Document:

EXHIBIT 4.10

 

	
   

  	
   

  	
  2004-C

  
	
  (Multicurrency—Cross Border)

  	
   

  	
  CLASS C SWAP

  

 

ISDAÒ

 

International Swap
Dealers Association, Inc.

 

MASTER AGREEMENT

 

dated as of
September 22, 2004

 

	
  Barclays
  Bank PLC

  (“Party A”)

  	
   

  	
  and

  	
   

  	
  World Financial Network Credit Card

  Master Note Trust

  (“Party B”)

  

 

have entered
and/or anticipate entering into one or more transactions (each a “Transaction”)
that are or will be governed by this Master Agreement, which includes the
schedule (the “Schedule”), and the documents and other confirming evidence
(each a “Confirmation”) exchanged between the parties confirming those
Transactions.

 

Accordingly, the
parties agree as follows:—

 

1.             Interpretation

 

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

 

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

 

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

 

2.             Obligations

 

(a)           General Conditions.

 

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

 

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

 

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

 

Copyright Ó
1992 by International Swap Dealers Association, Inc.

 

 

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

 

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

 

(i)            in the same currency;
and

 

(ii)           in respect of the same
Transaction,

 

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

 

The parties may
elect in respect of two or more Transactions that a net amount will be determined
in respect of all amounts payable on the same date in the same currency in
respect of such Transactions, regardless of whether such amounts are payable in
respect of the same Transaction.  The
election may be made in the Schedule or a Confirmation by specifying that
subparagraph (ii) above will not apply to the Transactions identified as being
subject to the election, together with the starting date (in which case
subparagraph (ii) above will not, or will cease to, apply to such Transactions
from such date).  This election may be
made separately for different groups of Transactions and will apply separately
to each pairing of Offices through which the parties make and receive payments
or deliveries.

 

(d)           Deduction or Withholding for Tax.

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

(ii)           Liability. 
If:—

 

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

 

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

 

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

 

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

 

(e)           Default Interest; Other Amounts.  Prior to the occurrence or effective
designation of an Early Termination Date in respect of the relevant
Transaction, a party that defaults in the performance of any payment obligation
will, to the extent permitted by law and subject to Section 6(c), be
required to pay interest (before as well as after judgment) on the overdue
amount to the other party on demand in the same currency as such overdue
amount, for the period from (and including) the original due date for payment
to (but excluding) the date of actual payment, at the Default Rate.  Such interest will be calculated on the
basis of daily compounding and the actual number of days elapsed.  If, prior to the occurrence or effective
designation of an Early Termination Date in respect of the relevant
Transaction, a party defaults in the performance of any obligation required to
be settled by delivery, it will compensate the other party on demand if and to
the extent provided for in the relevant Confirmation or elsewhere in this
Agreement.

 

3.             Representations

 

Each party
represents to the other party (which representations will be deemed to be
repeated by each party on each date on which a Transaction is entered into and,
in the case of the representations in Section 3(f), at all times until the
termination of this Agreement) that:—

 

(a)           Basic Representations.

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4.             Agreements

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

5.             Events
of Default and Termination Events

 

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

 

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

 

(ii)           Breach of Agreement.  Failure by the party to comply with or
perform any agreement or obligation (other than an obligation to make any
payment under this Agreement or delivery under Section 2(a)(i) or 2(e) or
to give notice of a Termination Event or any agreement or obligation under
Section 4(a)(i), 4(a)(iii) or 4(d)) to be complied with or performed by
the party in accordance with this Agreement if such failure is not remedied on
or before the thirtieth day after notice of such failure is given to the party;

 

(iii)          Credit Support Default.

 

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

 

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

 

(3)           the party or such
Credit Support Provider disaffirms, disclaims, repudiates or rejects, in whole
or in part, or challenges the validity of, such Credit Support Document;

 

 

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

 

(v)           Default under Specified Transaction.  The party, any Credit Support Provider of
such party or any applicable Specified Entity of such party (1) defaults under
a Specified Transaction and, after giving effect to any applicable notice
requirement or grace period, there occurs a liquidation of, an acceleration of
obligations under, or an early termination of, that Specified Transaction, (2)
defaults, after giving effect to any applicable notice requirement or grace
period, in making any payment or delivery due on the last payment, delivery or
exchange date of, or any payment on early termination of, a Specified
Transaction (or such default continues for at least three Local Business Days
if there is no applicable notice requirement or grace period) or (3)
disaffirms, disclaims, repudiates or rejects, in whole or in part, a Specified
Transaction (or such action is taken by any person or entity appointed or
empowered to operate it or act on its behalf);

 

(vi)          Cross Default.  If “Cross Default” is specified in the Schedule as applying
to the party, the occurrence or existence of (1) a default, event of default or
other similar condition or event (however described) in respect of such party,
any Credit Support Provider of such party or any applicable Specified Entity of
such party under one or more agreements or instruments relating to Specified
Indebtedness of any of them (individually or collectively) in an aggregate
amount of not less than the applicable Threshold Amount (as specified in the
Schedule) which has resulted in such Specified Indebtedness becoming, or
becoming capable at such time of being declared, due and payable under such
agreements or instruments, before it would otherwise have been due and payable
or (2) a default by such party, such Credit Support Provider or such Specified Entity
(individually or collectively) in making one or more payments on the due date
thereof in an aggregate amount of not less than the applicable Threshold Amount
under such agreements or instruments (after giving effect to any applicable
notice requirement or grace period);

 

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

 

(1)           is dissolved (other
than pursuant to a consolidation, amalgamation or merger); (2) becomes
insolvent or is unable to pay its debts or fails or admits in writing its
inability generally to pay its debts as they become due; (3) makes a general
assignment, arrangement or composition with or for the benefit of its
creditors; (4) institutes or has instituted against it a proceeding seeking a
judgment of insolvency or bankruptcy or any other relief under any bankruptcy
or insolvency law or other similar law affecting creditors’ rights, or a
petition is presented for its winding-up or liquidation, and, in the case of
any such proceeding or petition instituted or presented against it, such
proceeding or petition (A) results in a judgment of insolvency or bankruptcy or
the entry of an order for relief or the making of an order for its winding-up
or liquidation or (B) is not dismissed, discharged, stayed or restrained in
each case within 30 days of the institution or presentation thereof; (5) has a
resolution passed for its winding-up, official management or liquidation (other
than pursuant to a consolidation, amalgamation or merger); (6) seeks or becomes
subject to the appointment of an administrator, provisional liquidator,
conservator, receiver, trustee, custodian or other similar official for it or
for all or substantially all its assets; (7) has a secured party take possession
of all or substantially all its assets or has a distress, execution,
attachment, sequestration or other legal process levied, enforced or sued on or
against all or substantially all its assets and such secured party maintains
possession, or any such process is not dismissed, discharged, stayed or
restrained, in each case within 30 days thereafter; (8) causes or is subject to
any event with respect to it which, under the applicable laws of any
jurisdiction, has an analogous effect to any of the events specified in clauses
(1) to (7) (inclusive); or (9) takes any action in furtherance of, or
indicating its consent to, approval of, or acquiescence in, any of the
foregoing acts; or

 

 

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

 

(1)           the resulting,
surviving or transferee entity fails to assume all the obligations of such
party or such Credit Support Provider under this Agreement or any Credit
Support Document to which it or its predecessor was a party by operation of law
or pursuant to an agreement reasonably satisfactory to the other party to this
Agreement; or

 

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

 

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

 

(i)            Illegality. 
Due to the adoption of, or any change in, any applicable law after the
date on which a Transaction is entered into, or due to the promulgation of, or
any change in, the interpretation by any court, tribunal or regulatory
authority with competent jurisdiction of any applicable law after such date, it
becomes unlawful (other than as a result of a breach by the party of
Section 4(b)) for such party (which will be the Affected Party):—

 

(1)           to perform any absolute
or contingent obligation to make a payment or delivery or to receive a payment
or delivery in respect of such Transaction or to comply with any other material
provision of this Agreement relating to such Transaction; or

 

(2)           to perform, or for any
Credit Support Provider of such party to perform, any contingent or other
obligation which the party (or such Credit Support Provider) has under any
Credit Support Document relating to such Transaction;

 

(ii)           Tax Event. 
Due to (x) any action taken by a taxing authority, or brought in a court
of competent jurisdiction, on or after the date on which a Transaction is
entered into (regardless of whether such action is taken or brought with
respect to a party to this Agreement) or (y) a Change in Tax Law, the party
(which will be the Affected Party) will, or there is a substantial likelihood
that it will, on the next succeeding Scheduled Payment Date (1) be required to
pay to the other party an additional amount in respect of an Indemnifiable Tax
under Section 2(d)(i)(4) (except in respect of interest under
Section 2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an
amount is required to be deducted or withheld for or on account of a Tax (except
in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) and no
additional amount is required to be paid in respect of such Tax under
Section 2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A) or
(B));

 

(iii)          Tax Event Upon Merger.  The party (the “Burdened Party”) on the next
succeeding Scheduled Payment Date will either (1) be required to pay an
additional amount in respect of an Indemnifiable Tax under
Section 2(d)(i)(4) (except in respect of interest under Section 2(e),
6(d)(ii) or 6(e)) or (2) receive a payment from which an amount has been
deducted or withheld for or on account of any Indemnifiable Tax in respect of
which the other party is not required to pay an additional amount (other than
by reason of Section 2(d)(i)(4)(A) or (B)), in either case as a result of
a party consolidating or amalgamating with, or merging with or into, or
transferring all or substantially all its assets to, another entity (which will
be the Affected Party) where such action does not constitute an event described
in Section 5(a)(viii);

 

 

(iv)          Credit Event Upon Merger.  If “Credit Event Upon Merger” is specified
in the Schedule as applying to the party, such party (“X”), any Credit
Support Provider of X or any applicable Specified Entity of X consolidates or
amalgamates with, or merges with or into, or transfers all or substantially all
its assets to, another entity and such action does not constitute an event
described in Section 5(a)(viii) but the creditworthiness of the resulting,
surviving or transferee entity is materially weaker than that of X, such Credit
Support Provider or such Specified Entity, as the case may be, immediately
prior to such action (and, in such event, X or its successor or transferee, as
appropriate, will be the Affected Party); or

 

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

 

(c)           Event of Default and Illegality.  If an event or circumstance which would
otherwise constitute or give rise to an Event of Default also constitutes an
Illegality, it will be treated as an Illegality and will not constitute an
Event of Default.

 

6.             Early
Termination

 

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

 

(b)           Right to Terminate Following
Termination Event.

 

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

 

(ii)           Transfer to Avoid Termination Event.  If either an Illegality under
Section 5(b)(i)(1) or a Tax Event occurs and there is only one Affected
Party, or if a Tax Event Upon Merger occurs and the Burdened Party is the
Affected Party, the Affected Party will, as a condition to its right to
designate an Early Termination Date under Section 6(b)(iv), use all
reasonable efforts (which will not require such party to incur a loss,
excluding immaterial, incidental expenses) to transfer within 20 days after it gives
notice under Section 6(b)(i) all its rights and obligations under this
Agreement in respect of the Affected Transactions to another of its Offices or
Affiliates so that such Termination Event ceases to exist.

 

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

 

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

 

 

(iii)          Two Affected Parties.  If an Illegality under
Section 5(b)(i)(1) or a Tax Event occurs and there are two Affected
Parties, each party will use all reasonable efforts to reach agreement within
30 days after notice thereof is given under Section 6(b)(i) on action to
avoid that Termination Event.

 

(iv)          Right to Terminate.  If:—

 

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

 

(2)           an Illegality under
Section 5(b)(i)(2), a Credit Event Upon Merger or an Additional
Termination Event occurs, or a Tax Event Upon Merger occurs and the Burdened
Party is not the Affected Party,

 

either party in
the case of an Illegality, the Burdened Party in the case of a Tax Event Upon
Merger, any Affected Party in the case of a Tax Event or an Additional
Termination Event if there is more than one Affected Party, or the party which
is not the Affected Party in the case of a Credit Event Upon Merger or an
Additional Termination Event if there is only one Affected Party may, by not
more than 20 days notice to the other party and provided that the relevant
Termination Event is then continuing, designate a day not earlier than the day
such notice is effective as an Early Termination Date in respect of all
Affected Transactions.

 

(c)           Effect of Designation.

 

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

 

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

 

(d)           Calculations.

 

(i)            Statement. 
On or as soon as reasonably practicable following the occurrence of an
Early Termination Date, each party will make the calculations on its part, if
any, contemplated by Section 6(e) and will provide to the other party a
statement (1) showing, in reasonable detail, such calculations (including all
relevant quotations and specifying any amount payable under Section 6(e))
and (2) giving details of the relevant account to which any amount payable to
it is to be paid.  In the absence of
written confirmation from the source of a quotation obtained in determining a
Market Quotation, the records of the party obtaining such quotation will be
conclusive evidence of the existence and accuracy of such quotation.

 

(ii)           Payment Date.  An amount calculated as being due in respect of any Early
Termination Date under Section 6(e) will be payable on the day that notice
of the amount payable is effective (in the case of an Early Termination Date
which is designated or occurs as a result of an Event of Default) and on the
day which is two Local Business Days after the day on which notice of the
amount payable is effective (in the case of an Early Termination Date which is
designated as a result of a Termination Event).  Such amount will be paid together with (to the extent permitted
under applicable law) interest thereon (before as well as after judgment) in
the Termination Currency, from (and including) the relevant Early Termination
Date to (but excluding) the date such amount is paid, at the Applicable
Rate.  Such interest will be calculated
on the basis of daily compounding and the actual number of days elapsed.

 

 

(e)           Payments on Early Termination.  If an Early Termination Date occurs, the
following provisions shall apply based on the parties’ election in the
Schedule of a payment measure, either “Market Quotation” or “Loss”, and a
payment method, either the “First Method” or the “Second Method”.  If the parties fail to designate a payment
measure or payment method in the Schedule, it will be deemed that “Market
Quotation” or the “Second Method”, as the case may be, shall apply.  The amount, if any, payable in respect of an
Early Termination Date and determined pursuant to this Section will be
subject to any Set-off.

 

(i)            Events of Default.  If the Early Termination Date results from an Event of Default:—

 

(1)           First Method and Market Quotation.  If the First Method and Market Quotation
apply, the Defaulting Party will pay to the Non-defaulting Party the excess, if
a positive number, of (A) the sum of the Settlement Amount (determined by the
Non-defaulting Party) in respect of the Terminated Transactions and the
Termination Currency Equivalent of the Unpaid Amounts owing to the Non-defaulting
Party over (B) the Termination Currency Equivalent of the Unpaid Amounts owing
to the Defaulting Party.

 

(2)           First Method and Loss.  If the First Method and Loss apply, the
Defaulting Party will pay to the Non-defaulting Party, if a positive number,
the Non-defaulting Party’s Loss in respect of this Agreement.

 

(3)           Second Method and Market Quotation.  If the Second Method and Market Quotation
apply, an amount will be payable equal to (A) the sum of the Settlement Amount
(determined by the Non-defaulting Party) in respect of the Terminated
Transactions and the Termination Currency Equivalent of the Unpaid Amounts
owing to the Non-defaulting Party less (B) the Termination Currency Equivalent
of the Unpaid Amounts owing to the Defaulting Party.  If that amount is a positive number, the Defaulting Party will
pay it to the Non-defaulting Party; if it is a negative number, the
Non-defaulting Party will pay the absolute value of that amount to the
Defaulting Party.

 

(4)           Second Method and Loss.  If the Second Method and Loss apply, an
amount will be payable equal to the Non-defaulting Party’s Loss in respect of
this Agreement.  If that amount is a
positive number, the Defaulting Party will pay it to the Non-defaulting Party;
if it is a negative number, the Non-defaulting Party will pay the absolute
value of that amount to the Defaulting Party.

 

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

 

(1)           One Affected Party.  If there is one Affected Party, the amount
payable will be determined in accordance with Section 6(e)(i)(3), if
Market Quotation applies, or Section 6(e)(i)(4), if Loss applies, except
that, in either case, references to the Defaulting Party and to the
Non-defaulting Party will be deemed to be references to the Affected Party and
the party which is not the Affected Party, respectively, and, if Loss applies
and fewer than all the Transactions are being terminated, Loss shall be
calculated in respect of all Terminated Transactions.

 

(2)           Two Affected Parties.  If there are two Affected Parties:—

 

(A)          if Market Quotation
applies, each party will determine a Settlement Amount in respect of the
Terminated Transactions, and an amount will be payable equal to (I) the sum of
(a) one-half of the difference between the Settlement Amount of the party with
the higher Settlement Amount (“X”) and the Settlement Amount of the party with
the lower Settlement Amount (“Y”) and (b) the Termination Currency Equivalent
of the Unpaid Amounts owing to X less (II) the Termination Currency Equivalent
of the Unpaid Amounts owing to Y; and

 

 

(B)           if Loss applies, each
party will determine its Loss in respect of this Agreement (or, if fewer than
all the Transactions are being terminated, in respect of all Terminated
Transactions) and an amount will be payable equal to one-half of the difference
between the Loss of the party with the higher Loss (“X”) and the Loss of the
party with the lower Loss (“Y”).

 

If the amount
payable is a positive number, Y will pay it to X; if it is a negative number, X
will pay the absolute value of that amount to Y.

 

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

 

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

 

7.             Transfer

 

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

 

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

 

(b)           a
party may make such a transfer of all or any part of its interest in any amount
payable to it from a Defaulting Party under Section 6(e).

 

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

 

8.             Contractual
Currency

 

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

 

(b)           Judgments.  To the extent permitted by applicable law,
if any judgment or order expressed in a currency other than the Contractual
Currency is rendered (i) for the payment of any amount owing in respect of this
Agreement, (ii) for the payment of any amount relating to any early termination
in respect of this Agreement or (iii) in respect of a judgment or order of
another court for the payment of any amount

 

 

described in (i) or (ii) above, the party seeking
recovery, after recovery in full of the aggregate amount to which such party is
entitled pursuant to the judgment or order, will be entitled to receive
immediately from the other party the amount of any shortfall of the Contractual
Currency received by such party as a consequence of sums paid in such other
currency and will refund promptly to the other party any excess of the
Contractual Currency received by such party as a consequence of sums paid in
such other currency if such shortfall or such excess arises or results from any
variation between the rate of exchange at which the Contractual Currency is
converted into the currency of the judgment or order for the purposes of such
judgment or order and the rate of exchange at which such party is able, acting
in a reasonable manner and in good faith in converting the currency received
into the Contractual Currency, to purchase the Contractual Currency with the
amount of the currency of the judgment or order actually received by such
party.  The term “rate of exchange”
includes, without limitation, any premiums and costs of exchange payable in
connection with the purchase of or conversion into the Contractual Currency.

 

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

 

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

 

9.             Miscellaneous

 

(a)           Entire Agreement.  This Agreement constitutes the entire
agreement and understanding of the parties with respect to its subject matter
and supersedes all oral communication and prior writings with respect thereto.

 

(b)           Amendments.  No amendment, modification or waiver in
respect of this Agreement will be effective unless in writing (including a
writing evidenced by a facsimile transmission) and executed by each of the
parties or confirmed by an exchange of telexes or electronic messages on an
electronic messaging system.

 

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

 

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

 

(e)           Counterparts and Confirmations.

 

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

 

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

 

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

 

 

power or privilege will not be presumed to preclude
any subsequent or further exercise, of that right, power or privilege or the
exercise of any other right, power or privilege.

 

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

 

10.          Offices;
Multibranch Parties

 

(a)           If
Section 10(a) is specified in the Schedule as applying, each party
that enters into a Transaction through an Office other than its head or home
office represents to the other party that, notwithstanding the place of booking
office or jurisdiction of incorporation or organisation of such party, the
obligations of such party are the same as if it had entered into the
Transaction through its head or home office. 
This representation will be deemed to be repeated by such party on each
date on which a Transaction is entered into.

 

(b)           Neither
party may change the Office through which it makes and receives payments or
deliveries for the purpose of a Transaction without the prior written consent of
the other party.

 

(c)           If
a party is specified as a Multibranch Party in the Schedule, such Multibranch
Party may make and receive payments or deliveries under any Transaction through
any Office listed in the Schedule, and the Office through which it makes and
receives payments or deliveries with respect to a Transaction will be specified
in the relevant Confirmation.

 

11.          Expenses

 

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

 

12.          Notices

 

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

 

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

 

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

 

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

 

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

 

(v)           if sent by electronic
messaging system, on the date that electronic message is received,

 

unless the date of
that delivery (or attempted delivery) or that receipt, as applicable, is not a
Local Business Day or that communication is delivered (or attempted) or
received, as applicable, after the close of business

 

 

on a Local
Business Day, in which case that communication shall be deemed given and
effective on the first following day that is a Local Business Day.

 

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

 

13.          Governing
Law and Jurisdiction

 

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

 

(b)           Jurisdiction.  With respect to any suit, action or
proceedings relating to this Agreement (“Proceedings”), each party
irrevocably:—

 

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

 

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

 

Nothing in this
Agreement precludes either party from bringing Proceedings in any other
jurisdiction (outside, if this Agreement is expressed to be governed by English
law, the Contracting States, as defined in Section 1(3) of the Civil
Jurisdiction and Judgments Act 1982 or any modification, extension or
re-enactment thereof for the time being in force) nor will the bringing of
Proceedings in any one or more jurisdictions preclude the bringing of
Proceedings in any other jurisdiction.

 

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

 

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

 

14.          Definitions

 

As used in this
Agreement:—

 

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

 

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

 

 

“Affected
Transactions”
means (a) with respect to any Termination Event consisting of an Illegality,
Tax Event or Tax Event Upon Merger, all Transactions affected by the occurrence
of such Termination Event and (b) with respect to any other Termination Event,
all Transactions.

 

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

 

“Applicable
Rate” means:—

 

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

 

(b)           in
respect of an obligation to pay an amount under Section 6(e) of either
party from and after the date (determined in accordance with
Section 6(d)(ii)) on which that amount is payable, the Default Rate;

 

(c)           in
respect of all other obligations payable or deliverable (or which would have
been but for Section 2(a)(iii)) by a Non-defaulting Party, the Non-default
Rate; and

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Indemnifiable
Tax” means any Tax other than a Tax that would not
be imposed in respect of a payment under this Agreement but for a present or
former connection between the jurisdiction of the government or taxation
authority imposing such Tax and the recipient of such payment or a person
related to such recipient (including, without limitation, a connection arising
from such recipient or related person being or having been a citizen or
resident of such jurisdiction, or being or having been organised, present or
engaged in a trade or business in such jurisdiction, or having or having had a
permanent establishment or fixed place

 

 

of business in
such jurisdiction, but excluding a connection arising solely from such
recipient or related person having executed, delivered, performed its
obligations or received a payment under, or enforced, this Agreement or a
Credit Support Document).

 

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

 

“Local
Business Day” means, subject to the Schedule, a
day on which commercial banks are open for business (including dealings in
foreign exchange and foreign currency deposits) (a) in relation to any
obligation under Section 2(a)(i), in the place(s) specified in the
relevant Confirmation or, if not so specified, as otherwise agreed by the
parties in writing or determined pursuant to provisions contained, or
incorporated by reference, in this Agreement, (b) in relation to any other
payment, in the place where the relevant account is located and, if different,
in the principal financial centre, if any, of the currency of such payment, (c)
in relation to any notice or other communication, including notice contemplated
under Section 5(a)(i), in the city specified in the address for notice
provided by the recipient and, in the case of a notice contemplated by
Section 2(b), in the place where the relevant new account is to be located
and (d) in relation to Section 5(a)(v)(2), in the relevant locations for
performance with respect to such Specified Transaction.

 

“Loss”
means, with respect to this Agreement or one or more Terminated Transactions,
as the case may be, and a party, the Termination Currency Equivalent of an
amount that party reasonably determines in good faith to be its total losses
and costs (or gain, in which case expressed as a negative number) in connection
with this Agreement or that Terminated Transaction or group of Terminated
Transactions, as the case may be, including any loss of bargain, cost of
funding or, at the election of such party but without duplication, loss or cost
incurred as a result of its terminating, liquidating, obtaining or
reestablishing any hedge or related trading position (or any gain resulting
from any of them).  Loss includes losses
and costs (or gains) in respect of any payment or delivery required to have
been made (assuming satisfaction of each applicable condition precedent) on or
before the relevant Early Termination Date and not made, except, so as to avoid
duplication, if Section 6(e)(i)(1) or (3) or 6(e)(ii)(2)(A) applies.  Loss does not include a party’s legal fees
and out-of-pocket expenses referred to under Section 11.  A party will determine its Loss as of the
relevant Early Termination Date, or, if that is not reasonably practicable, as
of the earliest date thereafter as is reasonably practicable.  A party may (but need not) determine its
Loss by reference to quotations of relevant rates or prices from one or more
leading dealers in the relevant markets.

 

“Market
Quotation” means, with respect to one or more
Terminated Transactions and a party making the determination, an amount
determined on the basis of quotations from Reference Market-makers.  Each quotation will be for an amount, if
any, that would be paid to such party (expressed as a negative number) or by
such party (expressed as a positive number) in consideration of an agreement
between such party (taking into account any existing Credit Support Document
with respect to the obligations of such party) and the quoting Reference
Market-maker to enter into a transaction (the “Replacement Transaction”) that
would have the effect of preserving for such party the economic equivalent of
any payment or delivery (whether the underlying obligation was absolute or
contingent and assuming the satisfaction of each applicable condition
precedent) by the parties under Section 2(a)(i) in respect of such
Terminated Transaction or group of Terminated Transactions that would, but for
the occurrence of the relevant Early Termination Date, have been required after
that date.  For this purpose, Unpaid
Amounts in respect of the Terminated Transaction or group of Terminated
Transactions are to be excluded but, without limitation, any payment or
delivery that would, but for the relevant Early Termination Date, have been
required (assuming satisfaction of each applicable condition precedent) after
that Early Termination Date is to be included. 
The Replacement Transaction would be subject to such documentation as
such party and the Reference Market-maker may, in good faith, agree.  The party making the determination (or its
agent) will request each Reference Market-maker to provide its quotation to the
extent reasonably practicable as of the same day and time (without regard to
different time zones) on or as soon as reasonably practicable after the
relevant Early Termination Date.  The
day and time as of which those quotations are to be obtained will be selected
in good faith by the party obliged to make a determination under
Section 6(e), and, if each party is so obliged, after consultation with
the other.  If more than three
quotations are provided, the Market Quotation will be the arithmetic mean of
the quotations, without regard to the quotations having the highest and lowest
values.  If exactly three such
quotations are provided, the Market Quotation will be the

 

 

quotation
remaining after disregarding the highest and lowest quotations.  For this purpose, if more than one quotation
has the same highest value or lowest value, then one of such quotations shall
be disregarded.  If fewer than three
quotations are provided, it will be deemed that the Market Quotation in respect
of such Terminated Transaction or group of Terminated Transactions cannot be
determined.

 

“Non-default
Rate” means a rate per annum equal to the cost
(without proof or evidence of any actual cost) to the Non-defaulting Party (as
certified by it) if it were to fund the relevant amount.

 

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

 

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

 

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

 

“Reference
Market-makers” means four leading dealers in the
relevant market selected by the party determining a Market Quotation in good
faith (a) from among dealers of the highest credit standing which satisfy all
the criteria that such party applies generally at the time in deciding whether
to offer or to make an extension of credit and (b) to the extent practicable,
from among such dealers having an office in the same city.

 

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

 

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

 

“Set-off”
means set-off, offset, combination of accounts, right of retention or
withholding or similar right or requirement to which the payer of an amount
under Section 6 is entitled or subject (whether arising under this
Agreement, another contract, applicable law or otherwise) that is exercised by,
or imposed on, such payer.

 

“Settlement
Amount” means, with respect to a party and any
Early Termination Date, the sum of:—

 

(a)           the
Termination Currency Equivalent of the Market Quotations (whether positive or
negative) for each Terminated Transaction or group of Terminated Transactions
for which a Market Quotation is determined; and

 

(b)           such
party’s Loss (whether positive or negative and without reference to any Unpaid
Amounts) for each Terminated Transaction or group of Terminated Transactions
for which a Market Quotation cannot be determined or would not (in the
reasonable belief of the party making the determination) produce a commercially
reasonable result.

 

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

 

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

 

“Specified
Transaction” means, subject to the Schedule, (a)
any transaction (including an agreement with respect thereto) now existing or
hereafter entered into between one party to this Agreement (or any Credit
Support Provider of such party or any applicable Specified Entity of such
party) and the other party to this Agreement (or any Credit Support Provider of
such other party or any applicable Specified Entity of such other party) which
is a rate swap transaction, basis swap, forward rate transaction, commodity
swap, commodity option, equity or equity index swap, equity or equity index
option, bond option, interest rate

 

 

option, foreign
exchange transaction, cap transaction, floor transaction, collar transaction,
currency swap transaction, cross-currency rate swap transaction, currency
option or any other similar transaction (including any option with respect to
any of these transactions), (b) any combination of these transactions and (c)
any other transaction identified as a Specified Transaction in this Agreement
or the relevant confirmation.

 

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

 

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

 

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

 

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

 

“Terminated
Transactions” means with respect to any Early
Termination Date (a) if resulting from a Termination Event, all Affected
Transactions and (b) if resulting from an Event of Default, all Transactions
(in either case) in effect immediately before the effectiveness of the notice
designating that Early Termination Date (or, if “Automatic Early Termination”
applies, immediately before that Early Termination Date).

 

“Termination
Currency” has the meaning specified in the
Schedule.

 

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

 

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

 

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

 

“Unpaid
Amounts” owing to any party means, with respect to
an Early Termination Date, the aggregate of (a) in respect of all Terminated
Transactions, the amounts that became payable (or that would have become
payable but for Section 2(a)(iii)) to such party under
Section 2(a)(i) on or prior to such Early Termination Date and which
remain unpaid as at such Early Termination Date and (b) in respect of each
Terminated Transaction, for each obligation under Section 2(a)(i) which
was (or would have been but for Section 2(a)(iii)) required to be settled
by delivery to such party on or prior to such Early Termination Date and which
has not been so settled as at such Early Termination Date, an amount equal to
the fair market

 

 

value of that which was
(or would have been) required to be delivered as of the originally scheduled
date for delivery, in each case together with (to the extent permitted under
applicable law) interest, in the currency, of such amounts, from (and
including) the date such amounts or obligations were or would have been
required to have been paid or performed to (but excluding) such Early
Termination Date, at the Applicable Rate. 
Such amounts of interest will be calculated on the basis of daily
compounding and the actual number of days elapsed.  The fair market value of any obligation referred to in clause (b)
above shall be reasonably determined by the party obliged to make the
determination under Section 6(e) or, if each party is so obliged, it shall
be the average of the Termination Currency Equivalents of the fair market
values reasonably determined by both parties.

 

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

 

 

	
  Barclays
  Bank PLC (“Barclays”)

  (Name of Party)

  	
   

  	
  World
  Financial Network Credit Card Master

  Note Trust (“Counterparty”)

  	
   

  
	
   

  
	
   

  	
   

  	
  By:

  	
  Chase Manhattan
  Bank USA, National

  Association, not in its individual capacity, but

  solely as Owner Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Name of Party)

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Justin Wray

  	
   

  	
  By:

  	
  /s/ John J.
  Cashin

  
	
   

  	
  Name:  Justin
  Wray  

  	
   

  	
  Name: John J.
  Cashin

  
	
   

  	
  Title:    Director

  	
   

  	
  Title:  Vice President

  
	
   

  	
  Date:    September 22, 2004

  	
   

  	
  Date:  September 22, 2004

  
									

 

 

CLASS C SWAP

 

SCHEDULE

to the

Master Agreement

 

dated as of September 22, 2004

 

between

 

	
  Barclays Bank PLC

  	
   

  	
  and

  	
   

  	
  World Financial Network

  
	
   

  	
   

  	
   

  	
   

  	
  Credit 
  Card

  
	
   

  	
   

  	
   

  	
   

  	
  Master Note Trust

  
	
  (“Barclays”)

  	
   

  	
   

  	
   

  	
  (the
  “Counterparty”)

  

 

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

 

Part 1

 

Termination Provisions

 

In this Agreement:-

 

(1)           “Specified
Entity” shall not apply.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Part 2

 

Tax Representations

 

(1)           Payer
Tax Representation:

 

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

 

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

 

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

 

 

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

 

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

 

(2)           Barclays
Payee Tax Representations:

For the
purpose of Section 3(f), Barclays makes the following representations, which
apply to Barclays with respect to that portion of its payments that are not
attributable to Barclays’ U.S. trade or business:

 

(i)            With
respect to payments made to Barclays that are not effectively connected to the
United States: It is a non-U.S. branch of a foreign person for United States
federal income tax purposes;

 

(ii)           With
respect to payments made to Barclays that are effectively connected to the
United States: Each payment received or to be received by it in connection with
this Agreement will be effectively connected with its conduct of a trade
or  business in the United States; and

 

(iii)          Each
payment received or to be received by Barclays in connection with this Agreement
may, in whole or in part, be effectively connected with the conduct of a trade
or business by Barclays in the United States and the Counterparty may treat the
full amount of each such payment as effectively connected with the conduct of a
trade or business by Barclays in the United States for United States
information reporting purposes.

 

(3)           Counterparty
Payee Tax Representations:

 

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

 

Part 3

 

Agreement to Deliver
Documents

 

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

 

(1)           For
the purpose of Sections 4(a)(i) and (ii) of this Agreement, Counterparty agrees
to deliver a complete and accurate United States Internal Revenue Service Form
W-9 (or any applicable successor form), in a manner reasonably satisfactory to
Barclays, (I) upon execution of this Agreement; (II) promptly upon reasonable
demand of Barclays, and (III)

 

 

promptly upon
learning that any such form previously filed by Counterparty has become
obsolete or incorrect.

 

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

 

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

 

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

 

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

 

(6)           The
Counterparty shall supply (and/or shall instruct the Trustee to supply)
Barclays with copies of the monthly servicing reports delivered to the Series
2004-C Noteholders in the form specified in the Indenture.  Copies of such accountings and/or reports
shall be delivered to Barclays at the following address:

 

	
  Barclays
  Bank PLC

  
	
  5 The North
  Colonnade

  
	
  Canary Wharf

  
	
  E14 4BB

  
	
  e-mail
  address:

  	
  bgsoperations@barcap.com

  

 

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

 

Part 4

 

Miscellaneous

 

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

 

(2)           Notices.

 

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

 

Barclays Bank PLC

Attention: 
Swaps Documentation

 

 

5 The North Colonnade

Canary Wharf

E14 4BB

Telephone No.:  44 (20) 7773 6810

Facsimile No.:  44 (20) 7773 6461

 

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

 

World
Financial Network Credit Card Master Note Trust

c/o JP Morgan Chase Bank

4 New York Plaza

15th Floor

New York, NY  10004

Attention: Institutional Trust Services

Telephone No.:  

Facsimile No.:

 

With a copy
to:

 

World Financial
Network National Bank

800 Techcenter Drive

Gahanna, OH 43230

Attention:  Treasurer

Telephone No.:  614-729-4723

Facsimile No.:  614-729-4899

 

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

 

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

 

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

 

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

 

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

 

(ii) The
Counterparty is not a Multibranch Party.

 

(5)           Credit Support Documents.

 

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

 

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

 

 

(6)           Credit Support Provider.

 

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

 

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

Not applicable

 

Part 5

 

Other Provisions

 

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

 

(2)           Confirmation Procedures.  Each party acknowledges and agrees that the
Confirmation executed as of the date hereof and designated as Reference No.
610076B shall be the only Transaction governed by this Agreement (it being
understood that, in the event such Confirmation shall be amended (in any
respect), such amendment shall not constitute (for purposes of this paragraph)
a separate Transaction or a separate Confirmation).  Party A and Party B shall not enter into any additional
Confirmations or Transactions hereunder.

 

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

 

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

 

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

 

(6)           Severability.  In the event any one or more of the
provisions contained in this Agreement should be held invalid, illegal, or
unenforceable (in whole or in part) in any respect, the remaining terms,
provisions, covenants and conditions hereof shall continue in full force and
effect as if this Agreement had been executed with the invalid or unenforceable
portion eliminated, so long as this Agreement as so modified continues to
express, without material change the original intentions of the parties as to
the subject matter of this Agreement and the deletion of such portion of this
Agreement will not substantially

 

 

impair the
respective benefits or expectations of the parties to this Agreement; provided,
however, that this severability provision shall not be applicable if any
provision of Section 2, 5, 6 or 13 (or any definition or provision in Section
14 to the extent it relates to, or is used in or in connection with any such
Section) shall be so held to be invalid or unenforceable.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

If,

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

If,

 

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

 

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

 

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

 

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

 

As used herein:

 

“Approved Credit Support
Document” means a security agreement in the form of the 1994 ISDA Credit
Support Annex (ISDA Agreements Subject to New York Law Only),

 

 

as modified by the Paragraph
13 thereto, which Paragraph 13 will be in the form of Annex A to this
Agreement;

 

“Indenture”
means the Master Indenture dated as of August 1, 2001, between World Financial
Network Credit Card Master Note Trust, as Issuer, and BNY Midwest Trust
Company, as Indenture Trustee, as supplemented by the Series 2004-C Indenture
Supplement dated as of September 22, 2004, between World Financial Network
Credit Card Master Note Trust, as the Issuer, and BNY Midwest Trust Company, as
the Indenture Trustee (the “Indenture Supplement”), in each case, as amended,
modified, supplemented, restated or replaced from time to time.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(i)            Non-Reliance.  It is acting for its own account, and it has
made its own independent decisions to enter into that Transaction and as to
whether that Transaction is appropriate or proper for it based upon its own
judgment and upon advice from such advisers as it has deemed necessary.  It is not relying on any communication
(written or oral) of the other party as investment advice or as a
recommendation to enter into that Transaction; it being understood that
information and explanations related to the terms and conditions of a
Transaction shall not be considered investment advice or a recommendation to
enter into that Transaction.

 

 

No communication (written or oral) received from the other party shall
be deemed to be an assurance or guarantee as to the expected results of that
Transaction.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

 

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

 

	
   

  	
  BARCLAYS BANK PLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Justin Wray

  
	
   

  	
   

  	
  Name:  Justin Wray

  
	
   

  	
   

  	
  Title:Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WORLD FINANCIAL NETWORK
  CREDIT

  CARD MASTER NOTE TRUST

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John J. Cashin

  
	
   

  	
   

  	
  Name:  John J. Cashin

  
	
   

  	
   

  	
  Title:  Vice President

  

 

2004-C

CLASS C SWAP

 

 

ANNEX A

 

PARAGRAPH 13 TO

CREDIT SUPPORT ANNEX

 

to the Schedule to the

Master Agreement

 

dated as of September 22, 2004

 

between

 

	
  Barclays Bank PLC

  (“Barclays”)

  	
   

  	
  and

  	
   

  	
  WORLD FINANCIAL NETWORK

  CREDIT CARD MASTER NOTE TRUST

  (“Counterparty”)

  

 

Paragraph 13. Elections and Variables

 

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

 

(b)           Credit
Support Obligations.

 

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

 

(A)          “Delivery
Amount” has the meaning specified in Paragraph 3(a) , except that the words
“upon a demand made by the Secured Party” shall be deleted and the word “that”
on the second line of Paragraph 3(a) shall be replaced with the word “a”.

 

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

 

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

 

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

 

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

 

 

	
   

  	
   

  	
   

  	
   

  	
  Barclays

  	
   

  	
  “Valuation

  Percentage”

  	
   

  
	
  (A)

  	
   

  	
  USD Cash

  	
   

  	
  X

  	
   

  	
  100%

  	
   

  
	
  (B)

  	
   

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

  	
   

  	
  X

  	
   

  	
  98.9%

  	
   

  
	
  (C)

  	
   

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

  	
   

  	
  X

  	
   

  	
  To be determined and subject to the prior written consent of Moody’s
  and S&P

  	
   

  
	
  (D)

  	
   

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

  	
   

  	
  X

  	
   

  	
  To be determined and subject to the prior written consent of Moody’s
  and S&P

  	
   

  
	
  (E)

  	
   

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

  	
   

  	
  X

  	
   

  	
  To be determined and subject to the prior written consent of Moody’s
  and S&P

  	
   

  
	
  (F)

  	
   

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

  	
   

  	
  X

  	
   

  	
  To be determined and subject to the prior written consent of Moody’s
  and S&P

  	
   

  
	
  (G)

  	
   

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

  	
   

  	
  X

  	
   

  	
  To be determined and subject to the prior written consent of Moody’s
  and S&P

  	
   

  
	
  (H)

  	
   

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

  	
   

  	
  X

  	
   

  	
  To be determined and subject to the prior written consent of Moody’s
  and S&P

  	
   

  

 

 

For purposes
of the foregoing:

 

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

 

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

 

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

 

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

 

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

 

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

 

(iii)          Other Eligible Support.  There shall be no “Other Eligible Support”
for purposes of this Annex, unless (A) agreed in writing between the parties
and (B) upon the prior written consent of Moody’s and S&P.

 

(iv)          Thresholds.

 

(A)          “Independent
Amount” means zero.

 

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

 

 

	
  CREDIT
  RATING

  (S&P /Moody’s)

  	
   

  	
  THRESHOLD

  Barclays

  
	
   

  	
   

  	
   

  
	
  S&P: A-1
  or above; and

  	
   

  	
  Infinity

  
	
   

  	
   

  	
   

  
	
  Moody’s
  (long-term senior unsecured debt of Barclays): A1 or above; and

  	
   

  	
   

  
	
   

  	
   

  	
   

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

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  S&P:
  Below A-1; or

  	
   

  	
  US$0

  
	
   

  	
   

  	
   

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

  	
   

  	
   

  
	
   

  	
   

  	
   

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

  	
   

  	
   

  

 

As used
herein:

 

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

 

(C)           “Minimum Transfer Amount”, with respect to a party on
any

 

Valuation Date,
means U.S. $100,000.

 

Rounding. 
The Delivery Amount and the Return Amount will be rounded up and down to
the nearest integral multiple of 10,000, respectively.

 

(c)           Valuation
and Timing.

 

(i)            “Valuation Agent” means Barclays, unless an
Event of Default with respect to Barclays is continuing, in which case
“Valuation Agent” shall mean the Counterparty or a financial institution
selected by the Counterparty in its reasonable discretion.

 

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

 

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

 

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

 

 

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

 

(e)           Substitution.

 

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

 

(ii)           Consent. 
Inapplicable.

 

(f)            Dispute
Resolution.

 

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

 

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

 

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

 

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

 

(g)           Holding
and Using Posted Collateral.

 

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

 

(1)           Counterparty
is not a Defaulting Party and

 

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

New York State.

 

Initially, the Custodian for Counterparty is: Chase Manhattan Bank USA,
National Association.

 

(ii)             Use of Posted Collateral.  The provisions of Paragraph 6(c)(i) will not
apply to Counterparty but the provisions of Paragraph 6(c)(ii) will apply to
the Counterparty; provided, however, that the Counterparty shall invest, or
cause to be invested, Posted Collateral in the form of Cash in such Eligible
Investments (as defined in the Indenture) as designated by Barclays.  The Counterparty is

 

 

authorized to liquidate any Posted Credit Support pursuant to written
instructions from Barclays.

 

(iii)            Holding Collateral.  The Secured Party shall cause any Custodian
appointed hereunder to open and maintain a segregated account and to hold,
record and identify all the Posted Collateral in such segregated account and,
subject to Paragraphs 6(c) and 8(a), such Posted Collateral shall at all times
be and remain the property of the Pledgor and shall at not time constitute the
property of, or be commingled with the property of, the Secured Party or the
Custodian.

 

(h)           Distributions
and Interest Amount.

 

(i)            Interest
Rate.  Not Applicable.

 

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

 

(iii)          Alternative to Interest Amount.  The provisions of Paragraph 6(d)(ii) will
not apply and, instead, the Interest Amount payable by the Counterparty
specified in subparagraph (h)(ii) will be the amount of actual cash earnings on
Posted Collateral in the form of Cash during the relevant Interest Period.

 

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

 

(j)            Other Eligible Support and Other Posted
Support.

 

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

 

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

 

(k)           Demands
and Notices.

 

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

 

Counterparty:

 

 

Barclays:

 

	
  For cash:

  	
   

  	
  For Treasury Securities:

  
	
   

  	
   

  	
   

  
	
  Barclays Bank PLC, NY

  ABA #026-002-574

  F/O: Barclays Swaps & Options

     Group NY
A/C #: 050019228
Ref: Collateral

  	
   

  	
  Bank of NYC/BBPLCLDN

  ABA

  

 

 

(l)            Addresses
for Transfers.

 

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

 

Barclays:

 

(m)          Other
Provisions:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

“Modified
Exposure” means, for any Valuation Date, an amount equal to the greater of (i)
the sum of the Secured Party’s Exposure for that Valuation Date and the
Volatility Buffer, and (ii) the amount of the next scheduled payment that is
required to be made by Barclays pursuant to the Transaction.  As used herein:

 

“Volatility
Buffer” means, with respect to the Transaction, an amount equal to the product
of (a) the Factor applicable to the Transaction and (b) the Notional Amount of
the Transaction.

 

“Factor”
means, with respect to the Transaction, a percentage dependent on Barclays’
Counterparty Rating and the original maturity of the Transaction and determined
by the Valuation Agent by reference to the following table:

 

	
  Counterparty Rating

  	
   

  	
  Maturities
  up to 5

  years (%)

  	
   

  	
  Maturities
  up to 10

  years (%)

  	
   

  	
  Maturities
  up to 30

  years (%)

  	
   

  
	
  A-2/P-2

  	
   

  	
  3.25

  	
   

  	
  4.00

  	
   

  	
  4.75

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A-3/P-3

  	
   

  	
  4.00

  	
   

  	
  5.00

  	
   

  	
  6.25

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BB+/Ba1 or lower

  	
   

  	
  4.50

  	
   

  	
  6.75

  	
   

  	
  7.50

  	
   

  

 

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

 

 

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

 

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

 

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

 

(xi)           Expenses.  Notwithstanding Paragraph 10,
the Pledgor will be responsible for, and will reimburse the Secured Party for,
all transfer and other taxes and other costs involved in the transfer of
Eligible Collateral.

 

Accepted and Agreed:

 

	
  BARCLAYS BANK PLC

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

 

	
  WORLD FINANCIAL
  NETWORK CREDIT CARD MASTER NOTE TRUST

  
	
   

  
	
  By: Chase
  Manhattan Bank USA, National

  Association, not in its individual capacity, but

  solely as Owner Trustee

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:EXHIBIT 4.11

 

CLASS A

CONFIRMATION FOR U.S.
DOLLAR INTEREST RATE SWAP

TRANSACTION UNDER 1992
MASTER AGREEMENT

 

	
  Date:

  	
   

  	
  September 22,
  2004

  	
   

  	
  Our ref:

  	
   

  	
  JPMorgan
  Reference Number

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  500085004880

  
	
  To:

  	
   

  	
  World
  Financial Network Credit Card

  	
   

  	
  From:

  	
   

  	
  JPMorgan Chase
  Bank

  
	
   

  	
   

  	
  Master Note
  Trust

  	
   

  	
   

  	
   

  	
  270 Park
  Avenue

  
	
   

  	
   

  	
  c/o Chase
  Manhattan Bank

  	
   

  	
   

  	
   

  	
  New York, NY
  10017

  
	
   

  	
   

  	
  USA,
  National Association

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  500 Stanton
  Christiana Road

  	
   

  	
   

  	
   

  	
  Global
  Derivative Operations

  
	
   

  	
   

  	
  OPS4, 3rd
  Floor

  	
   

  	
   

  	
   

  	
  4 Metrotech
  Center, 17th Floor

  
	
   

  	
   

  	
  Newark,
  DE  19713

  	
   

  	
   

  	
   

  	
  Brooklyn, NY
  11245

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attn:

  	
   

  	
  Institutional
  Trust Services

  	
   

  	
  Contact:

  	
   

  	
  Document
  Control

  
	
  Fax No:

  	
   

  	
  302-552-6280

  	
   

  	
  Fax No:

  	
   

  	
  718-242-9263

  
	
  Tel No:

  	
   

  	
  302-552-6279

  	
   

  	
  Tel No:

  	
   

  	
  718-242-7294

  

 

Dear
Sir/Madam,

 

The purpose of
this letter agreement is to confirm the terms and conditions of the Transaction
entered into between World Financial Network Credit Card Master Note Trust
and JPMorgan Chase Bank  (each
a “party” and together “the parties”) on the Trade Date specified below (the
“Transaction”).  This letter agreement
constitutes a “Confirmation” as referred to in the ISDA Master Agreement
specified in paragraph 1 below (the “Agreement”).

 

The definitions and provisions contained in the 2000
ISDA Definitions (as published by the International Swaps and Derivatives
Association, Inc., the “Definitions”) are incorporated into this
Confirmation.  In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern.   Capitalized terms used
herein and not otherwise defined have the meanings set forth in the Definitions
or the Indenture dated as of August 1, 2001 as amended from time to time,
between Party B and BNY Midwest Trust Company, as indenture trustee (the
“Master Indenture”) as supplemented by the Series 2004-B Indenture Supplement,
dated as of September 22, 2004 (the “Indenture Supplement” and together
with the Master Indenture and Indenture Supplement, the “Indenture”).

 

1.                                      This
Confirmation supplements, forms part of, and is subject to, the ISDA Master Agreement
(including the Schedule thereto) dated as of September 22, 2004 as
amended and supplemented from time to time (the “Agreement”), between the
parties.  All provisions contained in
the Agreement govern this Confirmation except as expressly modified below.

 

In this
Confirmation “Party A” means JPMorgan Chase Bank  and “Party B” means World
Financial Network Credit Card Master Note Trust.

 

 

 

2.                                      The
terms of the particular Transaction to which this Confirmation relates are as
follows:

 

	
  Notional
  Amount:

  	
   

  	
  Initially,
  USD $355,500,000 and thereafter an amount equal for each Calculation Period
  to the Class A Note Principal Balance (as defined in the Indenture
  Supplement) at the end of the first day of that Calculation Period.

  
	
   

  	
   

  	
   

  
	
  Trade Date:

  	
   

  	
  September 14,
  2004

  
	
   

  	
   

  	
   

  
	
  Effective
  Date:

  	
   

  	
  September 22,
  2004

  
	
   

  	
   

  	
   

  
	
  Termination
  Date:

  	
   

  	
  The earlier
  of (i) the July 2010 Distribution Date, subject to adjustment in
  accordance with the Following Business Day Convention, and (ii) the date on which the Class A Note Principal
  Balance (as defined in the Indenture Supplement) is reduced to zero, subject
  to early termination in accordance with the terms of the Agreement.  In accordance with the Indenture
  Supplement, the Expected Principal Payment Date is the September 2006
  Distribution Date, subject to the Modified Following Business Day Convention.

  

 

Fixed Amounts:

 

	
  Fixed Rate
  Payer:

  	
   

  	
  Party B

  
	
   

  	
   

  	
   

  
	
  Fixed Rate
  Payer Payment Dates:

  	
   

  	
  The 15th
  of each month commencing November 15, 2004 and ending on the Termination
  Date, subject to adjustment in accordance with the Modified Following
  Business Day Convention

  
	
   

  	
   

  	
   

  
	
  Fixed Rate:

  	
   

  	
  As per the
  Fixed Rate Schedule attached hereto as Schedule I

  
	
   

  	
   

  	
   

  
	
  Fixed Rate
  Day Count Fraction:

  	
   

  	
  Actual/360

  

 

Floating Amounts:

 

	
  Floating
  Rate Payer:

  	
   

  	
  Party A

  
	
   

  	
   

  	
   

  
	
  Floating
  Rate Payer Payment Dates:

  	
   

  	
  The 15th  of each month commencing November 15,
  2004 and ending on the Termination Date, subject to adjustment in accordance
  with the Modified Following Business Day Convention.

  
	
   

  	
   

  	
   

  
	
  Floating
  Rate for initial Calculation Period:

  	
   

  	
  Linear
  Interpolation

  

 

2

 

	
  Floating
  Rate Option:

  	
   

  	
  USD-LIBOR-BBA

  
	
   

  	
   

  	
   

  
	
  Designated
  Maturity:

  	
   

  	
  1 Month,
  except for the initial Calculation Period

  
	
   

  	
   

  	
   

  
	
  Spread:

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Floating
  Rate Day Count Fraction:

  	
   

  	
  Actual/360

  
	
   

  	
   

  	
   

  
	
  Reset Dates:

  	
   

  	
  First day of
  each Calculation Period

  
	
   

  	
   

  	
   

  
	
  Business
  Days:

  	
   

  	
  New York,
  London, Columbus, Ohio, Wilmington, Delaware and Chicago, Illinois

  
	
   

  	
   

  	
   

  
	
  Calculation
  Agent:

  	
   

  	
  Party A

  

 

3.                                      Additional Amounts Upon Partial Termination

 

On any Payment
Date prior to the Expected Principal Payment Date (as defined in the Indenture
Supplement), where as a result of principal payments on the Class A Notes (as
defined in the Indenture Supplement), the Notional Amount would be reduced by
the corresponding reduction in the Class A Note Principal Balance (as defined
in the Indenture Supplement), the parties hereto shall treat the portion of
such reduction (without duplication) as terminated on such Payment Date (a
“Terminated Transaction”).  Party A
shall calculate the Market Quotation for the Terminated Transaction as set
forth below.

 

“Market
Quotation” means, with respect to a Terminated Transaction, an amount
determined on the basis of quotations from Reference Market-makers.  Each quotation will be for an amount, if
any, that would be paid to Party A (expressed as a negative number) or by Party
A (expressed as a positive number) in consideration of an agreement between
Party A and the quoting Reference Market-maker to enter into such Terminated
Transaction (with the same fixed and floating payment rates and remaining term
as this Transaction)  on the relevant
Payment Date.  Party A will request each
Reference Market-maker to provide its quotation to the extent reasonably
practicable as of the same day and time (without regard to different time
zones) on or as soon as reasonably practicable prior to the relevant Payment
Date.  The day and time as of which
those quotations are to be obtained will be selected in good faith by Party
A.  If more than three quotations are
provided, the Market Quotation will be the arithmetic mean of the quotations,
without regard to the quotations having the highest and lowest values.  If exactly three such quotations are provided,  the Market Quotation will be the quotation
remaining after disregarding the highest and lowest quotations.  For this purpose, if more than one quotation
has the same highest value or lowest value, then one of such quotations shall
be disregarded.  If fewer than three
quotations are provided, Party A will determine the Market Quotation in good
faith.  Notwithstanding the foregoing,
Party A shall be the sole Reference Market-maker unless: (a)  the reduction in the Notional Amount of the
Transaction is equal to or greater than $50 million on such Payment Date, and
(b) the Servicer or the Indenture Trustee requests that quotations from
Reference Market-makers other than Party A 
are utilized.

 

If the amount
so determined by Party A in respect of a Terminated Transaction is positive,
Party B shall owe such amount to Party A, which shall be payable (with interest
thereon accruing from such Payment Date and calculated at the Fixed Rate) on
the next Distribution Date to the extent provided in

 

3

 

the Indenture.  If such amount is negative, no amounts shall
be payable by Party A or Party B in respect of the Terminated Transaction.

 

4.                                      Account Details:

 

	
  Account for
  payments to Party A:

  	
   

  	
  Name:  JPMorgan Chase Bank

  
	
   

  	
   

  	
  City:  New York

  
	
   

  	
   

  	
  ABA#  021-000-021

  
	
   

  	
   

  	
  Ref:  World Financial Network
  Credit Card Master

  Note Trust -
  Swaps Group

  
	
   

  	
   

  	
  Acct:  099997979

  
	
   

  	
   

  	
   

  
	
  Account for
  payments to Party B:

  	
   

  	
  Name:  Bank of New York

  
	
   

  	
   

  	
  City:  New York

  
	
   

  	
   

  	
  ABA#  021-000-018

  
	
   

  	
   

  	
  Ref:  World Financial Network
  Credit Card Master

  Note Trust – GLA111565

  
	
   

  	
   

  	
  Acct:  394587 
  WFN 2004-B Finance Charge Account

  

 

5.                                      Offices:

 

	
  The Office
  of Party A for this Transaction is:

  	
   

  	
  4 Metrotech
  Center, 17th Floor

  Brooklyn, NY 11245

  
	
   

  	
   

  	
   

  
	
  The Office
  of Party B for this Transaction is:

  	
   

  	
  c/o Chase
  Manhattan Bank

  USA, National Association

  500 Stanton Christiana Road

  OPS4, 3rd Floor

  Newark, DE  19713

  

 

6.                                      Insolvency

 

The
“Bankruptcy” provisions of clause (2) of Section 5(a)(vii) will not apply
to the Counterparty if the Counterparty’s insolvency, inability to pay its
debts, or failure or admission in writing of its inability generally to pay its
debts as they become due relates solely to debts of the Counterparty that are
subordinated to the Class A Notes.

 

Please confirm
that the foregoing correctly sets forth the terms and conditions of our
agreement by responding within three (3) Business Days by returning via
telecopier an executed copy of this Confirmation to the attention of Ron Pope
(fax no. 718-242-9263/9262).

 

Failure to
respond within such period shall not affect the validity or enforceability of
this Transaction, and shall be deemed to be an affirmation of the terms and
conditions contained herein, absent manifest error.

 

4

 

	
  JPMORGAN CHASE BANK

  	
  Accepted and confirmed as of the
  date first written:

  
	
   

  	
   

  
	
   

  	
  WORLD FINANCIAL NETWORK CREDIT CARD

  
	
  By:

  	
  /s/ Carmine Pilla

  	
   

  	
  MASTER NOTE TRUST,

  
	
  Name:  Carmine Pilla

  	
  By: Chase
  Manhattan Bank USA, National Association,

  
	
  Title:  Vice President

  	
  not  in its individual capacity, but solely as
  Owner

  
	
   

  	
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  John J. Cashin

  	
   

  
	
   

  	
  Name: John J. Cashin

  
	
   

  	
  Title:  Vice President

  
						

 

5

 

SCHEDULE I

 

FIXED
RATE SCHEDULE

 

	
  Period
  Start Date

  	
   

  	
  Period
  End Date

  	
   

  	
  A
  Fixed Rate

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9/22/2004

  	
   

  	
  11/15/2004

  	
   

  	
  5.000

  	
  %

  
	
  11/15/2004

  	
   

  	
  12/15/2004

  	
   

  	
  5.000

  	
  %

  
	
  12/15/2004

  	
   

  	
  1/17/2005

  	
   

  	
  5.000

  	
  %

  
	
  1/17/2005

  	
   

  	
  2/15/2005

  	
   

  	
  5.000

  	
  %

  
	
  2/15/2005

  	
   

  	
  3/15/2005

  	
   

  	
  5.000

  	
  %

  
	
  3/15/2005

  	
   

  	
  4/15/2005

  	
   

  	
  2.798

  	
  %

  
	
  4/15/2005

  	
   

  	
  5/16/2005

  	
   

  	
  2.798

  	
  %

  
	
  5/16/2005

  	
   

  	
  6/15/2005

  	
   

  	
  2.798

  	
  %

  
	
  6/15/2005

  	
   

  	
  7/15/2005

  	
   

  	
  2.798

  	
  %

  
	
  7/15/2005

  	
   

  	
  8/15/2005

  	
   

  	
  2.798

  	
  %

  
	
  8/15/2005

  	
   

  	
  9/15/2005

  	
   

  	
  2.798

  	
  %

  
	
  9/15/2005

  	
   

  	
  10/17/2005

  	
   

  	
  2.798

  	
  %

  
	
  10/17/2005

  	
   

  	
  11/15/2005

  	
   

  	
  2.798

  	
  %

  
	
  11/15/2005

  	
   

  	
  12/15/2005

  	
   

  	
  2.798

  	
  %

  
	
  12/15/2005

  	
   

  	
  1/16/2006

  	
   

  	
  2.798

  	
  %

  
	
  1/16/2006

  	
   

  	
  2/15/2006

  	
   

  	
  2.798

  	
  %

  
	
  2/15/2006

  	
   

  	
  3/15/2006

  	
   

  	
  2.798

  	
  %

  
	
  3/15/2006

  	
   

  	
  4/17/2006

  	
   

  	
  0.596

  	
  %

  
	
  4/17/2006

  	
   

  	
  5/15/2006

  	
   

  	
  0.596

  	
  %

  
	
  5/15/2006

  	
   

  	
  6/15/2006

  	
   

  	
  0.596

  	
  %

  
	
  6/15/2006

  	
   

  	
  7/17/2006

  	
   

  	
  0.596

  	
  %

  
	
  7/17/2006

  	
   

  	
  8/15/2006

  	
   

  	
  0.596

  	
  %

  
	
  8/15/2006

  	
   

  	
  9/15/2006

  	
   

  	
  0.596

  	
  %

  
	
  9/15/2006

  	
   

  	
  Thereafter

  	
   

  	
  2.768

  	
  %

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}]]