Document:

Exhibit
10.1

 

THIRD
MODIFICATION OF WAIVER AND

FOURTH
AMENDMENT TO CREDIT AGREEMENT

(TO
FOURTH AMENDED AND RESTATED CREDIT AGREEMENT)

 

 

THIS THIRD MODIFICATION OF WAIVER AND FOURTH
AMENDMENT TO CREDIT AGREEMENT (the “Amendment”) is dated as of March 30, 2005
and is made by and among KEY ENERGY SERVICES, INC., a Maryland corporation (the
“Borrower”), each of the GUARANTORS (as defined in the Credit Agreement), the
LENDERS (as defined in the Credit Agreement), PNC BANK, NATIONAL ASSOCIATION,
as Administrative Agent (the “Administrative Agent”), PNC CAPITAL MARKETS,
INC., and WELLS FARGO BANK, NATIONAL ASSOCIATION (successor-by-merger to Wells Fargo Bank Texas, National Association), as the Co-Lead Arrangers, and CALYON NEW
YORK BRANCH (successor by merger to CREDIT LYONNAIS NEW YORK BRANCH), as the
Syndication Agent (the “Syndication Agent”), JPMORGAN CHASE BANK, N.A. and
COMERICA BANK, as the Co-Documentation Agents (the “Co-Documentation Agents”).

 

GENERAL
RECITALS

 

WHEREAS,
the Borrower, the Guarantors, the Lenders, the Administrative Agent and the
other parties hereto are parties to that certain Fourth Amended and Restated
Credit Agreement, dated as of June 7, 1997, as amended and restated
through November 10, 2003, and as amended by that certain Waiver And First Amendment To Credit
Agreement (the “Waiver and First Amendment”) dated as of April 5,
2004, that Modification of Waiver and
Second Amendment to Credit Agreement (the “Modification of Waiver”) dated August 31, 2004 and that Second
Modification of Waiver and Third Amendment to Credit Agreement (the “Second
Modification of Waiver”) dated December
17, 2004 (and as hereafter amended, restated, supplemented or modified, the “Credit
Agreement”);

 

WHEREAS,
the Lenders and Borrower desire to modify certain provisions of the Waiver and
First Amendment as previously modified by the Modification of Waiver and the
Second Modification of Waiver; and

 

WHEREAS,
except as otherwise provided in this Amendment, capitalized terms used herein
shall have the meanings given to them in the Credit Agreement, as amended by
this Amendment, and all references to Sections in this Amendment which do not
refer to a specific document shall be deemed to refer to the Credit Agreement.

 

AGREEMENT

 

NOW,
THEREFORE, the parties hereto, in consideration of their mutual covenants and
agreements hereinafter set forth and intending to be legally bound hereby,
covenant and agree as follows:

 

 

1.             Modification of Waiver And First
Amendment.

 

(a)           Modification of Recitals (Section 1(a) of Waiver and
First Amendment).

 

1.             Paragraph
3 of Section 1(a) (Recitals) of the Waiver and First Amendment is hereby
amended and restated to read as follows:

 

“3.           As
a result of the Restatements, the Loan Parties: (1) could not finalize and
deliver their Annual Financial Statements for their fiscal year ending December
31, 2003 (the “2003 Annual Statements”), and expect that they will not be able
to finalize their Annual Financial Statements for their fiscal year ending
December 31, 2004 (the “2004 Annual Statements”), by the due dates therefor
under Section 7.3.2 of the Credit Agreement and (2) could not finalize and
deliver their Quarterly Financial Statements for their fiscal quarters ending
March 31, 2004 (the “March 31, 2004 Quarterly Statements”), June 30, 2004 (the “June
30, 2004 Quarterly Statements”) or September 30, 2004 (the “September 30, 2004
Quarterly Statements”), and expect that they will not be able to finalize and
deliver their Quarterly Financial Statements for their fiscal quarters ending
March 31, 2005 (the “March 31, 2005 Quarterly Statements”), and June 30, 2005
(the “June 30, 2005 Quarterly Statements”) by the due dates therefor under
Section 7.3.1 of the Credit Agreement.”

 

2.             Paragraphs
5 and 6 of Section 1(a) (Recitals) of the Waiver and First Amendment are hereby
amended and restated to read as follows:

 

“5.           As
a result of the Restatements, the Borrower was not able to file its Annual Reports
on Form 10-K for 2003 (the “2003 Form 10-K”) or its Quarterly Reports on Form
10-Q for the fiscal quarters ended March 31, 2004 (the “March 2004 10-Q”), June
30, 2004 (the “June 2004 10-Q”) and September 30, 2004 (the “September 2004
10-Q”), and is unlikely to file its Annual Report on Form 10-K (the “2004 Form
10-K”), or its Quarterly Reports on Form 10-Q for the fiscal quarters ended
March 31, 2005 (the “March 2005 10-Q”) and June 30, 2005 (the “June 2005
10-Q”), in a timely manner.  That failure might be deemed a violation of
Law as contemplated by Sections 5.1.19 and 7.1.9 of the Credit Agreement.

 

6.             Unless
waived, failure to complete the 2003 Form 10-K, the 2004 Form 10-K, the March
2004 10-Q, the June 2004 10-Q, the September 2004 10-Q, the March 2005 10-Q and
the June 2005 10-Q, and to deliver copies of the same to the trustees under the
6 3/8% Notes Indenture and the 8 3/8% Notes Indenture and the holders of the
notes issued thereunder in a timely manner has constituted, or will constitute,
an event which, with the giving of notice and the passage of 60 days after the
giving of such notice as provided in such Indentures, will constitute an Event
of Default under such Indentures which will then permit the acceleration of the
indebtedness outstanding thereunder. 
Section 8.1.5 of the Credit Agreement provides that the occurrence of a
default or event of default under the terms of any other agreement involving
borrowed money or the extension of credit or any other Indebtedness under

 

2

 

which any Loan
Party or Subsidiary of any Loan Party may be obligated as a borrower or
guarantor in excess of $20,000,000 in the aggregate, will constitute an Event
of Default under the Credit Agreement if such breach, default or event of
default consists of the failure to pay (beyond any period of grace permitted
with respect thereto, whether waived or not) any Indebtedness when due (whether
at stated maturity, by acceleration or otherwise) or if such breach or default permits or causes the acceleration of
Indebtedness.”

 

(b)           Modification of Waivers (Section 1(b) of Waiver and
First Amendment).

 

Section 1(b) (Waivers and Agreement) of the Waiver and
First Amendment is hereby amended and restated to read as follows:

 

“(b) Waivers and
Agreement.

 

Subject to the agreements
and conditions set forth in Section 1(c) [Agreements] and Section 2
[Amendments] of this Amendment, and the other terms of this Amendment, the
Lenders hereby waive (i) the requirement that the Loan Parties deliver, on the
due dates therefor under Section 7 of the Credit Agreement, the 2003 Annual
Statements, the March 31, 2004 Quarterly Statements, the June 30, 2004
Quarterly Statements, the September 30, 2004 Quarterly Statements, the 2004
Annual Statements, the March 31, 2005 Quarterly Statements, and the June 30,
2005 Quarterly Statements, and the Compliance Certificates which are due
concurrently with the delivery of such statements, (ii) the provisions of
Sections 5.1.19 and 7.1.9 of the Credit Agreement to the extent the failure to
file the 2003 Form 10-K, the 2004 Form 10-K, the March 2004 10-Q, the June 2004
10-Q, the September 2004 10-Q, the March 2005 10-Q and the June 2005 10-Q in a
timely manner constitutes a violation of the representations, warranties and
covenants contained in Sections 5.1.19 and 7.1.9 of the Credit Agreement, and
(iii) the provisions of Section 5.1.9 and Section 7.1.7 of the Credit Agreement
to the extent the Restatements cause the financial statements of the Borrower
and its consolidated Subsidiaries not to meet the requirements of Section 5.1.9
of the Credit Agreement or reflect that the Borrower failed to maintain
adequate books and records as required by Section 7.1.7 of the Credit Agreement
and hereby waive any Potential Default or Event of Default which might
otherwise be occasioned by any of the foregoing; provided however, that the
Lenders do not waive any Potential Default or Event of Default resulting from
the breach of any financial covenants contained in Sections 7.2.16, 7.2.17 or
7.2.18 of the Credit Agreement occasioned by any of the foregoing. In addition,
the Lenders hereby acknowledge and agree that the events described in Section
1(a)6 of this Amendment will not constitute a Potential Default or an Event of
Default under the Credit Agreement unless and until the related notice as
required by the Indenture has been given by the trustee under the related
Indentures or the holders of the notes issued under the applicable Indentures
and the related cure period in the Indentures has expired. To the extent any
waiver contained herein relates to any representation or warranty contained in
the Credit Agreement, any renewal of the representations and warranties
required by the Credit Agreement shall mean that such representations and
warranties are true and correct

 

3

 

except to the
extent such representations and warranties have been waived or modified hereby.”

 

(c)           Modification of Agreements (Section 1(c) of Waiver and
First Amendment).

 

Section 1(c) (Agreements) of the Waiver and First
Amendment is hereby amended and restated to read as follows:

 

“(c) Agreements.

 

In consideration
of the waivers in Section 1(b) of this Amendment, the Loan Parties hereby agree
as follows:

 

(1)           Draft
Annual Statements for 2004.  The Loan
Parties shall deliver to the Administrative Agent and to the Lenders draft,
internal, unaudited financial statements for the fiscal year ended December 31,
2004 (the “Draft Annual Statements for 2004”) on or before the later of the
effective date hereof or April 30, 2005.  The Draft Annual Statements for
2004 shall consist of a consolidated and consolidating balance sheet as of the
end of such fiscal year, and related consolidated and consolidating statements
of income and cash flows and consolidated stockholders’ equity for the fiscal
year then ended, all in reasonable detail and setting forth in comparative form
the financial statements as of the end of and for the preceding fiscal year,
and certified by the Borrower to reflect the Borrower’s financial condition and
results of operations in all material respects as of and for the period ended
December 31, 2004, subject to any write downs, write offs, charges and
adjustments required as a result of the Restatements;

 

(2)           Draft
Quarterly Statements for First Two Quarters of 2005.  The Loan Parties shall deliver to the
Administrative Agent and to the Lenders draft, internal, unaudited financial
statements for the fiscal quarters ended March 31, 2005 (the “Draft March 31,
2005 Statements”) on or before May 20, 2005 and for the fiscal quarter ended
June 30, 2005 (the “Draft June 30, 2005 Statements”) on or before August 19,
2005.  The Draft March 31, 2005
Statements and Draft June 30, 2005 Statements shall consist of a consolidated
and consolidating balance sheet as of the end of such fiscal quarter and
related consolidated and consolidating statements of income, and cash flows for
the fiscal quarter then ended and the fiscal year through that date and setting
forth in comparative form the respective financial statements for the
corresponding date and period in the previous fiscal year, all in reasonable
detail and certified by the Borrower to reflect the Company’s financial
condition and results of operations for the related period, subject to any
write downs, write offs, charges and adjustments required as a result of the
Restatements and to any normal year-end audit adjustments;

 

(3)           Compliance
Certificates Based on Draft Statements. 
Concurrently with their delivery of each of their Draft Annual
Statements for 2004, Draft March 31, 2005 Statements and Draft June 30, 2005
Statements (collectively, the “Draft Statements”), the Loan Parties shall
deliver to the Administrative Agent and to the

 

4

 

Lenders a
Compliance Certificate in the form required by Section 7.3.3 [Compliance
Certificate], but is based on the results contained in the applicable Draft
Statements and is subject to the qualifications in the last clause of each of
Sections 1(c)(1) and 1(c)(2) (each beginning “, subject to . . .”).  Compliance by the Loan Parties with their
covenants, including their financial covenants, under the Credit Agreement
shall be measured based on the Draft Statements and the Compliance Certificates
delivered with such Draft Statements (as if such Draft Statements and
Compliance Certificates were finalized versions), until the finalized financial
statements and related Compliance Certificates have been delivered pursuant to
Section 1(c)(4) of this Amendment, at which time such compliance shall be
measured by such finalized financial statements and Compliance Certificates;

 

(4)           Finalized
Financial Statements and Compliance Certificates.  The Loan Parties shall deliver to the
Administrative Agent and to the Lenders the following documents by the dates
set forth below:”

 

(i)            April
30, 2005.  By April 30, 2005, their
2003 Annual Statements, which shall be finalized and comply in all respects
(other than the requirement for timely delivery) with the requirements of
Section 7.3.2 of the Credit Agreement ( the delivery of the report of
independent certified public accountants for the Loan Parties as more fully
described in Section 7.3.2 of the Credit Agreement) and concurrently with the
delivery of such 2003 Annual Statements, a Compliance Certificate based on the
results contained in such statements;

 

(ii)           June
30, 2005.  By June 30, 2005, their
March 31, 2004 Quarterly Statements, June 30, 2004 Quarterly Statements,
September 30, 2004 Quarterly Statements, and 2004 Annual Statements, all of
which shall be finalized and comply in all respects (other than the requirement
for timely delivery) with the requirements of Sections 7.3.2 and 7.3.1, as
applicable, of the Credit Agreement (including, in the case of the 2004 Annual
Statements,  the delivery of the report of
independent certified public accountants for the Loan Parties as more fully
described in Section 7.3.2 of the Credit Agreement) and concurrently with the
delivery of such each such statements, a Compliance Certificate based on the
results contained in such statements;

 

(iii)          August
31, 2005.  By August 31, 2005, their
March 31, 2005 Quarterly Statements and June 30, 2005 Quarterly Statements, all
of which shall be finalized and comply in all respects (other than the
requirement for timely delivery) with the requirements of Section 7.3.1 of the Credit
Agreement and concurrently with the delivery of such each such statements, a
Compliance Certificate based on the results contained in such statements;

 

(5)           Pricing.

 

This Section is
subject to Section 1(c)(7) of this Amendment, and the additional increases in
pricing that may result pursuant thereto. 
The provisions of this

 

5

 

clause (5) shall
apply until the later of the following dates (such later date shall be referred
to as the “Pricing Trigger Date”): (1) the Compliance Date (as defined below)
or (2) the date on which the senior secured debt of the Borrower is rated BB-
or higher by Standard & Poor’s or Ba3 or higher by Moody’s.  Notwithstanding the provisions contained in
Schedule 1.1(A) (Pricing Grid) of the Credit Agreement (which permits the
Applicable Margin and Applicable Commitment Fee Rate to increase or decrease at
such times and based on the criteria set forth in such Schedule 1.1(A)), the
Applicable Margin and Applicable Commitment Fee Rate shall be Level V (so that
the Applicable Commitment Fee Rate shall be .375%, the Applicable Margin under
the Base Rate Option shall be .75% and the Applicable Margin under the
Euro-Rate Option shall be 2.25% during such period).  Following the Pricing Trigger Date, the
Applicable Margin and Applicable Commitment Fee Rate shall again be determined
solely by the provisions contained in Schedule 1.1(A) (Pricing Grid) of the
Credit Agreement.

 

(6)           Limitation
on Certain Transactions.  Prior to
the Compliance Date, the Loan Parties shall not be permitted to do or engage in
any of the following:

 

(i)            Permitted
Acquisitions.  Except those set out
on Exhibit A attached hereto, engage in any Permitted Acquisitions provided in
Section 7.2.7 [Liquidations, Mergers, Consolidations, Acquisitions] of the
Credit Agreement.

 

(ii)           Dividends.  Make or pay any dividends described in, or
pursuant to, clause (iii) of Section 7.2.5 [Dividends, Distributions and Stock
Repurchases].

 

(iii)          Stock
Purchases.   Engage in any [Stock
Purchases] described in, or pursuant to, clause (iv) of Section 7.2.5.

 

(iv)          Repayments
of Other Indebtedness.  Make any
optional payment or optional prepayment on, or optional redemption or purchase
of, any of its Permitted Subordinated Indebtedness or its 8 3/8% Notes, 6 3/8%
Notes or Permitted Unsecured Indebtedness.

 

(7)           Violation
of Agreements in this Section 1(c)—Events of Default and Pricing Increases.

 

(A)          Events
of Default.

 

Any breach of any
agreement in clauses (1), (2) or (3) of this Section 1(c) shall constitute an
Event of Default if not cured within 10 days following the occurrence
thereof.  Any breach of any agreement in
clauses (4), (6) or (9) of this Section 1(c) shall be deemed a violation of a
negative covenant subject to Section 8.1.3 [Breach of Negative Covenants or
Visitation Rights] of the Credit Agreement (and as such shall result in an
Event of Default upon the occurrence thereof).

 

6

 

(B)           Pricing
Increase.

 

Immediately upon
any breach of any agreement under Section 1(c) of this Agreement, the
Applicable Margin under the Base Rate Option and the Euro-Rate Option each
shall be increased by .25%.  Each such
increase in the Applicable Margins resulting from breaches of any clause shall
be permanent (and shall not be reduced if the Loan Parties shall again be in
full compliance with such Section 1(c)). Any increase in the Applicable Margin
under the Euro-Rate Option under this clause (7) shall also increase the Letter
of Credit Fee (which is equal to the Applicable Margin under the Euro-Rate
Option) by a corresponding amount.  Any
increase in the interest rates provided for under this clause (7) shall be in
addition to any increase in the interest rates or fees pursuant to Section 3.3
of the Credit Agreement [Default Rate] arising as a result of the existence of
an Event of Default.

 

(8)           Compliance
Date.  Upon the date that the Loan
Parties shall have complied with the provisions of clauses (1) through (4) of
this Section 1(c) and shall have made all of the deliveries referred to
therein, the matters set forth in Section 1(b) of this Amendment shall be
permanently waived and the amendments contemplated by Section 2 of this
Amendment shall terminate and be of no further force and effect.  The date upon which the Loan Parties have
complied with such provisions and made such deliveries is referred to as the “Compliance
Date.”

 

(9)           New
Covenants.  The Loan Parties shall
comply with the following covenants between the date hereof and the Compliance Date:

 

(i)            Cash
Deposits.  The Loan Parties shall at
all times maintain in one or more accounts (whether demand, time or other
account) with the Lenders, or their respective Affiliates, all cash of the Loan
Parties other than (1) cash held in the ordinary course of business outside of
the United States by Misr Key Energy Services, LLC in an amount not to exceed
$3,000,000 at any time, and (2) other cash in an aggregate amount not to exceed
$200,000 at any time.

 

(ii)           Reporting
of Cash Balance.  The Loan Parties
shall, on or before each Tuesday following the completion of every two calendar
weeks, beginning with the two calendar weeks ending on Friday, April 1, 2005
and continuing through the Compliance Date deliver to the Administrative Agent
a report certified by an Authorized Officer of the Loan Parties, setting forth
the amount of cash of the Loan Parties maintained in accounts with the Lenders
as of the end of such two-week period. (Such two-week periods beginning April
1, 2005 and continuing through August, 2005 shall end on the following dates
(each in 2005): April 1, April 15, April 29, May 13, May 27, June 10, June 24,
July 8, July 22, August 5 and August 19.)

 

7

 

2.             Amendments to Credit Agreement.

 

(a)           Section
1.1—Definitions.

 

(i)            Restated Definitions.

 

The following defined terms in Section 1.1 of the
Credit Agreement are hereby amended and restated to read as set forth below:

 

“Commitment
shall mean, as to any Lender at any time, (a) the amount initially set forth
opposite its name on Schedule 1.1(B) in the column labeled “Amount of
Commitment for Loans,” (b) following the execution and delivery of any
Assignment and Assumption Agreement, the amount set forth on Schedule I to the
most recent Assignment and Assumption Agreement, and (c) following any increase
in the Commitments pursuant to Section 2.10.1, the amount set forth on Schedule
I to the most recent Commitment Increase Agreement or the Lender Joinder
Agreement delivered pursuant to Section 2.10.1.

 

(ii)           New Definitions.

 

The following new defined term is added to Section 1.1
of the Credit Agreement in alphabetical order therein and to read as set forth
below:

 

“Third Modification
Effective Date shall mean the effective date of the Third Modification of
Waiver and Fourth Amendment to Credit Agreement modifying this Agreement and
prior modifications thereto.”

 

(b)           Section
2.10—Increase in Commitments.

 

The Loan Parties may not request any increase in the
Commitments (whether from existing or new Lenders) pursuant to Section 2.10
until after the Compliance Date has occurred.

 

(c)           Schedule
of Commitments.

 

Part I of Schedule 1.1(B) is hereby amended and
restated to read as set forth on Schedule 1.1(B) attached to this
Amendment.

 

3.             Representations.

 

The Borrower represents and warrants to the
Administrative Agent and the Lenders that, by its execution and delivery hereof
to the Administrative Agent, as of the Effective Date (defined below), after
giving effect to this Amendment, no Potential Default or Event of Default has
occurred and is continuing, and the representations and warranties made by the
Borrower and the other Loan Parties in or pursuant to the Credit Agreement or
any Loan Documents, including without limitation the representation that the transactions
contemplated herein will not violate any Requirement of Law or Contractual
Obligation of any Loan Party, are true and correct in all material respects on
and as of the Effective Date as if made on such date (except to the extent that
any such representations and warranties expressly relate to an earlier date in
which case such representations and warranties were true and correct in all
material respects on and as of such earlier date).

 

8

 

4.             Conditions to Effectiveness of
this Amendment.

 

This
Amendment shall become effective on the date on which all of the following
conditions have occurred:

 

(a)           Execution
and Delivery.  The Administrative
Agent (or its counsel) shall have received a copy of this Amendment duly
executed and delivered by duly authorized officers of the Borrower and each of
the Guarantors, the Required Lenders and the Administrative Agent;

 

(b)           Representations
and Warranties.  The representations
and warranties in Section 2 of this Amendment shall be true and correct and,
after giving effect to this Amendment, 
no Potential Default or Event of Default shall exist and be continuing.

 

(c)           Fee.  The Borrower shall have paid to the
Administrative Agent for the account of each Lender which delivers to the
Administrative Agent (or the Administrative Agent’s counsel as instructed by
the Administrative Agent) such Lender’s signed signature page to this Amendment
on or before the close of business on March 29, 2005 a fee in the amount of
..25% times such Lender’s Commitment.

 

5.             Miscellaneous.

 

(a)           Continuing
Effect of the Credit Agreement.  This
Amendment shall not constitute an amendment or waiver of or consent to any
provision of the Credit Agreement, the Waiver and First Amendment, the Modification
of Waiver or the Second
Modification of Waiver not expressly referred to herein and shall not be
construed as an amendment, waiver or consent to any action on the part of the
Borrower that would require an amendment, waiver or consent of the Agents or
the Lenders except as expressly stated herein. 
Except as expressly consented to hereby, the provisions of the Credit
Agreement, the Waiver and First Amendment, the Modification of Waiver or the Second Modification of Waiver and
the other Loan Documents are and shall remain in full force and effect.

 

(b)           Fees
and Expenses.  The Borrower agrees to
pay or reimburse the Administrative Agent on demand for all its reasonable
out-of-pocket costs and expenses incurred in connection with the preparation
and execution of this Amendment, including, without limitation, the reasonable
fees and disbursements of counsel to the Administrative Agent.

 

(c)           Counterparts.  This Amendment may be executed in any number
of counterparts (including by facsimile) by the parties hereto, each of which
counterparts (whether by facsimile or otherwise) when so executed shall be an
original, but all counterparts taken together shall constitute one and the same
instrument.

 

(d)           GOVERNING
LAW.  THIS AMENDMENT AND THE RIGHTS
AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE
LAW OF THE COMMONWEALTH OF PENNSYLVANIA.

 

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

 

9

 

[SIGNATURE
PAGE 1 OF 15  TO THIRD MODIFICATION OF

WAIVER
AND FOURTH AMENDMENT TO CREDIT AGREEMENT]

 

 

IN
WITNESS WHEREOF, the parties hereto, by their officers thereunto duly
authorized, have executed this Agreement as of the day and year first above
written.

 

	
   

  	
  KEY
  ENERGY SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ William
  M. Austin

  
	
   

  	
  Name:

  	
  William M. Austin

  
	
   

  	
  Title:

  	
  Senior Vice President
  and

   Chief Financial Officer

  
					

 

 

[SIGNATURE
PAGE 2 OF 15  TO THIRD MODIFICATION OF

WAIVER
AND FOURTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  PNC
  BANK, NATIONAL ASSOCIATION,

  individually and as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Richard
  J. Munsick

  
	
   

  	
  Name:

  	
  Richard J. Munsic

  
	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

 

[SIGNATURE
PAGE 3 OF 15  TO THIRD MODIFICATION OF

WAIVER
AND FOURTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  WELLS FARGO BANK, NATIONAL

  ASSOCIATION,
  successor-by-merger to Wells

  Fargo Bank Texas, National Association, ,

  individually and as Co-Lead Arranger

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Eric R.
  Hollingsworth

  
	
   

  	
  Name:

  	
  Eric R. Hollingsworth

  
	
   

  	
  Title:

  	
  Vice President

  
					

 

 

[SIGNATURE
PAGE 4 OF 15  TO THIRD MODIFICATION OF

WAIVER
AND FOURTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  CALYON
  NEW YORK BRANCH, individually

  and as Syndication Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Olivier
  Audemard

  
	
   

  	
  Name:

  	
  Olivier Audemard

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Phillippe Soustra

  
	
   

  	
  Name:

  	
  Phillippe Soustra

  
	
   

  	
  Title:

  	
  Executive Vice
  President

  
					

 

 

 

[SIGNATURE
PAGE 5 OF 15  TO THIRD MODIFICATION OF

WAIVER
AND FOURTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  JPMORGAN
  CHASE BANK, N.A., individually

  and as Co-Documentation Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Jeanie
  C. Gonzalez

  
	
   

  	
  Name:

  	
  Jeanie C. Gonzalez

  
	
   

  	
  Title:

  	
  Director

  
					

 

 

[SIGNATURE
PAGE 6 OF 15  TO THIRD MODIFICATION OF

WAIVER
AND FOURTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  COMERICA
  BANK, individually and as

  Co-Documentation Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Mona M.
  Foch

  
	
   

  	
  Name:

  	
  Mona M. Foch

  
	
   

  	
  Title:

  	
  Senior Vice President –
  Texas Division

  
					

 

 

 

[SIGNATURE
PAGE 7 OF 15  TO THIRD MODIFICATION OF

WAIVER
AND FOURTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  BNP
  PARIBAS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Brian
  M. Malone

  
	
   

  	
  Name:

  	
  Brian M. Malone

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Greg
  Smothers

  
	
   

  	
  Name:

  	
  Greg Smothers

  
	
   

  	
  Title:

  	
  Vice President

  
					

 

 

[SIGNATURE
PAGE 8 OF 15  TO THIRD MODIFICATION OF

WAIVER
AND FOURTH FOURTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  GENERAL ELECTRIC CAPITAL

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Robert
  Kadlick

  
	
   

  	
  Name:

  	
  Robert Kalkick

  
	
   

  	
  Title:

  	
  Duly Authorized
  Signatory

  
					

 

 

[SIGNATURE
PAGE 9 OF 15  TO THIRD MODIFICATION OF

WAIVER
AND FOURTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  HIBERNIA
  NATIONAL BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Stephen
  H. Birnbaum

  
	
   

  	
  Name:

  	
  Stephen H. Birnbaum

  
	
   

  	
  Title:

  	
  Vice President

  
					

 

 

[SIGNATURE
PAGE 10 OF 15  TO THIRD MODIFICATION OF

WAIVER
AND FOURTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  NATEXIS
  BANQUES POPULAIRES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Timothy
  L. Polvado

  
	
   

  	
  Name:

  	
  Timothy L. Polvado

  
	
   

  	
  Title:

  	
  Vice President and
  Group Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Donovan
  C. Broussard

  
	
   

  	
  Name:

  	
  Donovan C. Broussard

  
	
   

  	
  Title:

  	
  Vice President and
  Manager

  
					

 

 

[SIGNATURE
PAGE 11 OF 15  TO THIRD MODIFICATION OF

WAIVER
AND FOURTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  AMEGY
  BANK N.A. f/k/a SOUTHWEST

  BANK OF TEXAS, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Scott
  Collins

  
	
   

  	
  Name:

  	
  Scott Collins

  
	
   

  	
  Title:

  	
  Banking Officer

  
					

 

 

[SIGNATURE
PAGE 12 OF 15  TO  THIRD MODIFICATION OF

WAIVER
AND FOURTH AMENDMENT TO CREDIT AGREEMENT]

 

	
   

  	
  GUARANTORS:

  
	
   

  	
   

  
	
   

  	
  BROOKS WELL SERVICING, INC.

  
	
   

  	
  DAWSON PRODUCTION ACQUISITION
  CORP.*

  
	
   

  	
  DAWSON PRODUCTION MANAGEMENT, INC.

  
	
   

  	
  DAWSON PRODUCTION TAYLOR, INC.*

  
	
   

  	
  KALKASKA OILFIELD SERVICES, INC.

  
	
   

  	
  KEY ENERGY DRILLING, INC.

  
	
   

  	
  KEY ENERGY SERVICES-CALIFORNIA,
  INC.

  
	
   

  	
  KEY ENERGY SERVICES-SOUTH TEXAS,
  INC.

  
	
   

  	
  KEY FOUR CORNERS, INC.

  
	
   

  	
  KEY ROCKY MOUNTAIN, INC.

  
	
   

  	
  MISR KEY ENERGY SERVICES, LLC

  
	
   

  	
  Q SERVICES, INC.

  
	
   

  	
  Q.V. SERVICES, INC.

  
	
   

  	
  UNITRAK SERVICES HOLDING, INC.

  
	
   

  	
  WATSON OILFIELD SERVICE &
  SUPPLY, INC.

  
	
   

  	
  WELL-CO OIL SERVICE, INC.

  
	
   

  	
  WELLTECH EASTERN, INC.

  
	
   

  	
  WELLTECH MID-CONTINENT, INC.

  
	
   

  	
  YALE E. KEY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ William
  M. Austin

  
	
   

  	
  Name:

  	
  William M. Austin

  	
   

  
	
   

  	
  Title:

  	
  Vice President of each corporate general

  partner listed above

  
	
   

  	
   

  	
   

  
					

 

 

[SIGNATURE
PAGE 13 OF 15  TO  THIRD MODIFICATION OF

WAIVER
AND FOURTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  BROOKS WELL SERVICING BENEFICIAL, LP

  
	
   

  	
  by the sole general
  partner, Brooks Well

  Servicing, Inc.

  
	
   

  	
  DAWSON PRODUCTION PARTNERS, L.P.

  
	
   

  	
  by the sole general
  partner, Dawson

  Production Management, Inc.

  
	
   

  	
  KEY ENERGY DRILLING BENEFICIAL, LP

  
	
   

  	
  by the sole general
  partner, Key Energy

  Drilling, Inc.

  
	
   

  	
  Q.V. SERVICES BENEFICIAL, L.P.

  
	
   

  	
  by the sole general
  partner,

  Q.V. Services, Inc.

  
	
   

  	
  UNITRAK SERVICES, L.P.

  
	
   

  	
  by the sole general
  partner, Unitrak Services

  Holding, Inc.

  
	
   

  	
  WELLTECH MID-CONTINENT

  BENEFICIAL, LP

  
	
   

  	
  by the sole general
  partner, WellTech Mid-

  Continent, Inc.

  
	
   

  	
  YALE E. KEY BENEFICIAL, LP

  
	
   

  	
  by the sole general
  partner, Yale E. Key, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ William
  M. Austin

  
	
   

  	
  Name:

  	
  William M. Austin

  	
   

  
	
   

  	
  Title:

  	
  Vice President of each corporate general

  partner listed above

  
	
   

  	
   

  	
   

  
					

 

 

[SIGNATURE
PAGE 14 OF 15  TO  THIRD MODIFICATION OF

WAIVER
AND FOURTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  KEY ENERGY PRESSURE PUMPING

  SERVICES, L.P.

  
	
   

  	
  by the sole general
  partner, Q Oil & Gas

  Services, LLC

  
	
   

  	
  Q PRODUCTION SERVICES, L.P.

  
	
   

  	
  by the sole general
  partner, Q Oil & Gas

  Services, LLC

  
	
   

  	
  QUALITY OIL FIELD SERVICES, L.P.

  
	
   

  	
  by the sole general
  partner, Q Oil & Gas

  Services, LLC

  
	
   

  	
  KEY ENERGY FISHING & RENTAL

  SERVICES, L.P.

  
	
   

  	
  by the sole general
  partner, Q Oil & Gas

  Services, LLC

  
	
   

  	
  Q.V. SERVICES OF TEXAS, L.P.

  
	
   

  	
  by the sole general
  partner, Q Oil & Gas

  Services, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ William
  M. Austin

  	
  (SEAL)

  
	
   

  	
  Name:

  	
  William M. Austin

  	
   

  
	
   

  	
  Title:

  	
  Vice President of Q Services, Inc., the sole

  member of each sole general partner listed above

  
	
   

  	
   

  	
   

  
						

 

 

[SIGNATURE
PAGE 15 OF 15  TO  THIRD MODIFICATION OF

WAIVER
AND FOURTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  BROOKS WELL SERVICING, LLC

  
	
   

  	
  KEY ENERGY DRILLING, LLC

  
	
   

  	
  Q ENERGY SERVICES, L.L.C.

  
	
   

  	
  Q OIL & GAS SERVICES, LLC

  
	
   

  	
  Q.V. SERVICES, LLC

  
	
   

  	
  UNITRAK SERVICES, LLC

  
	
   

  	
  YALE E. KEY, LLC

  
	
   

  	
  WELLTECH MID-CONTINENT, LLC

  
	
   

  	
  KEY ENERGY SHARED SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Kimberly R. Frye

  
	
   

  	
  Name:

  	
  Kimberly R. Frye

  	
   

  
	
   

  	
  Title:

  	
  Manager of each limited

  liability company listed above

  
					

 

 

SCHEDULE 1.1(B)

 

COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES

 

Part 1 -
Commitments of Lenders and Addresses for Notices to Lenders

 

	
  Lender

  	
   

  	
  Amount of Commitment

  for Loans

  	
   

  	
  Ratable Share

  	
   

  
	
  PNC Bank, National
  Association

  One PNC Plaza

  249 Fifth Avenue

  Pittsburgh, Pennsylvania 15222-2707

  Attention: Richard
  Munsick

  	
   

  	
  $

  	
  23,999,999.98

  	
   

  	
  15.999999987

  	
  %

  
	
  Telephone:

  	
  (412) 762-4299

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (412)
  762-2760

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wells Fargo Bank Texas,

  National Association

  MAC T5002-031

  1000 Louisiana Street - 3rd Floor

  Houston, Texas 77002

  Attention: Eric Hollingsworth

  	
   

  	
  $

  	
  21,428,571.44

  	
   

  	
  14.285714293

  	
  %

  
	
  Telephone:

  	
  (713) 319-1354

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (713) 739-1087

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Credit Lyonnais New
  York Branch

  1301 Travis Street - Suite 2100

  Houston, Texas 77002

  Attention: Ting Wei Lee

  	
   

  	
  $

  	
  17,142,857.14

  	
   

  	
  11.428571427

  	
  %

  
	
  Telephone:

  	
  (713) 890-8638

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (713) 890-8668

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank One, NA

  1 Bank One Plaza

  Mail Code: IL1-0365

  Chicago, IL 60670

  Attention: Ken Fatur

  	
   

  	
  $

  	
  17,142,857.14

  	
   

  	
  11.428571427

  	
  %

  
	
  Telephone:

  	
  (312) 325-3012

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (312) 325-3030

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Comerica Bank

  910 Louisiana - Suite 410

  Houston, Texas 77002

  Attention: Kenyatta Gibbs

  	
   

  	
  $

  	
  17,142,857.14

  	
   

  	
  11.428571427

  	
  %

  
	
  Telephone:

  	
  (713) 220-5668

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (713) 220-5650

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Lender

  	
   

  	
  Amount of Commitment

  for Loans

  	
   

  	
  Ratable Share

  	
   

  
	
  Hibernia National Bank

  313 Carondelet Street

  New Orleans, Louisiana 70130

  Attention: Stephen Birnbaum

  	
   

  	
  $

  	
  12,000,000

  	
   

  	
  8.000000000

  	
  %

  
	
  Telephone:

  	
  (504) 533-2109

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (504) 533-5434

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BNP Paribas

  1200 Smith Street, Suite 3100

  Houston, Texas 77002

  Attention: Greg Smothers

  	
   

  	
  $

  	
  10,285,714.29

  	
   

  	
  6.857142860

  	
  %

  
	
  Telephone:

  	
  (713) 982-1151

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (713) 659-1162

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GE Capital Corporation

  Bank Loan Group

  6 High Ridge Park - Building 6C

  Stamford, Connecticut 06927

  Attention: Anand Rao

  	
   

  	
  $

  	
  10,285,714.29

  	
   

  	
  6.857142860

  	
  %

  
	
  Telephone:

  	
  (203) 961-5723

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (203) 316-7978

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Natexis Banques
  Populaires

  333 Clay Street - Suite 4340

  Houston, Texas 77002

  Attention: Tim Polvado

  	
   

  	
  $

  	
  10,285,714.29

  	
   

  	
  6.857142860

  	
  %

  
	
  Telephone:

  	
  (713) 571-8739

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (713) 571-6165

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Amegy Bank N.A.

  5 Post Oak Park

  4400 Post Oak Parkway

  Houston, Texas 77027

  Attention: Scott Collins

  	
   

  	
  $

  	
  10,285,714.29

  	
   

  	
  6.857142860

  	
  %

  
	
  Telephone:

  	
  (713) 232-2022

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (713) 693-7475

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
  150,000,000

  	
   

  	
  100.000000

  	
  %Exhibit 4.1

 

EXECUTION COPY

 

 

GE CAPITAL CREDIT
CARD MASTER NOTE TRUST,

 

as Issuer

 

And

 

DEUTSCHE BANK
TRUST COMPANY AMERICAS,

 

as Indenture
Trustee

 

 

Series 2005-1
INDENTURE SUPPLEMENT

 

Dated as of
March 30, 2005

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.1.

  	
  Definitions

  	
   

  
	
  SECTION
  1.2.

  	
  Incorporation
  of Terms

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  CREATION OF THE SERIES 2005-1 NOTES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.1.

  	
  Designation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  REPRESENTATIONS, WARRANTIES AND COVENANTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  3.1.

  	
  Representations,
  Warranties and Covenants with respect to Net Swap Receipts

  	
   

  
	
  SECTION
  3.2.

  	
  Representations,
  Warranties and Covenants with respect to Receivables

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  RIGHTS OF SERIES 2005-1 NOTEHOLDERS AND
  ALLOCATION AND APPLICATION OF COLLECTIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  4.1.

  	
  Determination
  of Interest and Principal

  	
   

  
	
  SECTION
  4.2.

  	
  Establishment
  of Accounts

  	
   

  
	
  SECTION
  4.3.

  	
  Calculations
  and Series Allocations

  	
   

  
	
  SECTION
  4.4.

  	
  Application
  of Available Finance Charge Collections and Available Principal Collections

  	
   

  
	
  SECTION
  4.5.

  	
  Distributions

  	
   

  
	
  SECTION
  4.6.

  	
  Investor
  Charge-Offs

  	
   

  
	
  SECTION
  4.7.

  	
  Reallocated
  Principal Collections

  	
   

  
	
  SECTION
  4.8.

  	
  Excess
  Finance Charge Collections

  	
   

  
	
  SECTION
  4.9.

  	
  Shared
  Principal Collections

  	
   

  
	
  SECTION
  4.10.

  	
  Reserve
  Account

  	
   

  
	
  SECTION
  4.11.

  	
  Spread
  Account

  	
   

  
	
  SECTION
  4.12.

  	
  Investment
  of Accounts

  	
   

  
	
  SECTION
  4.13.

  	
  Controlled
  Accumulation Period

  	
   

  
	
  SECTION
  4.14.

  	
  Determination
  of LIBOR

  	
   

  
	
  SECTION
  4.15.

  	
  Swaps

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  DELIVERY OF SERIES 2005-1 NOTES; REPORTS TO
  SERIES 2005-1 NOTEHOLDERS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  5.1.

  	
  Delivery
  and Payment for the Series 2005-1 Notes

  	
   

  
	
  SECTION
  5.2.

  	
  Reports
  and Statements to Series 2005-1 Noteholders

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  SERIES 2005-1 EARLY AMORTIZATION EVENTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  6.1.

  	
  Series
  2005-1 Early Amortization Events

  	
   

  

 

i

 

	
  ARTICLE VII

  	
  REDEMPTION OF SERIES 2005-1 NOTES; FINAL
  DISTRIBUTIONS; SERIES TERMINATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  7.1.

  	
  Optional
  Redemption of Series 2005-1 Notes; Final Distributions

  	
   

  
	
  SECTION
  7.2.

  	
  Series
  Termination

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  MISCELLANEOUS PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  8.1.

  	
  Ratification
  of Indenture; Amendments

  	
   

  
	
  SECTION
  8.2.

  	
  Form
  of Delivery of the Series 2005-1 Notes

  	
   

  
	
  SECTION
  8.3.

  	
  Counterparts

  	
   

  
	
  SECTION
  8.4.

  	
  GOVERNING
  LAW

  	
   

  
	
  SECTION
  8.5.

  	
  Limitation
  of Liability

  	
   

  
	
  SECTION
  8.6.

  	
  Rights
  of the Indenture Trustee

  	
   

  
	
  SECTION
  8.7.

  	
  Notice
  Address for Rating Agencies

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  FASIT MATTERS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  9.1.

  	
  FASIT
  Administration

  	
   

  

 

	
  EXHIBITS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT A-1

  	
   

  	
  FORM OF CLASS A NOTE

  	
   

  
	
  EXHIBIT A-2

  	
   

  	
  FORM OF CLASS B NOTE

  	
   

  
	
  EXHIBIT A-3

  	
   

  	
  FORM OF CLASS C NOTE

  	
   

  
	
  EXHIBIT B

  	
   

  	
  FORM OF MONTHLY NOTEHOLDERS’ STATEMENT

  	
   

  
	
  EXHIBIT C-1

  	
   

  	
  FORM OF CLASS A SWAP

  	
   

  
	
  EXHIBIT C-2

  	
   

  	
  FORM OF CLASS B SWAP

  	
   

  
	
  EXHIBIT C-3

  	
   

  	
  FORM OF CLASS C SWAP

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULES

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE I

  	
   

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

  	
   

  
	
  SCHEDULE II

  	
   

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

  	
   

  

 

ii

 

SERIES 2005-1 INDENTURE SUPPLEMENT, dated as of March
30, 2005 (the “Indenture Supplement”),
between GE CAPITAL CREDIT CARD MASTER NOTE TRUST, a Delaware statutory trust
(herein, the “Issuer” or the “Trust”), and DEUTSCHE BANK TRUST COMPANY
AMERICAS, a New York banking corporation, not in its individual capacity, but
solely as indenture trustee (herein, together with its successors in the trusts
thereunder as provided in the Master Indenture referred to below, the “Indenture Trustee”) under the Master
Indenture, dated as of September 25, 2003 (the “Indenture”),
between the Issuer and the Indenture Trustee, as amended by the Omnibus
Amendment No.1 to Securitization Documents, dated as of February 9, 2004, among
RFS Holding, L.L.C., RFS Funding Trust, the Issuer, Deutsche Bank Trust Company
Delaware, as trustee of RFS Funding Trust, RFS Holding, Inc., and the Indenture
Trustee, and as further amended by the Second Amendment to Master Indenture,
dated as of June 17, 2004 between the Issuer and the Indenture Trustee (the “Indenture”,
together with this Indenture Supplement, the “Agreement”).

 

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

 

ARTICLE I

DEFINITIONS

 

SECTION
1.1.  Definitions.

 

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

 

(b)           Each
capitalized term defined herein relates only to Series 2005-1 and to no other
Series.  Whenever used in this Indenture
Supplement, the following words and phrases shall have the following meanings:

 

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

 

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

 

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

 

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

 

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

 

 

“Agreement” is
defined in the preamble.

 

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

 

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

 

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

 

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

 

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

 

“Available Finance Charge
Collections” means, for any Monthly Period, an amount equal to the
sum of (a) the Investor Finance Charge Collections for such Monthly Period, (b)
the Series 2005-1 Excess Finance Charge Collections for such Monthly Period,
(c) Principal Accumulation Investment Proceeds, if any, with respect to the
related Transfer Date, (d) interest and earnings on funds on deposit in the
Reserve Account which will be deposited into the Finance Charge Account on the
related Payment Date to be treated as Available Finance Charge Collections
pursuant to Section 4.10(a), (e)
amounts, if any, to be withdrawn from the Reserve Account which will be
deposited into the Finance Charge Account on the related Transfer Date to be 

 

2

 

treated as Available
Finance Charge Collections pursuant to Section
4.10(c), and (f) any Net Swap Receipts for the related Transfer
Date.

 

“Available Principal
Collections” means, for any Monthly Period, an amount equal to the
sum of (a) the Investor Principal Collections for such Monthly Period, minus (b) the amount of Reallocated Principal
Collections with respect to such Monthly Period which pursuant to Section 4.7 are required to be applied
on the related Payment Date, plus (c) the sum of (i) any Shared
Principal Collections with respect to other Principal Sharing Series (including
any amounts on deposit in the Excess Funding Account that are allocated to
Series 2005-1 for application as Shared Principal Collections), (ii) the
aggregate amount to be treated as Available Principal Collections pursuant to Sections 4.4(a)(vi), (vii) and (x), and (iii)
during an Early Amortization Event, the amount of Available Finance Charge
Collections used to pay principal on the Notes pursuant to Section 4.4(a)(xiii) for the related Payment
Date.

 

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

 

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

 

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

 

“Base Rate”
means, for any Monthly Period, the annualized percentage equivalent of a
fraction, the numerator of which is equal to the sum of (a) the Monthly
Interest, (b) the Net Swap Payments, (c) the amount required to be paid
pursuant to Section 4.4(a)(i) and (d) the Noteholder Servicing Fee, each
with respect to the related Payment Date, and the denominator of which is the
Collateral Amount plus amounts on deposit in the Principal Accumulation
Account, each as of the close of business on the last day of such Monthly
Period.

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

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

 

“Class A Note Initial
Principal Balance” means $790,000,000.

 

“Class A Note Interest
Rate” means a per annum rate of 0.04% in excess of LIBOR as
determined on the LIBOR Determination Date for the applicable Interest Period.

 

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

 

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

 

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

 

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

 

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

 

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

 

4

 

“Class A Swap Rate”
means 4.696% per annum.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Class B Note Initial
Principal Balance” means $110,000,000.

 

“Class B Note Interest
Rate” means a per annum rate of 0.17% in excess of LIBOR as
determined on the LIBOR Determination Date for the applicable Interest Period.

 

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

 

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

 

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

 

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

 

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

 

5

 

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

 

“Class B Swap Rate”  means 4.696% per annum.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Class C Note Initial
Principal Balance” means $52,500,000.

 

“Class C Note Interest
Rate” means a per annum rate of 0.34% in excess of LIBOR as determined
on the LIBOR Determination Date for the applicable Interest Period.

 

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

 

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

 

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

 

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

 

6

 

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

 

“Class C Swap”
means an interest rate swap agreement with respect to the Class C Notes between
the Trust and the Class C Counterparty substantially in the form of Exhibit C-3 to this Indenture Supplement, or
such other form as shall have satisfied the Rating Agency Condition.

 

“Class C Swap Rate”
means 4.696% per annum.

 

“Closing Date”
means March 30, 2005.

 

“Collateral Amount”
means, as of any date of determination, an amount equal to the excess of (a)
the Initial Collateral Amount, over (b)
the sum of (i) the amount of principal previously paid to the Series 2005-1
Noteholders (other than any principal payments made from funds on deposit in
the Spread Account), (ii) reductions in the Excess Collateral Amount due to
reductions in the Required Excess Collateral Amount, (iii) the Principal
Accumulation Account Balance, and (iv) the excess, if any, of the aggregate
amount of Investor Charge-Offs and Reallocated Principal Collections over the reimbursements of such amounts
pursuant to Section 4.4(a)(vii) prior
to such date.

 

“Controlled Accumulation
Amount” means, for any Payment Date with respect to the Controlled
Accumulation Period, $95,250,000; provided,
however, that if the Controlled
Accumulation Period Length is determined to be less than or more than ten
months pursuant to Section 4.13, the
Controlled Accumulation Amount for each Payment Date with respect to the
Controlled Accumulation Period will be equal to (i) the initial Note Principal
Balance divided by (ii) the Controlled
Accumulation Period Length; provided, further, that the Controlled Accumulation
Amount for any Payment Date shall not exceed the Note Principal Balance minus
any amount already on deposit in the Principal Accumulation Account on such
Payment Date.

 

“Controlled Accumulation
Period” means, unless an Early Amortization Event shall have
occurred prior thereto, the period commencing at the opening of business on
April 22, 2009 or such other date as is determined in accordance with Section 4.13 and ending on the first to occur
of (a) the commencement of the Early Amortization Period and (b) the Final
Payment Date.

 

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

 

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

 

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

 

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

 

7

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

8

 

“Early Amortization
Period” means the period commencing on the date on which a Trust
Early Amortization Event or a Series 2005-1 Early Amortization Event is deemed
to occur and ending on the Final Payment Date.

 

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

 

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

 

“Expected Principal
Payment Date” means the March 2010 Payment Date.

 

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

 

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

 

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

 

“Finance Charge Shortfall”
is defined in Section 4.8.

 

“Group One”
means Series 2005-1 and each other outstanding Series previously or hereafter
specified in the related Indenture Supplement to be included in Group One.

 

“Indenture” is
defined in the preamble.

 

“Indenture Trustee”
is defined in the preamble.

 

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

 

“Initial Excess
Collateral Amount” means $47,500,000.

 

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

 

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

 

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

 

9

 

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

 

“Investor Finance Charge
Collections” means, for any Monthly Period, an amount
equal to the aggregate amount of Finance Charge Collections retained or
deposited in the Finance Charge Account for Series 2005-1 pursuant to Section 4.3(b)(i) for such Monthly Period.

 

“Investor Principal
Collections” means, for any Monthly Period, an amount equal to the
aggregate amount of Principal Collections retained or deposited in the
Principal Account for Series 2005-1 pursuant to Section
4.3(b)(ii) for such Monthly Period.

 

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

 

“Issuer” is
defined in the preamble.

 

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

 

“LIBOR Determination Date”
means (i) March 28, 2005 for the period from and including the Closing Date through
and including May 15, 2005 and (ii) the second London Business Day prior to the
commencement of the second and each subsequent Interest Period.

 

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

 

“Minimum Free Equity
Percentage” means, for purposes of Series 2005-1, 4%; provided that,
at any time that GE Capital’s long-term unsecured debt is rated Aa2 or lower by
Moody’s or AA or lower by S&P, the Minimum Free Equity Percentage shall be
7.0%.

 

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

 

“Monthly Period”
means, as to the first Payment Date, the period beginning on the Closing Date
and ending on May 21, 2005, and as to each Payment Date thereafter, the period
beginning on the 22nd day of the second preceding calendar month and
ending on the 21st day of the immediately preceding calendar month.

 

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

 

10

 

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

 

(a)           the lesser of (i)
the Class A Required Amount and (ii) $210,000,000 minus
the sum of (x) the amount of unreimbursed Investor Charge-Offs (after giving
effect to Investor Charge-Offs for the related Monthly Period) and unreimbursed
Reallocated Principal Collections (as of the previous Payment Date) and (y) any
reductions to the Collateral Amount on account of reductions to the Required
Excess Collateral Amount, but not less than zero;

 

(b)           the lesser of (i)
the Class B Required Amount and (ii) $100,000,000 minus
the sum of (x) the amount of unreimbursed Investor Charge-Offs (after giving
effect to Investor Charge-Offs for the related Monthly Period) and unreimbursed
Reallocated Principal Collections (as of the previous Payment Date and as
required in clause (a) above) and (y)
any reductions to the Collateral Amount on account of reductions to the
Required Excess Collateral Amount, but not less than zero; and

 

(c)           the lesser of (i)
the Class C Required Amount and (ii) $47,500,000 minus
the sum of (x) the amount of unreimbursed Investor Charge-Offs after giving
effect to Investor Charge-Offs for the related Monthly Period) and unreimbursed
Reallocated Principal Collections (as of the previous Payment Date and as
required in clauses (a) and (b) above) and (y) any reduction to the
Collateral Amount on account of reductions to the Required Excess Collateral
Amount, but not less than zero.

 

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

 

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

 

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

 

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

 

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

 

11

 

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

 

“Payment Date”
means May 16, 2005 and the 15th day of each calendar month
thereafter, or if such 15th day is not a Business Day, the next succeeding
Business Day.

 

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

 

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

 

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

 

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

 

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

 

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

 

“Principal Shortfall”
is defined in Section 4.9.

 

“Quarterly Excess Spread
Percentage” means (a) with respect to the May 2005 Payment Date, the
Excess Spread Percentage for the Monthly Period relating to such Payment Date,
(b) with respect to the June 2005 Payment Date, the percentage equivalent of a
fraction the numerator of which is the sum of (i) the Excess Spread Percentage
for the Monthly Period relating to the May 2005 Payment Date and (ii) the
Excess Spread Percentage for the Monthly Period relating to the June 2005
Payment Date and the denominator of which is two, and (c) with respect to the
July 2005 Payment Date and each Payment Date thereafter, the percentage
equivalent of a fraction the numerator of which is the sum of the Excess Spread
Percentages determined with respect to the Monthly Periods relating to such Payment
Date and the immediately preceding two Payment Dates and the denominator of
which is three.

 

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

 

12

 

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

 

“Redemption Amount”
means, for any Transfer Date, after giving effect to any deposits and payments
otherwise to be made on the related Payment Date, the sum of (i) the Note
Principal Balance on the related Payment Date, (ii) Monthly Interest for the
related Payment Date and any Monthly Interest previously due but not distributed
to the Series 2005-1 Noteholders, (iii) the amount of Additional Interest, if
any, for the related Payment Date and any Additional Interest previously due
but not distributed to the Series 2005-1 Noteholders on a prior Payment Date
and (iv) any amounts owing to any Counterparty pursuant to the terms of the
Class A Swap, Class B Swap or Class C Swap.

 

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

 

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

 

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

 

“Required Excess
Collateral Amount” means, at any time, 4.75% of the Collateral
Amount; provided that:

 

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

 

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

 

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

 

“Required Reserve Account
Amount” means, for any Transfer Date on or after the Reserve Account
Funding Date, an amount equal to (a) 0.50% of the Note Principal Balance or (b)
any other amount designated by the Issuer; provided, however, that if such designation is of a
lesser amount, the Issuer shall (i) provide the Indenture Trustee with evidence
that the Rating Agency Condition shall have been satisfied and (ii) deliver to
the Indenture Trustee a certificate of an Authorized Officer to the effect
that, based on the facts known to such officer at such time, in the reasonable
belief of the Issuer, such designation will not cause an Early Amortization
Event or an event that, after the giving of notice or the lapse of time, would
cause an Early Amortization Event to occur with respect to Series 2005-1.

 

“Required Spread Account
Amount” means, for any Payment Date, the product of (i) the Spread
Account Percentage in effect on such date and (ii) during (x) the Revolving
Period, the Collateral Amount, and (y) during the Controlled Accumulation
Period or the Early Amortization Period, the Collateral Amount as of the last
day of the Revolving Period; provided

 

13

 

that, prior to the
occurrence of an Event of Default and acceleration of the Series 2005-1 Notes
the Required Spread Account Amount will never exceed the Class C Note Principal
Balance (after taking into account any payments to be made on such Payment
Date).

 

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

 

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

 

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

 

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

 

“Reset Date”
means:

 

(a)           each Addition Date;

 

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

 

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

 

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

 

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

 

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

 

“Series Accounts” is defined in Section 4.2.

 

“Series Allocation
Percentage” means, with respect to any Monthly Period, the
percentage equivalent of a fraction, the numerator of which is the numerator
used in determining the Allocation Percentage for Finance Charge Collections
for that Monthly Period and the denominator of which is the sum of the
numerators used in determining the Allocation

 

14

 

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

 

“Series Maturity Date”
means, with respect to Series 2005-1, the March 2013 Payment Date.

 

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

 

“Series 2005-1”
means the Series of Notes the terms of which are specified in this Indenture
Supplement.

 

“Series 2005-1 Early
Amortization Event” is defined in Section 6.1.

 

“Series 2005-1
Excess Finance Charge Collections” means Excess Finance Charge Collections
allocated from other Series in Group One to Series 2005-1 pursuant to Section
8.6 of the Indenture.

 

“Series 2005-1 Note”
means a Class A Note, a Class B Note or a Class C Note.

 

“Series 2005-1 Noteholder”
means a Class A Noteholder, a Class B Noteholder or a Class C Noteholder.

 

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

 

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

 

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

 

15

 

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

 

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

 

“Trust” is
defined in the preamble.

 

SECTION 1.2.  Incorporation of Terms.  The terms of the Indenture are incorporated
in this Supplement as if set forth in full herein. As supplemented by this
Supplement, the Indenture is in all respects ratified and confirmed and both
together shall be read, taken and construed as one and the same agreement. If
the terms of this Supplement and the terms of the Indenture conflict, the terms
of this Supplement shall control with respect to the Series 2005-1.

 

ARTICLE II

CREATION OF THE SERIES 2005-1 NOTES

 

SECTION
2.1.  Designation.

 

(a)           There
is hereby created and designated a Series of Notes to be issued pursuant to the
Indenture and this Indenture Supplement to be known as “GE Capital Credit Card Master Note Trust, Series 2005-1”
or the “Series 2005-1 Notes.”  The Series 2005-1 Notes shall be issued in
three Classes, known as the “Class A Series 2005-1
Floating Rate Asset Backed Notes,” the “Class
B Series 2005-1 Floating Rate Asset Backed Notes,” and the “Class C Series 2005-1 Floating Rate Asset Backed Notes.”

 

(b)           Series
2005-1 shall be included in Group One and shall be a Principal Sharing
Series.  Series 2005-1 shall be an Excess
Allocation Series with respect to Group One only.  Series 2005-1 shall not be subordinated to
any other Series.

 

(c)           The
Series 2005-1 Notes shall be issued in minimum denominations of $100,000 and in
integral multiples of $1,000.

 

ARTICLE
III

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

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

 

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

 

16

 

ARTICLE IV

RIGHTS OF SERIES 2005-1 NOTEHOLDERS AND ALLOCATION
AND APPLICATION OF COLLECTIONS

 

SECTION 4.1.  Determination of Interest and Principal.

 

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

 

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

 

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

 

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

 

(c)           The
amount of monthly interest (“Class C Monthly
Interest”) due and payable with respect to the Class C Notes on any
Payment Date shall be an amount equal to the product of (i) a fraction, the
numerator of which is the actual number of days in the related Interest

 

17

 

Period and the denominator of which is 360, (ii) the Class C Interest
Rate in effect with respect to the related Interest Period and (iii) the Class
C Note Principal Balance as of the close of business on the last day of the
preceding Monthly Period (or, with respect to the initial Payment Date, the
Class C Note Initial Principal Balance).

 

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

 

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

 

SECTION 4.2.  Establishment of Accounts.

 

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

 

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

 

(c)           On
or before the Closing Date, the Issuer shall enter into a depositary agreement
to govern the Series Accounts pursuant to which such accounts are continuously
identified in the depositary institution’s books and records as subject to a
security interest in favor of the Indenture Trustee on behalf of the
Noteholders and, except as may be expressly provided herein to the contrary, in
order to perfect the security interest of the Indenture Trustee on behalf of
the

 

18

 

Noteholders under the UCC, the Indenture Trustee on behalf of the
Noteholders shall have the power to direct disposition of the funds in the
Series Accounts without further consent by the Issuer; provided  however,
that prior to the delivery by the Indenture Trustee on behalf of the
Noteholders of notice otherwise, the Issuer shall have the right to direct the
disposition of funds in the Series Accounts; provided  further
that the Indenture Trustee on behalf of the Noteholders agrees that it will not
deliver such notice or exercise its power to direct disposition of the funds in
the Series Accounts unless an Event of Default has occurred and is continuing.

 

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

 

SECTION 4.3.  Calculations and Series Allocations.

 

(a)           Allocations.  Finance Charge Collections, Principal
Collections and Charged-Off Receivables allocated to Series 2005-1 pursuant to Article VIII of the Indenture shall be
allocated and distributed as set forth in this Article.  Notwithstanding anything to the contrary in
Section 4.3(b), during any period when the Issuer is permitted by Section 8.4 of the Indenture to make a single
monthly deposit to the Collection Account, amounts allocated to the Noteholders
pursuant to Section 4.3(b) with respect
to any Monthly Period need not be deposited into the Collection Account or any
Series Account prior to the related Payment Date, and, when so deposited, (x)
may be deposited net of any amounts required to be distributed to Transferor
and, if the Originator is Servicer, any amounts owed to the Servicer, and (y)
shall be deposited into the Finance Charge Account (in the case of Collections
of Finance Charge Receivables) and the Principal Account (in the case of
Collections of Principal Receivables (not including any Shared Principal
Collections allocated to Series 2005-1 pursuant to Section 8.5
of the Indenture)).

 

(b)           Allocations
to the Series 2005-1 Noteholders. 
The Issuer shall on each Date of Processing, allocate to the Series
2005-1 Noteholders the following amounts as set forth below:

 

(i)            Allocations of Finance Charge Collections.  The Issuer shall allocate to the Series
2005-1 Noteholders an amount equal to the product of (A) the Allocation
Percentage and (B) the aggregate Finance Charge Collections processed on such
Date of Processing and, subject to Section 4.16, shall deposit such amount into
the Finance Charge Account; provided
that, with respect to each Monthly Period falling in the Revolving Period (and
with respect to that portion of each Monthly Period in the Controlled
Accumulation Period falling on or after the day on which Collections of
Principal Receivables equal to the related Controlled Deposit Amount have been
allocated pursuant to Section 4.3(b)(ii) and deposited pursuant to Section 4.3(a)), Collections of Finance
Charge Receivables shall be transferred into the Finance Charge

 

19

 

Account only until such time as the aggregate amount so deposited
equals the sum (the “Target Amount”) of
(A) the fees payable to the Indenture Trustee, the Trustee and the
Administrator on the related Payment Date, (B) the Net Interest Obligation on
the related Payment Date, (C) if the Originator is not the Servicer, the
Noteholder Servicing Fee (and if the Originator is the Servicer, then the
Issuer covenants to pay directly to the Servicer as payment of the Noteholder
Servicing Fee amounts that otherwise would have been transferred into the
Finance Charge Account pursuant to this clause
(C)), and (D) any amount required to be deposited in the Reserve
Account and the Spread Account on the related Transfer Date; provided  further,
that, notwithstanding the preceding proviso, if on any Business Day the Issuer
determines that the Target Amount for a Monthly Period exceeds the Target
Amount for that Monthly Period as previously calculated by Issuer, then (x)
Issuer shall (on the same Business Day) inform Transferor of such
determination, and (y) within two Business Days thereafter cause Transferor to
deposit into the Finance Charge Account funds in an amount equal to the amount
of Collections of Finance Charge Receivables allocated to the Noteholders for
that Monthly Period but not deposited into the Finance Charge Account due to
the operation of the preceding proviso (but not in excess of the amount
required so that the aggregate amount deposited for the subject Monthly Period
equals the Target Amount); and provided, further,
if on any Transfer Date the Free Equity Amount is less than the Minimum Free
Equity Amount after giving effect to all transfers and deposits on that
Transfer Date, the Issuer shall cause Transferor, on that Transfer Date, to
deposit into the Principal Account funds in an amount equal to the amounts of
Available Finance Charge Collections that are required to be treated as
Available Principal Collections pursuant to Section 4.4(a)(vi)
and (vii) but are not available from
funds in the Finance Charge Account as a result of the operation of the second
preceding proviso.

 

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

 

(ii)           Allocations of Principal Collections.  The Issuer shall allocate to the Series
2005-1 Noteholders the following amounts as set forth below:

 

(x)            Allocations During the
Revolving Period.

 

(1)           During
the Revolving Period an amount equal to the product of the Allocation Percentage
and the aggregate amount of Principal Collections

 

20

 

processed on such Date of Processing, shall be
allocated to the Series 2005-1 Noteholders and first, if any other Principal
Sharing Series is outstanding and in its accumulation period or amortization
period, retained in the Principal Account for application, to the extent
necessary, as Shared Principal Collections to other Principal Sharing Series on
the related Payment Date, second deposited in the Excess Funding Account to the
extent necessary so that the Free Equity Amount is not less than the Minimum
Free Equity Amount and third paid to the holders of the Transferor Interest.

 

(2)           With
respect to each Monthly Period falling in the Revolving Period, to the extent
that Collections of Principal Receivables allocated to the Series 2005-1
Noteholders pursuant to this Section 4.3(b)(ii)
are paid to Transferor, the Issuer shall cause Transferor to make an amount
equal to the Reallocated Principal Collections for the related Transfer Date
available on that Transfer Date for application in accordance with Section 4.7.

 

(y)           Allocations During the
Controlled Accumulation Period. 
During the Controlled Accumulation Period an amount equal to the product
of the Allocation Percentage and the aggregate amount of Principal Collections
processed on such Date of Processing (the product for any such date is
hereinafter referred to as a “Percentage
Allocation”) shall be allocated to the Series 2005-1 Noteholders and
transferred to the Principal Account until applied as provided herein; provided, however, that if the sum of such
Percentage Allocation and all preceding Percentage Allocations with respect to
the same Monthly Period exceeds the Controlled Deposit Amount during the
Controlled Accumulation Period for the related Payment Date, then such excess
shall not be treated as a Percentage Allocation and shall be first, if any
other Principal Sharing Series is outstanding and in its accumulation period or
amortization period, retained in the Principal Account for application, to the
extent necessary, as Shared Principal Collections to other Principal Sharing
Series on the related Payment Date, second deposited in the Excess Funding
Account to the extent necessary so that the Free Equity Amount is not less than
the Minimum Free Equity Amount and third paid to the holders of the Transferor
Interest.

 

(z)            Allocations During the Early
Amortization Period.  During
the Early Amortization Period, an amount equal to the product of the Allocation
Percentage and the aggregate amount of Principal Collections processed on such
Date of Processing shall be allocated to the 2005-1 Noteholders and transferred
to the Principal Account until applied as provided herein; provided, however,
that after the date on which an amount of such Principal Collections equal to
the Note Principal Balance has been deposited into the Principal Account such
amount shall be first, if any other Principal Sharing Series is outstanding and
in its accumulation

 

21

 

period or amortization period, retained in the
Principal Account for application, to the extent necessary, as Shared Principal
Collections to other Principal Sharing Series on the related Payment Date,
second deposited in the Excess Funding Account to the extent necessary so that
the Free Equity Amount is not less than the Minimum Free Equity Amount and
third paid to the holders of the Transferor Interest.

 

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

 

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

 

(i)            to pay, on a pari
passu basis, the following amounts, to the extent allocated to Series 2005-1
pursuant to Section 8.4(d) of the Indenture: (A) the payment to the Indenture
Trustee of the accrued and unpaid fees and other amounts owed to the Indenture
Trustee up to a maximum amount of $25,000 for each calendar year, (B) the
payment to the Trustee of the accrued and unpaid fees and other amounts owed to
the Trustee up to a maximum amount of $25,000 for each calendar year and (C)
the payment to the Administrator of the accrued and unpaid fees and other
amounts owed to the Administrator up to a maximum amount of $25,000 for each
calendar year;

 

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

 

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

 

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

 

22

 

the Class B Counterparty and any unpaid Class B Net Swap Payments owed
to the Class B Counterparty in respect of any prior Payment Date;

 

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

 

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

 

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

 

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

 

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

 

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

 

23

 

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

 

(xii)          unless an Early
Amortization Event shall have occurred and be continuing, on a pari passu basis
any amounts owed to such Persons listed in clause (i) above that have
been allocated to Series 2005-1 pursuant to Section 8.4(d) of the Indenture and
that have not been paid pursuant to clause (i) above shall be paid to
such Persons; and

 

(xiii)         the balance, if
any, will constitute a portion of Excess Finance Charge Collections for such
Payment Date and will be applied in accordance with Section 8.6 of the
Indenture; provided that during an Early Amortization Period, if any
such Excess Finance Charge Collections would be paid to the Transferor in
accordance with Section 8.6 of the Indenture, the portion of such Excess
Finance Charge Collections that would otherwise be payable to the Transferor, first
shall be used to pay Monthly Principal pursuant to Section 4.4(c) to the
extent not paid in full from Available Principal Collections (calculated
without regard to amounts available to be treated as Available Principal
Collections pursuant to this clause (xiii)), second, shall be used to
pay on a pari passu basis any amounts owed to such Persons listed in clause
(i) above that have been allocated to Series 2005-1 pursuant to Section
8.4(d) of the Indenture and that have not been paid pursuant to clauses (i) and
(xii) above, and, third, any amounts remaining after payment in full of
the Monthly Principal and amounts owed to such Persons listed in clause (i)
above shall be paid to the Issuer in respect of the Ownership Interest.

 

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

 

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

 

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

 

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

 

24

 

Balance has been paid in full; and third to the Class C
Noteholders until the Class C Note Principal Balance has been paid in full; and

 

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

 

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

 

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

 

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

 

SECTION 4.5.  Distributions.

 

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

 

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

 

(c)           On
each Payment Date, the Issuer shall pay to each Class C Noteholder of record on
the related Record Date such Class C Noteholder’s pro  rata share
of the amounts on deposit in

 

25

 

the Distribution Account (including amounts withdrawn from the Spread
Account (at the times and in the amounts specified in Section 4.11))
that are allocated and available on such Payment Date and as are payable to the
Class C Noteholders pursuant to this Indenture Supplement.

 

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

 

(e)           All
payments to Noteholders hereunder shall be made by (i) check mailed to each
Series 2005-1 Noteholder (at such Noteholder’s address as it appears in the
Note Register), except that for any Series 2005-1 Notes registered in the name
of the nominee of a Clearing Agency, such payment shall be made by wire
transfer of immediately available funds and (ii) except as provided in Section
2.7(b) of the Indenture, without presentation or surrender of any Series 2005-1
Note or the making of any notation thereon.

 

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

 

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

 

SECTION 4.8.  Excess Finance Charge Collections.  Series 2005-1 shall be an Excess Allocation
Series with respect to Group One only. 
Subject to Section 8.6 of
the Indenture, Excess Finance Charge Collections with respect to the Excess
Allocation Series in Group One for any Transfer Date will be allocated to
Series 2005-1 in an amount equal to the product of (x) the aggregate amount of
Excess Finance Charge Collections with respect to all the Excess Allocation
Series in Group One for such Payment Date and (y) a fraction, the numerator of
which is the Finance Charge Shortfall for Series 2005-1 for such Payment Date
and the denominator of which is the aggregate amount of Finance Charge
Shortfalls for all the Excess Allocation Series in Group One for such Payment
Date.  The “Finance
Charge Shortfall” for Series 2005-1 for any Payment Date will be
equal to the excess, if any, of (a) the full amount required to be paid,
without duplication, pursuant to Sections
4.4(a)(i) through (xii) on
such Payment Date over (b) the
Available Finance Charge Collections with respect to such Payment Date
(excluding any portion thereof attributable to Excess Finance Charge
Collections).

 

SECTION 4.9.  Shared Principal Collections.  Subject to Section 8.5
of the Indenture, Shared Principal Collections allocable to Series 2005-1 on
any Transfer Date will be equal to the product of (x) the aggregate amount of
Shared Principal Collections with respect to all Principal Sharing Series for
such Transfer Date and (y) a fraction, the numerator of which is the Principal
Shortfall for Series 2005-1 for such Transfer Date and the denominator of which
is the aggregate

 

26

 

amount of Principal Shortfalls for all the Series which are Principal
Sharing Series for such Transfer Date. 
The “Principal Shortfall” for
Series 2005-1 will be equal to (a) for any Transfer Date with respect to the
Revolving Period or any Transfer Date during the Early Amortization Period
prior to the Transfer Date relating to the earlier of (i) the Expected
Principal Payment Date and (ii) the date on which all outstanding Series are in
early amortization periods, zero, (b) for any Transfer Date with respect to the
Controlled Accumulation Period, the excess, if any, of the Controlled Deposit
Amount with respect to such Transfer Date over
the amount of Available Principal Collections for such Transfer Date (excluding
any portion thereof attributable to Shared Principal Collections or amounts
available to be treated as Available Principal Collections pursuant to clause
(xiii) of Section 4.4(a)) and (c) for any Transfer Date relating to any
Payment Date on or after the earlier of (i) the Expected Principal Payment Date
and (ii) the date on which all outstanding Series are in early amortization
periods, the Note Principal Balance.

 

SECTION 4.10.  Reserve Account.

 

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

 

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

 

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

 

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

 

(e)           Upon
the earliest to occur of (i) the termination of the Trust pursuant to Article VIII of the Trust Agreement, (ii) the
first Transfer Date relating to the Early Amortization Period and (iii) the
Expected Principal Payment Date for the Class C Notes, the Issuer, after the
prior payment of all amounts owing to the Series 2005-1 Noteholders that are
payable from the Reserve Account as provided herein, shall withdraw from the
Reserve Account all amounts, if

 

27

 

any, on deposit in the Reserve Account and distribute any such amounts
to the holders of the Transferor Interest. 
The Reserve Account shall thereafter be deemed to have terminated for
purposes of this Indenture Supplement.

 

SECTION 4.11.  Spread Account.

 

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

 

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

 

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

 

(d)           On
any day following the occurrence of an Event of Default with respect to Series
2005-1 that has resulted in the acceleration of the Series 2005-1 Notes, the
Issuer shall withdraw from the Spread Account the Available Spread Account
Amount and deposit such amount in the Distribution Account for payment to the
Series 2005-1 Notes in the following order of priority until all amounts owed
to such Noteholders have been paid in full: (i) the Class C Noteholders, (ii)
the Class A Noteholders and (iii) the Class B Noteholders.

 

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

 

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

 

 

28

 

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

 

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

 

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

 

(d)           On
each Transfer Date (but subject to Section 4.11(a)),
the Investment Earnings, if any, credited since the preceding Transfer Date on
funds on deposit in the Spread Account shall be retained in the Spread Account
(to the extent that the Available Spread Account Amount is less than the
Required Spread Account Amount) and the balance, if any, shall be paid to the
holders of the Transferor Interest.  For
purposes of determining the availability of funds or the balance in the Spread
Account for any reason under this Indenture Supplement (subject to Section 4.11(a)), all Investment Earnings
shall be deemed not to be available or on deposit; provided
that after the maturity of the Series 2005-1 Notes has been accelerated as a
result of an Event of Default, all Investment Earnings shall be added to the
balance on deposit in the Spread Account and treated like the rest of the
Available Spread Account Amount.

 

SECTION 4.13.  Controlled Accumulation Period.  The Controlled Accumulation Period is
scheduled to commence at the beginning of business on April 22, 2009; provided that if the Controlled Accumulation
Period Length (determined as described below) on any Determination Date is less
than or more than the number of months in the scheduled Controlled Accumulation
Period, upon written notice to the Indenture Trustee, with a copy to each
Rating Agency, the Issuer shall either postpone or accelerate, as applicable,
the date on which the Controlled Accumulation Period actually commences, so
that, as a result, the number of Monthly Periods in the Controlled Accumulation
Period will equal the Controlled Accumulation Period Length; provided
that the length of the Controlled Accumulation Period will not be less than one
month.  The “Controlled
Accumulation Period Length” will mean a number of whole months such
that the amount available for payment of principal on the Notes on the Expected
Principal Payment Date is expected to equal or exceed the Note Principal
Balance, assuming for this purpose that (1) the payment rate with respect to
Principal Collections remains constant at the lowest level of such payment rate
during the twelve preceding Monthly Periods, (2) the total amount of Principal
Receivables in the Trust (and the principal amount on deposit in the Excess
Funding Account, if any) remains constant at the level on such date of
determination, (3) no Early Amortization Event with respect to any Series will
subsequently occur and (4) no additional Series (other than any Series being
issued on such date of determination) will be subsequently issued.  Any notice by Issuer modifying the
commencement of the Controlled Accumulation Period pursuant to this Section 4.13 shall specify (i) the Controlled
Accumulation Period Length, (ii) the commencement date of the Controlled
Accumulation Period and (iii) the Controlled

 

29

 

Accumulation Amount with respect to each Monthly Period during the
Controlled Accumulation Period.

 

SECTION 4.14.  Determination of LIBOR.

 

(a)           On
each LIBOR Determination Date in respect of an Interest Period, the Indenture
Trustee shall determine LIBOR on the basis of the rate per annum displayed in
the Bloomberg Financial Markets system as the composite offered rate for London
interbank deposits for a period of the Designated Maturity, as of 11:00 a.m.,
London time, on that date.  If that rate
does not appear on that display page, LIBOR for that Interest Period will be
the rate per annum shown on page 3750 of the Bridge Telerate Services Report
screen or any successor page as the composite offered rate for London interbank
deposits for a one-month period, as shown under the heading “USD” as of 11:00
a.m., London time, on the LIBOR Determination Date.  If no rate is shown as described in the
preceding two sentences, LIBOR for that Interest Period will be the rate per
annum based on the rates at which Dollar deposits for a period of the
Designated Maturity are displayed on page “LIBOR” of the Reuters Monitor Money
Rates Service or such other page as may replace the LIBOR page on that service
for the purpose of displaying London interbank offered rates of major banks as
of 11:00 a.m., London time, on the LIBOR Determination Date; provided
that if at least two rates appear on that page, the rate will be the arithmetic
mean of the displayed rates and if fewer than two rates are displayed, or if no
rate is relevant, the rate for that Interest Period shall be determined on the
basis of the rates at which deposits in United States dollars are offered by
the Reference Banks at approximately 11:00 a.m., London time, on that day to
prime banks in the London interbank market for period of the Designated
Maturity.  The Indenture Trustee shall
request the principal London office of each of the Reference Banks to provide a
quotation of its rate.  If at least two
(2) such quotations are provided, the rate for that Interest Period shall be
the arithmetic mean of the quotations. 
If fewer than two (2) quotations are provided as requested, the rate for
that Interest Period will be the arithmetic mean of the rates quoted by major
banks in New York City, selected by the Servicer, at approximately 11:00 a.m.,
New York City time, on that day for loans in United States dollars to leading
European banks for a period of the Designated Maturity.

 

(b)           The
Class A Note Interest Rate, Class B Note Interest Rate and Class C Note Interest
Rate applicable to the then current and the immediately preceding Interest
Periods may be obtained by telephoning the Indenture Trustee at its corporate
trust office at (800) 735-7777 or such other telephone number as shall be
designated by the Indenture Trustee for such purpose by prior written notice by
the Indenture Trustee to each Series 2005-1 Noteholder from time to time.

 

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

 

SECTION 4.15.  Swaps. 
(a) On or prior to the Closing Date, the Issuer shall enter into a Class
A Swap with the Class A Counterparty, a Class B Swap with the Class B
Counterparty and a Class C Swap with the Class C Counterparty for the benefit
of the Class A Noteholders, the Class B Noteholders and the Class C
Noteholders, respectively.  The aggregate
notional amount under the Class A Swap shall, at any time, be equal to the
Class A Note Principal Balance at such time. 
The aggregate notional amount under the Class B Swap shall, at any time,
be equal to

 

30

 

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

 

(b)           When
required under the terms of the existing Class A Swap, Class B Swap or Class C
Swap, the Issuer shall obtain a replacement Class A Swap, Class B Swap or Class
C Swap, as applicable, upon satisfaction of the Rating Agency Condition.

 

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

 

ARTICLE V

DELIVERY OF SERIES 2005-1 NOTES;

REPORTS TO SERIES 2005-1 NOTEHOLDERS

 

SECTION 5.1.  Delivery and Payment for the Series 2005-1
Notes.

 

The Issuer shall execute and issue, and the Indenture
Trustee shall authenticate, the Series 2005-1 Notes in accordance with Section 2.2 of the Indenture.  The Indenture Trustee shall deliver the
Series 2005-1 Notes to or upon the written order of the Issuer when so
authenticated.

 

SECTION 5.2.  Reports and Statements to Series 2005-1
Noteholders.

 

(a)           Not
later than the second Business Day preceding each Payment Date, the Issuer
shall deliver or cause the Servicer to deliver to the Trustee, the Indenture
Trustee and each Rating Agency a statement substantially in the form of Exhibit B prepared by the Servicer; provided that the Issuer may amend the form
of Exhibit B from time to time, with the
prior written consent of the Indenture Trustee. 
On each Payment Date, the Issuer shall forward to each Series 2005-1
Noteholder a statement substantially in the form of Exhibit
B.

 

(b)           A
copy of each statement or certificate provided pursuant to Section 5.2(a) may
be obtained by any Series 2005-1 Noteholder by a request in writing to the
Issuer.

 

31

 

(c)           On
or before January 31 of each calendar year, beginning with January 31, 2006,
the Issuer shall furnish or cause to be furnished to each Person who at any
time during the preceding calendar year was a Series 2005-1 Noteholder the
information for the preceding calendar year, or the applicable portion thereof
during which the Person was a Noteholder, as is required to be provided by an
issuer of indebtedness under the Code to the holders of the Issuer’s indebtedness
and such other customary information as is necessary to enable such Noteholder
to prepare its federal income tax returns. 
Notwithstanding anything to the contrary contained in this Agreement,
the Issuer shall, to the extent required by applicable law, from time to time
furnish to the appropriate Persons, at least five Business Days prior to the
end of the period required by applicable law, the informed required to complete
a Form 1099-INT.

 

ARTICLE VI

SERIES 2005-1 EARLY AMORTIZATION EVENTS

 

SECTION 6.1.  Series 2005-1 Early Amortization Events.  If any one of the following events shall
occur with respect to the Series 2005-1 Notes:

 

(a)           (i)  failure on the part of Transferor to make any
payment or deposit required to be made by it by the terms of the Trust
Receivables Purchase Agreement or the Transfer Agreement on or before the date
occurring five (5) Business Days after the date such payment or deposit is
required to be made therein or herein or (ii) failure of the Transferor duly to
observe or perform in any material respect any other of its covenants or
agreements set forth in the Trust Receivables Purchase Agreement or the
Transfer Agreement which failure has a material adverse effect on the Series
2005-1 Noteholders and which continues unremedied for a period of sixty days
after the date on which written notice of such failure, requiring the same to
be remedied, shall have been given to the Transferor by the Indenture Trustee,
or to the Transferor and the Indenture Trustee by any Noteholder of the Series
2005-1 Notes;

 

(b)           any
representation or warranty made by Transferor in the Transfer Agreement or the
Trust Receivables Purchase Agreement or any information contained in an account
schedule required to be delivered by it pursuant to Section 2.1
or Section 2.6(c) of the Transfer
Agreement, Trust Agreement or the Bank Receivables Sale Agreement shall prove
to have been incorrect in any material respect when made or when delivered,
which continues to be incorrect in any material respect for a period of sixty
days after the date on which written notice of such failure, requiring the same
to be remedied, shall have been given to the Transferor by the Indenture
Trustee, or to the Transferor and the Indenture Trustee by any Noteholder of
the Series 2005-1 Notes and as a result of which the interests of the Series
2005-1 Noteholders are materially and adversely affected for such period; provided,
however, that a Series 2005-1 Early Amortization Event pursuant to
this Section 6.1(b) shall not be deemed
to have occurred hereunder if the Transferor has accepted reassignment of the
related Transferred Receivable, or all of such Transferred Receivables, if
applicable, during such period in accordance with the provisions of the
Transfer Agreement or the Trust Receivables Purchase Agreement;

 

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

 

32

 

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

 

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

 

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

 

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

 

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

 

(i)            without
limiting the foregoing, the occurrence of an Event of Default with respect to
Series 2005-1 and acceleration of the maturity of the Series 2005-1 Notes
pursuant to Section 5.3 of the
Indenture;

 

then, in the case of any event described in subsection (a), (b)
or (d), after the applicable grace
period, if any, set forth in such subparagraphs, either the Indenture Trustee
or the holders of Series 2005-1 Notes evidencing more than 50% of the aggregate
unpaid principal amount of Series 2005-1 Notes by notice then given in writing
to the Issuer (and to the Indenture Trustee if given by the Series 2005-1
Noteholders) may declare that a “Series Early Amortization Event” with respect
to Series 2005-1 (a “Series 2005-1 Early
Amortization Event”) has occurred as of the date of such notice,
and, in the case of any event described in subsection
(c), (e), (f), (g), (h) or (i) a Series 2005-1 Early
Amortization Event shall occur without any notice or other action on the part
of the Indenture Trustee or the Series 2005-1 Noteholders immediately upon the
occurrence of such event.

 

ARTICLE VII

REDEMPTION OF SERIES 2005-1 NOTES; FINAL
DISTRIBUTIONS; SERIES TERMINATION

 

SECTION 7.1.  Optional Redemption of Series 2005-1 Notes;
Final Distributions.

 

(a)           On
any day occurring on or after the date on which the outstanding principal
balance of the Series 2005-1 Notes is reduced to 10% or less of the initial
outstanding principal

 

33

 

balance of Series 2005-1 Notes, Transferor has the option pursuant to
the Trust Agreement to reduce the Collateral Amount to zero by paying a
purchase price equal to the greater of (x) the Collateral Amount, plus the
applicable Allocation Percentage of outstanding Finance Charge Receivables and
(y) a minimum amount equal to (i) if such day is a Payment Date, the Redemption
Amount for such Payment Date or (ii) if such day is not a Payment Date, the
Redemption Amount for the Payment Date following such day.  If Transferor exercises such option, Issuer
will apply such purchase price to repay the Notes in full as specified below.

 

(b)           Issuer
shall give the Indenture Trustee at least thirty (30) days prior written notice
of the date on which Transferor intends to exercise such optional
redemption.  Not later than 12:00 noon,
New York City time, on such day Transferor shall deposit into the Distribution
Account in immediately available funds the excess of the Redemption Amount over
the amount, if any, on deposit in the Principal Accumulation Account.  Such redemption option is subject to payment
in full of the Redemption Amount.  Following
such deposit into the Distribution Account in accordance with the foregoing,
the Collateral Amount for Series 2005-1 shall be reduced to zero and the Series
2005-1 Noteholders shall have no further security interest in the Transferred
Receivables.  The Redemption Amount shall
be paid as set forth in Section 7.1(d).

 

(c)           (i)  The amount to be paid by the Transferor with
respect to Series 2005-1 in connection with a reassignment of Transferred
Receivables to the Transferor pursuant to Section 6.1(e)
of the Transfer Agreement shall not be less than the Redemption
Amount for the first Payment Date following the Monthly Period in which the
reassignment obligation arises under the Transfer Agreement.

 

(ii)           The amount to be
paid by the Issuer with respect to Series 2005-1 in connection with a
repurchase of the Notes pursuant to Section 10.1
of the Trust Agreement shall not be less than the Redemption Amount for the
Payment Date of such repurchase.

 

(d)           With
respect to (i) the Redemption Amount deposited into the Distribution Account
pursuant to Section 7.1 or (ii)
the proceeds of any sale of Transferred Receivables pursuant to Section 5.3 of the Indenture with respect to
Series 2005-1, the Indenture Trustee shall, in accordance with the written
direction of the Issuer, not later than 12:00 noon, New York City time, on the
related Payment Date, make payments of the following amounts (in the priority
set forth below and, in each case, after giving effect to any deposits and
payments otherwise to be made on such date) in immediately available
funds:  (i) (x) the Class A Note
Principal Balance on such Payment Date will be paid to the Class A Noteholders
and (y) an amount equal to the sum of (A) Class A Monthly Interest due and payable
on such Payment Date or any prior Payment Date, (B) any Class A Deficiency
Amount for such Payment Date and (C) the amount of Class A Additional Interest,
if any, for such Payment Date and any Class A Additional Interest previously
due but not paid to the Class A Noteholders on any prior Payment Date, will be
paid to the Class A Noteholders, (ii) (x) the Class B Note Principal
Balance on such Payment Date will be paid to the Class B Noteholders and (y) an
amount equal to the sum of (A) Class B Monthly Interest due and payable on such
Payment Date or any prior Payment Date, (B) any Class B Deficiency Amount for
such Payment Date and (C) the amount of Class B Additional Interest, if any,
for such Payment Date and any Class B Additional Interest previously due but
not paid to the Class B Noteholders on any prior Payment Date, will be paid to
the Class B

 

34

 

Noteholders, (iii)  (x) the Class C Note Principal Balance on such
Payment Date will be paid to the Class C Noteholders and (y) an amount equal to
the sum of (A) Class C Monthly Interest due and payable on such Payment Date or
any prior Payment Date, (B) any Class C Deficiency Amount for such Payment
Date, and (C) the amount of Class C Additional Interest, if any, for such
Payment Date and any Class C Additional Interest previously due but not paid to
the Class C Noteholders on any prior Payment Date will be paid to the Class C
Noteholders and (iv) on a pari passu basis, (A) any amounts owed to the
Counterparty under the Class A Swap will be paid to the Class A Counterparty,
(B) any amounts owed to the Class B Counterparty under the Class B Swap will be
paid to the Class B Counterparty and (C) any amounts owed to the Class C
Counterparty under the Class C Swap will be paid to the Class C Counterparty
and (v) any excess shall be released to the Issuer.

 

SECTION 7.2.  Series Termination.

 

On the Series Maturity Date, the unpaid principal
amount of the Series 2005-1 Notes shall be due and payable.

 

ARTICLE VIII

MISCELLANEOUS PROVISIONS

 

SECTION 8.1.  Ratification of Indenture; Amendments.  As supplemented by this Indenture Supplement,
the Indenture is in all respects ratified and confirmed and the Indenture as so
supplemented by this Indenture Supplement shall be read, taken and construed as
one and the same instrument.  This
Indenture Supplement may be amended only by a Supplemental Indenture entered in
accordance with the terms of Section 9.1
or 9.2 of the Indenture.  For purposes of the application of Section 9.2 to any amendment of this
Indenture Supplement, the Series 2005-1 Noteholders shall be the only
Noteholders whose vote shall be required.

 

SECTION 8.2.  Form of Delivery of the Series 2005-1
Notes.  The Class A Notes, the Class
B Notes and the Class C Notes shall be Book-Entry Notes and shall be delivered
as provided in Sections 2.1 and 2.2 of the Indenture.

 

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

 

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

 

35

 

(b)           EACH
PARTY HERETO HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS
LOCATED IN THE BOROUGH OF MANHATTAN IN NEW YORK CITY SHALL HAVE EXCLUSIVE
JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THEM
PERTAINING TO THIS AGREEMENT OR TO ANY MATTER ARISING OUT OF OR RELATING TO
THIS AGREEMENT; PROVIDED, THAT EACH PARTY HERETO ACKNOWLEDGES THAT ANY
APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF
THE BOROUGH OF MANHATTAN IN NEW YORK CITY; PROVIDED, FURTHER,
THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE THE
INDENTURE TRUSTEE FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER
JURISDICTION TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE NOTES,
OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE INDENTURE
TRUSTEE.  EACH PARTY HERETO SUBMITS AND
CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY
SUCH COURT, AND EACH PARTY HERETO HEREBY WAIVES ANY OBJECTION THAT SUCH PARTY
MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM
NON CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR
EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.  EACH PARTY HERETO HEREBY WAIVES PERSONAL
SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION
OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER PROCESS
MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH PARTY AT ITS
ADDRESS DETERMINED IN ACCORDANCE WITH SECTION 11.4 OF THE INDENTURE AND
THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH PARTY’S
ACTUAL RECEIPT THEREOF OR THREE DAYS AFTER DEPOSIT IN THE UNITED STATES MAIL,
PROPER POSTAGE PREPAID.  NOTHING IN THIS
SECTION SHALL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE LEGAL PROCESS IN
ANY OTHER MANNER PERMITTED BY LAW.

 

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

 

SECTION 8.5.  Limitation of Liability.  Notwithstanding any other provision herein or
elsewhere, this Agreement has been executed and delivered by The Bank of New
York

 

36

 

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

 

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

 

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

 

Fitch Ratings

One State Street Plaza

New York, NY 10004 

Facsimile: (212)-514-9879

 

Moody’s Rating Service

99 Church Street

New York, NY 10007 

Facsimile:  (212) 553-3856

 

Standard & Poor’s

Structured Finance Surveillance

55 Water Street

New York, NY 10041

Attention:  ABS Surveillance Group

Facsimile: (212) 438-2648-0003

 

ARTICLE IX

FASIT MATTERS

 

SECTION 9.1.  FASIT Administration.

 

(a)           FASIT
Matters.  An election has been made
to treat the Trust Estate as a FASIT known as the RFS FASIT.  December 30, 2002 was designated as the “Startup
Day” of the RFS FASIT within the meaning of section 860L(d)(1) of the
Code.  The Ownership Interest was
designated as the single class of “ownership interest” (within the meaning of
section 860L(b)(2) of the Code) in the RFS FASIT.  Notwithstanding any provision of the
Indenture or this Indenture Supplement to the contrary, each class of Series
2005-1 Regular Interests shall mature on or before December 1, 2020.

 

(b)           Series
2005-1 Regular Interests.  Each Class
of Notes is hereby designated a separate class of “regular interests” in the
RFS FASIT within the meaning of section 860L(b)(1)(A) of the Code and each Note
is hereby designated a separate “regular interest”

 

37

 

within such Class.  Each of the
Class A Notes is hereby designated a “Class A Regular Interest,” each of
the Class B Notes is hereby designated a “Class B Regular Interest” and
each of the Class C Notes is hereby designated a “Class C Regular Interest”
(the Class A Regular Interests, the Class B Regular Interests and the Class C
Regular Interests being referred to collectively as the “Series 2005-1
Regular Interests”).  The Series
2005-1 Regular Interest shall bear interest at a rate equal to the rate of
interest on the related Class A Note, Class B Note or Class C Note, as
applicable (such related interest, a “Related Interest”).  The rate of interest on each Related Interest
is intended to qualify as a qualifying variable rate under section 860L(b)(1)(A)(ii)
of the Code.  Interest shall be paid on
each Class of Series 2005-1 Regular Interest at the same times as Interest is
paid on the Class A Notes, Class B Notes and Class C Notes (which Interest
shall be allocated among the Series 2005-1 Regular Interests in proportion to
the amount of Interest owning on the respective Related Interests if there is
more than one class of such Series 2005-1 Regular Interests and Interest with
respect to each class is not paid in full). 
The principal amount of each Series 2005-1 Regular Interest shall equal
the respective amount of the Class A Note Principal Balance, Class B Note
Principal Balance or Class C Note Principal Balance, as applicable, with
respect to the Related Interest for such Series 2005-1 Regular Interest.

 

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

 

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

 

(e)           Payment
of Principal on Class C Regular Interests. On each Payment Date, beginning
with the Payment Date in the month following the month in which the Controlled
Accumulation Period or, if earlier, the Early Amortization Period, begins, the
principal amount of each Class C Regular Interest related to a Class C Note
shall be reduced by such Class C Note’s pro rata share of an amount equal to
the least of (i) the Available Principal Collections on deposit in the
Principal Account with respect to such Payment Date, (ii) for each Payment Date

 

38

 

with respect to the Controlled Accumulation Period, the Controlled
Deposit Amount for such Payment Date, (iii) the Collateral Amount (after taking
into account any adjustments to be made on such Payment Date pursuant to Sections
4.6 and 4.7) prior to any deposit into the Principal Accumulation
Account on such Payment Date, and (iv) the Note Principal Balance, minus any
amount already on deposit in the Principal Accumulation Account on such Payment
Date.

 

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

 

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

 

[SIGNATURE
PAGE FOLLOWS]

 

39

 

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

 

	
   

  	
  GE CAPITAL CREDIT CARD MASTER
  NOTE

  TRUST, as Issuer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  The Bank of New York (Delaware), not in

  its individual capacity, but as Trustee on

  behalf of Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ KRISTINE K. GULLO

  	
   

  
	
   

  	
   

  	
  Name:  Kristine K. Gullo

  
	
   

  	
   

  	
  Title:    Assistant Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST COMPANY

  AMERICAS, as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Susan Barstock

  	
   

  
	
   

  	
   

  	
  Name:  Susan Barstock

  
	
   

  	
   

  	
  Title:    Vice President

  
					

 

S-1

 

EXHIBIT A-1

FORM OF CLASS
A SERIES 2005-1 FLOATING RATE ASSET BACKED NOTE

 

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

 

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

 

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

 

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

 

A-1-1

 

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

 

A-1-2

 

	
  REGISTERED

  	
   

  	
  $

  
	
  No.
  R-                             

  	
   

  	
   

  	
  CUSIP
  NO.

  

 

GE
CAPITAL CREDIT CARD

MASTER NOTE TRUST SERIES 2005-1

 

CLASS A SERIES 2005-1 FLOATING RATE ASSET BACKED NOTE

 

GE Capital Credit Card Master Note Trust (herein
referred to as the “Issuer” or the “Trust”), a Delaware statutory trust
governed by a Trust Agreement dated as of September 25, 2003, for value
received, hereby promises to pay to Cede & Co., or registered assigns,
subject to the following provisions, the principal sum of                                
DOLLARS, or such greater or lesser amount as determined in accordance with the
Indenture, on the March 2013 Payment Date, except as otherwise provided below
or in the Indenture.  The Issuer will pay
interest on the unpaid principal amount of this Note at the Class A Note
Interest Rate on each Payment Date until the Final Payment Date (which is the
earlier to occur of (a) the Payment Date on which the Note Principal Balance is
paid in full, (b) the date on which the Collateral Amount is reduced to zero
and (c) the March 2013 Payment Date). Interest on this Note will accrue for
each Payment Date from and including the most recent Payment Date on which
interest has been paid to but excluding such Payment Date or, for the initial
Payment Date, from and including the Closing Date to but excluding such Payment
Date.  Interest will be computed on the
basis of a 360-day year and the actual number of days elapsed.  Principal of this Note shall be paid in the
manner specified in the Indenture Supplement referred to on the reverse hereof.

 

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

 

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

 

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

 

A-1-3

 

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

 

	
   

  	
  GE CAPITAL CREDIT CARD MASTER
  NOTE

  TRUST, as Issuer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  THE BANK OF NEW YORK (DELAWARE),

  not in its individual capacity but solely as

  Trustee on behalf of Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Dated:                    ,    

  	
   

  

 

A-1-4

 

INDENTURE
TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	
   

  	
  DEUTSCHE BANK TRUST COMPANY AMERICAS,

  as Indenture Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

A-1-5

 

GE CAPITAL
CREDIT CARD

MASTER NOTE TRUST SERIES 2005-1

 

CLASS A SERIES
2005-1 FLOATING RATE ASSET BACKED NOTE

 

Summary of
Terms and Conditions

 

This Class A Note is one of a duly authorized issue of
Notes of the Issuer, designated as GE Capital Credit Card Master Note Trust,
Series 2005-1 (the “Series 2005-1 Notes”),
issued under a Master Indenture dated as of September 25, 2003 (as amended, the
“Master Indenture”), between the Issuer
and Deutsche Bank Trust Company Americas, as indenture trustee (the “Indenture Trustee”), as supplemented by the
Indenture Supplement dated as of March 30, 2005 (the “Indenture Supplement”), and representing the
right to receive certain payments from the Issuer.  The term “Indenture,” unless the context
otherwise requires, refers to the Master Indenture as supplemented by the
Indenture Supplement.  The Notes are
subject to all of the terms of the Indenture. 
All terms used in this Note that are defined in the Indenture shall have
the meanings assigned to them in or pursuant to the Indenture.  In the event of any conflict or inconsistency
between the Indenture and this Note, the Indenture shall control.

 

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

 

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

 

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

 

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

 

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

 

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

 

A-1-6

 

ASSIGNMENT

 

Social Security or other identifying number of assignee
                                 

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
  **

  
	
   

  	
   

  	
   

  	
   

  	
  Signature Guaranteed:

  	
   

  

 

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

 

A-1-7

 

EXHIBIT A-2

FORM OF CLASS B
SERIES 2005-1 FLOATING RATE ASSET BACKED NOTE

 

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

 

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

 

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

 

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

 

A-2-1

 

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

 

A-2-2

 

	
  REGISTERED

  	
   

  	
  $

  
	
  No.
  R-                             

  	
   

  	
   

  	
  CUSIP
  NO.

  

 

GE CAPITAL
CREDIT CARD

MASTER NOTE TRUST SERIES 2005-1

 

CLASS B SERIES
2005-1 FLOATING RATE ASSET BACKED NOTE

 

GE Capital Credit Card Master Note Trust (herein
referred to as the “Issuer” or the “Trust”), a Delaware statutory trust
governed by a Trust Agreement dated as of September 25, 2003, for value received,
hereby promises to pay to Cede & Co., or registered assigns, subject to the
following provisions, the principal sum of
               
DOLLARS, or such greater or lesser amount as determined in accordance with the
Indenture, on the March 2013 Payment Date, except as otherwise provided below
or in the Indenture.  The Issuer will pay
interest on the unpaid principal amount of this Note at the Class B Note
Interest Rate on each Payment Date until the Final Payment Date (which is the
earlier to occur of (a) the Payment Date on which the Note Principal Balance is
paid in full, (b) the date on which the Collateral Amount is reduced to zero
and (c) the March 2013 Payment Date). 
Interest on this Note will accrue for each Payment Date from and
including the most recent Payment Date on which interest has been paid to but
excluding such Payment Date or, for the initial Payment Date, from and
including the Closing Date to but excluding such Payment Date.  Interest will be computed on the basis of a
360-day year and the actual number of days elapsed.  Principal of this Note shall be paid in the
manner specified in the Indenture Supplement referred to on the reverse hereof.

 

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

 

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

 

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

 

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

 

A-2-3

 

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

 

	
   

  	
  GE CAPITAL CREDIT CARD MASTER NOTE

  TRUST, as Issuer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  THE BANK OF NEW
  YORK (DELAWARE),

  not in its individual capacity but solely as

  Trustee on behalf of Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Dated:                    ,    

  	
   

  

 

A-2-4

 

INDENTURE
TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	
   

  	
  DEUTSCHE BANK TRUST COMPANY

  AMERICAS,

  as Indenture Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

A-2-5

 

GE CAPITAL
CREDIT CARD

MASTER NOTE TRUST SERIES 2005-1

 

CLASS B SERIES
2005-1 FLOATING RATE ASSET BACKED NOTE

 

Summary of
Terms and Conditions

 

This Class B Note is one of a duly authorized issue of
Notes of the Issuer, designated as GE Capital Credit Card Master Note Trust,
Series 2005-1 (the “Series 2005-1 Notes”),
issued under a Master Indenture dated as of September 25, 2003 (as amended, the
“Master Indenture”), between the Issuer
and Deutsche Bank Trust Company Americas, as indenture trustee (the “Indenture Trustee”), as supplemented by the
Indenture Supplement dated as of March 30, 2005 (the “Indenture Supplement”), and representing the
right to receive certain payments from the Issuer.  The term “Indenture,” unless the context
otherwise requires, refers to the Master Indenture as supplemented by the
Indenture Supplement.  The Notes are
subject to all of the terms of the Indenture. 
All terms used in this Note that are defined in the Indenture shall have
the meanings assigned to them in or pursuant to the Indenture.  In the event of any conflict or inconsistency
between the Indenture and this Note, the Indenture shall control.

 

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

 

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

 

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

 

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

 

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

 

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

 

A-2-6

 

ASSIGNMENT

 

Social Security or other identifying number of
assignee
                               .

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
  **

  
	
   

  	
   

  	
   

  	
   

  	
  Signature Guaranteed:

  	
   

  

 

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

 

A-2-7

 

EXHIBIT A-3

FORM OF CLASS
C SERIES 2005-1 FLOATING RATE ASSET BACKED NOTE

 

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

 

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

 

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

 

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

 

A-3-1

 

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

 

A-3-2

 

	
  REGISTERED

  	
   

  	
  $

  
	
  No. R-                             

  	
   

  	
   

  	
  CUSIP NO.

  

 

GE CAPITAL
CREDIT CARD

MASTER NOTE TRUST SERIES 2005-1

 

CLASS C SERIES
2005-1 FLOATING RATE]ASSET BACKED NOTE

 

GE Capital Credit Card Master Note Trust (herein
referred to as the “Issuer” or the “Trust”), a Delaware statutory trust governed
by a Trust Agreement dated as of September 25, 2003, for value received, hereby
promises to pay to Cede & Co., or registered assigns, subject to the
following provisions, the principal sum of                   DOLLARS,
or such greater or lesser amount as determined in accordance with the Indenture,
on the March 2013 Payment Date, except as otherwise provided below or in the
Indenture.  The Issuer will pay interest
on the unpaid principal amount of this Note at the Class C Note Interest Rate
on each Payment Date until the Final Payment Date (which is the earlier to
occur of (a) the Payment Date on which the Note Principal Balance is paid in
full, (b) the date on which the Collateral Amount is reduced to zero and (c)
the March 2013 Payment Date).  Interest on
this Note will accrue for each Payment Date from and including the most recent
Payment Date on which interest has been paid to but excluding such Payment Date
or, for the initial Payment Date, from and including the Closing Date to but
excluding such Payment Date.  Interest
will be computed on the basis of a 360-day year and the actual number of days
elapsed.  Principal of this Note shall be
paid in the manner specified in the Indenture Supplement referred to on the
reverse hereof.

 

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

 

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

 

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

 

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

 

A-3-3

 

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

 

	
   

  	
  GE CAPITAL
  CREDIT CARD MASTER NOTE

  TRUST, as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  THE BANK OF NEW YORK (DELAWARE),

  not in its individual capacity but solely as

  Trustee on behalf of Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Dated:              ,        

  	
   

  

 

A-3-4

 

INDENTURE
TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	
   

  	
  DEUTSCHE BANK TRUST COMPANY

  AMERICAS,

  
	
   

  	
  as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  	
   

  

 

A-3-5

 

GE CAPITAL
CREDIT CARD

MASTER NOTE TRUST SERIES 2005-1

 

CLASS C SERIES
2005-1 FLOATING RATE ASSET BACKED NOTE

 

Summary of
Terms and Conditions

 

This Class C Note is one of a duly authorized issue of
Notes of the Issuer, designated as GE Capital Credit Card Master Note Trust,
Series 2005-1 (the “Series 2005-1 Notes”),
issued under a Master Indenture dated as of September 25, 2003 (as amended, the
“Master Indenture”), between the Issuer
and Deutsche Bank Trust Company Americas, as indenture trustee (the “Indenture Trustee”), as supplemented by the
Indenture Supplement dated as of March 30, 2005 (the “Indenture
Supplement”), and representing the right to receive certain payments
from the Issuer.  The term “Indenture,”
unless the context otherwise requires, refers to the Master Indenture as
supplemented by the Indenture Supplement. 
The Notes are subject to all of the terms of the Indenture.  All terms used in this Note that are defined
in the Indenture shall have the meanings assigned to them in or pursuant to the
Indenture.  In the event of any conflict
or inconsistency between the Indenture and this Note, the Indenture shall
control.

 

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

 

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

 

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

 

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

 

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

 

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

 

A-3-6

 

ASSIGNMENT

 

Social Security or other identifying number of
assignee                   

 

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

 

	
  Dated: ,

  	
   

  	
   

  	
   

  	
  **

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Signature Guaranteed:

  
							

 

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

 

A-3-7

 

EXHIBIT B

 

FORM OF
MONTHLY NOTEHOLDERS’ STATEMENT

 

Monthly Noteholder’s Statement

GE Capital Credit Card Master Note Trust

 

Series 2005 – 1

Class A LIBOR + 0.04%Notes

Class B LIBOR + 0.17% Notes

Class C LIBOR + 0.34% Notes

 

Pursuant to the Master Indenture, dated as of
September 25, 2003 (as amended and supplemented, the “Indenture”)
between GE Capital Credit Card Master Note Trust (the “Issuer”) and
Deutsche Bank Trust Company Americas, as indenture trustee (the “Indenture
Trustee”), as supplemented by the Series 2005-1 Indenture Supplement (the “Indenture
Supplement”), dated as of March 30, 2005, between the Issuer and the
Indenture Trustee, the Issuer is required to prepare, or cause the Servicer to
prepare, certain information each month regarding current distributions to the
Series 2005-1 Noteholders and the performance of the Trust during the previous
month.  The information required to be
prepared with respect to the Payment Date of May 16, 2005, and with respect to
the performance of the Trust during the Monthly Period ended May 21, 2005 is
set forth below.  Capitalized terms used
herein are defined in the Indenture and the Indenture Supplement. The
undersigned, an Authorized Officer of the Servicer, does hereby certify as
follows:

 

Monthly Period Beginning:

Monthly Period Ending:

Previous Payment Date:

Payment Date:

Days in Monthly Period:

Days in Interest Period:

LIBOR Reset Date

LIBOR Rate

 

I.                                         TRUST RECEIVABLES INFORMATION

 

(a)                                  Number
of Obligors (Total Securitized)

 

(b)                                 Average
Obligor Balance (Total Securitized)

 

(c)                                  BOP
Principal Receivables

 

(d)                                 BOP
Finance Charge Receivables

 

(e)                                  BOP
Total Receivables

 

(f)                                    Increase
in Principal Receivables from Additional Accounts

 

(g)                                 Increase
in Principal Activity on Existing Securitized Accounts

 

(h)                                 Increase
in Finance Charge Receivables from Additional Accounts

 

B-1

 

(i)                                     Increase
in Finance Charge Activity on Existing Securitized Accounts

 

(j)                                     Increase
in Total Receivables

 

(k)                                  Decrease
in Principal Receivables due to Account Removal

 

(l)                                     Decrease
in Principal Activity on Existing Securitized Accounts

 

(m)                               Decrease
in Finance Charge Receivables due to Account Removal

 

(n)                                 Decrease
in Finance Charge Activity on Existing Securitized Accounts

 

(o)                                 Decrease
in Total Receivables

 

(p)                                 EOP
Aggregate Principal Receivables

 

(q)                                 EOP
Finance Charge Receivables

 

(r)                                    EOP
Total Receivables

 

(s)                                  Excess
Funding Account Balance

 

(t)                                    Required
Principal Balance

 

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

 

(v)                                 Free
Equity Amount (Note Trust Principal Balance - EOP Collateral Amount)

 

II.                                     INVESTOR INFORMATION (TRUST LEVEL)

 

(a)                                  Note
Principal Balance (Sum of all Series)

 

(b)                                 Beginning
of Interest Period

 

(c)                                  Increase
in Note Principal Balance due to New Issuance

 

(d)                                 Decrease
in Note Principal Balance due to Principal Paid

 

(i)                                     End
of Interest Period

 

(e)                                  Excess
Collateral Amount (Sum of all Series)

 

(i)                                     Beginning
of Interest Period

 

(ii)                                  Additional
Enhancement Amount

 

(iii)                               Increase
in Excess Collateral Amount due to New Issuance

 

(iv)                              Reductions
in Required Excess Collateral Amount

 

(v)                                 Increase/Decrease
in Unreimbursed Investor Charge-Off

 

(vi)                              Increase/Decrease
in Unreimbursed Reallocated Principal Collections

 

(vii)                           End
of Interest Period

 

(f)                                    Collateral
Amount (Sum of all Series)

 

(i)                                     End
of Prior Monthly Period

 

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

 

(iii)                               Increase/Decrease
in Unreimbursed Investor Charge-Off

 

B-2

 

(iv)                              Increase/Decrease
in Unreimbursed Reallocated Principal Collections

 

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

 

III.                                 TRUST PERFORMANCE DATA (MONTHLY PERIOD)

 

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

 

(i)                                     Current

 

(ii)                                  Prior
Monthly Period

 

(iii)                               Two
Months Prior Monthly Period

 

(iv)                              Three-Month
Average

 

(b)                                 Payment
Rate (Principal Collections / BOP Principal Receivables)

 

(i)                                     Current

 

(ii)                                  Prior
Monthly Period

 

(iii)                               Two
Months Prior Monthly Period

 

(iv)                              Three-Month
Average

 

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

 

(i)                                     Current

 

(ii)                                  Prior
Monthly Period

 

(iii)                               Two
Months Prior Monthly Period

 

(iv)                              Three-Month
Average

 

(d)                                 Default
Amount for Defaulted Accounts

 

(e)                                  Collections

 

(i)                                     Total
Trust F/C Collections

 

(ii)                                  Total
Trust Principal Collections

 

(iii)                               Total
Trust Collections

 

	
  (f)

  	
  Delinquency Data

  	
   

  	
  Percentage

  	
   

  	
  Amount

  

 

(i)                                     15-29
Days Delinquent

 

(ii)                                  30-59
Days Delinquent

 

(iii)                               60-89
Days Delinquent

 

(iv)                              90-119
Days Delinquent

 

(v)                                 120-149
Days Delinquent

 

(vi)                              150
or Greater Days Delinquent

 

IV.                                 SERIES PERFORMANCE DATA

 

(a)                                  Portfolio
Yield

 

B-3

 

(i)                                     Current

 

(ii)                                  Prior
Monthly Period

 

(iii)                               Two
Months Prior Monthly Period

 

(iv)                              Three-Month
Average

 

(b)                                 Base
Rate

 

(i)                                     Current

 

(ii)                                  Prior
Monthly Period

 

(iii)                               Two
Months Prior Monthly Period

 

(iv)                              Three-Month
Average

 

(c)                                  Excess
Spread Percentage

 

(i)                                     Current

 

(ii)                                  Prior
Monthly Period

 

(iii)                               Two
Months Prior Monthly Period

 

(iv)                              Quarterly
Excess Spread Percentage

 

V.                                     INVESTOR INFORMATION REGARDING DISTRIBUTIONS TO NOTEHOLDERS

 

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

 

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

 

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

 

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

 

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

 

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

 

VI.                                 INVESTOR INFORMATION

 

(a)                                  Class
A Note Initial Principal Balance

 

(b)                                 Class
B Note Initial Principal Balance

 

(c)                                  Class
C Note Initial Principal Balance

 

(d)                                 Initial
Excess Collateral Amount

 

(e)                                  Initial
Collateral Amount

 

B-4

 

(f)                                    Class
A Note Principal Balance

 

(i)                                     Beginning
of Interest Period

 

(ii)                                  Principal
Payment

 

(iii)                               End
of Interest Period

 

(g)                                 Class
B Note Principal Balance

 

(i)                                     Beginning
of Interest Period

 

(ii)                                  Principal
Payment

 

(iii)                               End
of Interest Period

 

(h)                                 Class
C Note Principal Balance

 

(i)                                     Beginning
of Interest Period

 

(ii)                                  Principal
Payment

 

(iii)                               End
of Interest Period

 

(i)                                     Excess
Collateral Amount

 

(i)                                     Beginning
of Interest Period

 

(ii)                                  Reduction
in Excess Collateral Amount

 

(iii)                               End
of Interest Period

 

(j)                                     Principal
Accumulation Account Balance

 

(i)                                     Beginning
of Interest Period

 

(ii)                                  Controlled
Deposit Amount

 

(iii)                               Withdrawal
for Principal Payment

 

(iv)                              End
of Interest Period

 

(k)                                  Collateral
Amount

 

(i)                                     Beginning
of Interest Period

 

(ii)                                  Increase/Decrease
in Unreimbursed Investor Charge-Offs

 

(iii)                               Increase/Decrease
in Reallocated Principal Collections

 

(iv)                              Reduction
in Excess Collateral Amount

 

(v)                                 Principal
Payments

 

(vi)                              End
of Interest Period

 

(vii)                           Collateral
Amount as a Percentage of Note Trust Principal Balance

 

(viii)                        Amount
by which Note Principal Balance exceeds Collateral Amount

 

(l)                                     Required
Excess Collateral Amount

 

B-5

 

VII.                             INVESTOR CHARGE-OFFS AND REALLOCATED PRINCIPAL COLLECTIONS (SECTION
REFERENCES RELATED TO INDENTURE SUPPLEMENT)

 

(a)                                  Beginning
Unreimbursed Investor Charge-Offs

 

(b)                                 Current
Unreimbursed Investor Defaults

 

(c)                                  Current
Unreimbursed Investor Uncovered Dilution Amount

 

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

 

(e)                                  Ending
Unreimbursed Investor Charge-Offs

 

(f)                                    Beginning
Unreimbursed Reallocated Principal Collections

 

(g)                                 Current
Reallocated Principal Collections pursuant to Section 4.7

 

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

 

(i)                                     Ending
Unreimbursed Reallocated Principal Collections

 

VIII.                         INVESTOR PERCENTAGES - BOP BALANCE AND SERIES ACCOUNT INFORMATION

 

(a)                                  Allocation
Percentage Numerator - for Finance Charge Collections and Default Amounts

 

(b)                                 Allocation
Percentage Numerator - for Principal Collections

 

(c)                                  Allocation
Percentage Denominator

 

(i)                                     Aggregate
Principal Receivables Balance

 

(ii)                                  Number
of Days at Balance

 

(iii)                               Average
Principal Balance

 

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

 

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

 

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

 

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

 

(h)                                 Series
Allocation Percentage (a. / d.)

 

IX.                                COLLECTIONS AND ALLOCATIONS TRUST SERIES

 

(a)                                  Finance
Charge Collections

 

(b)                                 Recoveries

 

(c)                                  Principal
Collections

 

B-6

 

(d)                                 Default
Amount

 

(e)                                  Dilution

 

(f)                                    Investor
Uncovered Dilution Amount

 

(g)                                 Available
Finance Charge Collections

 

(i)                                     Investor
Finance Charge Collections

 

(ii)                                  Excess
Finance Charge Collections allocable to Series 2005 - 1

 

(iii)                               Principal
Accumulation Account Investment Proceeds

 

(iv)                              Investment
earnings in the Reserve Account

 

(v)                                 Reserve
Account Draw Amount

 

(vi)                              Net
Swap Receipts

 

(vii)                           Recoveries

 

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

 

(i)                                     Total
Collections (c.Series + h.)

 

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

 

X.                                    APPLICATION OF AVAILABLE FUNDS PURSUANT TO SECTION 4.4(A) OF THE
INDENTURE SUPPLEMENT

 

(a)                                  Available
Finance Charge Collections

 

(i)                                     On
a pari passu basis:

 

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

 

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

 

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

 

(ii)                                  To
the Servicer:

 

a.                                       Noteholder
Servicing Fee

 

b.                                      Noteholder
Servicing Fee previously due but not paid

 

c.                                       Total
Noteholder Servicing Fee

 

(iii)                               On
a pari passu basis:

 

a.                                       Class
A Monthly Interest

 

b.                                      Class
A Deficiency Amount

 

c.                                       Class
A Additional Interest

 

d.                                      Class
A Additional Interest not paid on prior Payment Date

 

e.                                       Class
A Net Swap Payments

 

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

 

B-7

 

(iv)                              On
a pari passu basis:

 

a.                                       Class
B Monthly Interest

 

b.                                      Class
B Deficiency Amount

 

c.                                       Class
B Additional Interest

 

d.                                      Class
B Additional Interest not paid on prior Payment Date

 

e.                                       Class
B Net Swap Payments

 

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

 

(v)                                 To
be treated as Available Principal Collections

 

a.                                       Aggregate
Investor Default Amount

 

b.                                      Aggregate
Investor Uncovered Dilution Amount

 

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

 

a.                                       Investor
Charge-offs

 

b.                                      Reallocated
Principal Collections

 

(vii)                           Excess
of Required Reserve Account Amount Over Available Reserve Account Amount

 

(viii)                        Amounts
required to be deposited to the Spread Account

 

(ix)                                On
a pari passu basis:

 

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

 

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

 

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

 

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

 

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

 

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

 

b.                                      GE
Capital’s long-term unsecured debt rating is Aa2 or lower by Moody’s or AA or
lower by S&P and the Free Equity Amount is less than the Minimum Free
Equity Amount, in which case Excess

 

B-8

 

Finance
Charge Collections will be deposited to the Excess Funding Account up to such shortfall

 

XI.                                EXCESS FINANCE CHARGE COLLECTIONS (GROUP ONE)

 

(a)                                  Total
Excess Finance Charge Collections in Group One

 

(b)                                 Finance
Charge Shortfall for Series 2005 - 1

 

(c)                                  Finance
Charge Shortfall for all Series in Group One

 

(d)                                 Excess
Finance Charges Collections Allocated to Series 2005 - 1

 

XII.                            AVAILABLE PRINCIPAL COLLECTIONS AND DISTRIBUTIONS (SECTION REFERENCES
RELATE TO INDENTURE SUPPLEMENT)

 

(a)                                  Investor
Principal Collections

 

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

 

(c)                                  Plus:
Shared Principal Collections allocated to this Series

 

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

 

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

 

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

 

(g)                                 Available
Principal Collections (Deposited to Principal Account)

 

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

 

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

 

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

 

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

 

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

 

a.                                       Principal
paid to Class A Noteholders

 

b.                                      Principal
paid to Class B Noteholders

 

c.                                       Principal
paid to Class C Noteholders

 

(vi)                              Total
Principal Collections Available to Share (Inclusive of Series 2005 - 1)

 

B-9

 

(vii)                           Series
Principal Shortfall

 

(viii)                        Shared
Principal Collections allocated to this Series from other Series

 

XIII.                        SERIES 2005 - 1 ACCUMULATION

 

(a)                                  Controlled
Accumulation Period Length in months (scheduled)

 

(b)                                 Controlled
Accumulation Amount

 

(c)                                  Controlled
Deposit Amount

 

(d)                                 Accumulation
Shortfall

 

XIV.                        SPREAD ACCOUNT FUNDING (SECTION REFERENCES RELATE TO INDENTURE
SUPPLEMENT)

 

(a)                                  Spread
Account Percentage

 

(b)                                 Required
Spread Account Amount

 

(c)                                  Beginning
Available Spread Account Amount

 

(d)                                 Withdrawal
pursuant to 4.11 (a) - Section 4.4(a)(v) Shortfall

 

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

 

(f)                                    Withdrawal
pursuant to 4.11 (c) - Early Amortization Event

 

(g)                                 Withdrawal
pursuant to 4.11 (d) - Event of Default

 

(h)                                 Deposit
pursuant to 4.4 (a)(ix) - Spread Account Deficiency

 

(i)                                     Withdrawal
pursuant to 4.11 (f) - Spread Account Surplus Amount

 

(j)                                     Ending
Available Spread Account Amount

 

XV.                            SERIES EARLY AMORTIZATION EVENTS

 

(a)                                  Failure
to convey Transferred Receivables in the event:

 

(i)                                     The
Free Equity Amount is less than the Minimum Free Equity Amount; or

 

(ii)                                  The
Note Trust Principal Balance is less than the Required Principal Balance

 

(b)                                 The
three-month average Portfolio Yield is less than three-month average Base Rate

 

(c)                                  The
Note Principal Balance is outstanding beyond the Expected Principal Payment
Date

 

B-10

 

IN WITNESS WHEREOF, the undersigned has duly executed
this Monthly Noteholder’s Statement as of the 14th day of May 2005.

 

 

	
   

  	
  GE MONEY BANK, as Servicer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

B-11

EXHIBIT C-1

 

FORM OF CLASS A SWAP

 

Filed as Exhibits 4.2, 4.5 and 4.8 to the Form 8-K filed by the Issuer
on April 5, 2005

 

 

EXHIBIT C-2

 

FORM OF CLASS B SWAP

 

Filed as Exhibits 4.3, 4.6 and 4.9 to the Form 8-K filed by the Issuer
on April 5, 2005

 

 

 

EXHIBIT C-3

 

FORM OF CLASS C SWAP

 

Filed as Exhibits 4.4, 4.7 and 4.10 to the Form 8-K filed by the Issuer
on April 5, 2005

 

 

 

 

SCHEDULE I

 

PERFECTION
REPRESENTATIONS, WARRANTIES

AND COVENANTS (WITH RESPECT TO NET SWAP RECEIPTS)

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(7)                                  Notwithstanding
any other provision of the Indenture, the representations and warranties set
forth in this Schedule I shall be
continuing, and remain in full force and effect, until such time as the Series
2005-1 Notes are retired.

 

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

 

(c)                                  The
Issuer covenants that in order to evidence the interests of the Issuer and the
Indenture Trustee under the Indenture, the Issuer shall take such action, or
execute and deliver such instruments as may be necessary or advisable
(including, without limitation, such actions as

 

Schedule I 1

 

are requested by the
Indenture Trustee) to maintain and perfect, as a first priority interest, the
Indenture Trustee’s security interest in the Net Swap Receipts.

 

Schedule I 2

 

SCHEDULE II

 

PERFECTION
REPRESENTATIONS, WARRANTIES

AND COVENANTS (WITH RESPECT TO RECEIVABLES)

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(7)                                  Notwithstanding
any other provision of the Indenture, the representations and warranties set
forth in this Schedule II shall be
continuing, and remain in full force and effect, until such time as the Series
2005-1 Notes are retired.

 

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

 

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

 

Schedule II 1

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