA	19
	 	 	 
	ARTICLE IV	Rights of Series 2016-2 Noteholders and Allocation and Application of Collections	 
	 	 	 
	SECTION 4.1.	Determination of Interest and Principal	19
	SECTION 4.2.	Establishment of Accounts	21
	SECTION 4.3.	Calculations and Series Allocations	22
	SECTION 4.4.	Application of Available Finance Charge Collections and Available Principal Collections	23
	SECTION 4.5.	Distributions	27
	SECTION 4.6.	Investor Charge-Offs	27
	SECTION 4.7.	Reallocated Principal Collections	28
	SECTION 4.8.	Excess Finance Charge Collections	28
	SECTION 4.9.	Shared Principal Collections	28
	SECTION 4.10.	Reserve Account	29
	SECTION 4.11.	Spread Account	29
	SECTION 4.12.	Investment of Accounts	30
	SECTION 4.13.	Controlled Accumulation Period	31
	SECTION 4.14.	[Reserved]	31
	SECTION 4.15.	Deposit of Collections	32
	 	 	 
	ARTICLE V	Delivery of Series 2016-2 Notes; Reports to Series 2016-2 Noteholders	 
	 	 	 
	SECTION 5.1.	Delivery and Payment for the Series 2016-2 Notes	32
	SECTION 5.2.	Reports and Statements to Series 2016-2 Noteholders	32
	 	 	 
	ARTICLE VI	Series 2016-2 Early Amortization Events	 
	 	 	 
	SECTION 6.1.	Series 2016-2 Early Amortization Events	32

 

    -i-

     

    

  

Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	ARTICLE VII	Redemption of Series 2016-2 Notes; Final Distributions; Series Termination	 
	 	 	 
	SECTION 7.1.	Optional Redemption of Series 2016-2 Notes; Final Distributions	34
	SECTION 7.2.	Series Termination	35
	SECTION 7.3.	Sale of Collateral	35
	 	 	 
	ARTICLE VIII	Miscellaneous Provisions	 
	 	 	 
	SECTION 8.1.	Ratification of Indenture; Amendments	36
	SECTION 8.2.	Form of Delivery of the Series 2016-2 Notes	36
	SECTION 8.3.	Counterparts	36
	SECTION 8.4.	GOVERNING LAW	36
	SECTION 8.5.	Limitation of Liability	37
	SECTION 8.6.	Rights of the Indenture Trustee	37
	SECTION 8.7.	Notice Address for Rating Agencies	37
	SECTION 8.8.	Compliance with Applicable Anti-Terrorism and Anti-Money Laundering Regulations	38
	SECTION 8.9.	Notes to be Treated as Debt for Tax	38
	SECTION 8.10.	Deemed Consent	38

 

	EXHIBITS	 
	 	 
	EXHIBIT A-1	FORM OF CLASS A NOTE
	 	 
	EXHIBIT A-2	FORM OF CLASS B NOTE
	 	 
	EXHIBIT A-3	FORM OF CLASS C NOTE
	 	 
	EXHIBIT A-4	FORM OF CLASS D NOTE
	 	 
	EXHIBIT B	FORM OF MONTHLY NOTEHOLDER’S STATEMENT
	 	 
	SCHEDULES	 
	 	 
	SCHEDULE I	PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS (With Respect to Receivables)

 

    -ii-

     

    

 

 

SERIES 2016-2 INDENTURE
SUPPLEMENT, dated as of May 26, 2016 (this “Indenture Supplement”), between SYNCHRONY CREDIT CARD MASTER NOTE
TRUST, a Delaware statutory trust (herein, the “Issuer” or the “Trust”), and DEUTSCHE BANK
TRUST COMPANY AMERICAS, a New York banking corporation, not in its individual capacity, but solely as indenture trustee (herein,
together with its successors as provided in the Master Indenture referred to below, the “Indenture Trustee”)
under the Master Indenture, dated as of September 25, 2003 (the “Indenture”), between the Issuer and the Indenture
Trustee, as amended by the Omnibus Amendment No.1 to Securitization Documents, dated as of February 9, 2004, among RFS Holding,
L.L.C., RFS Funding Trust, the Issuer, Deutsche Bank Trust Company Delaware, as trustee of RFS Funding Trust, RFS Holding, Inc.
and the Indenture Trustee, as further amended by the Second Amendment to Master Indenture, dated as of June 17, 2004, between the
Issuer and the Indenture Trustee, as further amended by the Third Amendment to Master Indenture, dated as of August 31, 2006, between
the Issuer and the Indenture Trustee, as further amended by the Fourth Amendment to Master Indenture, dated as of June 28, 2007,
between the Issuer and the Indenture Trustee, as further amended by the Fifth Amendment to Master Indenture, dated as of May 22,
2008, between the Issuer and the Indenture Trustee, as further amended by the Sixth Amendment to Master Indenture, dated as of
August 7, 2009, between the Issuer and the Indenture Trustee, as further amended by the Seventh Amendment to Master Indenture,
dated as of January 21, 2014, between the Issuer and the Indenture Trustee, as further amended by the Eighth Amendment to
Master Indenture and Omnibus Supplement to Specified Indenture Supplements, dated as of March 11, 2014, between the Issuer
and the Indenture Trustee, as further amended by the Ninth Amendment to Master Indenture, dated as of November 24, 2015, between
the Issuer and the Indenture Trustee, and as further amended by the Tenth Amendment to Master Indenture, dated as of March 3, 2016,
between the Issuer and the Indenture Trustee (the Indenture, together with this Indenture Supplement, the “Agreement”).

 

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

 

ARTICLE
I

Definitions

 

SECTION 1.1. Definitions.

 

(a)          Capitalized
terms used and not otherwise defined herein are used as defined in Section 1.1 of the Indenture. This Indenture Supplement
shall be interpreted in accordance with the conventions set forth in Section 1.2 and Section 1.3 of the Indenture.

 

(b)          Each
capitalized term defined herein relates only to Series 2016-2 and to no other Series. Whenever used in this Indenture Supplement,
the following words and phrases shall have the following meanings:

 

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

 

     

     

    

  

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

 

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

 

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

 

“Administrator”
means SYNCHRONY FINANCIAL, in its capacity as Administrator under the Administration Agreement or any other Person designated as
an Administrator under the Administration Agreement.

 

“Agreement”
is defined in the preamble.

 

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

 

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

 

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

 

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

 

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

 

    	 	2	 

     

    

  

“Available
Finance Charge Collections” means, for any Monthly Period, an amount equal to the sum of (a) the Investor Finance Charge
Collections for such Monthly Period, (b) the Series 2016-2 Excess Finance Charge Collections for such Monthly Period, (c) Principal
Accumulation Investment Proceeds, if any, with respect to the related Transfer Date, (d) interest and earnings on funds on deposit
in the Reserve Account which will be treated as Available Finance Charge Collections pursuant to Section 4.10(a) and (e)
amounts, if any, to be withdrawn from the Reserve Account which will be deposited into the Finance Charge Account on the related
Transfer Date to be treated as Available Finance Charge Collections pursuant to Section 4.10(c); provided, that for purposes
of the statement to be delivered pursuant to Section 5.2(a), the Servicer may estimate the amount of interest, earnings
and expenses on any Series Account based on the most recent statement delivered by the related deposit bank.

 

“Available
Principal Collections” means, for any Monthly Period, an amount equal to the sum of (a) the Investor Principal Collections
for such Monthly Period, minus (b) the amount of Reallocated Principal Collections with respect to such Monthly Period
which pursuant to Section 4.7 are required to be applied on the related Payment Date, plus (c) the sum of (i)
any Shared Principal Collections with respect to other Principal Sharing Series (including any amounts on deposit in the Excess
Funding Account that are allocated to Series 2016-2 for application as Shared Principal Collections), (ii) the aggregate amount
to be treated as Available Principal Collections pursuant to Sections 4.4(a)(vii), (viii) and (xi) and (iii)
during an Early Amortization Period, the amount of Available Finance Charge Collections used to pay principal on the Notes pursuant
to Section 4.4(a)(xiv) for the related Payment Date.

 

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

 

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

 

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

 

    	 	3	 

     

    

  

“Base Rate”
means, for any Monthly Period, the annualized percentage (based on a 360-day year of twelve 30-day months, or in the case of the
initial Monthly Period, the actual number of days and a 360-day year) equivalent of a fraction, the numerator of which is equal
to the sum of (a) the Monthly Interest, (b) the amount required to be paid pursuant to Section 4.4(a)(i) and (c) the Noteholder
Servicing Fee, each with respect to the related Payment Date, and the denominator of which is the Collateral Amount plus amounts
on deposit in the Principal Accumulation Account, each as of the close of business on the last day of such Monthly Period.

 

“Benefit Plan”
means (i) an “employee benefit plan” as defined in Section 3(3) of ERISA, that is subject to Title I of ERISA, (ii)
a “plan” as defined in Section 4975 of the Code that is subject to Section 4975 of the Code, or (iii) an entity whose
underlying assets include plan assets by reason of investment by an employee benefit plan or plan in such entity.

 

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

 

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

 

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

 

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

 

“Class A Note
Initial Principal Balance” means $600,000,000.

 

“Class A Note
Interest Rate” means a per annum rate of 2.21%.

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	4	 

     

    

  

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

 

“Class B Note
Initial Principal Balance” means $57,534,246.

 

“Class B Note
Interest Rate” means a per annum rate of 2.55%.

 

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

 

“Class B Note
Transfer” is defined in Section 2.2(b).

 

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

 

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

 

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

 

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

 

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

 

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

 

“Class C Note
Initial Principal Balance” means $49,315,069.

 

“Class C Note
Interest Rate” means a per annum rate of 2.95%.

 

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

 

“Class C Note
Transfer” is defined in Section 2.2(b).

 

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

 

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

 

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

 

“Class D Additional
Interest” is defined in Section 4.1(d).

 

    	 	5	 

     

    

  

“Class D Deficiency
Amount” is defined in Section 4.1(d).

 

“Class D Monthly
Interest” is defined in Section 4.1(d).

 

“Class D Note
Initial Principal Balance” means $73,972,603.

 

“Class D Note
Interest Rate” means a per annum rate of 3.64%.

 

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

 

“Class D Note
Transfer” is defined in Section 2.2(b).

 

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

 

“Class D Notes”
means any one of the Notes executed by the Issuer and authenticated by or on behalf of the Indenture Trustee, substantially in
the form of Exhibit A-4.

 

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

 

“Closing Date”
means May 26, 2016.

 

“Collateral
Amount” means, as of any date of determination, an amount equal to the excess of (a) the Initial Collateral Amount, over
(b) the sum of (i) the amount of principal previously paid to the Series 2016-2 Noteholders (other than any principal payments
made from funds on deposit in the Spread Account), (ii) reductions in the Collateral Amount pursuant to Section 4.4(f),
(iii) the Principal Accumulation Account Balance and (iv) the excess, if any, of the aggregate amount of Investor Charge-Offs and
Reallocated Principal Collections over the reimbursements of such amounts pursuant to Section 4.4(a)(viii) prior
to such date.

 

“Controlled
Accumulation Amount” means, for any Payment Date with respect to the Controlled Accumulation Period, $260,273,972.67;
provided, however, that if the Controlled Accumulation Period Length is determined to be more than or less than three
months pursuant to Section 4.13, the Controlled Accumulation Amount for each Payment Date with respect to the Controlled
Accumulation Period will be equal to (i) the initial Note Principal Balance divided by (ii) the Controlled Accumulation
Period Length; provided, further, that the Controlled Accumulation Amount for any Payment Date shall not exceed the
Note Principal Balance minus any amount already on deposit in the Principal Accumulation Account on such Payment Date.

 

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

 

    	 	6	 

     

    

  

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	7	 

     

    

  

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

 

“Early Amortization
Period” means the period commencing on the date on which a Trust Early Amortization Event or a Series 2016-2 Early Amortization
Event is deemed to occur and ending on the Final Payment Date.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

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

 

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

 

“Expected
Principal Payment Date” means the May 2021 Payment Date.

 

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

 

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

 

“Finance Charge
Shortfall” is defined in Section 4.8.

 

“Group One”
means Series 2016-2 and each other outstanding Series previously or hereafter specified in the related Indenture Supplement to
be included in Group One.

 

“Indenture”
is defined in the preamble.

 

“Indenture
Trustee” is defined in the preamble.

 

“Initial Collateral
Amount” means $821,917,809, which equals the sum of (i) the Class A Note Initial Principal Balance, (ii) the Class B
Note Initial Principal Balance, (iii) the Class C Note Initial Principal Balance, (iv) the Class D Note Initial Principal Balance
and (v) the Initial Excess Collateral Amount.

 

“Initial Excess
Collateral Amount” means $41,095,891.

 

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

 

    	 	8	 

     

    

  

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

 

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

 

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

 

“Investor
Finance Charge Collections” means, for any Monthly Period, an amount equal to the aggregate amount of Finance Charge
Collections allocated to the Series issued pursuant to this Indenture Supplement pursuant to Section 4.3(a) for all Dates of Processing
during such Monthly Period.

 

“Investor
Principal Collections” means, for any Monthly Period, (a) during the Revolving Period, amounts deposited by the holder(s)
of the Transferor Interest to the Collection Account in respect of Reallocated Principal Collections pursuant to Section 4.3(c),
and (b) during the Controlled Accumulation Period or the Early Amortization Period, an amount equal to the lesser of (i) the Required
Principal Deposit Amount for such Monthly Period and (ii) the aggregate amount of Principal Collections allocated to the Series
issued pursuant to this Indenture Supplement pursuant to Section 4.3(b) for all Dates of Processing during such Monthly
Period; provided, that for any Monthly Period in which the Early Amortization Period commences, the amount described in
this clause (ii) shall equal the sum of (x) the lesser of (A) the aggregate amount of Principal Collections allocated to
the Series issued pursuant to this Indenture Supplement pursuant to Section 4.3(b) for all Dates of Processing during any
portion of the Monthly Period preceding the date on which the Early Amortization Period commences and (B) the Required Principal
Deposit Amount during the portion of such Monthly Period preceding the date on which the Early Amortization Period commences, plus
(y) the aggregate amount of Principal Collections allocated to the Series issued pursuant to this Indenture Supplement pursuant
to Section 4.3(b) for all Dates of Processing during any portion of the Monthly Period on and after the commencement of
the Early Amortization Period.

 

“Investor
Uncovered Dilution Amount” means, for any Monthly Period, an amount equal to the product of (a) the Series Allocation
Percentage for such Monthly Period (which with respect to any Monthly Period in which a Reset Date occurs during that Monthly Period
will be the daily average of the Series Allocation Percentages for all dates during such Monthly Period) and (b) the aggregate
Dilutions occurring during such Monthly Period as to which any deposit is required to be made hereunder but has not been made,
provided, that if the Free Equity Amount is greater than zero at the time the deposit referred to in clause (b) is
required to be made, the Investor Uncovered Dilution Amount shall be deemed to be zero.

 

“Issuer”
is defined in the preamble.

 

“Maximum Delinquency
Percentage” means, for purposes of Series 2016-2, 9%.

 

    	 	9	 

     

    

  

“Minimum Free
Equity Percentage” means, for purposes of Series 2016-2, 5.5%.

 

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

 

“Monthly Period”
means, as to the July 2016 Payment Date, the period beginning on the Closing Date and ending on June 21, 2016, and as to each Payment
Date thereafter, the period beginning on the 22nd day of the second preceding calendar month and ending on the 21st
day of the immediately preceding calendar month.

 

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

 

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

 

(a)          the
lesser of (i) the Class A Required Amount and (ii) 27.00% of the Initial Collateral Amount minus the sum of (x) the amount
of unreimbursed Investor Charge-Offs (after giving effect to Investor Charge-Offs for the related Monthly Period) and unreimbursed
Reallocated Principal Collections (as of the previous Payment Date) and (y) any reductions to the Collateral Amount pursuant to
Section 4.4(f), but not less than zero;

 

(b)          the
lesser of (i) the Class B Required Amount and (ii) 20.00% of the Initial Collateral Amount minus the sum of (x) the amount
of unreimbursed Investor Charge-Offs (after giving effect to Investor Charge-Offs for the related Monthly Period) and unreimbursed
Reallocated Principal Collections (as of the previous Payment Date and as required in clause (a) above) and (y) any reductions
to the Collateral Amount pursuant to Section 4.4(f), but not less than zero;

 

(c)          the
lesser of (i) the Class C Required Amount and (ii) 14.00% of the Initial Collateral Amount minus the sum of (x) the amount
of unreimbursed Investor Charge-Offs (after giving effect to Investor Charge-Offs for the related Monthly Period) and unreimbursed
Reallocated Principal Collections (as of the previous Payment Date and as required in clauses (a) and (b) above)
and (y) any reductions to the Collateral Amount pursuant to Section 4.4(f), but not less than zero; and

 

(d)          the
lesser of (i) the Class D Required Amount and (ii) 5.00% of the Initial Collateral Amount minus the sum of (x) the amount
of unreimbursed Investor Charge-Offs after giving effect to Investor Charge-Offs for the related Monthly Period) and unreimbursed
Reallocated Principal Collections (as of the previous Payment Date and as required in clauses (a), (b) and
(c) above) and (y) any reduction to the Collateral Amount pursuant to Section 4.4(f), but not less than zero.

 

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

 

    	 	10	 

     

    

  

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

 

“Payment Date”
means July 15, 2016 and the 15th day of each calendar month thereafter, or if such 15th day is not a Business
Day, the next succeeding Business Day.

 

“Portfolio
Yield” means, for any Monthly Period, the annualized percentage (based on a 360-day year of twelve 30-day months, or
in the case of the initial Monthly Period, the actual number of days and a 360-day year) equivalent of a fraction, (a) the numerator
of which is equal to the excess of (i) the Available Finance Charge Collections (excluding any Excess Finance Charge Collections),
over (ii) the Investor Default Amount and the Investor Uncovered Dilution Amount for such Monthly Period and (b) the denominator
of which is the Collateral Amount plus amounts on deposit in the Principal Accumulation Account, each as of the close of business
on the last day of such Monthly Period.

 

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

 

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

 

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

 

“Principal
Accumulation Investment Proceeds” means, with respect to each Transfer Date, the investment earnings on funds in the
Principal Accumulation Account (net of investment expenses and losses) for the period from and including the immediately preceding
Transfer Date to but excluding such Transfer Date; provided, that for purposes of all calculations to be made prior to the
related Payment Date and the statement to be delivered pursuant to Section 5.2(a), the Servicer may estimate the amount
of interest, earnings and expenses on the Principal Accumulation Account based on the most recent statement delivered by the related
deposit bank.

 

“Principal
Shortfall” is defined in Section 4.9.

 

“QIB”
means a qualified institutional buyer, within the meaning of Rule 144A under the Securities Act.

 

“Quarterly
Excess Spread Percentage” means (a) with respect to the September 2016 Payment Date, the percentage equivalent of a fraction
the numerator of which is the sum of (i) the Excess Spread Percentage for the Monthly Period relating to the August 2016 Payment
Date and (ii) the Excess Spread Percentage for the Monthly Period relating to the September 2016 Payment Date and the denominator
of which is two and (b) with respect to the October 2016 Payment Date and each Payment Date thereafter, the percentage equivalent
of a fraction the numerator of which is the sum of the Excess Spread Percentages determined with respect to the Monthly Periods
relating to such Payment Date and the immediately preceding two Payment Dates and the denominator of which is three.

 

    	 	11	 

     

    

  

“Rating Agency”
means, as of any date and with respect to any Class of the Series 2016-2 Notes, the nationally recognized statistical rating organizations
that have been requested by the Transferor to provide ratings of such Class and that are rating the Series 2016-2 Notes on such
date.

 

“Rating Agency
Condition” means, with respect to Series 2016-2 and any action, (i) with respect to any Class of the Series 2016-2 Notes
with respect to which S&P is a Rating Agency, if any, that S&P shall have notified the Issuer in writing that such action
will not result in a reduction or withdrawal of the rating, if any, of such Class (ii) with respect to any outstanding Class of
the Series 2016-2 Notes rated by any other Rating Agency, ten (10) days’ prior written notice (or, if ten (10) days’
advance notice is impracticable, as much advance notice as is practicable) is delivered electronically to each applicable Rating
Agency as provided in Section 8.7.

 

“Reallocated
Principal Collections” is defined in Section 4.7.

 

“Reassignment
Amount” means, with respect to Series 2016-2, the Redemption Amount.

 

“Redemption
Amount” means, for any Transfer Date, after giving effect to any deposits and payments otherwise to be made on the related
Payment Date, the sum of (i) the Note Principal Balance on such Payment Date, (ii) Monthly Interest for such Payment Date and any
Monthly Interest previously due but not distributed to the Series 2016-2 Noteholders and (iii) the amount of Additional Interest,
if any, for the related Payment Date and any Additional Interest previously due but not distributed to the Series 2016-2 Noteholders
on a prior Payment Date.

 

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

 

“Required
Deposit Amount” means, with respect to the Series issued pursuant to this Indenture Supplement, for any Monthly Period,
the sum of (a) the Required Finance Charge Deposit Amount on such Date of Processing and (b) the Required Principal Deposit Amount
on such Date of Processing.

 

“Required
Excess Collateral Amount” means, at any time, 5.00% of the Collateral Amount; provided, that:

 

(a)          except
as provided in clause (c), the Required Excess Collateral Amount shall never be less than 3.00% of the Initial Collateral
Amount;

 

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

 

    	 	12	 

     

    

  

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

 

“Required
Finance Charge Deposit Amount” means, with respect to the Series issued pursuant to this Indenture Supplement, for any
Monthly Period, the sum of (a) the fees payable to the Indenture Trustee, the Trustee and the Administrator on the related Payment
Date, (b) the Monthly Interest on the related Payment Date, (c) the Noteholder Servicing Fee, (d) if on such Date of Processing
the Free Equity Amount is less than the Minimum Free Equity Amount after giving effect to all transfers and deposits on that Date
of Processing, the Investor Default Amount and (e) any amount required to be deposited in the Reserve Account and the Spread Account
on the related Payment Date. To the extent any data needed to calculate the Required Finance Charge Deposit Amount is not available
on any Date of Processing, the Issuer shall use the corresponding data as most recently determined or other reasonable estimate
of such data until the required data is available (which shall be no later than the Transfer Date in the following Monthly Period).
Without limiting the foregoing, for purposes of determining the Investor Default Amount on any Date of Processing, the Investor
Default Amount shall be estimated based on the assumption that the Investor Default Amount for the current Monthly Period will
equal the Investor Default Amount for the prior Monthly Period multiplied by 1.25.

 

“Required
Principal Deposit Amount” means, with respect to the Series issued pursuant to this Indenture Supplement, for any Monthly
Period, an amount equal to (a) during the Revolving Period, zero, (b) during the Controlled Accumulation Period, the Controlled
Deposit Amount for the related Payment Date, and (c) during the Early Amortization Period, the Note Principal Balance, minus any
amount already on deposit in the Principal Accumulation Account.

 

“Required
Reserve Account Amount” means, for any Transfer Date on or after the Reserve Account Funding Date, an amount equal to
(a) 0.50% of the Note Principal Balance or (b) any other amount designated by the Issuer; provided, however, that
if such designation is of a lesser amount, the Issuer shall (i) provide the Indenture Trustee with evidence that the Rating Agency
Condition shall have been satisfied and (ii) deliver to the Indenture Trustee a certificate of an Authorized Officer to the effect
that, based on the facts known to such officer at such time, in the reasonable belief of the Issuer, such designation will not
cause an Early Amortization Event or an event that, after the giving of notice or the lapse of time, would cause an Early Amortization
Event to occur with respect to Series 2016-2; provided, further, however, that at any time during which the
Controlled Accumulation Period Length is equal to one month, the Required Reserve Account Amount shall be equal to $0.00.

 

“Required
Spread Account Amount” means, for the July 2016 Payment Date and the August 2016 Payment Date, zero, and for any Payment
Date thereafter, the product of (i) the Spread Account Percentage in effect on such date and (ii) during (x) the Revolving Period,
the Collateral Amount, and (y) during the Controlled Accumulation Period or the Early Amortization Period, the Collateral Amount
as of the last day of the Revolving Period; provided, that, prior to the occurrence of an Event of Default and acceleration
of the Series 2016-2 Notes, the Required Spread Account Amount will never exceed the Class D Note Principal Balance (after taking
into account any payments to be made on such Payment Date).

 

    	 	13	 

     

    

  

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

 

“Reserve Account
Funding Date” means the Payment Date selected by the Servicer on behalf of the Issuer which occurs not later than the
earliest of the Payment Date with respect to the Monthly Period which commences three months prior to the commencement of the Controlled
Accumulation Period (which commencement shall be subject to postponement pursuant to Section 4.13); provided, however,
that if the Rating Agency Condition is satisfied, the Issuer may postpone the Reserve Account Funding Date.

 

“Reserve Account
Surplus” means, as of any Transfer Date following the Reserve Account Funding Date, the amount, if any, by which the
amount on deposit in the Reserve Account exceeds the Required Reserve Account Amount, after giving effect to all deposits to and
withdrawals from the Reserve Account to occur on or prior to the related Payment Date.

 

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

 

“Reset Date”
means:

 

(a)          each
Addition Date;

 

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

 

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

 

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

 

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

 

“Series Accounts”
means, collectively, the Finance Charge Account, the Principal Account, the Principal Accumulation Account, the Distribution Account,
the Reserve Account and the Spread Account.

 

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

 

    	 	14	 

     

    

  

“Series Maturity
Date” means, with respect to Series 2016-2, the May 2024 Payment Date.

 

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

 

“Series 2016-2”
means the Series of Notes the terms of which are specified in this Indenture Supplement.

 

“Series 2016-2
Early Amortization Event” is defined in Section 6.1.

 

“Series 2016-2
Excess Finance Charge Collections” means Excess Finance Charge Collections allocated from other Series in Group One to
Series 2016-2 pursuant to Section 8.6 of the Indenture.

 

“Series 2016-2
Note” means a Class A Note, a Class B Note, a Class C Note or a Class D Note.

 

“Series 2016-2
Noteholder” means a Class A Noteholder, a Class B Noteholder, a Class C Noteholder or a Class D Noteholder.

 

“Similar Law”
means any applicable law that is substantially similar to the fiduciary responsibility provisions of ERISA or Section 4975 of the
Code.

 

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

 

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

 

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

 

    	 	15	 

     

    

  

“Surplus Collateral
Amount” means, with respect to any Payment Date, the excess, if any, of the Excess Collateral Amount over the Required
Excess Collateral Amount, in each case calculated after giving effect to any deposits into the Principal Accumulation Account and
payments of principal on such Payment Date, but before giving effect to any reduction in the Collateral Amount on such Payment
Date pursuant to Section 4.4(f).

 

“Trust”
is defined in the preamble.

 

SECTION 1.2. Incorporation
of Terms. The terms of the Indenture are incorporated in this Supplement as if set forth in full herein. As supplemented by
this Supplement, the Indenture is in all respects ratified and confirmed and both together shall be read, taken and construed as
one and the same agreement. If the terms of this Supplement and the terms of the Indenture conflict, the terms of this Supplement
shall control with respect to the Series 2016-2.

 

ARTICLE
II

Creation of the Series 2016-2 Notes

 

SECTION 2.1. Designation.

 

(a)          There
is hereby created and designated a Series of Notes to be issued pursuant to the Indenture and this Indenture Supplement to be known
as “Synchrony Credit Card Master Note Trust, Series 2016-2” or the “Series 2016-2 Notes.”
The Series 2016-2 Notes shall be issued in four Classes, known as the “Class A Series 2016-2 Fixed Rate Asset Backed Notes”,
the “Class B Series 2016-2 Fixed Rate Asset Backed Notes”, the “Class C Series 2016-2 Fixed Rate Asset
Backed Notes” and the “Class D Series 2016-2 Fixed Rate Asset Backed Notes.”

 

(b)          Series
2016-2 shall be included in Group One and shall be a Principal Sharing Series. Series 2016-2 shall be an Excess Allocation Series
with respect to Group One only. Series 2016-2 shall not be subordinated to any other Series.

 

(c)          The
Series 2016-2 Class A Notes shall be issued in minimum denominations of $100,000 and in integral multiples of $1,000 and the Class
B Notes, the Class C Notes and the Class D Notes shall be issued in minimum denominations of $100,000 and in integral multiples
of $1.

 

SECTION 2.2. Transfer
Restrictions Applicable to the Class B Notes, the Class C Notes and the Class D Notes.

 

(a)          The
Class B Notes, the Class C Notes and the Class D Notes have not been registered under the Securities Act or any state
securities law. None of the Issuer, the Note Registrar or the Indenture Trustee is obligated to register the Class B Notes,
the Class C Notes or the Class D Notes under the Securities Act or any other securities or “blue sky” laws or to
take any other action not otherwise required under this Indenture Supplement or the Trust Agreement to permit the transfer of
any Class B Note, Class C Note or Class D Note without registration.

 

(b)          Until
such time as any such Class of Notes has been registered under the Securities Act and any applicable state securities law, the
Class B Notes, the Class C Notes and the Class D Notes may not be sold, transferred, assigned, participated, pledged or otherwise
disposed of (any such act, a “Class B Note Transfer,” “Class C Note Transfer” or “Class
D Note Transfer,” as applicable) to any Person except in accordance with the provisions of this Section 2.2, and
any attempted Class B Note Transfer, Class C Note Transfer or Class D Note Transfer in violation of this Section 2.2 will
be null and void.

 

    	 	16	 

     

    

  

(c)          Each
Class B Note, Class C Note and Class D Note will bear a legend to the effect of the following unless determined otherwise by the
Administrator (as certified to the Indenture Trustee in an Officer’s Certificate) consistent with applicable law:

 

THIS NOTE
HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT AS SET FORTH IN THE NEXT SENTENCE. BY ITS ACQUISITION HEREOF
OR OF A BENEFICIAL INTEREST HEREIN, THE HOLDER OF THIS NOTE:

 

		(1)	AGREES FOR THE BENEFIT OF THE ISSUER AND THE TRANSFEROR
THAT THIS NOTE MAY BE SOLD, TRANSFERRED, ASSIGNED, PARTICIPATED, PLEDGED OR OTHERWISE DISPOSED OF ONLY IN COMPLIANCE WITH THE
SECURITIES ACT AND OTHER APPLICABLE LAWS, AND ONLY (I) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)
TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER, WITHIN THE MEANING OF RULE l44A (A “QIB”),
PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE,
PLEDGE, OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (II) TO THE DEPOSITOR OR ITS AFFILIATES, IN EACH CASE IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES; AND

 

		(2)	AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS
NOTE OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

 

(d)          By
acceptance of any Class B Note, Class C Note or Class D Note, the Class B Noteholder, the Class C Noteholder or the Class D Noteholder
specifically agrees with and represents to the Transferor, the Issuer and the Note Registrar, that no Class B Note Transfer, Class
C Note Transfer or Class D Note Transfer will be made unless (i) the registration requirements of the Securities Act and any applicable
state securities laws have been complied with, (ii) such Class B Note Transfer, Class C Note Transfer or Class D Note Transfer
is to the Transferor or its Affiliates or (iii) such Class B Note Transfer, Class C Note Transfer or Class D Note Transfer is exempt
from the registration requirements under the Securities Act because such Class B Note Transfer, Class C Note Transfer or Class
D Note Transfer is in compliance with Rule 144A under the Securities Act, to a transferee who the transferor reasonably believes
is a QIB that is purchasing for its own account or for the account of a QIB and to whom notice is given that such Class B Note
Transfer, Class C Note Transfer or Class D Note Transfer, as applicable, is being made in reliance upon Rule 144A under the Securities
Act.

 

    	 	17	 

     

    

  

(e)          The
Issuer will make available to the prospective transferor and transferee of a Class B Note, Class C Note or Class D Note information
requested to satisfy the requirements of paragraph (d)(4) of Rule 144A.

 

(f)          Each
Class A Note, Class B Note, Class C Note and Class D Note will bear a legend to the effect of the following unless determined otherwise
by the Administrator (as certified to the Indenture Trustee in an Officer’s Certificate) consistent with applicable law:

 

THE HOLDER
OF THIS NOTE BY ITS ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, SHALL BE DEEMED TO REPRESENT AND
WARRANT THAT EITHER (I) SUCH HOLDER IS NOT (AND FOR SO LONG AS IT HOLDS SUCH NOTE WILL NOT BE), IS NOT ACTING ON BEHALF OF (AND
FOR SO LONG AS IT HOLDS SUCH NOTE WILL NOT BE ACTING ON BEHALF OF), AND IS NOT INVESTING THE ASSETS OF (A) AN “EMPLOYEE BENEFIT
PLAN” (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”))
THAT IS SUBJECT TO TITLE I OF ERISA, (B) A “PLAN” (AS DEFINED IN SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED (THE “CODE”)) THAT IS SUBJECT TO SECTION 4975 OF THE CODE, (C) AN ENTITY WHOSE UNDERLYING ASSETS ARE DEEMED
TO BE PLAN ASSETS OF A PLAN DESCRIBED IN (A) OR (B) ABOVE (EACH, A “BENEFIT PLAN”) OR (D) A GOVERNMENTAL PLAN, CHURCH
PLAN OR NON-U.S. PLAN THAT IS SUBJECT TO ANY APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO THE FIDUCIARY RESPONSIBILITY PROVISIONS
OF ERISA OR SECTION 4975 OF THE CODE (“SIMILAR LAW”) OR (II) ITS ACQUISITION, CONTINUED HOLDING AND DISPOSITION OF
THIS NOTE WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF ANY
SIMILAR LAW. BENEFIT PLANS MAY NOT ACQUIRE THIS NOTE AT ANY TIME THAT THIS NOTE DOES NOT HAVE A CURRENT INVESTMENT GRADE RATING
FROM A NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION.

 

(g)          Any
Notes that were beneficially owned by the Issuer or the single beneficial owner of the Issuer for U.S. federal income tax purposes
as of the Closing Date, may not be transferred for U.S. federal income tax purposes to another Person (other than the single beneficial
owner of the Issuer for U.S. federal income tax purposes) unless the Administrator shall cause an opinion of nationally recognized
tax counsel to be delivered to the Administrator and Indenture Trustee to the effect that such Notes will be treated as debt for
U.S. federal income tax purposes. In addition, if for tax or other reasons it may be necessary to track such Notes (e.g., if the
Notes have original issue discount), tracking conditions such as requiring that such Notes be in definitive registered form may
be required by the Administrator as a condition to such transfer.

 

    	 	18	 

     

    

  

ARTICLE
III

REPRESENTATIONS, WARRANTIES and Covenants

 

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

 

SECTION 3.2. Representations,
Warranties and Covenants with respect to ERISA. By acquiring a Series 2016-2 Note (or interest therein), each purchaser and
subsequent transferee shall be deemed to represent and warrant that either (i) it is not (and for so long as it holds such Series
2016-2 Note will not be), is not acting on behalf of (and for so long as it holds such Series 2016-2 Note will not be acting on
behalf of), and is not investing the assets of a Benefit Plan or a governmental plan, church plan or non-U.S. plan that is subject
to any Similar Law or (ii) its acquisition, continued holding and disposition of such Series 2016-2 Note will not result in a non-exempt
prohibited transaction under ERISA or Section 4975 of the Code or a violation of any Similar Law. Benefit Plans may not acquire
the Series 2016-2 Notes at any time that the Series 2016-2 Notes do not have a current investment grade rating from a nationally
recognized statistical rating organization.

 

ARTICLE
IV

Rights of Series 2016-2 Noteholders and Allocation and Application of Collections

 

SECTION 4.1. Determination
of Interest and Principal.

 

(a)          The
amount of monthly interest (“Class A Monthly Interest”) due and payable with respect to the Class A Notes on
any Payment Date shall be an amount equal to the product of (i) a fraction, the numerator of which is 30 (but in the case of the
initial Interest Period, 49) and the denominator of which is 360, (ii) the Class A Note Interest Rate in effect with respect to
the related Interest Period and (iii) the Class A Note Principal Balance as of the close of business on the last day of the preceding
Monthly Period (or, with respect to the initial Payment Date, the Class A Note Initial Principal Balance).

 

With respect to each
Payment Date, the Issuer shall determine the excess, if any (the “Class A Deficiency Amount”), of (x) the aggregate
amount of Class A Monthly Interest payable pursuant to this Section 4.1(a) as of the prior Payment Date over (y)
the amount of Class A Monthly Interest actually paid on such Payment Date. If the Class A Deficiency Amount for any Payment Date
is greater than zero, on each subsequent Payment Date until such Class A Deficiency Amount is fully paid, an additional amount
(“Class A Additional Interest”) equal to the product of (i) a fraction, the numerator of which is 30 and the
denominator of which is 360, (ii) the Class A Note Interest Rate in effect with respect to the related Interest Period plus
2% per annum and (iii) such Class A Deficiency Amount (or the portion thereof which has not been paid to the Class A Noteholders)
shall be payable as provided herein with respect to the Class A Notes. Notwithstanding anything to the contrary herein, Class A
Additional Interest shall be payable or distributed to the Class A Noteholders only to the extent permitted by applicable law.

 

    	 	19	 

     

    

  

(b)          The
amount of monthly interest (“Class B Monthly Interest”) due and payable with respect to the Class B Notes on
any Payment Date shall be an amount equal to the product of (i) a fraction, the numerator of which is 30 (but in the case of the
initial Interest Period, 49) and the denominator of which is 360, (ii) the Class B Note Interest Rate in effect with respect to
the related Interest Period and (iii) the Class B Note Principal Balance as of the close of business on the last day of the preceding
Monthly Period (or, with respect to the initial Payment Date, the Class B Note Initial Principal Balance).

 

With respect to each
Payment Date, the Issuer shall determine the excess, if any (the “Class B Deficiency Amount”), of (x) the aggregate
amount of Class B Monthly Interest payable pursuant to this Section 4.1(b) as of the prior Payment Date over (y)
the amount of Class B Monthly Interest actually paid on such Payment Date. If the Class B Deficiency Amount for any Payment Date
is greater than zero, on each subsequent Payment Date until such Class B Deficiency Amount is fully paid, an additional amount
(“Class B Additional Interest”) equal to the product of (i) a fraction, the numerator of which is 30 and the
denominator of which is 360, (ii) the Class B Note Interest Rate in effect with respect to the related Interest Period plus
2% per annum and (iii) such Class B Deficiency Amount (or the portion thereof which has not been paid to the Class B Noteholders)
shall be payable as provided herein with respect to the Class B Notes. Notwithstanding anything to the contrary herein, Class B
Additional Interest shall be payable or distributed to the Class B Noteholders only to the extent permitted by applicable law.

 

(c)          The
amount of monthly interest (“Class C Monthly Interest”) due and payable with respect to the Class C Notes on
any Payment Date shall be an amount equal to the product of (i) a fraction, the numerator of which is 30 (but in the case of the
initial Interest Period, 49) and the denominator of which is 360, (ii) the Class C Note Interest Rate in effect with respect to
the related Interest Period and (iii) the Class C Note Principal Balance as of the close of business on the last day of the preceding
Monthly Period (or, with respect to the initial Payment Date, the Class C Note Initial Principal Balance).

 

With respect to each
Payment Date, the Issuer shall determine the excess, if any (the “Class C Deficiency Amount”), of (x) the aggregate
amount of Class C Monthly Interest payable pursuant to this Section 4.1(c) as of the prior Payment Date over (y)
the amount of Class C Monthly Interest actually paid on such Payment Date. If the Class C Deficiency Amount for any Payment Date
is greater than zero, on each subsequent Payment Date until such Class C Deficiency Amount is fully paid, an additional amount
(“Class C Additional Interest”) equal to the product of (i) a fraction, the numerator of which is 30 and the
denominator of which is 360, (ii) the Class C Note Interest Rate in effect with respect to the related Interest Period plus
2% per annum and (iii) such Class C Deficiency Amount (or the portion thereof which has not been paid to the Class C Noteholders)
shall be payable as provided herein with respect to the Class C Notes. Notwithstanding anything to the contrary herein, Class C
Additional Interest shall be payable or distributed to the Class C Noteholders only to the extent permitted by applicable law.

 

    	 	20	 

     

    

  

(d)          The
amount of monthly interest (“Class D Monthly Interest”) due and payable with respect to the Class D Notes on
any Payment Date shall be an amount equal to the product of (i) a fraction, the numerator of which is 30 (but in the case of the
initial Interest Period, 49) and the denominator of which is 360, (ii) the Class D Note Interest Rate in effect with respect to
the related Interest Period and (iii) the Class D Note Principal Balance as of the close of business on the last day of the preceding
Monthly Period (or, with respect to the initial Payment Date, the Class D Note Initial Principal Balance).

 

With respect to each
Payment Date, the Issuer shall determine the excess, if any (the “Class D Deficiency Amount”), of (x) the
aggregate amount of Class D Monthly Interest payable pursuant to this Section 4.1(d) as of the prior Payment Date over
(y) the amount of Class D Monthly Interest actually paid on such Payment Date. If the Class D Deficiency Amount for any Payment
Date is greater than zero, on each subsequent Payment Date until such Class D Deficiency Amount is fully paid, an additional amount
(“Class D Additional Interest”) equal to the product of (i) a fraction, the numerator of which is 30 and the
denominator of which is 360, (ii) the Class D Note Interest Rate in effect with respect to the related Interest Period plus
2% per annum and (iii) such Class D Deficiency Amount (or the portion thereof which has not been paid to the Class D Noteholders)
shall be payable as provided herein with respect to the Class D Notes. Notwithstanding anything to the contrary herein, Class D
Additional Interest shall be payable or distributed to the Class D Noteholders only to the extent permitted by applicable law.

 

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

 

SECTION 4.2. Establishment
of Accounts.

 

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

 

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

 

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

 

    	 	21	 

     

    

 

(d)          The
Issuer shall not close any of the Series Accounts unless it shall have (i) received the prior consent of the Indenture Trustee
on behalf of the Noteholders, (ii) established a new Eligible Deposit Account with the depositary institution or with a new depositary
institution satisfactory to the Indenture Trustee on behalf of the Noteholders, (iii) entered into a depositary agreement to govern
such new account(s) with such new depositary institution which agreement is satisfactory in all respects to the Indenture Trustee
on behalf of the Noteholders (whereupon such new account(s) shall become the applicable Series Account(s) for all purposes of this
Indenture Supplement) and (iv) taken all such action as the Indenture Trustee on behalf of the Noteholders shall reasonably require
to grant and perfect a first priority security interest in such account(s) under this Indenture Supplement.

 

SECTION 4.3. Calculations
and Series Allocations.

 

(a)          Allocations
of Finance Charge Collections. On each Date of Processing, the Issuer shall allocate to the Noteholders of the Series issued
pursuant to this Indenture Supplement an amount equal to the product of (A) the Allocation Percentage and (B) the aggregate Finance
Charge Collections processed on such Date of Processing. On or prior to 12:00 noon, New York City time, on each Transfer Date,
the Issuer shall transfer from the Collection Account to the Finance Charge Account, an amount equal to the lesser of the Investor
Finance Charge Collections for the preceding Monthly Period and the Required Finance Charge Deposit Amount for the preceding Monthly
Period.

 

(b)          Allocations
of Principal Collections. On each Date of Processing, the Issuer shall allocate to the Noteholders of the Series issued pursuant
to this Indenture Supplement an amount equal to the product of (A) the Allocation Percentage and (B) the aggregate amount of Principal
Collections processed on such Date of Processing. Principal Collections allocated to the Series issued pursuant to this Indenture
Supplement in excess of the Investor Principal Collections shall be treated as Shared Principal Collections. On or prior to 12:00
noon, New York City time, on each Transfer Date, the Issuer shall transfer from the Collection Account to the Principal Account,
an amount equal to the Available Principal Collections to the extent such funds have not been deposited into the Principal Account
pursuant to Section 4.4(a) or any other provision of this Agreement.

 

    	 	22	 

     

    

  

(c)          Calculations
and Additional Deposits. With respect to each Monthly Period falling in the Revolving Period, to the extent that Principal
Collections allocated to the Noteholders of the Series issued pursuant to this Indenture Supplement pursuant to Section 4.3(b)
are paid to the holders(s) of the Transferor Interest, the Issuer shall cause the holder(s) of the Transferor Interest to make
an amount equal to the Reallocated Principal Collections for the related Transfer Date available on or prior to the related Payment
Date for application in accordance with Section 4.7. Notwithstanding the provisions of Section 8.4(a) of the Indenture
allowing Collections for any Monthly Period in excess of the Aggregate Required Deposit Amount for such Monthly Period to be distributed
to the holder(s) of the Transferor Interest, (1) “Reallocated Principal Collections” for the related Transfer
Date shall be calculated as if the full amount of Finance Charge Collections allocated to the Series issued pursuant to this Indenture
Supplement during that Monthly Period had been deposited in the Collection Account and applied as Available Finance Charge Collections
on the related Payment Date in accordance with Section 4.4(a) and (2) Collections of Finance Charge Receivables allocated
to the Series issued pursuant to this Indenture Supplement during that Monthly Period that were released to the holder(s) of the
Transferor Interest pursuant to Section 8.4(a) of the Indenture shall be deemed, for purposes of all calculations under this Indenture
Supplement, to have been applied as Available Finance Charge Collections to the items specified in Section 4.4(a) to which
such amounts would have been applied (and in the priority in which they would have been applied) had such amounts been available
in the Collection Account on the related Payment Date. To avoid doubt, the calculations referred to in clause (2) of the preceding
sentence include the calculations required by clause (b)(iv) of the definition of Collateral Amount. If on any Transfer
Date the Free Equity Amount is less than the Minimum Free Equity Amount after giving effect to all transfers and deposits to occur
on or prior to the related Payment Date, the Issuer shall cause the holder(s) of the Transferor Interest, on or prior to the related
Payment Date, to deposit into the Principal Account funds in an amount equal to the amounts of Available Finance Charge Collections
that are required to be treated as Available Principal Collections pursuant to Sections 4.4(a)(vii), (viii) and (xi)
but are not available from funds in the Finance Charge Account as a result of the release of Collections to the holder(s) of the
Transferor Interest pursuant to Section 8.4(a) of the Indenture.

 

(d)          Notwithstanding
anything to the contrary contained in the Agreement, (i) funds required to be deposited into the Finance Charge Account or Principal
Account pursuant to this Indenture Supplement that would be subsequently transferred to the Distribution Account may instead be
directly deposited to the Distribution Account, and (ii) any funds required to be deposited into the Finance Charge Account or
Principal Account pursuant to this Indenture Supplement that would be subsequently transferred to the Issuer or the holder(s) of
the Transferor Interest shall not be required to be transferred to any Series Account and may be directly paid to the Issuer or
the holder(s) of the Transferor Interest pursuant to the priority of payments set forth in this Indenture Supplement.

 

(e)          Allocations
of Interchange. Notwithstanding anything to the contrary in Section 4.3(a) or the Indenture, Interchange for each Monthly Period
shall be allocated to the Noteholders of the Series issued pursuant to this Indenture Supplement based on the daily average of
the Allocation Percentages for Finance Charge Collections for all dates during such Monthly Period, and shall be deposited into
the Collection Account not later 12:00 noon, New York City time, on the Payment Date following the related Monthly Period.

 

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

 

    	 	23	 

     

    

  

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

 

(i)          to
pay, on a pari passu basis, the following amounts, to the extent allocated to Series 2016-2 pursuant to Section 8.4(d) of
the Indenture: (A) the payment to the Indenture Trustee of the accrued and unpaid fees and other amounts owed to the Indenture
Trustee up to a maximum amount of $25,000 for each calendar year, (B) the payment to the Trustee of the accrued and unpaid fees
and other amounts owed to the Trustee up to a maximum amount of $25,000 for each calendar year and (C) the payment to the Administrator
of the accrued and unpaid fees and other amounts owed to the Administrator up to a maximum amount of $25,000 for each calendar
year;

 

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

 

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

 

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

 

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

 

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

 

(vii)       (A)
first, an amount equal to the Investor Default Amount for such Payment Date shall be treated as a portion of Available Principal
Collections for such Payment Date and (B) second, an amount equal to any Investor Uncovered Dilution Amount for such Payment
Date shall be treated as a portion of Available Principal Collections for such Payment Date, and any amounts treated as Available
Principal Collections pursuant to subclause (A) or (B) of this clause (vii) during the Controlled Accumulation
Period or the Early Amortization Period, shall be deposited into the Principal Account on the related Payment Date;

 

    	 	24	 

     

    

  

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

 

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

 

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

 

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

 

(xii)        [Reserved];

 

(xiii)       unless
an Early Amortization Event shall have occurred and be continuing, on a pari passu basis any amounts owed to such Persons listed
in clause (i) above that have been allocated to Series 2016-2 pursuant to Section 8.4(d) of the Indenture and that
have not been paid pursuant to clause (i) above shall be paid to such Persons; and

 

(xiv)      the
balance, if any, will constitute a portion of Excess Finance Charge Collections for such Payment Date and will be applied in accordance
with Section 8.6 of the Indenture; provided, that during an Early Amortization Period, if any such Excess Finance
Charge Collections would be paid to the Transferor in accordance with Section 8.6 of the Indenture, the portion of such
Excess Finance Charge Collections that would otherwise be payable to the Transferor, first shall be used to pay Monthly
Principal pursuant to Section 4.4(c) to the extent not paid in full from Available Principal Collections (calculated without
regard to amounts available to be treated as Available Principal Collections pursuant to this clause (xiv)), second,
shall be used to pay on a pari passu basis any amounts owed to such Persons listed in clause (i) above that have been allocated
to Series 2016-2 pursuant to Section 8.4(d) of the Indenture and that have not been paid pursuant to clauses (i)
and (xiii) above, and, third, any amounts remaining after payment in full of the Monthly Principal and amounts owed
to such Persons listed in clause (i) above shall be paid to the Issuer.

 

    	 	25	 

     

    

  

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

 

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

 

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

 

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

 

(iii)        the
balance of such Available Principal Collections remaining after application in accordance with clauses (i) and (ii)
above shall be treated as Shared Principal Collections and applied in accordance with Section 8.5 of the Indenture.

 

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

 

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

 

    	 	26	 

     

    

  

(f)          As
of any Payment Date during the Controlled Accumulation Period or Early Amortization Period on which Principal Collections allocated
to the Series issued pursuant to this Indenture Supplement are treated as Shared Principal Collections, the Collateral Amount shall
be reduced by an amount equal to the lesser of (x) the amount of Principal Collections allocated to the Series issued pursuant
to this Indenture Supplement that are applied as Shared Principal Collections and (y) the Surplus Collateral Amount.

 

SECTION 4.5. Distributions.

 

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

 

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

 

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

 

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

 

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

 

(f)          All
payments to Noteholders hereunder shall be made by (i) check mailed to each Series 2016-2 Noteholder (at such Noteholder’s
address as it appears in the Note Register), except that for any Series 2016-2 Notes registered in the name of the nominee of a
Clearing Agency, such payment shall be made by wire transfer of immediately available funds and (ii) except as provided in Section
2.7(b) of the Indenture, without presentation or surrender of any Series 2016-2 Note or the making of any notation thereon.

 

SECTION 4.6. Investor
Charge-Offs. On each Determination Date, the Issuer shall calculate the Investor Default Amount and any Investor Uncovered
Dilution Amount for the preceding Monthly Period. If, on any Transfer Date, the sum of the Investor Default Amount and any Investor
Uncovered Dilution Amount for the preceding Monthly Period exceeds the amount of Available Finance Charge Collections allocated
with respect thereto pursuant to Section 4.4(a)(vii) with respect to such Transfer Date, the Collateral Amount will be reduced
(but not below zero) by the amount of such excess (such reduction, an “Investor Charge-Off”).

 

    	 	27	 

     

    

  

SECTION 4.7. Reallocated
Principal Collections. On each Transfer Date, the Issuer shall allocate Investor Principal Collections with respect to that
Transfer Date, to fund any deficiency pursuant to and in the priority set forth in Sections 4.4(a)(i), (ii), (iii),
(iv), (v) and (vi) on the related Payment Date (any such Investor Principal Collections so allocated, “Reallocated
Principal Collections”); provided, that for any Monthly Period, Reallocated Principal Collections may not exceed
the Monthly Principal Reallocation Amount for such Monthly Period. On each Transfer Date, the Collateral Amount shall be reduced
by the amount of Reallocated Principal Collections for such Transfer Date.

 

SECTION 4.8. Excess
Finance Charge Collections. Series 2016-2 shall be an Excess Allocation Series with respect to Group One only. Subject to Section 8.6
of the Indenture, Excess Finance Charge Collections with respect to the Excess Allocation Series in Group One with respect to any
Monthly Period will be allocated to Series 2016-2 in an amount equal to the product of (x) the aggregate amount of Excess Finance
Charge Collections with respect to all the Excess Allocation Series in Group One for such Monthly Period and (y) a fraction, the
numerator of which is the Finance Charge Shortfall for Series 2016-2 for such Monthly Period and the denominator of which is the
aggregate amount of Finance Charge Shortfalls for all the Excess Allocation Series in Group One, in each case with respect to payments
to be made on or prior to the Payment Date following such Monthly Period. The “Finance Charge Shortfall” for
Series 2016-2 for any date on which Excess Finance Charge Collections are allocated pursuant to Section 8.6 of the Indenture
will be equal to the excess, if any, of (a) the full amount required to be paid, without duplication, pursuant to Sections
4.4(a)(i) through (xiii) with respect to the next following Payment Date over (b) the Available Finance
Charge Collections with respect to the related Monthly Period (excluding any portion thereof attributable to Excess Finance Charge
Collections).

 

SECTION 4.9. Shared
Principal Collections. Subject to Section 8.5 of the Indenture, Shared Principal Collections allocable to Series
2016-2 with respect to any Monthly Period will be equal to the product of (x) the aggregate amount of Shared Principal Collections
with respect to all Principal Sharing Series for such Monthly Period and (y) a fraction, the numerator of which is the Principal
Shortfall for Series 2016-2 for such Monthly Period and the denominator of which is the aggregate amount of Principal Shortfalls
for all the Series which are Principal Sharing Series, in each case with respect to payments to be made on or prior to the Payment
Date following such Monthly Period. The “Principal Shortfall” for Series 2016-2 for any date on which Shared
Principal Collections are allocated pursuant to Section 8.5 of the Indenture will be equal to (a) for any allocation date
with respect to the Revolving Period or any allocation date during the Early Amortization Period prior to the earlier of (i) the
end of the Monthly Period immediately preceding the Expected Principal Payment Date and (ii) the date on which all outstanding
Series are in early amortization periods, zero, (b) for any allocation date with respect to the Controlled Accumulation Period,
the excess, if any, of the Controlled Deposit Amount with respect to the next following Payment Date over the amount of
Available Principal Collections for the related Monthly Period (excluding any portion thereof attributable to Shared Principal
Collections or amounts available to be treated as Available Principal Collections pursuant to clause (ix) of Section
4.4(a)) and (c) for any allocation date on or after the earlier of (i) the end of the Monthly Period immediately preceding
the Expected Principal Payment Date and (ii) the date on which all outstanding Series are in early amortization periods, the Note
Principal Balance.

 

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SECTION 4.10. Reserve
Account.

 

(a)          On
each Transfer Date, all interest and earnings (net of losses and investment expenses) accrued since the preceding Transfer Date
on funds on deposit in the Reserve Account shall be retained in the Reserve Account (to the extent that the Available Reserve Account
Amount is less than the Required Reserve Account Amount). Any remaining interest and earnings (net of losses and investment expenses)
shall be (i) deposited on or prior to the related Payment Date into the Finance Charge Account (to the extent such funds are needed
for distributions pursuant to Section 4.4(a)) and (ii) included in Available Finance Charge Collections for the related Monthly
Period. For purposes of determining the availability of funds or the balance in the Reserve Account for any reason under this Indenture
Supplement, except as otherwise provided in the preceding sentence, investment earnings on such funds shall be deemed not to be
available or on deposit.

 

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

 

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

 

(d)          If
the Reserve Account Surplus on any Transfer Date is greater than zero, on or prior to the related Payment Date, the Indenture Trustee,
acting in accordance with the written instructions of the Issuer, shall withdraw from the Reserve Account an amount equal to such
Reserve Account Surplus and distribute any such amounts to the holders of the Transferor Interest.

 

(e)          Upon
the earliest to occur of (i) the termination of the Trust pursuant to Article VIII of the Trust Agreement, (ii) the
first Transfer Date relating to the Early Amortization Period and (iii) the Expected Principal Payment Date, the Issuer, after
the prior payment of all amounts owing to the Series 2016-2 Noteholders that are payable from the Reserve Account as provided herein,
shall withdraw from the Reserve Account all amounts, if any, on deposit in the Reserve Account and distribute any such amounts
to the holders of the Transferor Interest. The Reserve Account shall thereafter be deemed to have terminated for purposes of this
Indenture Supplement.

 

SECTION 4.11. Spread
Account.

 

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

 

    	 	29	 

     

    

 

(b)          Unless
an Early Amortization Event occurs, the Issuer will withdraw from the Spread Account and deposit in the Collection Account for
payment to the Class D Noteholders on the Expected Principal Payment Date for the Series 2016-2 Notes an amount equal to the lesser
of: (i) the amount on deposit in the Spread Account after application of any amounts set forth in clause (a) above and (ii)
the Class D Note Principal Balance.

 

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

 

(d)          On
any day following the occurrence of an Event of Default with respect to Series 2016-2 that has resulted in the acceleration of
the Series 2016-2 Notes, the Issuer shall withdraw from the Spread Account the Available Spread Account Amount and deposit such
amount in the Distribution Account for payment to the Series 2016-2 Notes in the following order of priority until all amounts
owed to such Noteholders have been paid in full: (i) the Class D Noteholders, (ii) the Class A Noteholders, (iii) the Class B Noteholders
and (iv) the Class C Noteholders.

 

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

 

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

 

SECTION 4.12. Investment
of Accounts. (a) Except as provided in the following sentence, to the extent there are uninvested amounts deposited in the
Series Accounts, the Issuer shall cause such amounts to be invested in Permitted Investments selected by the Issuer that mature
no later than the following Transfer Date. To the extent there are uninvested amounts deposited into any Series Account on a Transfer
Date for distribution on the related Payment Date, the Issuer shall cause such amounts to be invested overnight in Permitted Investments
described in clause (b) of the definition of “Permitted Investments” held at the Indenture Trustee or at a depository
institution or trust company that has entered into an agreement with the Issuer and the Indenture Trustee in accordance with the
Custody and Control Agreement.

 

    	 	30	 

     

    

  

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

 

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

 

(d)          On
each Transfer Date (but subject to Section 4.11(a)), the Investment Earnings, if any, credited since the preceding Transfer
Date on funds on deposit in the Spread Account shall be retained in the Spread Account (to the extent that the Available Spread
Account Amount is less than the Required Spread Account Amount) and, on or before the related Payment Date, the balance, if any,
shall be paid to the holders of the Transferor Interest. For purposes of determining the availability of funds or the balance in
the Spread Account for any reason under this Indenture Supplement (subject to Section 4.11(a)), all Investment Earnings
shall be deemed not to be available or on deposit; provided, that after the maturity of the Series 2016-2 Notes has been
accelerated as a result of an Event of Default, all Investment Earnings shall be added to the balance on deposit in the Spread
Account and treated like the rest of the Available Spread Account Amount.

 

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

 

SECTION 4.14. [Reserved].

 

    	 	31	 

     

    

  

SECTION 4.15. Deposit
of Collections. Notwithstanding anything to the contrary in the Indenture, for any Monthly Period during which the Issuer is
permitted to make a single monthly deposit to the Collection Account pursuant to Section 8.4 of the Indenture for such Monthly
Period, the Issuer need not make the daily deposits of Collections into the Collection Account as provided in Section 8.4
of the Indenture, but may make a single deposit in the Collection Account in immediately available funds not later than 12:00 noon,
New York City time, on the related Payment Date.

 

ARTICLE
V

Delivery of Series 2016-2 Notes;

Reports to Series 2016-2 Noteholders

 

SECTION 5.1. Delivery
and Payment for the Series 2016-2 Notes.

 

The Issuer shall execute
and issue, and the Indenture Trustee shall authenticate, the Series 2016-2 Notes in accordance with Section 2.2 of
the Indenture. The Indenture Trustee shall deliver the Series 2016-2 Notes to or upon the written order of the Issuer when so authenticated.

 

SECTION 5.2. Reports
and Statements to Series 2016-2 Noteholders.

 

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

 

(b)          A
copy of each statement or certificate provided pursuant to Section 5.2(a) may be obtained by any Series 2016-2 Noteholder
by a request in writing to the Issuer.

 

(c)          On
or before January 31 of each calendar year, beginning with January 31, 2017, the Issuer shall furnish or cause to be furnished
to each Person who at any time during the preceding calendar year was a Series 2016-2 Noteholder the information for the preceding
calendar year, or the applicable portion thereof during which the Person was a Noteholder, as is required to be provided by an
issuer of indebtedness under the Code to the holders of the Issuer’s indebtedness and such other customary information as
is necessary to enable such Noteholder to prepare its federal income tax returns. Notwithstanding anything to the contrary contained
in this Agreement, the Issuer shall, to the extent required by applicable law, from time to time furnish to the appropriate Persons,
at least five (5) Business Days prior to the end of the period required by applicable law, the information required to complete
a Form 1099-INT.

 

ARTICLE
VI

Series 2016-2 Early Amortization Events

 

SECTION 6.1. Series
2016-2 Early Amortization Events. If any one of the following events shall occur with respect to the Series 2016-2 Notes:

 

    	 	32	 

     

    

  

(a)          (i)
failure on the part of Transferor to make any payment or deposit required to be made by it by the terms of the Trust Receivables
Purchase Agreement or the Transfer Agreement on or before the date occurring five (5) Business Days after the date such payment
or deposit is required to be made therein or herein or (ii) failure of the Transferor duly to observe or perform in any material
respect any other of its covenants or agreements set forth in the Trust Receivables Purchase Agreement or the Transfer Agreement
which failure has a material adverse effect on the Series 2016-2 Noteholders and which continues unremedied for a period of sixty
(60) days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the
Transferor by the Indenture Trustee, or to the Transferor and the Indenture Trustee by any Noteholder of the Series 2016-2 Notes;

 

(b)          any
representation or warranty made by Transferor in the Transfer Agreement or the Trust Receivables Purchase Agreement or any information
contained in an account schedule required to be delivered by it pursuant to Section 2.1 or Section 2.6(c) of
the Transfer Agreement, Trust Agreement or the Bank Receivables Sale Agreement shall prove to have been incorrect in any material
respect when made or when delivered, which continues to be incorrect in any material respect for a period of sixty (60) days after
the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Transferor by
the Indenture Trustee, or to the Transferor and the Indenture Trustee by any Noteholder of the Series 2016-2 Notes and as a result
of which the interests of the Series 2016-2 Noteholders are materially and adversely affected for such period; provided,
however, that a Series 2016-2 Early Amortization Event pursuant to this Section 6.1(b) shall not be deemed to have occurred
hereunder if the Transferor has accepted reassignment of the related Transferred Receivable, or all of such Transferred Receivables,
if applicable, during such period in accordance with the provisions of the Transfer Agreement or the Trust Receivables Purchase
Agreement;

 

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

 

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

 

(e)          (i)
the average of the Portfolio Yields for the two Monthly Periods immediately preceding the September 2016 Payment Date is less than
the average of the Base Rates for the same Monthly Periods, or (ii) beginning with the three consecutive Monthly Periods immediately
preceding the October 2016 Payment Date, the average of the Portfolio Yields for three consecutive Monthly Periods is less than
the average of the Base Rates for the same Monthly Periods (for the avoidance of doubt, the Monthly Period preceding the July 2016
Payment Date shall be excluded for purposes of calculating the three-month average Portfolio Yield and Base Rate under this clause
(e)(ii));

 

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

 

(g)          without
limiting the foregoing, the occurrence of an Event of Default with respect to Series 2016-2 and acceleration of the maturity of
the Series 2016-2 Notes pursuant to Section 5.3 of the Indenture;

 

    	 	33	 

     

    

  

then, in the case of any event described
in subsection (a), (b) or (d), after the applicable grace period, if any, set forth in such subparagraphs,
either the Indenture Trustee or the holders of Series 2016-2 Notes evidencing more than 50% of the aggregate unpaid principal
amount of Series 2016-2 Notes by notice then given in writing to the Issuer (and to the Indenture Trustee if given by the Series
2016-2 Noteholders) may declare that a “Series Early Amortization Event” with respect to Series 2016-2 (a “Series
2016-2 Early Amortization Event”) has occurred as of the date of such notice, and, in the case of any event described
in subsection (c), (e), (f) or (g) a Series 2016-2 Early Amortization Event shall occur without any
notice or other action on the part of the Indenture Trustee or the Series 2016-2 Noteholders immediately upon the occurrence of
such event.

 

ARTICLE
VII

Redemption of Series 2016-2 Notes; Final Distributions; Series Termination

 

SECTION 7.1. Optional
Redemption of Series 2016-2 Notes; Final Distributions.

 

(a)          On
any day occurring on or after the date on which the outstanding principal balance of the Series 2016-2 Notes is reduced to 10%
or less of the initial outstanding principal balance of Series 2016-2 Notes, Transferor has the option pursuant to the Trust Agreement
to reduce the Collateral Amount to zero by paying a purchase price equal to the greater of (x) the Collateral Amount, plus the
applicable Allocation Percentage of outstanding Finance Charge Receivables and (y) a minimum amount equal to (i) if such day is
a Payment Date, the Redemption Amount for such Payment Date or (ii) if such day is not a Payment Date, the Redemption Amount for
the Payment Date following such day. If Transferor exercises such option, Issuer will apply such purchase price to repay the Notes
in full as specified below.

 

(b)          Issuer
shall give the Indenture Trustee at least thirty (30) days’ prior written notice of the date on which Transferor intends
to exercise such optional redemption. Not later than 12:00 noon, New York City time, on such day Transferor shall deposit into
the Distribution Account in immediately available funds the excess of the Redemption Amount over the amount, if any, on deposit
in the Principal Accumulation Account. Such redemption option is subject to payment in full of the Redemption Amount. Following
such deposit into the Distribution Account in accordance with the foregoing, the Collateral Amount for Series 2016-2 shall be reduced
to zero and the Series 2016-2 Noteholders shall have no further security interest in the Transferred Receivables. The Redemption
Amount shall be paid as set forth in Section 7.1(d).

 

(c)          (i)
The amount to be paid by the Transferor with respect to Series 2016-2 in connection with a reassignment of Transferred Receivables
to the Transferor pursuant to Section 6.1(f) of the Transfer Agreement shall not be less than the Redemption Amount
for the first Payment Date following the Monthly Period in which the reassignment obligation arises under the Transfer Agreement.

 

(ii)         The
amount to be paid by the Issuer with respect to Series 2016-2 in connection with a repurchase of the Notes pursuant to Section
10.1 of the Trust Agreement shall not be less than the Redemption Amount for the Payment Date of such repurchase.

 

    	 	34	 

     

    

  

(d)          With
respect to (i) the Redemption Amount deposited into the Distribution Account pursuant to this Section 7.1 or (ii) the
proceeds of any sale of Transferred Receivables pursuant to Section 5.3 of the Indenture with respect to Series 2016-2,
the Indenture Trustee shall, in accordance with the written direction of the Issuer, not later than 12:00 noon, New York City time,
on the related Payment Date, make payments of the following amounts (in the priority set forth below and, in each case, after giving
effect to any deposits and payments otherwise to be made on such date) in immediately available funds: (i) (x) the Class A Note
Principal Balance on such Payment Date will be paid to the Class A Noteholders and (y) an amount equal to the sum of (A) Class
A Monthly Interest due and payable on such Payment Date or any prior Payment Date, (B) any Class A Deficiency Amount for such
Payment Date and (C) the amount of Class A Additional Interest, if any, for such Payment Date and any Class A Additional Interest
previously due but not paid to the Class A Noteholders on any prior Payment Date, will be paid to the Class A Noteholders, (ii) (x)
the Class B Note Principal Balance on such Payment Date will be paid to the Class B Noteholders and (y) an amount equal to the
sum of (A) Class B Monthly Interest due and payable on such Payment Date or any prior Payment Date, (B) any Class B Deficiency
Amount for such Payment Date and (C) the amount of Class B Additional Interest, if any, for such Payment Date and any Class B Additional
Interest previously due but not paid to the Class B Noteholders on any prior Payment Date, will be paid to the Class B Noteholders,
(iii) (x) the Class C Note Principal Balance on such Payment Date will be paid to the Class C Noteholders and (y) an amount
equal to the sum of (A) Class C Monthly Interest due and payable on such Payment Date or any prior Payment Date, (B) any Class
C Deficiency Amount for such Payment Date and (C) the amount of Class C Additional Interest, if any, for such Payment Date and
any Class C Additional Interest previously due but not paid to the Class C Noteholders on any prior Payment Date, will be paid
to the Class C Noteholders, (iv) (x) the Class D Note Principal Balance on such Payment Date will be paid to the Class D Noteholders
and (y) an amount equal to the sum of (A) Class D Monthly Interest due and payable on such Payment Date or any prior Payment Date,
(B) any Class D Deficiency Amount for such Payment Date and (C) the amount of Class D Additional Interest, if any, for such Payment
Date and any Class D Additional Interest previously due but not paid to the Class D Noteholders on any prior Payment Date, will
be paid to the Class D Noteholders and (v) any excess shall be released to the Issuer.

 

SECTION 7.2. Series
Termination.

 

On the Series Maturity
Date, the unpaid principal amount of the Series 2016-2 Notes shall be due and payable.

 

SECTION 7.3. Sale
of Collateral.

 

If the Indenture Trustee
exercises its right to sell any portion of the Collateral in accordance with Section 5.16 of the Indenture upon the occurrence
of an Event of Default with respect to Series 2016-2, SYNCHRONY FINANCIAL shall have a right of first refusal to purchase any portion
of the Collateral for which the Indenture Trustee has received a bona fide offer from a third-party that is not an affiliate of
the Transferor at a price equal to the highest price bid for such Collateral by such third-party bidder.

 

    	 	35	 

     

    

  

ARTICLE
VIII

Miscellaneous Provisions

 

SECTION 8.1. Ratification
of Indenture; Amendments. As supplemented by this Indenture Supplement, the Indenture is in all respects ratified and confirmed
and the Indenture as so supplemented by this Indenture Supplement shall be read, taken and construed as one and the same instrument.
This Indenture Supplement may be amended only by a Supplemental Indenture entered in accordance with the terms of Section 9.1
or 9.2 of the Indenture. For purposes of the application of Section 9.2 to any amendment of this Indenture Supplement,
the Series 2016-2 Noteholders shall be the only Noteholders whose vote shall be required.

 

SECTION 8.2. Form
of Delivery of the Series 2016-2 Notes. The Class A Notes, the Class B Notes, the Class C Notes and the Class D Notes shall
be Book-Entry Notes and shall be delivered as provided in Sections 2.1 and 2.2 of the Indenture.

 

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

 

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

 

(b)          EACH
PARTY HERETO HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN THE BOROUGH OF MANHATTAN IN NEW YORK CITY SHALL
HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THEM PERTAINING TO THIS INDENTURE SUPPLEMENT OR
TO ANY MATTER ARISING OUT OF OR RELATING TO THIS INDENTURE SUPPLEMENT; PROVIDED,
THAT EACH PARTY HERETO ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE
BOROUGH OF MANHATTAN IN NEW YORK CITY; PROVIDED, FURTHER, THAT NOTHING IN THIS INDENTURE SUPPLEMENT SHALL BE DEEMED
OR OPERATE TO PRECLUDE THE INDENTURE TRUSTEE FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO REALIZE
ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE NOTES, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE INDENTURE
TRUSTEE. EACH PARTY HERETO SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT,
AND EACH PARTY HERETO HEREBY WAIVES ANY OBJECTION THAT SUCH PARTY MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE
OR FORUM NON CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY
SUCH COURT. EACH PARTY HERETO HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION
OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED
TO SUCH PARTY AT ITS ADDRESS DETERMINED IN ACCORDANCE WITH SECTION 10.4 OF THE INDENTURE AND THAT SERVICE SO MADE SHALL
BE DEEMED COMPLETED UPON THE EARLIER OF SUCH PARTY’S ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE UNITED
STATES MAIL, PROPER POSTAGE PREPAID. NOTHING IN THIS SECTION SHALL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE LEGAL PROCESS
IN ANY OTHER MANNER PERMITTED BY LAW.

 

    	 	36	 

     

    

  

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

 

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

 

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

 

SECTION 8.7. Notice
Address for Rating Agencies. Delivery of any notices required to be delivered to the Rating Agencies by the Issuer, the Indenture
Trustee or the Trustee shall be sufficient for the purposes of this Indenture Supplement and the other Related Documents if sent
to such mailing addresses or such email addresses as may be provided by the Rating Agencies.

 

    	 	37	 

     

    

  

SECTION 8.8. Compliance
with Applicable Anti-Terrorism and Anti-Money Laundering Regulations. In order to comply with laws, rules and regulations applicable
to banking institutions, including those relating to the funding of terrorist activities and money laundering, the Indenture Trustee
is required to obtain, verify and record certain information relating to individuals and entities which maintain a business relationship
with the Indenture Trustee. Accordingly, each of the parties hereto agrees to provide to the Indenture Trustee upon its request
from time to time such identifying information and documentation as may be available for such party in order to enable the Indenture
Trustee to comply with applicable law.

 

SECTION 8.9. Notes
to be Treated as Debt for Tax. It is the intent of the parties hereto that, for purposes of federal, state and local income
and franchise tax and any other tax measured in whole or in part by income, the Class A Notes, the Class B Notes, the Class C Notes
and the Class D Notes shall be treated as debt and a person purchasing such Notes agrees to treat such Notes as debt for such purposes.
Notwithstanding the foregoing and the Indenture, no party is bound to treat any Notes beneficially owned during any period of time
either by the Issuer or the single beneficial owner of the Issuer for U.S. federal income tax purposes as debt for the purposes
described in the preceding sentence.

 

SECTION 8.10. Deemed
Consent. The Series 2016-2 Noteholders will be deemed to have consented to any amendment to any Related Document that changes
the definition of “Rating Agency Condition” in such Related Document to match the definition of “Rating Agency
Condition” in this Indenture Supplement.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 	38	 

     

    

  

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

 

	 	SYNCHRONY CREDIT CARD MASTER NOTE

TRUST, as Issuer
	 	 	 
	 	By:	BNY Mellon Trust of Delaware,

 not in its individual capacity, but solely as

Trustee on behalf of Issuer
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY

AMERICAS, as Indenture Trustee
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	S-1	Indenture Supplement
 Series 2016-2

     

    

  

EXHIBIT A-1

FORM OF CLASS A SERIES 2016-2 FIXED RATE
ASSET BACKED NOTE

 

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

 

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

 

THE HOLDER OF THIS
CLASS A NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE CLASS A NOTES (OTHER
THAN A NOTE beneficially owned during any period of time either by the Issuer or the single
beneficial owner of the Issuer for U.S. federal income tax purposes) AS INDEBTEDNESS OF THE ISSUER FOR APPLICABLE FEDERAL,
STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON, OR MEASURED BY, INCOME.

 

    	 	Exhibit A-1 (Page 1)	 

     

    

  

THE HOLDER OF THIS
NOTE BY ITS ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, SHALL BE DEEMED TO REPRESENT AND WARRANT
THAT EITHER (I) SUCH HOLDER IS NOT (AND FOR SO LONG AS IT HOLDS SUCH NOTE WILL NOT BE), IS NOT ACTING ON BEHALF OF (AND FOR SO
LONG AS IT HOLDS SUCH NOTE WILL NOT BE ACTING ON BEHALF OF), AND IS NOT INVESTING THE ASSETS OF (A) AN “EMPLOYEE BENEFIT
PLAN” (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”))
THAT IS SUBJECT TO TITLE I OF ERISA, (B) A “PLAN” (AS DEFINED IN SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED (THE “CODE”)) THAT IS SUBJECT TO SECTION 4975 OF THE CODE, (C) AN ENTITY WHOSE UNDERLYING ASSETS ARE DEEMED
TO BE PLAN ASSETS OF A PLAN DESCRIBED IN (A) OR (B) ABOVE (EACH, A “BENEFIT PLAN”) OR (D) A GOVERNMENTAL PLAN, CHURCH
PLAN OR NON-U.S. PLAN THAT IS SUBJECT TO ANY APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO THE FIDUCIARY RESPONSIBILITY PROVISIONS
OF ERISA OR SECTION 4975 OF THE CODE (“SIMILAR LAW”) OR (II) ITS ACQUISITION, CONTINUED HOLDING AND DISPOSITION OF
THIS NOTE WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF ANY
SIMILAR LAW. BENEFIT PLANS MAY NOT ACQUIRE THIS NOTE AT ANY TIME THAT THIS NOTE DOES NOT HAVE A CURRENT INVESTMENT GRADE RATING
FROM A NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION.

 

    	 	Exhibit A-1 (Page 2)	 

     

    

  

	REGISTERED

No. R- ________________	$600,000,000 

CUSIP NO. 87165L BB6

 

SYNCHRONY
CREDIT CARD

MASTER NOTE TRUST SERIES 2016-2

CLASS A SERIES 2016-2 FIXED RATE ASSET BACKED NOTE

 

Synchrony Credit
Card Master Note Trust (herein referred to as the “Issuer” or the “Trust”), a Delaware statutory
trust governed by a Trust Agreement dated as of September 25, 2003, for value received, hereby promises to pay to Cede &
Co., or registered assigns, subject to the following provisions, the principal sum of SIX HUNDRED MILLION DOLLARS, or such
greater or lesser amount as determined in accordance with the Indenture, on the May 2024 Payment Date, except as otherwise
provided below or in the Indenture. The Issuer will pay interest on the unpaid principal amount of this Note at the Class A
Note Interest Rate on each Payment Date until the Final Payment Date (which is the earlier to occur of (a) the Payment Date
on which the Note Principal Balance is paid in full, (b) the date on which the Collateral Amount is reduced to zero and (c)
the May 2024 Payment Date). Interest on this Note will accrue for each Payment Date from and including the most recent
Payment Date on which interest has been paid to but excluding such Payment Date or, for the initial Payment Date, from and
including the Closing Date to but excluding such Payment Date. Interest will be computed on the basis of a 360-day year and
twelve 30-day months (and in the case of the initial interest period following the Closing Date, for a period of 49 days).
Principal of this Note shall be paid in the manner specified in the Indenture Supplement referred to on the reverse
hereof.

 

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

 

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

 

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

 

    	 	Exhibit A-1 (Page 3)	 

     

    

  

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

 

	 	SYNCHRONY CREDIT CARD MASTER NOTE

TRUST, as Issuer
	 	 	 
	 	By:	BNY Mellon Trust of Delaware,
	 	 	not in its individual capacity but solely as
	 	 	Trustee on behalf of Issuer
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

Dated:                  ,     

 

    	 	Exhibit A-1 (Page 4)	 

     

    

  

INDENTURE TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

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

 

	 	DEUTSCHE BANK TRUST COMPANY

AMERICAS, as Indenture Trustee
	 	 	 
	 	By:	 
	 	 	Authorized Signatory

 

    	 	Exhibit A-1 (Page 5)	 

     

    

  

SYNCHRONY CREDIT CARD

MASTER NOTE TRUST SERIES 2016-2

CLASS A SERIES 2016-2 FIXED RATE ASSET BACKED NOTE

Summary of Terms and Conditions

 

This Class A Note is
one of a duly authorized issue of Notes of the Issuer, designated as Synchrony Credit Card Master Note Trust, Series 2016-2 (the
“Series 2016-2 Notes”), issued under a Master Indenture dated as of September 25, 2003 (as amended, the “Master
Indenture”), between the Issuer and Deutsche Bank Trust Company Americas, as indenture trustee (the “Indenture
Trustee”), as supplemented by the Indenture Supplement, dated as of May 26, 2016 (the “Indenture Supplement”),
and representing the right to receive certain payments from the Issuer. The term “Indenture,” unless the context otherwise
requires, refers to the Master Indenture as supplemented by the Indenture Supplement. The Notes are subject to all of the terms
of the Indenture. All terms used in this Note that are defined in the Indenture shall have the meanings assigned to them in or
pursuant to the Indenture. In the event of any conflict or inconsistency between the Indenture and this Note, the Indenture shall
control.

 

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

 

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

 

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

 

THIS CLASS A NOTE DOES
NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN, GENERAL ELECTRIC CAPITAL CORPORATION, SYNCHRONY BANK, SYNCHRONY FINANCIAL, RFS
HOLDING, L.L.C., OR ANY OF THEIR AFFILIATES, AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY. THIS CLASS A NOTE IS LIMITED IN RIGHT OF PAYMENT TO CERTAIN COLLECTIONS OF THE RECEIVABLES
(AND CERTAIN OTHER COLLATERAL) ALLOCATED TO THE SERIES 2016-2 NOTES, ALL AS MORE SPECIFICALLY SET FORTH HEREINABOVE AND IN THE
MASTER INDENTURE AND INDENTURE SUPPLEMENT.

 

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

 

    	 	Exhibit A-1 (Page 6)	 

     

    

 

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

 

    	 	Exhibit A-1 (Page 7)	 

     

    

 

ASSIGNMENT

 

Social Security or other identifying number of assignee                                                 

 

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

 

	Dated:	 	 	 	**
	 	 	 	Signature Guaranteed:

 

 

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

 

    	 	Exhibit A-1 (Page 8)	 

     

    

  

EXHIBIT A-2

FORM OF CLASS B SERIES 2016-2 FIXED RATE
ASSET BACKED NOTE

 

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

 

THIS NOTE HAS NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY
NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT AS SET FORTH IN THE NEXT SENTENCE. BY ITS ACQUISITION HEREOF OR OF
A BENEFICIAL INTEREST HEREIN, THE HOLDER OF THIS NOTE:

 

		(1)	AGREES FOR THE BENEFIT OF THE ISSUER AND THE TRANSFEROR
THAT THIS NOTE MAY BE SOLD, TRANSFERRED, ASSIGNED, PARTICIPATED, PLEDGED OR OTHERWISE DISPOSED OF ONLY IN COMPLIANCE WITH THE
SECURITIES ACT AND OTHER APPLICABLE LAWS, AND ONLY (I) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)
TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER, WITHIN THE MEANING OF RULE l44A (A “QIB”),
PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE,
PLEDGE, OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (II) TO THE DEPOSITOR OR ITS AFFILIATES, IN EACH CASE IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES; AND

 

		(2)	AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS
NOTE OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

 

    	 	Exhibit A-2 (Page 1)	 

     

    

  

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

 

THE HOLDER OF THIS CLASS B NOTE, BY ACCEPTANCE
OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE CLASS B NOTES (OTHER THAN A NOTE beneficially
owned during any period of time either by the Issuer or the single beneficial owner of the Issuer for U.S. federal income tax purposes)
AS INDEBTEDNESS OF THE ISSUER FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER
TAX IMPOSED ON, OR MEASURED BY, INCOME.

 

THE HOLDER OF THIS
NOTE BY ITS ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, SHALL BE DEEMED TO REPRESENT AND WARRANT
THAT EITHER (I) SUCH HOLDER IS NOT (AND FOR SO LONG AS IT HOLDS SUCH NOTE WILL NOT BE), IS NOT ACTING ON BEHALF OF (AND FOR SO
LONG AS IT HOLDS SUCH NOTE WILL NOT BE ACTING ON BEHALF OF), AND IS NOT INVESTING THE ASSETS OF (A) AN “EMPLOYEE BENEFIT
PLAN” (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”))
THAT IS SUBJECT TO TITLE I OF ERISA, (B) A “PLAN” (AS DEFINED IN SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED (THE “CODE”)) THAT IS SUBJECT TO SECTION 4975 OF THE CODE, (C) AN ENTITY WHOSE UNDERLYING ASSETS ARE DEEMED
TO BE PLAN ASSETS OF A PLAN DESCRIBED IN (A) OR (B) ABOVE (EACH, A “BENEFIT PLAN”) OR (D) A GOVERNMENTAL PLAN, CHURCH
PLAN OR NON-U.S. PLAN THAT IS SUBJECT TO ANY APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO THE FIDUCIARY RESPONSIBILITY PROVISIONS
OF ERISA OR SECTION 4975 OF THE CODE (“SIMILAR LAW”) OR (II) ITS ACQUISITION, CONTINUED HOLDING AND DISPOSITION OF
THIS NOTE WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF ANY
SIMILAR LAW. BENEFIT PLANS MAY NOT ACQUIRE THIS NOTE AT ANY TIME THAT THIS NOTE DOES NOT HAVE A CURRENT INVESTMENT GRADE RATING
FROM A NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION.

 

    	 	Exhibit A-2 (Page 2)	 

     

    

  

	REGISTERED

No. R- ______________________	$57,534,246

CUSIP NO. 87165L BC4

 

SYNCHRONY CREDIT CARD

MASTER NOTE TRUST SERIES 2016-2

CLASS B SERIES 2016-2 FIXED RATE ASSET BACKED NOTE

 

Synchrony Credit
Card Master Note Trust (herein referred to as the “Issuer” or the “Trust”), a Delaware statutory
trust governed by a Trust Agreement dated as of September 25, 2003, for value received, hereby promises to pay to Cede &
Co., or registered assigns, subject to the following provisions, the principal sum of FIFTY-SEVEN MILLION FIVE HUNDRED
THIRTY-FOUR THOUSAND TWO HUNDRED FORTY-SIX DOLLARS, or such greater or lesser amount as determined in accordance with the
Indenture, on the May 2024 Payment Date, except as otherwise provided below or in the Indenture. The Issuer will pay interest
on the unpaid principal amount of this Note at the Class B Note Interest Rate on each Payment Date until the Final Payment
Date (which is the earlier to occur of (a) the Payment Date on which the Note Principal Balance is paid in full, (b) the date
on which the Collateral Amount is reduced to zero and (c) the May 2024 Payment Date). Interest on this Note will accrue for
each Payment Date from and including the most recent Payment Date on which interest has been paid to but excluding such
Payment Date or, for the initial Payment Date, from and including the Closing Date to but excluding such Payment Date.
Interest will be computed on the basis of a 360-day year and twelve 30-day months (and in the case of the initial interest
period following the Closing Date, for a period of 49 days). Principal of this Note shall be paid in the manner specified in
the Indenture Supplement referred to on the reverse hereof.

 

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

 

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

 

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

 

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

 

    	 	Exhibit A-2 (Page 3)	 

     

    

  

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

 

 

	 	SYNCHRONY CREDIT CARD MASTER NOTE

TRUST, as Issuer
	 	 	 
	 	By:	BNY Mellon Trust of Delaware,
	 	 	not in its individual capacity but solely as
	 	 	Trustee on behalf of Issuer
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

Dated:                  ,     

 

    	 	Exhibit A-2 (Page 4)	 

     

    

  

INDENTURE TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

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

 

	 	DEUTSCHE BANK TRUST COMPANY

AMERICAS, as Indenture Trustee
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	Exhibit A-2 (Page 5)	 

     

    

  

SYNCHRONY CREDIT CARD

MASTER NOTE TRUST SERIES 2016-2

CLASS B SERIES 2016-2 FIXED RATE ASSET BACKED NOTE

Summary of Terms and Conditions

 

This Class B Note is
one of a duly authorized issue of Notes of the Issuer, designated as Synchrony Credit Card Master Note Trust, Series 2016-2 (the
“Series 2016-2 Notes”), issued under a Master Indenture dated as of September 25, 2003 (as amended, the “Master
Indenture”), between the Issuer and Deutsche Bank Trust Company Americas, as indenture trustee (the “Indenture
Trustee”), as supplemented by the Indenture Supplement, dated as of May 26, 2016 (the “Indenture Supplement”),
and representing the right to receive certain payments from the Issuer. The term “Indenture,” unless the context otherwise
requires, refers to the Master Indenture as supplemented by the Indenture Supplement. The Notes are subject to all of the terms
of the Indenture. All terms used in this Note that are defined in the Indenture shall have the meanings assigned to them in or
pursuant to the Indenture. In the event of any conflict or inconsistency between the Indenture and this Note, the Indenture shall
control.

 

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

 

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

 

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

 

THIS CLASS B NOTE DOES
NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN, GENERAL ELECTRIC CAPITAL CORPORATION, SYNCHRONY BANK, SYNCHRONY FINANCIAL, RFS
HOLDING, L.L.C., OR ANY OF THEIR AFFILIATES, AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY. THIS CLASS B NOTE IS LIMITED IN RIGHT OF PAYMENT TO CERTAIN COLLECTIONS OF THE RECEIVABLES
(AND CERTAIN OTHER COLLATERAL) ALLOCATED TO THE SERIES 2016-2 NOTES, ALL AS MORE SPECIFICALLY SET FORTH HEREINABOVE AND IN THE
MASTER INDENTURE AND INDENTURE SUPPLEMENT.

 

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

 

    	 	Exhibit A-2 (Page 6)	 

     

    

  

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

 

    	 	Exhibit A-2 (Page 7)	 

     

    

  

ASSIGNMENT

 

Social Security or other identifying number of assignee                                                   

 

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

 

	Dated:	 	 	 	**
	 	 	 	Signature Guaranteed:

 

 

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

 

    	 	Exhibit A-2 (Page 8)	 

     

    

  

EXHIBIT A-3

FORM OF CLASS C SERIES 2016-2 FIXED RATE
ASSET BACKED NOTE

 

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

 

THIS NOTE HAS NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY
NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT AS SET FORTH IN THE NEXT SENTENCE. BY ITS ACQUISITION HEREOF OR OF
A BENEFICIAL INTEREST HEREIN, THE HOLDER OF THIS NOTE:

 

		(1)	AGREES FOR THE BENEFIT OF THE ISSUER AND THE TRANSFEROR
THAT THIS NOTE MAY BE SOLD, TRANSFERRED, ASSIGNED, PARTICIPATED, PLEDGED OR OTHERWISE DISPOSED OF ONLY IN COMPLIANCE WITH THE
SECURITIES ACT AND OTHER APPLICABLE LAWS, AND ONLY (I) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)
TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER, WITHIN THE MEANING OF RULE l44A (A “QIB”),
PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE,
PLEDGE, OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (II) TO THE DEPOSITOR OR ITS AFFILIATES, IN EACH CASE IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES; AND

 

		(2)	AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS
NOTE OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

 

    	 	Exhibit A-3 (Page 1)	 

     

    

  

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

 

THE HOLDER OF THIS
CLASS C NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE CLASS C NOTES (OTHER
THAN A NOTE beneficially owned during any period of time either by the Issuer or the single
beneficial owner of the Issuer for U.S. federal income tax purposes) AS INDEBTEDNESS OF THE ISSUER FOR APPLICABLE FEDERAL,
STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON, OR MEASURED BY, INCOME.

 

THE HOLDER OF THIS
NOTE BY ITS ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, SHALL BE DEEMED TO REPRESENT AND WARRANT
THAT EITHER (I) SUCH HOLDER IS NOT (AND FOR SO LONG AS IT HOLDS SUCH NOTE WILL NOT BE), IS NOT ACTING ON BEHALF OF (AND FOR SO
LONG AS IT HOLDS SUCH NOTE WILL NOT BE ACTING ON BEHALF OF), AND IS NOT INVESTING THE ASSETS OF (A) AN “EMPLOYEE BENEFIT
PLAN” (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”))
THAT IS SUBJECT TO TITLE I OF ERISA, (B) A “PLAN” (AS DEFINED IN SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED (THE “CODE”)) THAT IS SUBJECT TO SECTION 4975 OF THE CODE, (C) AN ENTITY WHOSE UNDERLYING ASSETS ARE DEEMED
TO BE PLAN ASSETS OF A PLAN DESCRIBED IN (A) OR (B) ABOVE (EACH, A “BENEFIT PLAN”) OR (D) A GOVERNMENTAL PLAN, CHURCH
PLAN OR NON-U.S. PLAN THAT IS SUBJECT TO ANY APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO THE FIDUCIARY RESPONSIBILITY PROVISIONS
OF ERISA OR SECTION 4975 OF THE CODE (“SIMILAR LAW”) OR (II) ITS ACQUISITION, CONTINUED HOLDING AND DISPOSITION OF
THIS NOTE WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF ANY
SIMILAR LAW. BENEFIT PLANS MAY NOT ACQUIRE THIS NOTE AT ANY TIME THAT THIS NOTE DOES NOT HAVE A CURRENT INVESTMENT GRADE RATING
FROM A NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION.

 

    	 	Exhibit A-3 (Page 2)	 

     

    

  

	REGISTERED

No. R- ________________________	$49,315,069

CUSIP NO. 87165L BD2

 

SYNCHRONY CREDIT CARD

MASTER NOTE TRUST SERIES 2016-2

CLASS C SERIES 2016-2 FIXED RATE ASSET BACKED NOTE

 

Synchrony Credit
Card Master Note Trust (herein referred to as the “Issuer” or the “Trust”), a Delaware statutory
trust governed by a Trust Agreement dated as of September 25, 2003, for value received, hereby promises to pay to Cede &
Co., or registered assigns, subject to the following provisions, the principal sum of FORTY-NINE MILLION THREE HUNDRED
FIFTEEN THOUSAND SIXTY-NINE DOLLARS, or such greater or lesser amount as determined in accordance with the Indenture, on the
May 2024 Payment Date, except as otherwise provided below or in the Indenture. The Issuer will pay interest on the unpaid
principal amount of this Note at the Class C Note Interest Rate on each Payment Date until the Final Payment Date (which is
the earlier to occur of (a) the Payment Date on which the Note Principal Balance is paid in full, (b) the date on which the
Collateral Amount is reduced to zero and (c) the May 2024 Payment Date). Interest on this Note will accrue for each Payment
Date from and including the most recent Payment Date on which interest has been paid to but excluding such Payment Date or,
for the initial Payment Date, from and including the Closing Date to but excluding such Payment Date. Interest will be
computed on the basis of a 360-day year and twelve 30-day months (and in the case of the initial interest period following
the Closing Date, for a period of 49 days). Principal of this Note shall be paid in the manner specified in the Indenture
Supplement referred to on the reverse hereof.

 

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

 

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

 

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

 

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

 

    	 	Exhibit A-3 (Page 3)	 

     

    

  

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

 

	 	SYNCHRONY CREDIT CARD MASTER NOTE

TRUST, as Issuer
	 	 	 
	 	By:	BNY Mellon Trust of Delaware, not

in its individual capacity but solely as
	 	 	Trustee on behalf of Issuer
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

Dated:                  ,     

 

    	 	Exhibit A-3 (Page 4)	 

     

    

  

INDENTURE TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

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

 

	 	DEUTSCHE BANK TRUST COMPANY

AMERICAS, as Indenture Trustee
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	Exhibit A-3 (Page 5)	 

     

    

  

SYNCHRONY CREDIT CARD

MASTER NOTE TRUST SERIES 2016-2

CLASS C SERIES 2016-2 FIXED RATE ASSET BACKED NOTE

Summary of Terms and Conditions

 

This Class C Note is
one of a duly authorized issue of Notes of the Issuer, designated as Synchrony Credit Card Master Note Trust, Series 2016-2 (the
“Series 2016-2 Notes”), issued under a Master Indenture dated as of September 25, 2003 (as amended, the “Master
Indenture”), between the Issuer and Deutsche Bank Trust Company Americas, as indenture trustee (the “Indenture
Trustee”), as supplemented by the Indenture Supplement, dated as of May 26, 2016 (the “Indenture Supplement”),
and representing the right to receive certain payments from the Issuer. The term “Indenture,” unless the context otherwise
requires, refers to the Master Indenture as supplemented by the Indenture Supplement. The Notes are subject to all of the terms
of the Indenture. All terms used in this Note that are defined in the Indenture shall have the meanings assigned to them in or
pursuant to the Indenture. In the event of any conflict or inconsistency between the Indenture and this Note, the Indenture shall
control.

 

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

 

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

 

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

 

THIS CLASS C NOTE DOES
NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN, GENERAL ELECTRIC CAPITAL CORPORATION, SYNCHRONY BANK, SYNCHRONY FINANCIAL, RFS
HOLDING, L.L.C., OR ANY OF THEIR AFFILIATES, AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY. THIS CLASS C NOTE IS LIMITED IN RIGHT OF PAYMENT TO CERTAIN COLLECTIONS OF THE RECEIVABLES
(AND CERTAIN OTHER COLLATERAL) ALLOCATED TO THE SERIES 2016-2 NOTES, ALL AS MORE SPECIFICALLY SET FORTH HEREINABOVE AND IN THE
MASTER INDENTURE AND INDENTURE SUPPLEMENT.

 

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

 

    	 	Exhibit A-3 (Page 6)	 

     

    

  

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

 

    	 	Exhibit A-3 (Page 7)	 

     

    

  

ASSIGNMENT

 

Social Security or other identifying number of assignee                                                                               

 

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

  

	Dated:	 	 	 	**
	 	 	 	Signature Guaranteed:

 

 

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

 

    	 	Exhibit A-3 (Page 8)	 

     

    

  

EXHIBIT A-4

FORM OF CLASS D SERIES 2016-2 FIXED RATE
ASSET BACKED NOTE

 

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

 

THIS NOTE HAS NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY
NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT AS SET FORTH IN THE NEXT SENTENCE. BY ITS ACQUISITION HEREOF OR OF
A BENEFICIAL INTEREST HEREIN, THE HOLDER OF THIS NOTE:

 

		(1)	AGREES FOR THE BENEFIT OF THE ISSUER AND THE TRANSFEROR
THAT THIS NOTE MAY BE SOLD, TRANSFERRED, ASSIGNED, PARTICIPATED, PLEDGED OR OTHERWISE DISPOSED OF ONLY IN COMPLIANCE WITH THE
SECURITIES ACT AND OTHER APPLICABLE LAWS, AND ONLY (I) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)
TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER, WITHIN THE MEANING OF RULE l44A (A “QIB”),
PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE,
PLEDGE, OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (II) TO THE DEPOSITOR OR ITS AFFILIATES, IN EACH CASE IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES; AND

 

		(2)	AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS
NOTE OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

 

    	 	Exhibit A-4 (Page 1)	 

     

    

  

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

 

THE HOLDER OF THIS CLASS D NOTE, BY ACCEPTANCE
OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE CLASS D NOTES (OTHER THAN A NOTE beneficially
owned during any period of time either by the Issuer or the single beneficial owner of the Issuer for U.S. federal income tax purposes)
AS INDEBTEDNESS OF THE ISSUER FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER
TAX IMPOSED ON, OR MEASURED BY, INCOME.

 

THE HOLDER OF THIS
NOTE BY ITS ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST THEREIN, SHALL BE DEEMED TO REPRESENT AND WARRANT
THAT EITHER (I) SUCH HOLDER IS NOT (AND FOR SO LONG AS IT HOLDS SUCH NOTE WILL NOT BE), IS NOT ACTING ON BEHALF OF (AND FOR SO
LONG AS IT HOLDS SUCH NOTE WILL NOT BE ACTING ON BEHALF OF), AND IS NOT INVESTING THE ASSETS OF (A) AN “EMPLOYEE BENEFIT
PLAN” (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”))
THAT IS SUBJECT TO TITLE I OF ERISA, (B) A “PLAN” (AS DEFINED IN SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED (THE “CODE”)) THAT IS SUBJECT TO SECTION 4975 OF THE CODE, (C) AN ENTITY WHOSE UNDERLYING ASSETS ARE DEEMED
TO BE PLAN ASSETS OF A PLAN DESCRIBED IN (A) OR (B) ABOVE (EACH, A “BENEFIT PLAN”) OR (D) A GOVERNMENTAL PLAN, CHURCH
PLAN OR NON-U.S. PLAN THAT IS SUBJECT TO ANY APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO THE FIDUCIARY RESPONSIBILITY PROVISIONS
OF ERISA OR SECTION 4975 OF THE CODE (“SIMILAR LAW”) OR (II) ITS ACQUISITION, CONTINUED HOLDING AND DISPOSITION OF
THIS NOTE WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF ANY
SIMILAR LAW. BENEFIT PLANS MAY NOT ACQUIRE THIS NOTE AT ANY TIME THAT THIS NOTE DOES NOT HAVE A CURRENT INVESTMENT GRADE RATING
FROM A NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION.

 

    	 	Exhibit A-4 (Page 2)	 

     

    

  

	REGISTERED

No. R- ____________________	$73,972,603

CUSIP NO. 87165L BE0

 

SYNCHRONY CREDIT CARD

MASTER NOTE TRUST SERIES 2016-2

 

CLASS D SERIES 2016-2 FIXED RATE ASSET BACKED
NOTE

 

Synchrony Credit
Card Master Note Trust (herein referred to as the “Issuer” or the “Trust”), a Delaware
statutory trust governed by a Trust Agreement dated as of September 25, 2003, for value received, hereby promises to pay to
Cede & Co., or registered assigns, subject to the following provisions, the principal sum of SEVENTY-THREE MILLION NINE
HUNDRED SEVENTY-TWO THOUSAND SIX HUNDRED THREE DOLLARS, or such greater or lesser amount as determined in accordance with the
Indenture, on the May 2024 Payment Date, except as otherwise provided below or in the Indenture. The Issuer will pay interest
on the unpaid principal amount of this Note at the Class D Note Interest Rate on each Payment Date until the Final Payment
Date (which is the earlier to occur of (a) the Payment Date on which the Note Principal Balance is paid in full, (b) the date
on which the Collateral Amount is reduced to zero and (c) the May 2024 Payment Date). Interest on this Note will accrue for
each Payment Date from and including the most recent Payment Date on which interest has been paid to but excluding such
Payment Date or, for the initial Payment Date, from and including the Closing Date to but excluding such Payment Date.
Interest will be computed on the basis of a 360-day year and twelve 30-day months (and in the case of the initial interest
period following the Closing Date, for a period of 49 days). Principal of this Note shall be paid in the manner specified in
the Indenture Supplement referred to on the reverse hereof.

 

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

 

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

 

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

 

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

 

    	 	Exhibit A-4 (Page 3)	 

     

    

  

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

 

	 	SYNCHRONY CREDIT CARD MASTER NOTE

TRUST, as Issuer
	 	 	 
	 	By:	BNY MELLON TRUST OF DELAWARE
	 	 	not in its individual capacity but solely as
	 	 	Trustee on behalf of Issuer
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

Dated:                  ,     

 

    	 	Exhibit A-4 (Page 4)	 

     

    

 

INDENTURE TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

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

 

	 	DEUTSCHE BANK TRUST COMPANY

AMERICAS, as Indenture Trustee
	 	 	 
	 	By:	 
	 	 	Authorized Signatory

 

    	 	Exhibit A-4 (Page 5)	 

     

    

 

SYNCHRONY CREDIT CARD

MASTER NOTE TRUST SERIES 2016-2

 

CLASS D SERIES 2016-2 FIXED RATE ASSET BACKED
NOTE

Summary of Terms and Conditions

 

This Class D Note is
one of a duly authorized issue of Notes of the Issuer, designated as Synchrony Credit Card Master Note Trust, Series 2016-2 (the
“Series 2016-2 Notes”), issued under a Master Indenture dated as of September 25, 2003 (as amended, the “Master
Indenture”), between the Issuer and Deutsche Bank Trust Company Americas, as indenture trustee (the “Indenture
Trustee”), as supplemented by the Indenture Supplement, dated as of May 26, 2016 (the “Indenture Supplement”),
and representing the right to receive certain payments from the Issuer. The term “Indenture,” unless the context otherwise
requires, refers to the Master Indenture as supplemented by the Indenture Supplement. The Notes are subject to all of the terms
of the Indenture. All terms used in this Note that are defined in the Indenture shall have the meanings assigned to them in or
pursuant to the Indenture. In the event of any conflict or inconsistency between the Indenture and this Note, the Indenture shall
control.

 

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

 

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

 

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

 

THIS CLASS D NOTE DOES
NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN, GENERAL ELECTRIC CAPITAL CORPORATION, SYNCHRONY BANK, SYNCHRONY FINANCIAL, RFS
HOLDING, L.L.C., OR ANY OF THEIR AFFILIATES, AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY. THIS CLASS D NOTE IS LIMITED IN RIGHT OF PAYMENT TO CERTAIN COLLECTIONS OF THE RECEIVABLES
(AND CERTAIN OTHER COLLATERAL) ALLOCATED TO THE SERIES 2016-2 NOTES, ALL AS MORE SPECIFICALLY SET FORTH HEREINABOVE AND IN THE
MASTER INDENTURE AND INDENTURE SUPPLEMENT.

 

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

 

    	 	Exhibit A-4 (Page 6)	 

     

    

  

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

 

    	 	Exhibit A-4 (Page 7)	 

     

    

  

ASSIGNMENT

 

Social Security or other identifying number of assignee                                                   

 

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

 

	Dated:	 	 	 	**
	 	 	 	Signature Guaranteed:

 

 

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

 

    	 	Exhibit A-4 (Page 8)	 

     

    

  

EXHIBIT B

 

FORM OF MONTHLY NOTEHOLDER’S STATEMENT

 

Monthly Noteholder’s Statement

Synchrony Credit Card Master Note Trust

 

Series 2016-2

Class A 2.21% Notes

Class B 2.55% Notes

Class C 2.95% Notes

Class D 3.64% Notes

 

Pursuant to the Master
Indenture, dated as of September 25, 2003 (as amended and supplemented, the “Indenture”) between Synchrony Credit
Card Master Note Trust (the “Issuer”) and Deutsche Bank Trust Company Americas, as indenture trustee (the “Indenture
Trustee”), as supplemented by the Series 2016-2 Indenture Supplement (the “Indenture Supplement”),
dated as of May 26, 2016, between the Issuer and the Indenture Trustee, the Issuer is required to prepare, or cause the Servicer
to prepare, certain information each month regarding current distributions to the Series 2016-2 Noteholders and the performance
of the Trust during the previous month. The information required to be prepared with respect to the Payment Date of [●], 20[●],
and with respect to the performance of the Trust during the Monthly Period ended [●], 20[●] is set forth below.
Capitalized terms used herein are defined in the Indenture and the Indenture Supplement. The Discount Percentage (as defined in
the Transfer Agreement) remains at 0% for all the Receivables in the Trust until otherwise indicated. The undersigned, an Authorized
Officer of the Servicer, does hereby certify as follows:

 

	Record Date:	[●], 20[●]
	Monthly Period Beginning:	[●], 20[●]
	Monthly Period Ending:	[●], 20[●]
	Previous Payment Date:	[●], 20[●]
	Payment Date:	[●], 20[●]
	Interest Period Beginning:	[●], 20[●]
	Interest Period Ending:	[●], 20[●]
	Days in Monthly Period:	[●]
	Days in Interest Period:	[●]
	Is there a Reset Date?	[No][Yes]

 

	I.	 	Trust Receivables Information	 	 
	 	a.	Number of Accounts Beginning	 	 
	 	b.	Number of Accounts Ending	 	 
	 	c.	Average Account Balance (q/b)	 	 
	 	d.	BOP Principal Receivables	 	 

 

    	 	Exhibit B (Page 1)	 

     

    

 

	 	e.	BOP Finance Charge Receivables	 	 
	 	f.	BOP Total Receivables	 	 
	 	g.	Increase in Principal Receivables from Additional Accounts	 	 
	 	h.	Increase in Principal Activity on Existing Securitized Accounts	 	 
	 	i.	Increase in Finance Charge Receivables from Additional Accounts	 	 
	 	j.	Increase in Finance Charge Activity on Existing Securitized Accounts	 	 
	 	k.	Increase in Total Receivables	 	 
	 	l.	Decrease in Principal Receivables due to Account Removal	 	 
	 	m.	Decrease in Principal Activity on Existing Securitized Accounts	 	 
	 	n.	Decrease in Finance Charge Receivables due to Account Removal	 	 
	 	o.	Decrease in Finance Charge Activity on Existing Securitized Accounts	 	 
	 	p.	Decrease in Total Receivables	 	 
	 	q.	EOP Aggregate Principal Receivables	 	 
	 	r.	EOP Finance Charge Receivables	 	 
	 	s.	EOP Total Receivables	 	 
	 	t.	Excess Funding Account Balance	 	 
	 	u.	Required Principal Balance	 	 
	 	v.	Minimum Free Equity Amount (EOP Aggregate Principal Receivables * 5.5%)	 	 
	 	w.	Free Equity Amount (EOP Principal Receivables - EOP Collateral Amount (II.d.ii+II.a.ii+II.b.ii+II.b.iii))	 	 

 

	II.	 	Investor Information (Sum of all Series, excluding new issuances and additional draws subsequent to end of the Monthly Period)	 	 
	 	a.	Note Principal Balance	 	 
	 	 	i.	Beginning of Interest Period	 	 
	 	 	ii.	Increase in Note Principal Balance due to New Issuance / Additional draws	 	 
	 	 	iii.	Decrease in Note Principal Balance due to Principal Paid and Notes Retired	 	 
	 	 	iv.	As of Payment Date	 	 
	 	b.	Excess Collateral Amount	 	 
	 	 	i.	Beginning of Interest Period	 	 
	 	 	ii.	Change to Excess Collateral Amount in connection with the Supplemental Indenture	 	 
	 	 	iii.	Increase in Excess Collateral Amount due to New Issuance	 	 
	 	 	iv.	Reductions in Required Excess Collateral Amount	 	 
	 	 	v.	Increase in Unreimbursed Investor Charge-Off	 	 

 

    	 	Exhibit B (Page 2)	 

     

    

  

	 	 	vi.	Decrease in Unreimbursed Investor Charge-Off	 	 
	 	 	vii.	Increase in Unreimbursed Reallocated Principal Collections	 	 
	 	 	viii.	Decrease in Unreimbursed Reallocated Principal Collections	 	 
	 	 	ix.	As of Payment Date	 	 
	 	c.	Principal Accumulation Account Balance	 	 
	 	 	i.	Beginning of Interest Period	 	 
	 	 	ii.	Controlled Deposit Amount	 	 
	 	 	iii.	Withdrawal for Principal Payment	 	 
	 	 	iv.	As of Payment Date	 	 
	 	d.	Collateral Amount	 	 
	 	 	i.	End of Prior Monthly Period	 	 
	 	 	ii.	Beginning of Interest Period (a.i + b.i)	 	 
	 	 	iii.	As of Payment Date	 	 
	 	 	 	 	 
	III.	 	Trust Performance Data (Monthly Period)	 	 
	 	a.	Gross Trust Yield (Finance Charge Collections + Recoveries / BOP Principal Receivables)	 	 
	 	 	i.	Current	 	 
	 	 	ii.	Prior Monthly Period	 	 
	 	 	iii.	Two Months Prior Monthly Period	 	 
	 	 	iv.	Three-Month Average	 	 
	 	b.	Payment Rate (Principal Collections / BOP Principal Receivables)	 	 
	 	 	i.	Current	 	 
	 	 	ii.	Prior Monthly Period	 	 
	 	 	iii.	Two Months Prior Monthly Period	 	 
	 	 	iv.	Three-Month Average	 	 
	 	c.	Gross Charge-Off Rate excluding Fraud (Default Amount for Defaulted Accounts – Fraud Amount / BOP Principal Receivables)	 	 
	 	 	i.	Current	 	 
	 	 	ii.	Prior Monthly Period	 	 
	 	 	iii.	Two Months Prior Monthly Period	 	 
	 	 	iv.	Three-Month Average	 	 
	 	d.	Gross Charge-Off Rate (Default Amount for Defaulted Accounts / BOP Principal Receivables)	 	 
	 	e.	Net Charge-Off Rate excluding Fraud (Default Amount for Defaulted Accounts – Recoveries – Fraud Amount / BOP Principal Receivables	 	 
	 	 	i.	Current	 	 
	 	 	ii.	Prior Monthly Period	 	 
	 	 	iii.	Two Months Prior Monthly Period	 	 
	 	 	iv.	Three-Month Average	 	 

 

    	 	Exhibit B (Page 3)	 

     

    

  

	 	f.	Net Charge-Off Rate (Default Amount for Defaulted Accounts – Recoveries / BOP Principal Receivables)	 	 
	 	g.	Trust excess spread percentage ((FC Coll – Charged-Off Rec – Monthly Interest +/- Net Swaps – Monthly Servicing Fee) / BOP Principal Receivables)	 	 
	 	h.	Default Amount for Defaulted Accounts	 	 
	 	i.	Recovery Amount	 	 
	 	j.	Collections	 	 
	 	 	i.	Total Trust Finance Charge Collections	 	 
	 	 	ii.	Total Trust Principal Collections	 	 
	 	 	iii.	Total Trust Collections	 	 

 

	 	k.    	Delinquency Data	Percentage	 	Total Receivables
	 	 	i.	1-29 Days Delinquent	 	 	 
	 	 	ii.	30-59 Days Delinquent	 	 	 
	 	 	iii.	60-89 Days Delinquent	 	 	 
	 	 	iv.	90-119 Days Delinquent	 	 	 
	 	 	v.	120-149 Days Delinquent	 	 	 
	 	 	vi.	
        150-179 Days Delinquent

         
	 	 	 
	 	 	vii.	180 or Greater Days Delinquent	 	 	 
	 	 	 	 	 	 
	IV.	 	Series Performance Data	 	 	 
	 	a.	Portfolio Yield (Finance Charge Collections + Recoveries – Aggregate Investor Default Amount + PAA Inv Proceeds / BOP Collateral)	 	 	 
	 	 	i.	Current	 	 	 
	 	 	ii.	Prior Monthly Period	 	 	 
	 	 	iii.	Two Months Prior Monthly Period	 	 	 
	 	 	iv.	Three-Month Average	 	 	 
	 	b.	Base Rate (Noteholder Servicing Fee + Admin Fee + Monthly Interest / + Swap Payments – Swap Receipts / BOP Collateral)	 	 	 
	 	 	i.	Current	 	 	 
	 	 	ii.	Prior Monthly Period	 	 	 
	 	 	iii.	Two Months Prior Monthly Period	 	 	 
	 	 	iv.	Three-Month Average	 	 	 
	 	c.	Excess Spread Percentage (Portfolio Yield – Base Rate)	 	 	 
	 	 	i.	Current	 	 	 
	 	 	ii.	Prior Monthly Period	 	 	 
	 	 	iii.	Two Months Prior Monthly Period	 	 	 
	 	 	iv.	Quarterly Excess Spread Percentage	 	 	 

 

    	 	Exhibit B (Page 4)	 

     

    

  

	V.	 	Investor Information Regarding Distributions to Noteholders	 	 
	 	a.	The total amount of the distribution to Class A Noteholders per $1000 Note Initial Principal Balance.	 	 
	 	b.	The amount of the distribution set forth in paragraph a. above in respect of interest on the Class A Notes, per $1000 Note Initial Principal Balance.	 	 
	 	c.	The amount of the distribution set forth in paragraph a. above in respect of principal on the Class A Notes, per $1000 Note Initial Principal Balance.	 	 
	 	d.	The total amount of the distribution to Class B Noteholders per $1000 Note Initial Principal Balance.	 	 
	 	e.	The amount of the distribution set forth in paragraph d. above in respect of interest on the Class B Notes, per $1000 Note Initial Principal Balance.	 	 
	 	f.	The amount of the distribution set forth in paragraph d. above in respect of principal on the Class B Notes, per $1000 Note Initial Principal Balance.	 	 
	 	g.	The total amount of the distribution to Class C Noteholders per $1000 Note Initial Principal Balance.	 	 
	 	h.	The amount of the distribution set forth in paragraph g. above in respect of interest on the Class C Notes, per $1000 Note Initial Principal Balance.	 	 
	 	i.	The amount of the distribution set forth in paragraph g. above in respect of principal on the Class C Notes, per $1000 Note Initial Principal Balance.	 	 
	 	j.	The total amount of the distribution to Class D Noteholders per $1000 Note Initial Principal Balance.	 	 
	 	k.	The amount of the distribution set forth in paragraph j. above in respect of interest on the Class D Notes, per $1000 Note Initial Principal Balance.	 	 
	 	l.	The amount of the distribution set forth in paragraph j. above in respect of principal on the Class D Notes, per $1000 Note Initial Principal Balance.	 	 
	 	 	 	 	 
	VI.	 	Investor Information	 	 
	 	a.	Class A Note Initial Principal Balance	 	 
	 	b.	Class B Note Initial Principal Balance	 	 
	 	c.	Class C Note Initial Principal Balance	 	 
	 	d.	Class D Note Initial Principal Balance	 	 

 

    	 	Exhibit B (Page 5)	 

     

    

 

 

	 	e.	Initial Excess Collateral Amount	 	 
	 	f.	Initial Collateral Amount	 	 
	 	g.	Class A Note Principal Balance	 	 
	 	 	i.	Beginning of Interest Period	 	 
	 	 	ii.	Principal Payment	 	 
	 	 	iii.	As of Payment Date	 	 
	 	h.	Class B Note Principal Balance	 	 
	 	 	i.	Beginning of Interest Period	 	 
	 	 	ii.	Principal Payment	 	 
	 	 	iii.	As of Payment Date	 	 
	 	i.	Class C Note Principal Balance	 	 
	 	 	i.	Beginning of Interest Period	 	 
	 	 	ii.	Principal Payment	 	 
	 	 	iii.	As of Payment Date	 	 
	 	j.	Class D Note Principal Balance	 	 
	 	 	i.	Beginning of Interest Period	 	 
	 	 	ii.	Principal Payment	 	 
	 	 	iii.	As of Payment Date	 	 
	 	k.	Excess Collateral Amount	 	 
	 	 	i.	Beginning of Interest Period	 	 
	 	 	ii.	Increase in Excess Collateral Amount in connection with the Supplemental Indenture	 	 
	 	 	iii.	Reduction in Excess Collateral Amount	 	 
	 	 	iv.	As of Payment Date	 	 
	 	l.	Collateral Amount	 	 
	 	 	i.	Beginning of Interest Period	 	 
	 	 	ii.	Increase in Excess Collateral Amount in connection with the Supplemental Indenture	 	 
	 	 	iii.	Increase/Decrease in Unreimbursed Investor Charge-Offs	 	 
	 	 	iv.	Increase/Decrease in Reallocated Principal Collections	 	 
	 	 	v.	Reduction in Excess Collateral Amount	 	 
	 	 	vi.	Principal Accumulation Account Deposit	 	 
	 	 	vii.	As of Payment Date	 	 
	 	 	viii.	Collateral Amount as a Percentage of Note Trust Principal Balance	 	 
	 	 	ix.	Amount by which Note Principal Balance exceeds Collateral Amount	 	 
	 	m.	Required Excess Collateral Amount	 	 
	 	 	 	 	 
	VII.	 	Investor Charge-Offs and Reallocated Principal Collections	 	 
	 	 	(Section references relate to Indenture Supplement)	 	 
	 	a.	Beginning Unreimbursed Investor Charge-Offs	 	 

 

    	 	Exhibit B (Page 6)	 

     

    

 

 

	 	b.	Current Unreimbursed Investor Defaults	 	 
	 	c.	Current Unreimbursed Investor Uncovered Dilution Amount	 	 
	 	d.	Current Reimbursement of Investor Charge-Offs pursuant to Section 4.4(a)(viii)	 	 
	 	e.	Ending Unreimbursed Investor Charge-Offs	 	 
	 	f.	Beginning Unreimbursed Reallocated Principal Collections	 	 
	 	g.	Current Reallocated Principal Collections pursuant to Section 4.7	 	 
	 	h.	Current Reimbursement of Reallocated Principal Collections pursuant to Section 4.4(a)(viii)	 	 
	 	i.	Ending Unreimbursed Reallocated Principal Collections	 	 
	 	 	 	 	 
	VIII.	 	Investor Percentages –BOP Balance and Series Account Information	 	 
	 	a.	Allocation Percentage Numerator – for Finance Charge Collections and Default Amounts	 	 
	 	b.	Allocation Percentage Numerator – for Principal Collections	 	 
	 	c.	Allocation Percentage Denominator	 	 
	 	 	i.	Aggregate Principal Receivables Balance as of Prior Monthly Period	 	 
	 	 	ii.	Number of Days at Balance	 	 
	 	 	iii.	Weighted Average Principal Balance	 	 
	 	d.	Sum of Allocation Percentage Numerators for all outstanding Series with respect to Finance Charge Collections and Default Amounts	 	 
	 	e.	Sum of Allocation Percentage Numerators for all outstanding Series with respect to Principal Collections	 	 
	 	f.	Average Daily Allocation Percentage, Finance Charge Collections and Default Amount (a./greater of c.iii. or d.)	 	 
	 	g.	Average Daily Allocation Percentage, Principal Collections (b./ greater of c.iii. or e.)	 	 
	 	h.	Series Allocation Percentage	 	 

 

	IX.	 	Collections and Allocations	 	 	 
	 	 	 	 	Trust	 	Series
	 	a.	Finance Charge Collections	 	 	 
	 	b.	Recoveries	 	 	 
	 	c.	Principal Collections	 	 	 
	 	d.	Default Amount	 	 	 
	 	e.	Dilution	 	 	 
	 	f.	Investor Uncovered Dilution Amount	 	 	 
	 	g.	Dilution including Fraud Amount	 	 	 
	 	h.	Available Finance Charge Collections	 	 	 
	 	 	i.	Investor Finance Charge Collections	 	 	 
	 	 	ii.	Excess Finance Charge Collections allocable to Series 2016-2	 	 	 
	 	 	iii.	Principal Accumulation Account Investment Proceeds	 	 	 

 

    	 	Exhibit B (Page 7)	 

     

    

 

	 	 	iv.	Investment earnings in the Reserve Account	 	 
	 	 	v.	Reserve Account Draw Amount	 	 
	 	 	vi.	Net Swap Receipts	 	 
	 	 	vii.	Recoveries	 	 
	 	i.	Available Finance Charge Collections (Sum of h.i through h.vii)	 	 
	 	j.	Total Collections (c. Series + i.)	 	 
	 	k.	Total Finance Charge Collections deposited in the Collection Account (net of any amounts distributed to Transferor and owed to Servicer)	 	 
	 	 	 	 	 
	X.	 	Application of Available Funds pursuant to Section 4.4(a) of the Indenture Supplement	 	 
	 	a.	Available Finance Charge Collections	 	 

	 	 	i.	On a pari passu basis:	 	 
	 	 	 	a.	Payment to the Indenture Trustee, to a maximum of $25,000	 	 
	 	 	 	b.	Payment to the Trustee, to a maximum of $25,000	 	 
	 	 	 	c.	Payment to the Administrator, to a maximum of $25,000	 	 
	 	 	ii.	To the Servicer:	 	 
	 	 	 	a.	Noteholder Servicing Fee	 	 
	 	 	 	b.	Noteholder Servicing Fee previously due but not paid	 	 
	 	 	 	c.	Total Noteholder Servicing Fee	 	 
	 	 	iii.	On a pari passu basis:	 	 
	 	 	 	a.	Class A Monthly Interest	 	 
	 	 	 	b.	Class A Deficiency Amount	 	 
	 	 	 	c.	Class A Additional Interest	 	 
	 	 	 	d.	Class A Additional Interest not paid on prior Payment Date	 	 
	 	 	iv.	On a pari passu basis:	 	 
	 	 	 	a.	Class B Monthly Interest	 	 
	 	 	 	b.	Class B Deficiency Amount	 	 
	 	 	 	c.	Class B Additional Interest	 	 
	 	 	 	d.	Class B Additional Interest not paid on prior Payment Date	 	 
	 	 	v.	On a pari passu basis:	 	 
	 	 	 	a.	Class C Monthly Interest	 	 
	 	 	 	b.	Class C Deficiency Amount	 	 
	 	 	 	c.	Class C Additional Interest	 	 
	 	 	 	d.	Class C Additional Interest not paid on prior Payment Date	 	 
	 	 	vi.	On a pari passu basis:	 	 
	 	 	 	a.	Class D Monthly Interest	 	 

 

    	 	Exhibit B (Page 8)	 

     

    

  

	 	 	 	b.	Class D Deficiency Amount	 	 
	 	 	 	c.	Class D Additional Interest	 	 
	 	 	 	d.	Class D Additional Interest not paid on prior Payment Date	 	 
	 	 	vii.	To be treated as Available Principal Collections	 	 
	 	 	 	a.	Aggregate Investor Default Amount	 	 
	 	 	 	b.	Aggregate Investor Uncovered Dilution Amount	 	 
	 	 	viii.	To be treated as Available Principal Collections, to the extent not previously reimbursed	 	 
	 	 	 	a.	Investor Charge-offs	 	 
	 	 	 	b.	Reallocated Principal Collections	 	 
	 	 	ix.	Excess of Required Reserve Account Amount Over Available Reserve Account Amount	 	 
	 	 	x.	Amounts required to be deposited to the Spread Account or Reserve Account	 	 
	 	 	xi.	To be treated as Available Principal Collections: Series Allocation Percentage of Minimum Free Equity Shortfall	 	 
	 	 	xii.	Unless an Early Amortization Event has occurred, amounts that have not been paid pursuant to (a)(i) above	 	 
	 	 	xiii.	The balance, if any, will constitute a portion of Excess Finance Charge Collections for such Payment Date and first will be available for allocation to other Series in Group One and, then:	 	 
	 	 	 	a.	Unless an Early Amortization Event has occurred, to the Transferor; or	 	 
	 	 	 	b.	If an Early Amortization Event has occurred, first, to pay Monthly Principal in accordance with Section 4.4(c) of the Indenture Supplement to the extent not paid in full from Available Principal Collections (calculated without regard to amounts available to be treated as Available Principal Collections pursuant to this clause), second, to pay on a pari passu basis any amounts owed to such Persons listed in clause (a)(i) above that have been allocated to Series 2016-2 in accordance with Section 8.4(d) of the Indenture and that have not been paid pursuant to clauses (a)(i) and (a)(xii) above, and, third, any amounts remaining after payment in full of the Monthly Principal and amounts owed to such Persons listed in clause (a)(i) above shall be paid to the Issuer.	 	 
	 	 	 	 	 
	XI.	 	Excess Finance Charge Collections (Group One)	 	 
	 	a.	Total Excess Finance Charge Collections in Group One	 	 

 

    	 	Exhibit B (Page 9)	 

     

    

 

	 	b.	Finance Charge Shortfall for Series 2016-2	 	 
	 	c.	Finance Charge Shortfall for all Series in Group One	 	 
	 	d.	Excess Finance Charges Collections Allocated to Series 2016-2	 	 
	 	 	 	 	 	 	 
	XII.	 	Available Principal Collections and Distributions (Section references relate to Indenture Supplement)	 	 
	 	a.	Investor Principal Collections	 	 
	 	b.	Less: Reallocated Principal Collections for the Monthly Period pursuant to Section 4.7	 	 
	 	c.	Plus: Shared Principal Collections allocated to this Series	 	 
	 	d.	Plus: Aggregate amount to be treated as Available Principal Collections pursuant to Section 4.4(a)(vii)	 	 
	 	e.	Plus: Aggregate amount to be treated as Available Principal Collections pursuant to Section 4.4(a)(viii)	 	 
	 	f.	Plus: During an Early Amortization Period, the amount of Available Finance Charge Collections used to pay principal on the Notes pursuant to Section 4.4(a)(xiv)	 	 
	 	g.	Available Principal Collections (Deposited to Principal Account)	 	 
	 	 	i.	During the Revolving Period, Available Principal Collections treated as Shared Principal Collections pursuant to Section 4.4(b)	 	 
	 	 	ii.	During the Controlled Accumulation Period, Available Principal Collections deposited to the Principal Accumulation Account pursuant to Section 4.4(c)(i), (ii)	 	 
	 	 	iii.	During the Early Amortization Period, Available Principal Collections deposited to the Distribution Account pursuant to Section 4.4(c)	 	 
	 	 	iv.	Series Shared Principal Collections available to Group One pursuant to Section 4.4(c)(iii)	 	 
	 	 	v.	Principal Distributions pursuant to Section 4.4(e) in order of priority	 	 
	 	 	 	a.	Principal paid to Class A Noteholders	 	 
	 	 	 	b.	Principal paid to Class B Noteholders	 	 
	 	 	 	c.	Principal paid to Class C Noteholders	 	 
	 	 	 	d.	Principal paid to Class D Noteholders	 	 
	 	 	vi.	Total Principal Collections Available to Share (Inclusive of Series 2016-2)	 	 
	 	 	vii.	Series Principal Shortfall	 	 
	 	 	viii.	Shared Principal Collections allocated to this Series from other Series	 	 

 

    	 	Exhibit B (Page 10)	 

     

    

  

	XIII.	 	Series 2016-2 Accumulation	 	 
	 	a.	Controlled Accumulation Period Length in months (scheduled)	 	 
	 	b.	Controlled Accumulation Amount	 	 
	 	c.	Controlled Deposit Amount	 	 
	 	d.	Accumulation Shortfall	 	 
	 	e.	Principal Accumulation Account Balance	 	 
	 	 	i.	Beginning of Interest Period	 	 
	 	 	ii.	Controlled Deposit Amount	 	 
	 	 	iii.	Withdrawal for Principal Payment	 	 
	 	 	iv.	As of Payment Date	 	 
	 	 	 	 	 	 
	XIV.	 	Reserve Account Funding (Section references relate to Indenture Supplement)	 	 
	 	a.	Reserve Account Funding Date (scheduled)	 	 
	 	b.	Required Reserve Account Amount (0.50% of Note Principal Balance beginning on Reserve Account Funding Date)	 	 
	 	c.	Beginning Available Reserve Account Amount	 	 
	 	d.	Reserve Draw Amount	 	 
	 	e.	Deposit pursuant to 4.4(a)(ix) the excess of b. over c.	 	 
	 	f.	Withdrawal for Reserve Account Surplus paid to Transferor pursuant to Section 4.10(d)	 	 
	 	g.	Withdrawal for Reserve Account Surplus paid to Transferor pursuant to Section 4.10(e)	 	 
	 	h.	Ending Available Reserve Account Amount	 	 
	 	 	 	 	 	 
	XV.	 	Spread Account Funding (Section references relate to Indenture Supplement)	 	 
	 	a.	Spread Account Percentage	 	 
	 	b.	Required Spread Account Amount	 	 
	 	c.	Beginning Available Spread Account Amount	 	 
	 	d.	Withdrawal pursuant to 4.11(a) – Section 4.4(a)(vi) Shortfall	 	 
	 	e.	Withdrawal pursuant to 4.11(b) – Class D Expected Principal Payment Date	 	 
	 	f.	Withdrawal pursuant to 4.11(c) – Early Amortization Event	 	 
	 	g.	Withdrawal pursuant to 4.11(d) – Event of Default	 	 
	 	h.	Deposit pursuant to 4.4(a)(x) – Spread Account Deficiency	 	 

 

    	 	Exhibit B (Page 11)	 

     

    

  

	 	i.	Withdrawal pursuant to 4.11(f) – Spread Account Surplus Amount	 	 
	 	j.	Ending Available Spread Account Amount	 	 
	 	 	 	 	 	 
	XVI.	 	Series Early Amortization Events	 	 
	 	a.	The Free Equity Amount is less than the Minimum Free Equity Amount	 	 
	 	 	Free Equity:	 	 
	 	 	i.	Free Equity Amount	 	 
	 	 	ii.	Minimum Free Equity Amount	 	 
	 	 	iii.	Excess Free Equity Amount	 	 
	 	b.	The Note Trust Principal Balance is less than the Required Principal Balance Note Trust Principal Balance:	 	 
	 	 	i.	Note Trust Principal Balance	 	 
	 	 	ii.	Required Principal Balance	 	 
	 	 	iii.	Excess Principal Balance	 	 
	 	c.	The three-month Average Portfolio Yield is less than three-month average Base Rate Portfolio Yield:	 	 
	 	 	i.	Three month Average Portfolio Yield	 	 
	 	 	ii.	Three month Average Base Rate	 	 
	 	 	iii.	Three Month Average Excess Spread	 	 
	 	d.	The Note Principal Balance is outstanding beyond the Expected Principal Payment Date	 	 
	 	 	i.	Expected Principal Payment Date	 	 
	 	 	ii.	Current Payment Date	 	 
	 	e.	Are there any material modifications, extensions or waivers to pool asset terms, fees, penalties or payments?	 	 
	 	f.	Are there any material breaches or pool of assets representations and warranties or covenants?	 	 
	 	g.	Are there any material changes in criteria used to originate, acquire, or select new pool assets?	 	 
	 	h.	Has an early amortization event occurred?	 	 

 

IN WITNESS WHEREOF,
the undersigned has duly executed this Monthly Noteholder’s Statement as of the ___ day of _____________.

 

	 	SYNCHRONY FINANCIAL, as Servicer
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	Exhibit B (Page 12)	 

     

    

  

SCHEDULE I

PERFECTION REPRESENTATIONS, WARRANTIES

AND COVENANTS (WITH RESPECT TO RECEIVABLES)

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(7)         Notwithstanding
any other provision of the Indenture, the representations and warranties set forth in this Schedule I shall be continuing,
and remain in full force and effect, until such time as the Series 2016-2 Notes are retired.

 

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

 

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

 

    	 	Schedule I (Page 1)Exhibit 10.1

 

AMENDED AND RESTATED MANAGEMENT AGREEMENT

 

This AMENDED AND RESTATED MANAGEMENT AGREEMENT
(this “Management Agreement”), dated as of May 23, 2016, is made and entered into by and among JERNIGAN CAPITAL,
INC., a Maryland corporation, (the “Company”), JERNIGAN CAPITAL OPERATING COMPANY LLC (f/k/a Jernigan Capital
Operating Partnership LP, a Delaware limited liability company) (the “Operating Company”) and JCap Advisors,
LLC, a Delaware limited liability company (the “Manager”).

 

WITNESSETH: 

 

WHEREAS, the Company is a corporation operating
in a manner that qualifies for election as a real estate investment trust (“REIT”) for U.S. federal income tax purposes
and that intends to make such election;

 

WHEREAS, the Operating Company is a wholly
owned subsidiary of the Company;

 

WHEREAS, the Company and each of its Subsidiaries,
including the Operating Company, effective April 1, 2015, engaged the Manager to provide certain management and advisory services
to them on the terms and conditions hereinafter set forth, and the Manager has continuously provided such services since that time
in compliance with this Agreement; and

 

WHEREAS, the parties desire to amend and
restate this Agreement to conform to changes in the Operating Company’s legal structure and to clearly express the original
intent of the parties with respect to Internalization as set forth in Section 17 of this Agreement.

 

NOW, THEREFORE, for the mutual promises
made herein and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree
to amend and restate this Management Agreement as follows:

 

Section 1. Definitions. The following
terms have the following meanings assigned to them:

 

(a)          “Affiliate”
means with respect to any Person, (i) any other Person directly or indirectly controlling, controlled by, or under common control
with such other Person, (ii) any executive officer, general partner or employee of such Person, (iii) any member of the board of
directors or board of managers (or bodies performing similar functions) of such Person, and (iv) any legal entity for which such
Person acts as an executive officer or general partner.

 

(b)          “Agreement”
means this Management Agreement, as amended, restated or supplemented from time to time.

 

(c)          “Bankruptcy”
means with respect to any Person, (a) the filing by such Person of a voluntary petition seeking liquidation, reorganization, arrangement
or readjustment, in any form, of its debts under Title 11 of the United States Code or any other federal, state or foreign insolvency
law, or such Person’s filing an answer consenting to or acquiescing in any such petition, (b) the making by such Person of
any assignment for the benefit of its creditors, (c) the expiration of 90 days after the filing of an involuntary petition under
Title 11 of the Unites States Code, an application for the appointment of a receiver for a material portion of the assets of such
Person, or an involuntary petition seeking liquidation, reorganization, arrangement or readjustment of its debts under any other
federal, state or foreign insolvency law, provided that the same shall not have been vacated, set aside or stayed within such 90-day
period or (d) the entry against it of a final and non-appealable order for relief under any bankruptcy, insolvency or similar law
now or hereinafter in effect.

 

     

     

    

 

(d)          “Base
Management Fee” means an amount equal to 0.375% of the Company stockholders’ equity (a 1.5% annual rate) calculated
and payable quarterly in arrears in cash.

 

For purposes of calculating the base
management fee, the Company stockholders’ equity means: (a) the sum of (i) the net proceeds from all issuances of the
Company’s equity securities since inception (allocated on a pro rata daily basis for such issuances during the fiscal
quarter of any such issuance), plus (ii) the Company’s retained earnings at the end of the most recently completed
fiscal quarter (without taking into account any non-cash equity compensation expense incurred in current or prior periods);
less (b) any amount that the Company pays to repurchase the Common Stock since inception; provided that if
the Company’s retained earnings are in a net deficit position (following any required adjustments set forth below),
then retained earnings shall not be included in stockholders’ equity. Stockholders’ equity also excludes
any unrealized gains and losses and other non-cash items that have impacted stockholders’ equity as reported in
the Company’s financial statements prepared in accordance with accounting principles generally accepted in the
United States, or GAAP, and one-time events pursuant to changes in GAAP (such as a cumulative change to the
Company’s operating results as a result of a codification change pursuant to GAAP), and certain non-cash items not
otherwise described above (such as depreciation and amortization), in each case after discussions between the Company’s
Manager and the Independent Directors and approval by a majority of the Independent Directors.

 

(e)          “Board
of Directors” means the Board of Directors of the Company.

 

(f)           “Business
Day” means any day except a Saturday, a Sunday or a day on which banking institutions in New York, New York are not required
to be open.

 

(g)          “Code”
means the Internal Revenue Code of 1986, as amended.

 

(h)          “Common
Stock” means the common stock, par value $0.01, of the Company.

 

(i)          “Company
Account” shall have the meaning set forth in Section 5 of this Agreement.

 

(j)          “Core
Earnings” means net income (loss) determined under accounting principles generally accepted in the United States of America,
or GAAP, plus non-cash equity compensation expense, the incentive fee, depreciation and amortization (to the extent that the Company
forecloses on any facilities underlying the Company’s target investments), any unrealized losses or other non-cash expense
items reflected in GAAP net income (loss), less any unrealized gains reflected in GAAP net income. The amount will be adjusted
to exclude one-time events pursuant to changes in GAAP and certain other non-cash charges after discussions between the Manager
and the Independent Directors and after approval by a majority of the Independent Directors.

 

    2 

     

    

 

(k)          “Covered
Person” shall have the meaning set forth in Section 12(a) of this Agreement.

 

(l)          “Effective
Termination Date” shall have the meaning set forth in Section 13(a) of this Agreement.

 

(m)         “Excess
Funds” shall have the meaning set forth in Section 2(l) of this Agreement.

 

(n)          “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

(o)          “Expenses”
shall have the meaning set forth in Section 10(a) of this Agreement.

 

(p)          “GAAP”
means generally accepted accounting principles, as applied in the United States.

 

(q)          “Governing
Instruments” means, with regard to any entity, the articles of incorporation and bylaws in the case of a corporation,
certificate of limited partnership (if applicable) and the partnership agreement in the case of a general or limited partnership,
the articles of formation and the operating agreement in the case of a limited liability company, the trust instrument in the case
of a trust, or similar governing documents, in each case as amended from time to time.

 

(r)          “Incentive
Fee” means an amount, not less than zero, determined pursuant to the following formula:

 

IF = .20 times (A minus (B times .08)) minus C

 

In the foregoing formula:

 

(i)          “A”
equals the Company’s Core Earnings for the previous 12-month period;

 

(ii)         “B”
equals (A) the weighted average of the issue price per share to the public of the Common Stock of all of the Company’s public
offerings of the Common Stock, multiplied by (B) the weighted average number of all shares of the Common Stock outstanding (including
any restricted stock units and any restricted stock shares of the Company’s Common Stock in the previous 12-month period
and shares of the Common Stock which may be issued upon the conversion of any outstanding units of the Operating Company); and

 

(iii)        “C”
equals the sum of any incentive fees earned by the Manager with respect to the first three fiscal quarters of such previous 12-month
period.

 

    3 

     

    

 

; provided, however, that no incentive
fee shall be paid with respect to any fiscal quarter unless cumulative annual stockholder total return for the four most recently
completed fiscal quarters is greater than 8%. Any computed incentive fee earned but not paid because of the foregoing hurdle will
accrue until such 8% cumulative annual stockholder total return is achieved. The total return for this purpose will be calculated
by adding stock price appreciation (based on the volume-weighted average of the closing price of the Company’s Common Stock
on the NYSE (or other applicable trading market) for the last ten consecutive trading days of the applicable computation period
minus the volume-weighted average of the closing market price of the Company’s Common Stock for the last ten consecutive
trading days of the period immediately preceding the applicable computation period) plus dividends per share of Common Stock paid
during such computation period, divided by the volume-weighted average of the closing market price of the Company’s Common
Stock for the last ten consecutive trading days of the period immediately preceding the applicable computation period.

 

(s)          “Independent
Directors” means the members of the Board of Directors who are not officers or employees of the Manager or any Person
directly or indirectly controlling or controlled by the Manager, and who are otherwise “independent” in accordance
with the NYSE’s corporate governance listing standards (or the rules of any other national securities exchange on which the
Common Stock is listed).

 

(t)          “Initial
Public Offering” means the Company’s sale of the Common Stock to the public through underwriters pursuant to the
Company’s Registration Statement on Form S-11 (No. 333-202219)

 

(u)          “Initial
Term” shall have the meaning set forth in Section 13(a) of this Agreement.

 

(v)         “Internalization
Formulas” means (i) the Manager’s earnings before interest, taxes, depreciation and amortization (adjusted for
unusual, extraordinary and non-recurring charges and expenses), or “EBITDA” (excluding any reimbursements from the
Company), annualized based on the most recent quarter ended, multiplied by a specific multiple, or EBITDA Multiple, set forth below
depending on the Company’s achieved total annual return, and (ii) the Company’s equity market capitalization multiplied
by a specific percentage, or Capitalization Percentage, set forth below depending on the Company’s achieved total return.

 

For purposes of the computations above,
the EBITDA Multiple and Capitalization Percentage, respectively, for specific levels of total return are (i) 5.0 and 5.0% if total
return is less than 8.0%; (ii) 5.5 and 5.5% if total return is at least 8.0% and not more than 12.0%; and (iii) 6.0 and 6.0% if
total return is greater than 12.0%. For purposes of the foregoing computation, total return will be calculated by adding (i) the
difference (if any, but not a negative number) between the volume-weighted average of the closing price per share of the Common
Stock on the NYSE (or other applicable trading market) for the last ten consecutive trading days of the computation period and
the Initial Public Offering price per share (taking into account any stock splits, subdivisions, or reclassifications), plus (ii)
dividends per share paid in respect of the Common Stock since the Initial Public Offering, dividing the result by the number of
full months elapsed since the Initial Public Offering, and multiplying the result by 12.

 

    4 

     

    

 

(w)          “Internalization
Price” has the meaning set forth in Section 17(e) of this Agreement.

 

(x)          “Internalization
Transaction” means a transaction in which the Manager contributes to the Operating Company all of the assets of the Manager
including, without limitation, all furniture, fixtures, leasehold improvements, contract rights, computer software, employment
and customer relationships, goodwill, going concern value, other identifiable intangible assets and other business assets then
owned by the Manager, or, in the alternative, the equity owners of the Manager contribute to the Operating Company 100% of the
outstanding equity interests in the Manager.

 

(y)          “Investment
Company Act” means the Investment Company Act of 1940, as amended.

 

(z)          “Investment
Committee” shall have the meaning set forth in Section 2(k) of this Agreement.

 

(aa)         “Investment
Guidelines” shall have the meaning set forth in Section 2(b)(i) of this Agreement.

 

(bb)         “Investments”
means the investments of the Company and the Subsidiaries.

 

(cc)         “Manager
Change of Control” means the sale, lease, transfer or other disposition, in one or a series of related transactions,
of interests in the Manager which will transfer to any Person other than an Affiliate of the Company the power to direct or control
the Manager; provided, however, that Manager Change of Control shall not include (i) any public offering of the equity interests
of the Manager, or (ii) any assignment of this Agreement by the Manager as permitted hereby and in accordance with the terms hereof.

 

(dd)         “Monitoring
Services” shall have the meaning set forth in Section 2(b) of this Agreement.

 

(ee)         “Notice
of Proposal to Negotiate” shall have the meaning set forth in Section 13(a) of this Agreement.

 

(ff)         “NYSE”
means the New York Stock Exchange.

 

(gg)         “OC
Units” means units of limited liability company interests in the Operating Company.

 

(hh)       “Person”
means any individual, corporation, partnership, joint venture, limited liability company, estate, trust, unincorporated association,
any federal, state, county or municipal government or any bureau, department or agency thereof and any fiduciary acting in such
capacity on behalf of any of the foregoing.

 

    5 

     

    

 

(ii)         “Portfolio
Management Services” shall have the meaning set forth in Section 2(b) of this Agreement.

 

(jj)         “REIT”
shall have the meaning set forth in the recitals of this Agreement.

 

(kk)        “Renewal
Term” shall have the meaning set forth in Section 13(a) of this Agreement, with the last day of the last Renewal
Term being March 31, 2023.

 

(ll)          “SEC”
means the U.S. Securities and Exchange Commission.

 

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

 

(nn)       “Subsidiary”
means a corporation, limited liability company, partnership, joint venture or other entity or organization of which: (a) the Company
or any other subsidiary of the Company is a general partner or managing member; or (b) voting power to elect a majority of
the board of directors, trustees or others performing similar functions with respect to such entity or organization is held by
the Company or by any one or more of the Company’s subsidiaries. Initially, the only Subsidiary shall be the Operating Company.

 

(oo)       “Target
Assets” means the types of investments described under “Business—Our Investment Strategy” and “Business—Target
Investments” in the Company’s prospectus dated  March 26, 2015, relating to the Initial Public Offering,
subject to, and including any changes to the Investment Guidelines that may be approved by the Manager and the Board of Directors
from time to time.

 

(pp)       “Termination
Fee” shall have the meaning set forth in Section 13(b) of this Agreement.

 

(qq)       “Termination
Notice” shall have the meaning set forth in Section 13(a) of this Agreement.

 

(rr)         “Treasury
Regulations” means the regulations promulgated under the Code, as amended from time to time.

 

(ss)        The
words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section references are to this
Agreement unless otherwise specified.

 

(tt)         The
meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. The words
include, includes and including shall be deemed to be followed by the phrase “without limitation.”

 

    6 

     

    

 

Section 2. Appointment and Duties of the Manager.

 

(a)          The
Company and each of its Subsidiaries hereby appoint the Manager to (i) manage the Investments and day-to-day operations of the
Company and each of its Subsidiaries subject to the terms and conditions set forth in this Agreement. The Manager hereby agrees
to use its commercially reasonable efforts to perform each of the duties set forth herein. The appointment of the Manager shall
be exclusive to the Manager except to the extent that the Manager otherwise agrees, in its sole and absolute discretion, and except
to the extent that the Manager elects, in accordance with the terms of this Agreement, to cause the duties of the Manager hereunder
to be provided by third parties.

 

(b)          The
Manager, in its capacity as manager of the Investments and the day-to-day operations of the Company and its Subsidiaries, at all
times will be subject to the supervision of the Board of Directors, and the Manager will have only such functions and authority
as the Company may delegate to it including, without limitation, managing the Company’s business affairs in conformity with
the Investment Guidelines and policies that are approved and monitored by the Board of Directors. The Company and the Manager hereby
acknowledge the recommendation by the Manager and the approval by the Board of Directors, of the Investment Guidelines, including
the Company’s investment strategy in the Target Investments. The Company and the Manager hereby acknowledge and agree that,
during the term of this Agreement, any proposed changes to the Company’s investment strategy that would modify or expand
the Target Investments may only be recommended by the Manager and shall require the approval of the Board of Directors and the
Manager. The Manager will be responsible for the day-to-day operations of the Company and the Subsidiaries and will perform (or
cause to be performed) such services and activities relating to the assets and operations of the Company and the Subsidiaries as
may be appropriate, including, without limitation:

 

(i)          serving
as consultant to the Company and the Subsidiaries with respect to the periodic review of the investment guidelines and other parameters
for the Investments, financing activities and operations, which review shall occur no less often than annually, any modification
to which shall be approved by a majority of the Independent Directors (such guidelines as initially approved and attached hereto
as Exhibit A, as the same may be modified, supplemented or waived with such approval, the “Investment Guidelines”);

 

(ii)         representing
and making recommendations to the Company and the Subsidiaries in connection with the origination and finance of, and commitment
to originate and finance, commercial mortgage loans on and related equity interests in self-storage facilities (including on a
portfolio basis), including conducting loan underwriting and the execution of loan transactions, as well as the purchase of real
estate-related debt securities and other real estate-related assets, and the sale and commitment to sell such assets;

 

(iii)        identifying,
investigating, analyzing and selecting possible investment opportunities and originating, acquiring, financing, retaining, selling,
restructuring or disposing of Investments consistent with the Investment Guidelines;

 

(iv)        with
respect to prospective purchases, sales or exchanges of Investments, conducting negotiations on behalf of the Company and the Subsidiaries
with sellers, purchasers and brokers and, if applicable, their respective agents and representatives;

 

    7 

     

    

 

(v)         negotiating
and entering into, on behalf of the Company and the Subsidiaries, bank credit facilities, repurchase agreements, interest rate
swap agreements and all other agreements and instruments required for the Company and the Subsidiaries to conduct its business;

 

(vi)        engaging
and supervising, on behalf of, and at the expense of, the Company and the Subsidiaries, independent contractors that provide investment
banking, securities brokerage, mortgage brokerage and other financial services, due diligence services, underwriting review services,
legal and account services, and all other services (including transfer agent and registrar services) as may be required relating
to the Investments (or potential Investments);

 

(vii)       coordinating
and managing operations of any joint venture or co-investment interests held by the Company and the Subsidiaries and conducting
all matters with the joint venture or co-investment partners;

 

(viii)      providing
executive and administrative personnel, office space and office services required in rendering services to the Company and the
Subsidiaries;

 

(ix)         administering
the day-to-day operations and performing and supervising the performance of such other administrative functions necessary to the
management of the Company and the Subsidiaries as may be agreed upon by the Manager and the Board of Directors, including, without
limitation, services in respect of any equity incentive plans of the Company, the collection of revenues and the payment of debts
and obligations of the Company and the Subsidiaries and maintenance of appropriate computer services to perform such administrative
functions;

 

(x)          communicating
on behalf of the Company and the Subsidiaries with the holders of any of their equity or debt securities as required to satisfy
the reporting and other requirements of any governmental bodies or agencies or trading markets and to maintain effective relations
with such holders, including website maintenance, logo design, analyst presentations, investor conferences and annual meeting arrangements;

 

(xi)         counseling
the Company in connection with policy decisions to be made by the Board of Directors;

 

(xii)        evaluating
and recommending to the Board of Directors hedging strategies and engaging in hedging activities on behalf of the Company and the
Subsidiaries, consistent with such strategies as modified from time to time, while maintaining the Company’s qualification
as a REIT and within the Investment Guidelines;

 

(xiii)       counseling
the Company regarding the maintenance of its qualification as a REIT and monitoring compliance with the various REIT qualification
tests and other rules set out in the Code and Treasury Regulations thereunder and using commercially reasonable efforts to cause
the Company to qualify for taxation as a REIT;

 

(xiv)      counseling
the Company and the Subsidiaries regarding the maintenance of their exemptions from the status of an investment company required
to register under the Investment Company Act, monitoring compliance with the requirements for maintaining such exemptions and using
commercially reasonable efforts to cause them to maintain such exemptions from such status;

 

    8 

     

    

 

(xv)       furnishing
reports and statistical and economic research to the Company and the Subsidiaries regarding their activities and services performed
for the Company and the Subsidiaries by the Manager;

 

(xvi)      monitoring
the operating performance of the Investments and providing periodic reports with respect thereto to the Board of Directors, including
comparative information with respect to such operating performance and budgeted or projected operating results;

 

(xvii)     investing
and reinvesting any money and securities of the Company and the Subsidiaries (including investing in short-term Investments pending
investment in other Investments, payment of fees, costs and expenses, or payment of dividends or distributions to stockholders
and partners of the Company and the Subsidiaries) and advising the Company and the Subsidiaries as to their capital structure and
capital raising;

 

(xviii)    causing the
Company and the Subsidiaries to retain qualified accountants and legal counsel, as applicable, to assist in developing appropriate
accounting procedures and systems, internal controls and other compliance procedures and testing systems with respect to financial
reporting obligations and compliance with the provisions of the Code applicable to REITs and, if applicable, TRSs, and to conduct
quarterly compliance reviews with respect thereto;

 

(xix)       assisting
the Company and the Subsidiaries in qualifying to do business in all applicable jurisdictions and to obtain and maintain all appropriate
licenses;

 

(xx)        assisting
the Company and the Subsidiaries in complying with all regulatory requirements applicable to them with respect to their business
activities, including preparing or causing to be prepared all financial statements required under applicable regulations and contractual
undertakings and all reports and documents, if any, required under the Exchange Act, the Securities Act, or by the NYSE;

 

(xxi)       assisting
the Company and the Subsidiaries in taking all necessary action to enable them to make required tax filings and reports, including
soliciting stockholders for all information required by the provisions of the Code and Treasury Regulations applicable to REITs;

 

(xxii)      placing,
or arranging for the placement of, all orders pursuant to the Manager’s investment determinations on behalf of the Company
and the Subsidiaries, either directly with the issuer or with a broker or dealer (including any affiliated broker or dealer);

 

(xxiii)     handling
and resolving on behalf of the Company and/or the Subsidiaries all claims, disputes or controversies (including all litigation,
arbitration, settlement or other proceedings or negotiations) in which the Company and/or the Subsidiaries may be involved or to
which they may be subject arising out of their day-to-day operations (other than with the Manager or its Affiliates), subject to
such limitations or parameters as may be imposed from time to time by the Board of Directors;

 

    9 

     

    

 

(xxiv)    using commercially
reasonable efforts to cause expenses incurred by the Company and the Subsidiaries or on their behalf to be commercially reasonable
or commercially customary and within any budgeted parameters or expense guidelines set by the Board of Directors from time to time;

 

(xxv)     advising
the Company and the Subsidiaries with respect to (A) long-term financing vehicles for Investments and (B) the offering and selling
of securities publicly or privately in connection with any such structured financing;

 

(xxvi)     serving as
the Company’s and the Subsidiaries’ consultant with respect to decisions regarding any financings, hedging activities
or borrowings undertaken by the Company and the Subsidiaries, including (A) assisting the Company and the Subsidiaries in developing
criteria for debt and equity financing that are specifically tailored to their investment objectives, and (B) advising the Company
and the Subsidiaries with respect to obtaining appropriate financing for the Investments;

 

(xxvii)    providing the Company
and the Subsidiaries with portfolio management services and monitoring services as described below;

 

(xxviii)     arranging
marketing materials, advertising, industry group activities (such as conference participations and industry organization memberships)
and other promotional efforts designed to promote the Company’s and the Subsidiaries’ business;

 

(xxix)      
performing such other services as may be required from time to time for the management of, and other activities relating to, the
assets and business of the Company and the Subsidiaries as the Board of Directors shall reasonably request or as the Manager shall
deem appropriate under the particular circumstances; and

 

(xxx)        using
commercially reasonable efforts to cause the Company and the Subsidiaries to comply with all applicable laws.

 

Without limiting the foregoing, the Manager
will perform portfolio management services (the “Portfolio Management Services”) on behalf of the Company and
the Subsidiaries with respect to the Investments. Such services will include, but not be limited to, consulting with the Company
on the purchase and sale of, and other investment opportunities in connection with, the Investments; the collection of information
and the submission of reports pertaining to the assets of the Company and the Subsidiaries, interest rates and general economic
conditions; periodic review and evaluation of the performance of the Company’s and the Subsidiaries’ portfolio of assets;
acting as a liaison between the Company and the Subsidiaries and banking, mortgage banking, investment banking and other parties
with respect to the purchase, financing and disposition of assets; and other customary functions related to portfolio management.
Additionally, the Manager will perform monitoring services (the “Monitoring Services”) on behalf of the Company
and the Subsidiaries with respect to any activities provided by third parties. Such Monitoring Services will include, but not be
limited to, negotiating servicing agreements; acting as a liaison between servicer providers of the assets and the Company and
the Subsidiaries; reviewing servicers’ delinquency, foreclosure and other reports on assets; supervising claims filed under
and insurance policies; and enforcing the obligation of any servicer to repurchase assets.

 

    10 

     

    

 

(c)          For
the period and on the terms and conditions set forth in this Agreement, the Company and each of the Subsidiaries hereby constitutes,
appoints and authorizes the Manager as its true and lawful agent and attorney-in-fact, in its name, place and stead, to negotiate,
execute and deliver and enter into such finance agreements and arrangements and securities repurchase and reverse repurchase agreements
and arrangements, brokerage agreements, interest rate swap agreements, “to be announced” forward contracts, agreements
relating to borrowings under programs established by the U.S. Government and/or any agencies thereunder and such other agreements,
instruments and authorizations on their behalf, on such terms and conditions as the Manager, acting in its sole and absolute discretion,
deems necessary or appropriate. This power of attorney is deemed to be coupled with an interest.

 

(d)          The
Manager may enter into agreements with other parties, including its Affiliates, for the purpose of engaging one or more parties
for and on behalf, and except as otherwise agreed, at the sole cost and expense, of the Company and the Subsidiaries, to provide
credit analysis, risk management services, asset management and/or other services to the Company and the Subsidiaries (including,
without limitation Portfolio Management Services and Monitoring Services) pursuant to the agreement(s) with terms that are then
customary for agreements regarding the provision of services to companies that have assets similar in type, quality and value to
the assets of the Company and the Subsidiaries; provided that (i) any such agreements entered into with Affiliates of the Manager
shall be (A) on terms no more favorable to such Affiliate than would be obtained from an independent third party on an arm’s
length basis and (B) approved by a majority of the Independent Directors, (ii) any such agreements entered into with parties other
than Affiliates of the Manager shall be approved by a majority of the Independent Directors, and (iii) the Manager shall remain
liable for the performance of such Portfolio Management Services and Monitoring Services.

 

(e)          To
the extent that the Manager deems necessary or advisable, the Manager may, from time to time, propose to retain one or more additional
entities for the provision of sub-advisory services to the Manager in order to enable the Manager to provide the services to the
Company and the Subsidiaries specified by this Agreement; provided that any such agreement (i) shall be on terms and conditions
substantially identical to the terms and conditions of this Agreement or otherwise not adverse to the Company and the Subsidiaries,
(ii) shall not result in an increased Base Management Fee or additional expenses payable hereunder, and (iii) shall be approved
by a majority of the Independent Directors of the Company.

 

(f)          The
Manager may retain, for and on behalf and, at the sole cost and expense of the Company and the Subsidiaries, such services of accountants,
legal counsel, appraisers, insurers, brokers, transfer agents, registrars, investment banks, financial advisors, due diligence
firms, banks and other lenders and others as the Manager deems necessary or advisable in connection with the management and operations
of the Company and the Subsidiaries. Notwithstanding anything contained herein to the contrary, the Manager shall have the right
to cause any such services to be rendered by its employees or Affiliates. Except as otherwise provided herein, the Company and
the Subsidiaries shall pay or reimburse the Manager or its Affiliates performing such services for the cost thereof; provided that
such costs and reimbursements are (A) no greater than those which would be payable to outside professional or consultants engaged
to perform such services pursuant to agreements negotiated on an arm’s length basis and (B) approved by a majority of the
Independent Directors.

 

    11 

     

    

 

(g)          As
frequently as the Manager may deem necessary or advisable, or at the direction of the Company’s Board of Directors, the Manager
shall, at the sole cost and expense of the Company and the Subsidiaries, prepare, or cause to be prepared, with respect to any
Investment, reports and other information reasonably requested by the Company.

 

(h)          The
Manager shall prepare, or cause to be prepared, at the sole cost and expense of the Company and the Subsidiaries, all reports,
financial or otherwise, with respect to the Company and the Subsidiaries reasonably required by the Company’s Board of Directors
in order for the Company or the Subsidiaries to comply with their Governing Instruments or any other materials required to be filed
with any governmental body or agency, including but not limited to, the SEC, and shall prepare, or cause to be prepared, all materials
and data necessary to complete such reports and other materials including, without limitation, an annual audit of the Company’s
and the Subsidiaries’ books of account by a nationally recognized independent registered public accounting firm.

 

(i)          The
Manager shall prepare regular reports for the Board of Directors to enable the Board of Directors to review the Company’s
and the Subsidiaries’ acquisitions, portfolio composition and characteristics, credit quality, performance and compliance
with the Investment Guidelines and other policies approved by the Board of Directors.

 

(j)          If
requested by the Company or the Subsidiaries, the Manager shall provide such internal audit, compliance and control services as
may be required for the Company and the Subsidiaries to comply with applicable law (including the Securities Act and the Exchange
Act), regulation (including SEC regulations) and the rules and requirements of the NYSE or such other securities exchange on which
the Common Stock may be listed and as otherwise reasonably requested by the Board of Directors from time to time.

 

(k)          The
Manager shall establish an Investment Committee (the “Investment Committee”) that will oversee, advise and consult
with respect to the Company’s investment strategy, acquisition of Investments, sourcing, financing and leveraging strategies
and compliance with the Investment Guidelines. The Investment Committee will meet periodically, as many times as necessary but
no less than once every quarter, to discuss investment opportunities. The Investment Committee will periodically review the Company’s
investment portfolio and its compliance with the Investment Guidelines, and provide the Board of Directors an investment report
at the end of each quarter in conjunction with its review of the quarterly results of the Company.

 

(l)          Notwithstanding
anything contained in this Agreement to the contrary, except to the extent that the payment of additional money is proven by the
Company to have been required as a direct result of the Manager’s acts or omissions which result in the right of the Company
and the Subsidiaries to terminate the Agreement pursuant to Section 14 of this Agreement, the Manager shall not be required
to expend money (“Excess Funds”) in connection with any expenses that are required to be paid for or reimbursed
by the Company and the Subsidiaries pursuant to Section 10 in excess of that contained in any applicable Company Account
or otherwise made available by the Company and the Subsidiaries to be expended by the Manager hereunder. Failure of the Manager
to spend Excess Funds out-of-pocket shall not give rise or be a contributing factor to the right of the Company under Section
13(a) of this Agreement to terminate this Agreement due to the Manager’s unsatisfactory performance.

 

    12 

     

    

 

(m)          In
performing its duties under this Section 2, the Manager shall be entitled to rely reasonably on qualified experts and professionals
(including, without limitation, accountants, legal counsel and other service providers) hired by the Manager at the Company’s
and the Subsidiaries’ sole cost and expense.

 

Section 3. Devotion of Time; Additional Activities.

 

(a)          The
Manager and its Affiliates will provide the Company and the Subsidiaries with a management team, including a chief executive officer
and chief financial officer or similar positions, along with appropriate support personnel, to provide the management services
to be provided by the Manager to the Company and the Subsidiaries hereunder, the members of which team shall devote such portion
of their time to the management of the Company and the Subsidiaries as is necessary and appropriate to enable the Company and the
Subsidiaries to operates its business, commensurate with the Company’s and the Subsidiaries’ level of activity. The
Manager shall provide reasonable access to their respective investment professionals in order to support the day-to-day operations
of the Company and the Subsidiaries. Notwithstanding anything to the contrary herein, for so long as the Manager is managing the
Company pursuant to this Agreement, neither it nor any of its Affiliates will sponsor or manage any other U.S. publicly traded
REIT.

 

(b)          Managers,
partners, officers, employees, personnel and agents of the Manager or Affiliates of the Manager may serve as directors, officers,
employees, partners, personnel, agents, nominees or signatories for the Company and the Subsidiaries to the extent permitted by
their Governing Instruments or by any resolutions duly adopted by the Board of Directors pursuant to the Company’s Governing
Instruments. When executing documents or otherwise acting in such capacities for the Company and the Subsidiaries, such persons
shall use their respective titles in the Company and the Subsidiaries.

 

(c)          Subject
to Section 2(d), the Manager is authorized, for and on behalf, and at the sole cost and expense of the Company to employ
securities dealers for the purchase and sale of Investments as the Manager deems necessary or appropriate, in its sole discretion.

 

(d)          The
Company (including the Board of Directors) agrees to take, or cause to be taken, all actions reasonably required to permit and
enable the Manager to carry out its duties and obligations under this Agreement, including, without limitation, all steps reasonably
necessary to allow the Manager to file any registration statement on behalf of the Company and the Subsidiaries in a timely manner
or to deliver any financial statements or other reports with respect to the Company and the Subsidiaries.

 

Section 4. Agency. The Manager shall
act as agent of the Company and the Subsidiaries in making, acquiring, financing and disposing of Investments, disbursing and collecting
the funds of the Company and the Subsidiaries, paying the debts and fulfilling the obligations of the Company and the Subsidiaries,
supervising the performance of professionals engaged by or on behalf of the Company and the Subsidiaries and handling, prosecuting
and settling any claims of or against the Company and the Subsidiaries, the Board of Directors, holders of the Company’s
and the Subsidiaries’ securities or representatives or assets of the Company and the Subsidiaries.

 

    13 

     

    

 

Section 5. Bank Accounts. At the
direction of the Board of Directors, the Manager may establish and maintain as an agent on behalf of the Company of the Subsidiaries
one or more bank accounts in the name of the Company or the Subsidiaries, the Operating Company or any subsidiary (any such account,
a “Company Account”), and may collect and deposit funds into any such Company Account or Company Accounts, and
disburse funds from any such Company Account, under such terms and conditions as the Board of Directors may approve and the Manager
shall from time to time render appropriate accountings of such collections and payments to the Board of Directors and, upon request,
to the auditors of the Company or any Subsidiaries.

 

Section 6. Records; Confidentiality.

 

(a)          The
Manager shall maintain appropriate books of accounts and records relating to services performed under this Agreement, and such
books of account and records shall be accessible for inspection by representatives of the Company and the Subsidiaries at any time
during normal business hours.

 

(b)          The
Manager shall keep confidential any and all information obtained in connection with the services rendered under this Agreement
and shall not disclose any such information (or use the same except in furtherance of its duties under this Agreement) to unaffiliated
third parties, except: (i) with the prior written consent of the Board of Directors; (ii) to legal counsel, accountants and
other professional advisors; (iii) to appraisers, financing sources and others in the ordinary course of the Company’s
business; (iv) to governmental officials having jurisdiction over the Company or the Subsidiaries; (v) in connection
with any governmental or regulatory filings of the Company or the Subsidiaries, or disclosure or presentations to Company investors;
(vi) as required by law or legal process to which the Manager or any Person to whom disclosure is permitted hereunder is a party;
or (vii) to the extent such information is otherwise publicly available through the actions of a Person other than the Manager
not resulting from the Manager’s violation of this Section 6. The provisions of this Section 6(b) shall survive the
expiration or earlier termination of this Agreement for a period of one year.

 

Section 7. Obligations of Manager; Restrictions.

 

(a)          The
Manager shall require each seller or transferor of Investments to the Company and the Subsidiaries to make such representations
and warranties regarding such assets as may, in the judgment of the Manager, be necessary and appropriate. In addition, the Manager
shall take such other action as it deems necessary or appropriate with regard to the protection of the Investments.

 

(b)          The
Manager shall refrain from any action that, in its sole judgment made in good faith:

 

(i)          is
not in compliance with the Investment Guidelines;

 

(ii)         would
adversely and materially affect the qualification of the Company as a REIT under the Code;

 

    14 

     

    

 

(iii)        would
adversely and materially affect the Company’s or any Subsidiary’s status as an entity intended to be exempted or excluded
from investment company status under the Investment Company Act; or

 

(iv)        would
violate any law, rule or regulation of any governmental body or agency having jurisdiction over the Company or any Subsidiary or
that would otherwise not be permitted by the Company’s Governing Instruments, code of conduct, or other compliance or governance
policies and procedures.

 

If the Manager is ordered to take any such
action by the Board of Directors, the Manager shall promptly notify the Board of Directors of the Manager’s judgment that
such action would adversely and materially affect such status or violate any such law, rule or regulation or the Company’s
Governing Instruments. Notwithstanding the foregoing, the Manager and its officers, directors, members, managers and employees
shall not be liable to the Company or any Subsidiary or to any director or stockholder of the Company or any Subsidiary for acts
or omissions performed in accordance with and pursuant to this Agreement, except as provided in Section 12 of this Agreement.

 

(c)          The
Board of Directors shall periodically review the Investment Guidelines and the Company’s portfolio of Investments, but will
not review each proposed investment, except as provided in the Investment Guidelines. If a majority of the Independent Directors
determine in their periodic review of transactions that a particular transaction does not comply with the Investment Guidelines,
then a majority of the Independent Directors will consider what corrective action, if any, can be taken. The Manager shall be permitted
to rely upon the direction of the Secretary of the Company to evidence the approval of the Board of Directors or the Independent
Directors with respect to a proposed investment.

 

(d)          The
Manager agrees to be bound by all policies and procedures, including the Company’s code of conduct and other compliance and
governance policies and procedures, applicable to the Manager and its officers, directors, members, managers and employees that
are adopted by the Board of Directors from time to time, including those required under the Exchange Act, the Securities Act, or
by the NYSE, and to take, or cause to be taken, all actions reasonably required to cause its officers, directors, members, managers
and employees, and any principals, officers or employees of its Affiliates who are involved in the business and affairs of the
Company and the Subsidiaries, to be bound by such policies and procedures to the extent applicable to such persons.

 

(e)          The
Manager shall at all times during the term of this Agreement maintain “errors and omissions” insurance coverage and
other insurance coverage that is customarily carried by asset and investment managers performing functions similar to those of
the Manager under this Agreement with respect to assets similar to the assets of the Company and the Subsidiaries, in an amount
which is comparable to that customarily maintained by other managers or servicers of similar assets.

 

    15 

     

    

 

Section 8. Base Management Fee.

 

(a)          During
the Initial Term and any Renewal Term, the Company shall pay the Manager the Base Management Fee quarterly in arrears, in cash.
The Base Management Fee is payable independent of the performance of the Company or the Investments.

 

(b)          The
Manager shall calculate each installment of the Base Management Fee within 30 days after the end of the fiscal quarter with respect
to which such installment is payable. A copy of such calculation made by the Manager shall thereafter promptly be delivered to
the Board of Directors and, upon such delivery, payment of such installment of the Base Management Fee shown therein shall, subject
in any event to Section 13(a) of this Agreement, be due and payable in cash no later than the date which is five Business
Days after the date of delivery to the Board of Directors of the written statement of the Manager setting forth the computation
of the management fee for such quarter.

 

(c)          The
Base Management Fee is subject to adjustment pursuant to and in accordance with the provisions of Section 13(a) of this
Agreement.

 

Section 9. Incentive Fee.

 

The Incentive Fee shall be payable in arrears,
in cash, with respect to each fiscal quarter. The Manager shall calculate each quarterly installment of the Incentive Fee within
45 days after the end of the fiscal quarter with respect to which such installment is payable
and promptly deliver such calculation to the Board of Directors and, upon such delivery, payment of such installment of
the Incentive Fee shown therein shall, subject in any event to Section 13(a) of this Agreement, be due and payable no later
than the date which is five Business Days after the date of delivery to the Board of Directors of such calculation.

 

Section 10. Expenses of the Company.

 

(a)          The
Company and the Subsidiaries shall pay all of the expenses of the Company and the Subsidiaries and shall reimburse the Manager
for documented expenses of the Manager incurred on behalf of the Company and the Subsidiaries (collectively, the “Expenses”)
excepting only those expenses that are specifically the responsibility of the Manager pursuant to Section 2 of this Agreement.
Such costs and reimbursements shall not be in amounts greater than those which would be payable to outside professionals or consultants
engaged to perform such services pursuant to agreements negotiated on an arm’s length basis. Without limiting the generality
of the foregoing, it is specifically agreed that the following costs and expenses of the Company and the Subsidiaries shall be
paid by the Company and the Subsidiaries and shall not be paid by the Manager or Affiliates of the Manager:

 

(i)          expenses
in connection with the issuance and transaction costs incident to the origination, acquisition, disposition and financing of Investments;

 

(ii)         the
costs of legal, financial, tax, accounting, servicing, due diligence consulting, auditing and other similar services rendered for
the Company and the Subsidiaries by providers retained by the Manager;

 

    16 

     

    

 

(iii)        the
compensation and expenses of the Company’s directors;

 

(iv)        
the compensation expense for employees of the Manager, other than the Manager’s chief executive officer and chief financial
officer;

 

(v)         the
cost of liability insurance to indemnify the Company’s directors and officers and the Company’s allocable portion of
the fidelity bond, directors and officers/errors and omissions liability insurance, and any other insurance premium;

 

(vi)        costs
associated with the establishment and maintenance of any of the Company’s and the Subsidiaries’ secured funding facilities,
other financing arrangements, or other indebtedness of the Company and the Subsidiaries (including commitment fees, accounting
fees, legal fees, closing and other similar costs) or any of the Company’s or the Subsidiaries’ securities offerings;

 

(vii)       expenses
connected with communications to holders of the Company’s and the Subsidiaries’ securities and other bookkeeping and
clerical work necessary in maintaining relations with holders of such securities and in complying with the continuous reporting
and other requirements of governmental bodies or agencies, including all costs of preparing and filing required reports with the
SEC, the costs payable by the Company and the Subsidiaries to any transfer agent and registrar in connection with the listing and/or
trading of the Company’s or the Subsidiaries’ securities on any exchange, the fees payable by the Company and the Subsidiaries
to any such exchange in connection with its listing, costs of preparing, printing and mailing the Company’s annual report
to the Company stockholders and proxy materials with respect to any meeting of the Company’s stockholders;

 

(viii)      costs
associated with any computer software or hardware, electronic equipment or purchased information technology services from third-party
vendors that is used for the Company;

 

(ix)         expenses
incurred by managers, officers, personnel and agents of the Manager for travel on the Company’s or any Subsidiary’s
behalf and other out-of-pocket expenses incurred by managers, officers, personnel and agents of the Manager in connection with
the purchase, financing, refinancing, sale or other disposition of an investment or establishment and maintenance of any of the
Company’s or the Subsidiaries’ securitizations or any of the Company’s or the Subsidiaries’ securities
offerings;

 

(x)          costs
and expenses incurred with respect to market information systems and publications, research publications and materials, and settlement,
clearing and custodial fees and expenses;

 

(xi)         compensation
and expenses of the Company’s or any Subsidiaries’ custodian and transfer agent, if any;

 

    17 

     

    

 

(xii)        the
costs of maintaining compliance with all federal, state and local rules and regulations or any other regulatory agency;

 

(xiii)       all
federal, state and local taxes and license fees;

 

(xiv)      all
insurance costs incurred in connection with the operation of the Company’s and the Subsidiaries’ business, except for
the costs attributable to the insurance that the Manager elects to carry for itself or its personnel;

 

(xv)       costs
and expenses incurred in contracting with third parties for or on behalf of the Company;

 

(xvi)      all
other costs and expenses relating to the Company’s and the Subsidiaries’ business and investment operations, including
the costs and expenses of originating, acquiring, owning, protecting, maintaining, developing and disposing of investments, including
appraisal, reporting, audit and legal fees;

 

(xvii)     expenses
(including rent, telephone, printing, mailing, utilities, office furniture, equipment, machinery and other office, internal and
overhead expenses) relating to any office(s) or office properties, including disaster backup recovery sites and properties, incurred
by the Manager;

 

(xviii)    expenses connected
with the payments of interest, dividends or distributions in cash or any other form authorized or caused to be made by the Board
of Directors to or on account of holders of the Company’s securities, including in connection with any dividend reinvestment
plan;

 

(xix)       any
judgment or settlement of pending or threatened proceedings (whether civil, criminal or otherwise) against the Company or any Subsidiary,
or against any trustee, director, partner, member or officer of the Company or any Subsidiary, or in his or her capacity as such
for which the Company or any Subsidiary is required to indemnify such trustee, director, partner, member or officer by any court
or governmental agency; and

 

(xx)        all
other expenses actually incurred by the Manager (except as described below) which are reasonably necessary for the performance
by the Manager of its duties and functions under this Agreement.

 

(b)          The
Manager may, at its option, elect not to seek reimbursement for certain expenses during a given quarterly period, which determination
shall not be deemed to construe a waiver of reimbursement for similar expenses in future periods. The Company will reimburse the
Manager for all organizational, formation and offering costs it incurred on behalf of the Company in connection with the Initial
Public Offering.

 

    18 

     

    

 

Section 11. Calculations of Expenses.
The Manager shall prepare a statement documenting the Expenses during each fiscal quarter, and shall deliver such statement to
the Company within 30 days after the end of each fiscal quarter. Expenses shall be reimbursed by the Company and the Subsidiaries
to the Manager no later than the 15th Business Day immediately following the date of delivery of such statement; provided,
however, that such reimbursements may be offset by the Manager against amounts due to the Company or the Subsidiaries. The provisions
of this Section 11 shall survive the expiration or earlier termination of this Agreement.

 

Section 12. Limits of the Manager’s
Responsibility; Indemnification.

 

(a)          The
Manager assumes no responsibility under this Agreement other than to render the services called for under this Agreement in good
faith and shall not be responsible for any action of the Board of Directors in following or declining to follow any advice or
recommendations of the Manager, including as set forth in Section 7(b) of this Agreement. The Manager and its officers,
employees, members and managers (each a “Covered Person”) will not be liable to the Company or any Subsidiary,
the Board of Directors, or the Company’s or any Subsidiary’s stockholders or partners for any acts or omissions by
any such Covered Person performed in accordance with and pursuant to this Agreement, except by reason of acts or omissions constituting
bad faith, willful misconduct, gross negligence or reckless disregard of the Manager’s duties under this Agreement. The
Manager will maintain reasonable and customary insurance coverages.

 

(b)          The
Company to the full extent permitted by law shall indemnify and hold harmless each Covered Person from and against with respect
to all expenses, losses, damages, liabilities, demands, charges and claims in respect of or arising from any acts or omissions
of the Manager and the officers, employees, members and managers of the Manager, performed in good faith under this Agreement and
not constituting bad faith, willful misconduct, gross negligence, or reckless disregard of their respective duties under this Agreement.

 

(c)          The
Manager to the full extent permitted by law shall indemnify and hold harmless the Company and the Subsidiaries and each of the
directors, officers and stockholders of the Company and the Subsidiaries with respect to all expenses, losses, damages, liabilities,
demands, charges and claims in respect of or arising from any acts or omissions of the Manager constituting bad faith, willful
misconduct, gross negligence or reckless disregard of its duties under this Agreement or any claims by the Manager’s employees
relating to the terms and conditions of their employment by the Manager.

 

(d)          The
provisions of this Section 12 shall survive the expiration or earlier termination of this Agreement.

 

    19 

     

    

 

Section 13. Term; Termination.

 

(a)          Unless
this Agreement is terminated earlier for cause in accordance with Section 14 below, this Agreement shall be in effect until
March 31, 2020 (the “Initial Term”) and shall be automatically renewed for a one-year term each anniversary
date thereafter (a “Renewal Term”) for a maximum of three one-year terms, unless previously terminated as provided
below. Following the Initial Term, this Agreement may be terminated annually upon the affirmative vote of at least two-thirds of
the Independent Directors based on a determination that (i) there has been unsatisfactory performance by the Manager that is materially
detrimental to the Company and the Subsidiaries taken as a whole or (ii) the compensation payable to the Manager is unfair to the
Company and the Subsidiaries; provided that the Company shall not have the right to terminate this Agreement under clause
(ii) above if the Manager agrees to continue to provide the services under this Agreement at a reduced fee that at least two-thirds
of the Independent Directors determines to be fair pursuant to the procedure set forth below. If the Company elects not to renew
this Agreement at the expiration of the Initial Term or any Renewal Term as set forth above, the Company shall deliver to the Manager
prior written notice (the “Termination Notice”) of the Company’s intention not to renew this Agreement
based upon the terms set forth in this Section 13(a) not less than 180 days prior to the expiration of the then existing term.
If the Company so elects not to renew this Agreement, the Company shall designate the date (the “Effective Termination
Date”), not less than 180 days from the date of the notice, on which the Manager shall cease to provide services under
this Agreement, and this Agreement shall terminate on such date; provided, however, that in the event that such Termination Notice
is given in connection with a determination that the compensation payable to the Manager is unfair, the Manager shall have the
right to renegotiate such compensation by delivering to the Company, no fewer than 45 days prior to the prospective Effective Termination
Date, written notice (any such notice, a “Notice of Proposal to Negotiate”) of its intention to renegotiate
its compensation under this Agreement. Thereupon, the Company (represented by the Independent Directors) and the Manager shall
endeavor to negotiate in good faith the revised compensation payable to the Manager under this Agreement. Provided that the Manager
and at least two-thirds of the Independent Directors agree to the terms of the revised compensation to be payable to the Manager
within 45 days following the receipt of the Notice of Proposal to Negotiate, the Termination Notice shall be deemed of no force
and effect and this Agreement shall continue in full force and effect on the terms stated in this Agreement, except that the compensation
payable to the Manager hereunder shall be the revised compensation then agreed upon by the parties to this Agreement. The Company
and the Manager agree to execute and deliver an amendment to this Agreement setting forth such revised compensation promptly upon
reaching an agreement regarding same. In the event that the Company and the Manager are unable to agree to the terms of the revised
compensation to be payable to the Manager during such 45-day period, this Agreement shall terminate, such termination to be effective
on the date which is the later of (A) 10 days following the end of such 45-day period and (B) the Effective Termination Date originally
set forth in the Termination Notice. Notwithstanding anything in this paragraph (a) or this Agreement to the contrary, termination
of this Agreement shall only occur for the reasons set forth in the second sentence of this paragraph (a) and in Section 14.
The parties agree that currently, and since the initial effective date of this Agreement, it is and has been the intention of the
parties that if the Agreement is not terminated in the manner set forth in paragraph (a) above or Section 14, then the Company
and the Manager (or the equity owners of the Manager) shall effect an Internalization Transaction pursuant to Section 17, whether
at the end of the Initial Term or any Renewal Term.

 

    20 

     

    

 

(b)          In
recognition of the upfront effort required by the Manager to structure and acquire the assets of the Company and the Subsidiaries
and the commitment of resources by the Manager, in the event that this Agreement is terminated in accordance with the provisions
of Section 13(a) or Section 14(b) of this Agreement, the Company shall pay to the Manager, on the date on which such
termination is effective, a termination fee (the “Termination Fee”) equal to the greater of (i) three times
the sum of the average annual Base Management Fee and Incentive Fee earned by the Manager during the 24-month period prior to such
termination, calculated as of the end of the most recently completed fiscal quarter prior to the date of termination, or (ii) the
Internalization Price (as defined in Section 17(e) below, without regard to clause (B) in the definition of Internalization
Price set forth in Section 17(e)). Any Termination Fee will be payable by the Operating Company in cash. The obligation
of the Company to pay the Termination Fee shall survive the termination of this Agreement.

 

(c)          No
later than 180 days prior to the expiration of the Initial Term or Renewal Term, the Manager may deliver written notice to the
Company informing it of the Manager’s intention to decline to renew this Agreement, whereupon this Agreement shall not be
renewed and extended and this Agreement shall terminate effective on the anniversary date of this Agreement next following the
delivery of such notice. The Company shall not be required to pay the Termination Fee to the Manager if the Manager terminates
this Agreement pursuant to this Section 13(c).

 

Section 14. Termination for Cause.

 

(a)          The
Company may terminate this Agreement at any time, including during the Initial Term, upon at least 30 days’ prior written
notice of termination from the Board of Directors to the Manager, without payment of any Termination Fee, if:

 

(i)          the
Manager breaches this Agreement in any material respect and such breach shall continue for a period of 30 days after written notice
thereof specifying such breach and requesting that the same be remedied in such 30-day period;

 

(ii)         there
is a commencement of any proceeding relating to the Bankruptcy or insolvency of the Manager, including an order for relief in an
involuntary Bankruptcy case or the authorization or filing by the Manager of a voluntary Bankruptcy petition;

 

(iii)        there
is a Manager Change of Control and a majority of the Independent Directors reasonably determines that such Manager Change of Control
is materially detrimental to the Company;

 

(iv)        the
Manager engages in any act of bad faith, willful misconduct, fraud, misappropriation of funds, or embezzlement against the Company
or any Subsidiary;

 

(v)         there
is an act or omission that constitutes gross negligence on the part of the Manager in the performance of its duties under this
Agreement;

 

(vi)        there
is a dissolution of the Manager;

 

(vii)       the
Manager fails to provide adequate or appropriate personnel that are reasonably necessary for the Manager to identify investment
opportunities for the Company and the Subsidiaries and to manage and develop the Company’s and the Subsidiaries’ investment
portfolios, if such default continues uncured for a period of 60 days after written notice thereof, which notice must contain a
request that the same be remedied;

 

    21 

     

    

 

(viii)      the
Manager is convicted (including a plea of nolo contendere) of a felony; or

 

(ix)         Both
Dean Jernigan and John Good are no longer senior executive officers of the Manager or the Company during the term of the Agreement
or, in the event of an assignment of this Agreement to an Affiliate of the Manager pursuant to Section 16 of this Agreement, of
the Affiliate, other than by reason of death or disability.

 

(b)          The
Manager may terminate this Agreement effective upon 60 days’ prior written notice of termination to the Company in the event
that the Company shall default in the performance or observance of any material term, condition or covenant contained in this
Agreement and such default shall continue for a period of 30 days after written notice thereof specifying such default and requesting
that the same be remedied in such 30-day period (or 60 days after written notice of such breach if the Company takes steps to
cure such breach within 30 days of the written notice). The Company is required to pay to the Manager the Termination Fee if the
termination of this Agreement is made pursuant to this Section 14(b).

 

(c)          The Manager may terminate this Agreement in the event the Company
becomes regulated as an “investment company” under the Investment Company Act, with such termination deemed to have
occurred immediately prior to such event. If the Manager terminates this Agreement pursuant to this Section 14(c), the
Company shall not be required to pay the Termination Fee.

 

Section 15. Survival; Action Upon Termination.
From and after the effective date of termination of this Agreement, pursuant to Sections 13 or 14 of this Agreement,
the Manager shall not be entitled to compensation for further services under this Agreement, but shall be paid all compensation
accruing to the date of termination and, if terminated pursuant to Section 13(a) or 14(b), the applicable Termination
Fee. Upon such termination, the Manager shall forthwith:

 

(i)          after
deducting any accrued compensation and reimbursement for Expenses to which it is then entitled, pay over to the Company all money
collected and held for the account of the Company pursuant to this Agreement;

 

(ii)         deliver
to the Board of Directors a full accounting, including a statement showing all payments collected by it and a statement of all
money held by it, covering the period following the date of the last accounting furnished to the Board of Directors with respect
to the Company; and

 

(iii)        deliver
to the Board of Directors all property and documents of the Company or any subsidiary then in the custody of the Manager.

 

Sections 6, 10, 11,
12, 13, 14, 15 and 25 shall survive the termination of this Agreement.

 

    22 

     

    

 

Section 16. Assignment. Subject to
Section 14(a), the Manager may assign the agreement in its entirety or delegate certain of its duties under the Agreement to any
of its Affiliates without the approval of the Independent Directors; provided that any such assignment or delegation does not require
the approval of the Independent Directors under the Investment Company Act. Any other assignment by the Manager must be consented
to in writing by the Company with the approval of a majority of the Independent Directors. Any permitted assignment shall bind
the assignee under this Agreement in the same manner as the Manager is bound, and the Manager shall be liable to the Company for
all errors or omissions of the assignee under any such assignment. In addition, the assignee shall execute and deliver to the Company
a counterpart of this Agreement naming such assignee as Manager. This Agreement shall not be assigned by the Company without the
prior written consent of the Manager, except in the case of assignment by the Company to another REIT or other organization which
is a successor (by merger, consolidation, purchase of assets, or other transaction) to the Company, in which case such successor
organization shall be bound under this Agreement and by the terms of such assignment in the same manner as the Company is bound
under this Agreement.

 

Section 17. Internalization of the Manager.

 

(a)          No
later than 180 days prior to the end of the Initial Term, the Manager shall provide the Company with an offer for an Internalization
Transaction with the Operating Company on such terms and conditions included in a written offer provided by the Manager. The offer
price will be based on the following financial framework: the lesser of the two amounts determined pursuant to the Internalization
Formulas. Upon receipt of the Manager’s initial Internalization Transaction offer, a special committee consisting solely
of the Company’s independent directors may accept the Manager’s proposal or submit a counter offer to the Manager.
If the Company and the Manager agree upon an Internalization Price pursuant to this Section 17(a), the Company shall seek satisfaction
of the conditions set forth in Section 17(c).

 

(b)          If
an Internalization Transaction is not consummated pursuant to Section 17(a), the Manager will annually submit to the Company a
new offer for an Internalization Transaction with the Operating Company, with an Internalization Price based on the financial framework
set forth in Section 17(a), not later than 180 days prior to the end of any Renewal Term until termination of this Agreement. The
special committee of the Company’s board of directors and the Manager will follow the same process set forth in Section 17(a)
with respect to each Internalization Transaction offer by the Manager. If the Company and the Manager agree upon an Internalization
Price pursuant to this Section 17(b), the Company shall seek satisfaction of the conditions set forth in Section 17(c). Notwithstanding
the foregoing or any other provision in this Agreement to the contrary, if an Internalization Transaction has not been consummated
in the manner set forth in this Section 17 prior to the end of the last Renewal Term of this Agreement, then on the last day of
the last Renewal Term, the Manager and the Company shall consummate an Internalization Transaction effective as of the last day
of the last Renewal Term. In the event an Internalization Transaction is consummated, at the time of consummation of such Internalization
Transaction, all assets of the Manager shall be conveyed to and acquired by the Company in exchange for the Internalization Price,
computed in accordance with paragraph (e) below and payable pursuant to paragraph (d) below, all employees of the Manager shall
become employees of the Company, the Company shall succeed to all customer and other relationships then possessed by the Manager
and the Manager shall discontinue all business activities. The parties expressly agree that an Internalization Transaction that
is effected at the end of the last Renewal Term of this Agreement shall not be subject to the conditions of paragraph (c) below
and shall be in lieu of any termination of this Agreement and the payment of any Termination Fee, it being the express intention
of the parties that no Termination Fee shall be payable in the event of expiration of this Agreement at the end of its final Renewal
Term and, instead, the Company shall acquire the business of the Manager at that time for the Internalization Price determined
in accordance with Section 17(e) of this Agreement. The parties mutually agree to execute such additional agreements, documents
and instruments as may be reasonably required to effect the Internalization Transaction and convey the Manager’s assets (or
the equity interests in the Manager) to the Company.

 

    23 

     

    

 

(c)          Consummation
of any Internalization Transaction agreed to between the Company and the Manager is conditioned upon the satisfaction of the following
conditions:

 

(i)          The
Company’s receipt of a fairness opinion from a nationally-recognized investment banking firm to the effect that the consideration
to be paid by the Company (or the Operating Company) for the assets and equity of the Manager is fair, from a financial point of
view, to holders of the Common Stock who are not affiliated with the Manager or its Affiliates;

 

(ii)         The
approval of the acquisition by a special committee of the Company’s Board of Directors comprised solely of Independent Directors;
and

 

(iii)        The
approval of Company stockholders holding a majority of the votes cast on such Internalization proposal at a meeting of stockholders
duly called and at which a quorum is present.

 

(d)          The
Internalization Price paid to the Manager in any Internalization Transaction will be payable by the Operating Company in the number
of OC Units equal to the agreed upon Internalization Price, divided by the volume-weighted average of the closing market price
of the Common Stock for the ten consecutive trading days immediately preceding the date with respect to which value must be determined;
provided, however, that if the Company’s Common Stock is not traded on a national securities exchange at the time of closing
of any such Internalization Transaction, then the number of OC Units shall be determined by agreement between the Board of Directors
and the Manager or, in the absence of such agreement, the Internalization Price shall be paid in cash.

 

(e)          Upon
any Internalization pursuant to this Section 17, the Manager shall not be entitled to the receipt of any Termination Fee. The “Internalization
Price” for purposes of Section 13(b), shall be determined as follows: (A) if an Internalization Transaction occurs prior
to the end of the last Renewal Term, the Internalization Price shall be the lesser of the prices determined pursuant to the
Internalization Formulas, subject to the Board of Directors’ discretion; and (B) if an Internalization Transaction occurs
automatically at the end of the last Renewal Term pursuant to Section 17(b), the Internalization Price shall be equal to the Termination
Fee computed pursuant to Section 13(b), with no Board of Directors’ discretion to change such Internalization Price and no
conditions being applicable to the payment thereof.

 

    24 

     

    

 

Section 18. Release of Money or Other
Property Upon Written Request. The Manager agrees that any money or other property of the Company or any Subsidiary held by
the Manager under this Agreement shall be held by the Manager as custodian for the Company or such Subsidiary, and the Manager’s
records shall be appropriately marked clearly to reflect the ownership of such money or other property by the Company or such Subsidiary.
Upon the receipt by the Manager of a written request signed by a duly authorized officer of the Company or any Subsidiary requesting
the Manager to release to the Company or such Subsidiary any money or other property then held by the Manager for the account of
the Company or such Subsidiary under this Agreement, the Manager shall release such money or other property to the Company or such
Subsidiary within a reasonable period of time, but in no event later than 30 days following such request. The Manager shall not
be liable to the Company, any Subsidiary, the Independent Directors, or the Company’s or Subsidiary’s stockholders
or partners for any acts performed or omissions to act by the Company or any Subsidiary in connection with the money or other property
released to the Company or Subsidiary in accordance with the second sentence of this Section 18. The Company and any such
Subsidiary shall indemnify the Manager and its officers, directors, personnel, managers, and officers against any and all expenses,
losses, damages, liabilities, demands, charges and claims of any nature whatsoever, which arise in connection with the Manager’s
release of such money or other property to the Company or Subsidiary in accordance with the terms of this Section 18. Indemnification
pursuant to this provision shall be in addition to any right of the Manager to indemnification under Section 12 of this
Agreement.

 

Section 19. Representations and Warranties.

 

(a)          The
Company hereby makes the following representations and warranties to the Manager, all of which shall survive the execution and
delivery of this Agreement:

 

(i)          Each
of the Company and the Operating Company is a corporation or limited liability company duly organized, validly existing and in
good standing under the laws of the State of Maryland or the State of Delaware, as applicable, and each is qualified to do business
and in good standing in Maryland or Delaware, as applicable. Each of the Company and the Operating Company has all power and authority
required to execute and deliver this Agreement and to perform all its duties and obligations hereunder.

 

(ii)         The
execution, delivery, and performance of this Agreement by each of the Company and the Operating Company have been duly authorized
by all necessary action on the part of the Company and the Operating Company, respectively.

 

(iii)        This
Agreement constitutes a legal, valid, and binding agreement of each of the Company and the Operating Company, enforceable against
each of the Company and the Operating Company in accordance with its terms, except as limited by Bankruptcy, insolvency, receivership
and similar laws from time to time in effect and general principles of equity, including, without limitation, those relating to
the availability of specific performance.

 

    25 

     

    

 

(b)          The
Manager hereby makes the following representations and warranties to the Company and the Operating Company, all of which shall
survive the execution and delivery of this Agreement:

 

(i)          The
Manager is a limited liability company duly formed, validly existing, and in good standing under the laws of the State of Florida
and is qualified to do business and in good standing in Florida. The Manager has all power and authority required to execute and
deliver this Agreement and to perform all its duties and obligations hereunder, subject only to its qualifying to do business and
obtaining all requisite permits and licenses required as a result of or relating to the nature or location of any of the assets
or properties of the Company (which it shall do promptly after being required to do so).

 

(ii)         The
execution, delivery, and performance of this Agreement by the Manager have been duly authorized by all necessary action on the
part of the Manager.

 

(iii)        This
Agreement constitutes a legal, valid, and binding agreement of the Manager enforceable against the Manager in accordance with its
terms, except as limited by Bankruptcy, insolvency, receivership and similar laws from time to time in effect and general principles
of equity, including, without limitation, those relating to the availability of specific performance.

 

Section 20. Notice.

 

(a)          All
notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing, to the following
addresses:

 

If to the Company or the Operating Company:

 

Jernigan Capital, Inc.

6410 Poplar Avenue, Suite 650

Memphis, Tennessee 38119

Attention: William H. Mathieu

 

If to the Manager:

 

JCap Advisors, LLC

6410 Poplar Avenue, Suite 650

Memphis, Tennessee 38119

Attention: John A. Good

 

(b)          All
notices, demands and requests to be sent to a party hereto pursuant to this Agreement shall be deemed to have been properly given
or served if: (i) personally delivered, (ii) deposited for next day delivery by Federal Express, or other similar overnight courier
services, addressed to such party, (iii) deposited in the United States mail, addressed to such party, prepaid and registered or
certified with return receipt requested or (iv) transmitted via facsimile or other similar device to the attention of such party
with appropriate evidence of receipt by or transmission to the recipient party.

 

    26 

     

    

 

(c)          All
notices, demands and requests so given shall be deemed received: (i) when personally delivered, (ii) twenty-four hours after being
deposited for next day delivery with an overnight courier, (iii) forty-eight hours after being deposited in the United States mail,
or (iv) three hours after being transmitted via facsimile or otherwise transmitted and receipt has been confirmed.

 

Section 21. Binding Nature of Agreement;
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
heirs, personal representatives, successors and permitted assigns as provided in this Agreement.

 

Section 22. Entire Agreement. This
Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter of this Agreement,
and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or
written, of any nature whatsoever with respect to the subject matter of this Agreement. The express terms of this Agreement control
and supersede any course of performance and/or usage of the trade inconsistent with any of the terms of this Agreement.

 

Section 23. Amendments. This Agreement
may be amended or modified only by an agreement in writing signed by all parties hereto.

 

Section 24. No Implied Waivers; Remedies.
No failure or delay on the part of any party in exercising any right, privilege, power, or remedy under this Agreement, and no
course of dealing shall operate as a waiver of any such right, privilege, power or remedy; nor shall any single or partial
exercise of any right, privilege, power or remedy under this Agreement preclude any other or further exercise of any such right,
privilege, power or remedy or the exercise of any other right, privilege, power or remedy. No waiver shall be asserted against
any party unless signed in writing by such party. The rights, privileges, powers and remedies available to the parties are cumulative
and not exclusive of any other rights, privileges, powers or remedies provided by statute, at law, in equity or otherwise. Except
as provided in this Agreement, no notice to or demand on any party in any case shall entitle such party to any other or further
notice or demand in any similar or other circumstances or constitute a waiver of the right of the party giving such notice or making
such demand to take any other or further action in any circumstances without notice or demand.

 

Section 25. Governing Law. THIS
AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. EACH OF THE PARTIES HEREBY IRREVOCABLY
AGREES THAT THE COURTS OF THE STATE OF NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION IN CONNECTION WITH ANY ACTIONS OR PROCEEDINGS
ARISING BETWEEN THE PARTIES UNDER THIS AGREEMENT. EACH OF THE PARTIES HEREBY IRREVOCABLY CONSENTS AND SUBMITS TO THE JURISDICTION
OF SAID COURTS FOR ANY SUCH ACTION OR PROCEEDING. EACH OF THE PARTIES HEREBY WAIVES THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF ANY SUCH ACTION OR PROCEEDING IN SAID COURTS.

 

    27 

     

    

 

Section 26. Headings. The headings
contained in this Agreement are for convenience only and shall not affect the construction or interpretation of any provisions
of this Agreement.

 

Section 27. Severability. If any
provision of the Agreement shall be held to be invalid, the remainder of the Agreement shall not be affected thereby.

 

Section 28. Counterparts. This
Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party
whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall
become binding when one or more counterparts of this Agreement, individually or taken together, shall bear the signatures of all
of the parties reflected hereon as the signatories.

 

[Signature Page Follows]

 

    28 

     

    

 

IN WITNESS WHEREOF, the parties have executed
this Agreement as of the date first above written.

 

	 	
        JERNIGAN CAPITAL, INC.,

        a Maryland corporation

	 	 
	 	By:	 /s/
    William C. Drummond
	 	 	Name: William C.
    Drummond
	 	 	Title: Chief Financial Officer
	 	 
	 	
        JERNIGAN CAPITAL OPERATING
        COMPANY, Llc,

        a Delaware limited liability company

	 	 
	 	By:  Jernigan Capital, Inc., its managing member
	 	 
	 	 	By:	/s/
    William C. Drummond
	 	 	 	Name: William C.
    Drummond
	 	 	 	Title: Chief Financial Officer
	 	 
	 	
        JCAP ADVISORS, LLC

        a Florida limited liability company

	 	 
	 	By:	  /s/ Dean Jernigan
	 	 	Name: Dean Jernigan
	 	 	Title:  Chief Executive Officer

 

     

     

    

 

Exhibit A

 

		·	No investment will be made that would cause the Company to fail to qualify as a REIT for U.S. federal income tax purposes.

 

		·	No investment will be made that would cause the Company to register as an investment company under the Investment Company Act.

 

		·	No more than 20% of the Company’s equity, determined as of the date of investment, will be invested in any single project
and no more than 20% of the Company’s equity, determined as of the date of such investment, will be invested in projects
controlled by a single borrower or group of affiliated borrowers that would form a consolidated group under GAAP; provided however,
that this provision shall not apply to the initial portfolio set forth in the final prospectus for the Initial Public Offering).

 

		·	Over time the Company’s average leverage should be between 25% and 35% of the fair value of its assets, but the Company
may borrow up to 100% of the principal value of certain First Mortgage Loans (as defined in the final prospectus for the Initial
Public Offering). During periods where the Company’s portfolio consists largely of Whole Loans (as defined in the final prospectus
for the Initial Public Offering), the Company may borrow up to 65% of the principal of such loans pending tranching of such loans
and sale of First Mortgage Loans resulting from such tranching.

 

		·	The Company will maintain a portfolio of geographically diverse assets.

 

		·	The Manager must seek approval of a majority of the Company’s Independent Directors before engaging in any transaction
that falls outside of these guidelines.

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