Document:

EXHIBIT 4.9

 

SCHEDULE

to
the

Master
Agreement

 

dated as of August 7, 2003

 

between

 

	
  JPMorgan Chase

  Bank

  	
   

  	
  and

  	
   

  	
  World Financial
  Network Credit Card

  Master Note Trust

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (“Morgan”)

  	
   

  	
   

  	
   

  	
  (the “Counterparty”)

  

 

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

 

Part
1

 

Termination
Provisions

 

In this Agreement:-

 

(1)                                  “Specified Entity”
shall not apply.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Copyright Ó
1992 by International Swap Dealers Association, Inc.

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Part
2

 

Tax Representations

 

(1)                                  Payer Tax Representation:

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

(2)                                  Payee Tax
Representation:

 

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

 

Part 3

 

Agreement
to Deliver Documents

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

JPMorgan Chase Bank

c/o John Coffey

270 Park Avenue

New York, New York 10017

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

 

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

 

Part 4

 

Miscellaneous

 

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

 

(2)                                  Notices.

 

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

 

JPMorgan Chase
Bank

Attention: Legal Department-Capital Markets Group

270 Park Avenue, 40th Floor

New York, New York 10017-2070

Telex No.: 232337; Answerback: CBC UR

Facsimile No.: (212) 270-7468

 

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

 

World Financial Network Credit Card Master Note Trust

c/o JP Morgan Chase Bank

450 West 33rd  

14th Floor

New York, NY 10001

Attention: Institutional Trust Services

Telephone No.: 

Facsimile No.:

 

With a copy to:

 

World Financial Network National Bank

800 Techcenter Drive

Gahanna, OH 43230

Attention: Treasurer

Telephone No.: 614-729-4723

Facsimile No.: 614-729-4899

 

4

 

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

 

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

 

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

 

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

 

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

 

(ii) The Counterparty is not a Multibranch Party.

 

(5)                                  Credit Support Documents.

 

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

 

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

 

(6)                                  Credit Support Provider.

 

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

 

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

 

Not applicable

 

Part 5

 

Other Provisions

 

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

 

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

 

5

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

If,

 

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

 

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

 

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

 

7

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

If,

 

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

 

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

 

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

 

8

 

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

 

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

 

As used herein:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

9

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

10

 

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

 

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

 

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

 

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

 

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

 

11

 

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

 

	
   

  	
  JPMORGAN CHASE BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Don Thompson

  
	
   

  	
   

  	
  Name: Don Thompson

  
	
   

  	
   

  	
  Title: Managing Director and

  Associate General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WORLD FINANCIAL NETWORK CREDIT

  CARD MASTER NOTE TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
  By: Chase Manhattan Bank USA, National

  Association, not in its individual capacity, but

  solely as Owner Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John J. Cashin

  
	
   

  	
   

  	
  Name: John J. Cashin

  
	
   

  	
   

  	
  Title: Vice-President

  

 

CLASS C-2 SWAP

 

12

 

ANNEX A

 

PARAGRAPH 13 TO

CREDIT SUPPORT ANNEX

 

to the Schedule to the

Master Agreement

 

dated as of August 7, 2003

 

between

 

	
  JPMorgan Chase Bank

  (“Morgan”)

  	
   

  	
  and

  	
   

  	
  WORLD FINANCIAL NETWORK

  CREDIT CARD MASTER NOTE TRUST

  (“Counterparty”)

  

 

Paragraph 13. Elections and Variables

 

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

 

(b)                                 Credit
Support Obligations.

 

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

 

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

 

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

 

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

 

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

 

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

 

13

 

	
   

  	
   

  	
   

  	
   

  	
  Morgan

  	
   

  	
  “Valuation

  Percentage”

  	
   

  
	
  (A)

  	
   

  	
  USD Cash

  	
   

  	
  X

  	
   

  	
  100

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (B)

  	
   

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

  	
   

  	
  X

  	
   

  	
  98.6

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (C)

  	
   

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

  	
   

  	
  X

  	
   

  	
  90.7

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (D)

  	
   

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

  	
   

  	
  X

  	
   

  	
  85.3

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (E)

  	
   

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

  	
   

  	
  X

  	
   

  	
  98.1

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (F)

  	
   

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

  	
   

  	
  X

  	
   

  	
  88

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (G)

  	
   

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

  	
   

  	
  X

  	
   

  	
  79.8

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (H)

  	
   

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

  	
   

  	
  X

  	
   

  	
  98

  	
  %

  

 

For purposes of the foregoing:

 

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

 

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

 

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

 

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

 

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

 

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

 

14

 

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

 

(iv)                              Thresholds.

 

(A)                              “Independent Amount”
means zero.

 

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

 

	
  CREDIT RATING

  (S&P /Moody’s/Fitch)

  	
   

  	
  THRESHOLD

  Morgan

  
	
   

  	
   

  	
   

  
	
  S&P: A-1 or above.

  	
   

  	
  Infinity

  
	
   

  	
   

  	
   

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

  	
   

  	
   

  
	
   

  	
   

  	
   

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

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  S&P: Below A-1.

  	
   

  	
  US$0

  
	
   

  	
   

  	
   

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

  	
   

  	
   

  
	
   

  	
   

  	
   

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

  	
   

  	
   

  

 

As used
herein:

 

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

 

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

 

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

 

(c)                                  Valuation
and Timing.

 

(i)                                     “Valuation
Agent” means Morgan.

 

15

 

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

 

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

 

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

 

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

 

(e)                                  Substitution.

 

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

 

(ii)                                  Consent.
Inapplicable.

 

(f)                                    Dispute
Resolution.

 

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

 

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

 

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

 

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

 

(g)                                 Holding
and Using Posted Collateral.

 

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

 

(1)                                  Counterparty
is not a Defaulting Party and

 

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

 

Initially, the Custodian for Counterparty is:
None

 

16

 

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

 

(h)                                 Distributions
and Interest Amount.

 

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

 

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

 

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

 

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

 

(j)                                     Other
Eligible Support and Other Posted Support.

 

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

 

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

 

(k)                                  Demands
and Notices.

 

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

 

Counterparty:

 

 

Morgan:

 

 

(l)                                     Addresses
for Transfers.

 

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

 

Morgan:

 

(m)                               Other
Provisions:

 

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

 

17

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

18

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

Accepted
and Agreed:

 

JPMORGAN
CHASE BANK

 

	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  WORLD FINANCIAL NETWORK CREDIT CARD MASTER NOTE TRUST

  
	
   

  	
   

  
	
  By:

  	
  Chase Manhattan Bank USA,
  National

  Association, not in its individual capacity, but

  solely as Owner Trustee

  
	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
						

 

19EXHIBIT 4.10

 

CLASS A-2

CONFIRMATION FOR U.S.
DOLLAR INTEREST RATE SWAP

TRANSACTION UNDER 1992
MASTER AGREEMENT

 

	
  Date:

  	
   

  	
  August 7,
  2003

  	
   

  	
  Our ref:

  	
   

  	
  JPMorgan
  Reference Number

  1762434

  
	
  To:

  	
   

  	
  World
  Financial Network Credit Card

  Master Note Trust

  c/o Chase Manhattan Bank

  USA, National Association

  500 Stanton Christiana Road

  OPS4, 3rd Floor

  Newark, DE 19713

  	
   

  	
  From:

  	
   

  	
  JPMorgan
  Chase Bank

  270 Park Avenue

  New York, NY 10017

  

  Global Derivative Operations

  4 Metrotech Center, 17th Floor

  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 2003-A
Indenture Supplement, dated as of June 19, 2003 (the “Indenture
Supplement”), as supplemented by the Issuance Supplement, dated as of
August 14, 2003 (the “Issuance 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 August 7, 2003
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 $368,000,000 and thereafter an amount equal for each Calculation Period
  to the Class A-2 Note Principal Balance (as defined in the Indenture
  Supplement) at the end of the first day of that Calculation Period.

  	 

	
   

  	
   

  	
   

  	 

	
  Trade
  Date:

  	
   

  	
  August 7,
  2003

  	 

	
   

  	
   

  	
   

  	 

	
  Effective
  Date:

  	
   

  	
  August 14,
  2003

  	 

	
   

  	
   

  	
   

  	 

	
  Termination
  Date:

  	
   

  	
  The earlier
  of (i) the March 2012 Distribution Date, subject to adjustment in
  accordance with the Following Business Day Convention, and (ii) the date on which the Class A-2 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 Class A/B
  Expected Principal Payment Date is the May 2008 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 September 15, 2003 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 September 15, 2003 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

  

 

World Financial Network Credit Card Master Note Trust

Series 2003-A Confirmation

Reference Number

 

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, and Chicago,

  Illinois

  
	
   

  	
   

  	
   

  
	
  Calculation
  Agent:

  	
   

  	
  Party A

  

 

3.                                      Additional Amounts Upon Partial Termination

 

On
any Payment Date prior to the Class A/B Expected Principal Payment Date (as
defined in the Indenture Supplement), where as a result of principal payments
on the Class A-2 Notes (as defined in the Indenture Supplement), the Notional
Amount would be reduced by the corresponding reduction in the Class A-2 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: 900-900-1364

  
	
   

  	
   

  	
   

  
	
  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: 382899 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

  

 

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:

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Don Thompson

  	
   

  	
  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

  
	
  Name: Don Thompson

  
	
  Title: Managing Director and

  Associate General Counsel

  
	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  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-2 Fixed Rate

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  08/14/2003

  	
   

  	
  09/15/2003

  	
   

  	
  4.12%

  	
   

  
	
  09/15/2003

  	
   

  	
  10/15/2003

  	
   

  	
  4.12%

  	
   

  
	
  10/15/2003

  	
   

  	
  11/15/2003

  	
   

  	
  4.12%

  	
   

  
	
  11/15/2003

  	
   

  	
  12/15/2003

  	
   

  	
  4.12%

  	
   

  
	
  12/15/2003

  	
   

  	
  01/15/2004

  	
   

  	
  4.12%

  	
   

  
	
  01/15/2004

  	
   

  	
  02/15/2004

  	
   

  	
  4.12%

  	
   

  
	
  02/15/2004

  	
   

  	
  03/15/2004

  	
   

  	
  4.12%

  	
   

  
	
  03/15/2004

  	
   

  	
  04/15/2004

  	
   

  	
  4.12%

  	
   

  
	
  04/15/2004

  	
   

  	
  05/15/2004

  	
   

  	
  4.12%

  	
   

  
	
  05/15/2004

  	
   

  	
  06/15/2004

  	
   

  	
  4.12%

  	
   

  
	
  06/15/2004

  	
   

  	
  07/15/2004

  	
   

  	
  3.79%

  	
   

  
	
  07/15/2004

  	
   

  	
  08/15/2004

  	
   

  	
  3.79%

  	
   

  
	
  08/15/2004

  	
   

  	
  09/15/2004

  	
   

  	
  3.79%

  	
   

  
	
  09/15/2004

  	
   

  	
  10/15/2004

  	
   

  	
  3.79%

  	
   

  
	
  10/15/2004

  	
   

  	
  11/15/2004

  	
   

  	
  3.79%

  	
   

  
	
  11/15/2004

  	
   

  	
  12/15/2004

  	
   

  	
  3.79%

  	
   

  
	
  12/15/2004

  	
   

  	
  01/15/2005

  	
   

  	
  3.79%

  	
   

  
	
  01/15/2005

  	
   

  	
  02/15/2005

  	
   

  	
  3.79%

  	
   

  
	
  02/15/2005

  	
   

  	
  03/15/2005

  	
   

  	
  3.79%

  	
   

  
	
  03/15/2005

  	
   

  	
  04/15/2005

  	
   

  	
  3.79%

  	
   

  
	
  04/15/2005

  	
   

  	
  05/15/2005

  	
   

  	
  3.79%

  	
   

  
	
  05/15/2005

  	
   

  	
  06/15/2005

  	
   

  	
  3.79%

  	
   

  
	
  06/15/2005

  	
   

  	
  07/15/2005

  	
   

  	
  3.46%

  	
   

  
	
  07/15/2005

  	
   

  	
  08/15/2005

  	
   

  	
  3.46%

  	
   

  
	
  08/15/2005

  	
   

  	
  09/15/2005

  	
   

  	
  3.46%

  	
   

  
	
  09/15/2005

  	
   

  	
  10/15/2005

  	
   

  	
  3.46%

  	
   

  
	
  10/15/2005

  	
   

  	
  11/15/2005

  	
   

  	
  3.46%

  	
   

  
	
  11/15/2005

  	
   

  	
  12/15/2005

  	
   

  	
  3.46%

  	
   

  
	
  12/15/2005

  	
   

  	
  01/15/2006

  	
   

  	
  3.46%

  	
   

  
	
  01/15/2006

  	
   

  	
  02/15/2006

  	
   

  	
  3.46%

  	
   

  
	
  02/15/2006

  	
   

  	
  03/15/2006

  	
   

  	
  3.46%

  	
   

  
	
  03/15/2006

  	
   

  	
  04/15/2006

  	
   

  	
  3.46%

  	
   

  
	
  04/15/2006

  	
   

  	
  05/15/2006

  	
   

  	
  3.46%

  	
   

  
	
  05/15/2006

  	
   

  	
  06/15/2006

  	
   

  	
  3.46%

  	
   

  
	
  06/15/2006

  	
   

  	
  07/15/2006

  	
   

  	
  3.13%

  	
   

  
	
  07/15/2006

  	
   

  	
  08/15/2006

  	
   

  	
  3.13%

  	
   

  
	
  08/15/2006

  	
   

  	
  09/15/2006

  	
   

  	
  3.13%

  	
   

  
	
  09/15/2006

  	
   

  	
  10/15/2006

  	
   

  	
  3.13%

  	
   

  
	
  10/15/2006

  	
   

  	
  11/15/2006

  	
   

  	
  3.13%

  	
   

  
	
  11/15/2006

  	
   

  	
  12/15/2006

  	
   

  	
  3.13%

  	
   

  
	
  12/15/2006

  	
   

  	
  01/15/2007

  	
   

  	
  3.13%

  	
   

  
	
  01/15/2007

  	
   

  	
  02/15/2007

  	
   

  	
  3.13%

  	
   

  

 

 

	
  02/15/2007

  	
   

  	
  03/15/2007

  	
   

  	
  3.13%

  	
   

  
	
  03/15/2007

  	
   

  	
  04/15/2007

  	
   

  	
  3.13%

  	
   

  
	
  04/15/2007

  	
   

  	
  05/15/2007

  	
   

  	
  3.13%

  	
   

  
	
  05/15/2007

  	
   

  	
  06/15/2007

  	
   

  	
  3.13%

  	
   

  
	
  06/15/2007

  	
   

  	
  07/15/2007

  	
   

  	
  2.80%

  	
   

  
	
  07/15/2007

  	
   

  	
  08/15/2007

  	
   

  	
  2.80%

  	
   

  
	
  08/15/2007

  	
   

  	
  09/15/2007

  	
   

  	
  2.80%

  	
   

  
	
  09/15/2007

  	
   

  	
  10/15/2007

  	
   

  	
  2.80%

  	
   

  
	
  10/15/2007

  	
   

  	
  11/15/2007

  	
   

  	
  2.80%

  	
   

  
	
  11/15/2007

  	
   

  	
  12/15/2007

  	
   

  	
  2.80%

  	
   

  
	
  12/15/2007

  	
   

  	
  01/15/2008

  	
   

  	
  2.80%

  	
   

  
	
  01/15/2008

  	
   

  	
  02/15/2008

  	
   

  	
  2.80%

  	
   

  
	
  02/15/2008

  	
   

  	
  03/15/2008

  	
   

  	
  2.80%

  	
   

  
	
  03/15/2008

  	
   

  	
  04/15/2008

  	
   

  	
  2.80%

  	
   

  
	
  04/15/2008

  	
   

  	
  05/15/2008

  	
   

  	
  2.80%

  	
   

  
	
  05/15/2008

  	
   

  	
  Thereafter

  	
   

  	
  3.47%

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