Document:

Exhibit 4.1

 

Execution Version

 

SYNCHRONY CREDIT CARD MASTER NOTE TRUST,

 

as Issuer

 

and

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

 

as Indenture Trustee

 

Series 2016-1
INDENTURE SUPPLEMENT

 

Dated as of March 18, 2016

 

    	 	 	 

     

    

 

Table
of Contents

 

	 	 	 	Page
	 	 	 	 
	ARTICLE I	Definitions	 
	 	 	 
	SECTION 1.1.	Definitions	1
	SECTION 1.2.	Incorporation of Terms	16
	 	 	 
	ARTICLE II	Creation of the Series 2016-1 Notes	 
	 	 	 
	SECTION 2.1.	Designation	16
	SECTION 2.2.	Transfer Restrictions Applicable to the Class B Notes, the Class C Notes and the Class D Notes	16
	 	 	 	 
	ARTICLE III	REPRESENTATIONS, WARRANTIES and Covenants	 
	 	 	 
	SECTION 3.1.	Representations, Warranties and Covenants with respect to Receivables	19
	SECTION 3.2.	Representations, Warranties and Covenants with respect to ERISA	19
	 	 	 	 
	ARTICLE IV	Rights of Series 2016-1 Noteholders and Allocation and Application of Collections	 
	 	 	 
	SECTION 4.1.	Determination of Interest and Principal	19
	SECTION 4.2.	Establishment of Accounts	21
	SECTION 4.3.	Calculations and Series Allocations	22
	SECTION 4.4.	Application of Available Finance Charge Collections and Available Principal Collections	23
	SECTION 4.5.	Distributions	27
	SECTION 4.6.	Investor Charge-Offs	27
	SECTION 4.7.	Reallocated Principal Collections	28
	SECTION 4.8.	Excess Finance Charge Collections	28
	SECTION 4.9.	Shared Principal Collections	28
	SECTION 4.10.	Reserve Account	29
	SECTION 4.11.	Spread Account	29
	SECTION 4.12.	Investment of Accounts	30
	SECTION 4.13.	Controlled Accumulation Period	31
	SECTION 4.14.	[Reserved]	31
	SECTION 4.15.	Deposit of Collections	32
	 	 	 	 
	ARTICLE V	Delivery of Series 2016-1 Notes; Reports to Series 2016-1 Noteholders	 
	 	 	 	 
	SECTION 5.1.	Delivery and Payment for the Series 2016-1 Notes	32
	SECTION 5.2.	Reports and Statements to Series 2016-1 Noteholders	32
	 	 	 	 
	ARTICLE VI	Series 2016-1 Early Amortization Events	 
	 	 	 
	SECTION 6.1.	Series 2016-1 Early Amortization Events	33
	 	 	 
	ARTICLE VII	Redemption of Series 2016-1 Notes; Final Distributions; Series Termination	 

 

    	 	-i-	 

     

    

 

Table of Contents

(continued)

 

	 	 	 	Page
	 	 	 	 
	SECTION 7.1.	Optional Redemption of Series 2016-1 Notes; Final Distributions	34
	SECTION 7.2.	Series Termination	35
	SECTION 7.3.	Sale of Collateral	35
	 	 	 	 
	ARTICLE VIII	Miscellaneous Provisions	 
	 	 	 	 
	SECTION 8.1.	Ratification of Indenture; Amendments	36
	SECTION 8.2.	Form of Delivery of the Series 2016-1 Notes	36
	SECTION 8.3.	Counterparts	36
	SECTION 8.4.	GOVERNING LAW	36
	SECTION 8.5.	Limitation of Liability	37
	SECTION 8.6.	Rights of the Indenture Trustee	37
	SECTION 8.7.	Notice Address for Rating Agencies	37
	SECTION 8.8.	Compliance with Applicable Anti-Terrorism and Anti-Money Laundering Regulations	38
	SECTION 8.9.	Notes to be Treated as Debt for Tax	38
	SECTION 8.10.	Deemed Consent	38

 

EXHIBITS

 

	EXHIBIT A-1	FORM OF CLASS A NOTE
	 	 
	EXHIBIT A-2	FORM OF CLASS B NOTE
	 	 
	EXHIBIT A-3	FORM OF CLASS C NOTE
	 	 
	EXHIBIT A-4	FORM OF CLASS D NOTE
	 	 
	EXHIBIT B	FORM OF MONTHLY NOTEHOLDER’S STATEMENT

 

SCHEDULES

 

	SCHEDULE I	PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS (With Respect to Receivables)

 

    	 	-ii-	 

     

    

 

SERIES 2016-1 INDENTURE
SUPPLEMENT, dated as of March 18, 2016 (this “Indenture Supplement”), between SYNCHRONY CREDIT CARD MASTER NOTE
TRUST, a Delaware statutory trust (herein, the “Issuer” or the “Trust”), and DEUTSCHE BANK
TRUST COMPANY AMERICAS, a New York banking corporation, not in its individual capacity, but solely as indenture trustee (herein,
together with its successors as provided in the Master Indenture referred to below, the “Indenture Trustee”)
under the Master Indenture, dated as of September 25, 2003 (the “Indenture”), between the Issuer and the Indenture
Trustee, as amended by the Omnibus Amendment No.1 to Securitization Documents, dated as of February 9, 2004, among RFS Holding,
L.L.C., RFS Funding Trust, the Issuer, Deutsche Bank Trust Company Delaware, as trustee of RFS Funding Trust, RFS Holding, Inc.
and the Indenture Trustee, as further amended by the Second Amendment to Master Indenture, dated as of June 17, 2004, between the
Issuer and the Indenture Trustee, as further amended by the Third Amendment to Master Indenture, dated as of August 31, 2006, between
the Issuer and the Indenture Trustee, as further amended by the Fourth Amendment to Master Indenture, dated as of June 28, 2007,
between the Issuer and the Indenture Trustee, as further amended by the Fifth Amendment to Master Indenture, dated as of May 22,
2008, between the Issuer and the Indenture Trustee, as further amended by the Sixth Amendment to Master Indenture, dated as of
August 7, 2009, between the Issuer and the Indenture Trustee, as further amended by the Seventh Amendment to Master Indenture,
dated as of January 21, 2014, between the Issuer and the Indenture Trustee, as further amended by the Eighth Amendment to
Master Indenture and Omnibus Supplement to Specified Indenture Supplements, dated as of March 11, 2014, between the Issuer
and the Indenture Trustee, as further amended by the Ninth Amendment to Master Indenture, dated as of November 24, 2015, between
the Issuer and the Indenture Trustee, and as further amended by the Tenth Amendment to Master Indenture, dated as of March 3, 2016,
between the Issuer and the Indenture Trustee (the Indenture, together with this Indenture Supplement, the “Agreement”).

 

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

 

ARTICLE
I

Definitions

 

SECTION 1.1. Definitions.

 

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

 

(b)          Each capitalized
term defined herein relates only to Series 2016-1 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, Class C Additional Interest and Class
D Additional Interest for such Payment Date.

 

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

 

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

 

“Agreement”
is defined in the preamble.

 

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

 

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

 

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

 

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

 

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

 

    	 	2	 

     

    

 

“Available Finance
Charge Collections” means, for any Monthly Period, an amount equal to the sum of (a) the Investor Finance Charge Collections
for such Monthly Period, (b) the Series 2016-1 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 treated as Available Finance Charge Collections pursuant to Section 4.10(a) and (e) amounts, if any,
to be withdrawn from the Reserve Account which will be deposited into the Finance Charge Account on the related Transfer Date to
be treated as Available Finance Charge Collections pursuant to Section 4.10(c); provided, that for purposes of the statement
to be delivered pursuant to Section 5.2(a), the Servicer may estimate the amount of interest, earnings and expenses on any
Series Account based on the most recent statement delivered by the related deposit bank.

 

“Available Principal
Collections” means, for any Monthly Period, an amount equal to the sum of (a) the Investor Principal Collections for
such Monthly Period, minus (b) the amount of Reallocated Principal Collections with respect to such Monthly Period which
pursuant to Section 4.7 are required to be applied on the related Payment Date, plus (c) the sum of (i) any
Shared Principal Collections with respect to other Principal Sharing Series (including any amounts on deposit in the Excess Funding
Account that are allocated to Series 2016-1 for application as Shared Principal Collections), (ii) the aggregate amount to be
treated as Available Principal Collections pursuant to Sections 4.4(a)(vii), (viii) and (xi) and (iii)
during an Early Amortization Period, the amount of Available Finance Charge Collections used to pay principal on the Notes
pursuant to Section 4.4(a)(xiv) for the related Payment Date.

 

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

 

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

 

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

 

    	 	3	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

“Class A Note
Initial Principal Balance” means $750,000,000.

 

“Class A Note
Interest Rate” means a per annum rate of 2.04%.

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	4	 

     

    

 

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

 

“Class B Note
Initial Principal Balance” means $71,917,808.

 

“Class B Note
Interest Rate” means a per annum rate of 2.39%.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Class C Note
Initial Principal Balance” means $61,643,836.

 

“Class C Note
Interest Rate” means a per annum rate of 2.88%.

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	5	 

     

    

 

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

 

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

 

“Class D Note
Initial Principal Balance” means $92,465,753.

 

“Class D Note
Interest Rate” means a per annum rate of 3.38%.

 

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

 

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

 

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

 

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

 

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

 

“Closing Date”
means March 18, 2016.

 

“Collateral Amount”
means, as of any date of determination, an amount equal to the excess of (a) the Initial Collateral Amount, over (b) the
sum of (i) the amount of principal previously paid to the Series 2016-1 Noteholders (other than any principal payments made from
funds on deposit in the Spread Account), (ii) reductions in the Collateral Amount pursuant to Section 4.4(f), (iii) the
Principal Accumulation Account Balance and (iv) the excess, if any, of the aggregate amount of Investor Charge-Offs and Reallocated
Principal Collections over the reimbursements of such amounts pursuant to Section 4.4(a)(viii) prior to such date.

 

“Controlled Accumulation
Amount” means, for any Payment Date with respect to the Controlled Accumulation Period, $325,342,466; provided,
however, that if the Controlled Accumulation Period Length is determined to be more than or less than three months pursuant
to Section 4.13, the Controlled Accumulation Amount for each Payment Date with respect to the Controlled Accumulation Period
will be equal to (i) the initial Note Principal Balance divided by (ii) the Controlled Accumulation Period Length; provided,
further, that the Controlled Accumulation Amount for any Payment Date shall not exceed the Note Principal Balance minus
any amount already on deposit in the Principal Accumulation Account on such Payment Date.

 

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

 

    	 	6	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	7	 

     

    

 

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

 

“Early Amortization
Period” means the period commencing on the date on which a Trust Early Amortization Event or a Series 2016-1 Early Amortization
Event is deemed to occur and ending on the Final Payment Date.

 

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

 

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

 

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

 

“Expected Principal
Payment Date” means the March 2019 Payment Date.

 

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

 

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

 

“Finance Charge
Shortfall” is defined in Section 4.8.

 

“Group One”
means Series 2016-1 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 $1,027,397,261, which equals the sum of (i) the Class A Note Initial Principal Balance, (ii) the Class
B Note Initial Principal Balance, (iii) the Class C Note Initial Principal Balance, (iv) the Class D Note Initial Principal Balance
and (v) the Initial Excess Collateral Amount.

 

“Initial Excess
Collateral Amount” means $51,369,864.

 

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

 

    	 	8	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

“Issuer”
is defined in the preamble.

 

“Maximum Delinquency
Percentage” means, for purposes of Series 2016-1, 9.0%.

 

    	 	9	 

     

    

 

“Minimum Free
Equity Percentage” means, for purposes of Series 2016-1, 5.5%.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	10	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Principal Shortfall”
is defined in Section 4.9.

 

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

 

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

 

    	 	11	 

     

    

 

“Rating Agency”
means, as of any date and with respect to any Class of the Series 2016-1 Notes, the nationally recognized statistical rating organizations
that have been requested by the Transferor to provide ratings of such Class and that are rating the Series 2016-1 Notes on such
date.

 

“Rating Agency
Condition” means, with respect to Series 2016-1 and any action, (i) with respect to any Class of the Series 2016-1 Notes
with respect to which S&P is a Rating Agency, if any, that S&P shall have notified the Issuer in writing that such action
will not result in a reduction or withdrawal of the rating, if any, of such Class (ii) with respect to any outstanding Class of
the Series 2016-1 Notes rated by any other Rating Agency, ten (10) days’ prior written notice (or, if ten (10) days’
advance notice is impracticable, as much advance notice as is practicable) is delivered electronically to each applicable Rating
Agency as provided in Section 8.7.

 

“Reallocated Principal
Collections” is defined in Section 4.7.

 

“Reassignment
Amount” means, with respect to Series 2016-1, the Redemption Amount.

 

“Redemption Amount”
means, for any Transfer Date, after giving effect to any deposits and payments otherwise to be made on the related Payment Date,
the sum of (i) the Note Principal Balance on such Payment Date, (ii) Monthly Interest for such Payment Date and any Monthly Interest
previously due but not distributed to the Series 2016-1 Noteholders and (iii) the amount of Additional Interest, if any, for the
related Payment Date and any Additional Interest previously due but not distributed to the Series 2016-1 Noteholders on a prior
Payment Date.

 

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

 

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

 

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

 

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

 

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

 

    	 	12	 

     

    

 

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

 

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

 

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

 

“Required Reserve
Account Amount” means, for any Transfer Date on or after the Reserve Account Funding Date, an amount equal to (a) 0.50%
of the Note Principal Balance or (b) any other amount designated by the Issuer; provided, however, that if such designation
is of a lesser amount, the Issuer shall (i) provide the Indenture Trustee with evidence that the Rating Agency Condition shall
have been satisfied and (ii) deliver to the Indenture Trustee a certificate of an Authorized Officer to the effect that, based
on the facts known to such officer at such time, in the reasonable belief of the Issuer, such designation will not cause an Early
Amortization Event or an event that, after the giving of notice or the lapse of time, would cause an Early Amortization Event to
occur with respect to Series 2016-1; provided, further, however, that at any time during which the Controlled
Accumulation Period Length is equal to one month, the Required Reserve Account Amount shall be equal to $0.00.

 

“Required Spread
Account Amount” means, for the April 2016 Payment Date and the May 2016 Payment Date, zero, and for any Payment Date
thereafter, the product of (i) the Spread Account Percentage in effect on such date and (ii) during (x) the Revolving Period, the
Collateral Amount, and (y) during the Controlled Accumulation Period or the Early Amortization Period, the Collateral Amount as
of the last day of the Revolving Period; provided, that, prior to the occurrence of an Event of Default and acceleration
of the Series 2016-1 Notes, the Required Spread Account Amount will never exceed the Class D Note Principal Balance (after taking
into account any payments to be made on such Payment Date).

 

    	 	13	 

     

    

 

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

 

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

 

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

 

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

 

“Reset Date”
means:

 

(a)          each Addition
Date;

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	14	 

     

    

 

“Series Maturity
Date” means, with respect to Series 2016-1, the March 2022 Payment Date.

 

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

 

“Series 2016-1”
means the Series of Notes the terms of which are specified in this Indenture Supplement.

 

“Series 2016-1
Early Amortization Event” is defined in Section 6.1.

 

“Series 2016-1
Excess Finance Charge Collections” means Excess Finance Charge Collections allocated from other Series in Group One to
Series 2016-1 pursuant to Section 8.6 of the Indenture.

 

“Series 2016-1
Note” means a Class A Note, a Class B Note, a Class C Note or a Class D Note.

 

“Series 2016-1
Noteholder” means a Class A Noteholder, a Class B Noteholder, a Class C Noteholder or a Class D Noteholder.

 

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

 

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

 

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

 

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

 

    	 	15	 

     

    

 

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

 

“Trust”
is defined in the preamble.

 

SECTION 1.2. Incorporation
of Terms. The terms of the Indenture are incorporated in this Supplement as if set forth in full herein. As supplemented by
this Supplement, the Indenture is in all respects ratified and confirmed and both together shall be read, taken and construed as
one and the same agreement. If the terms of this Supplement and the terms of the Indenture conflict, the terms of this Supplement
shall control with respect to the Series 2016-1.

 

ARTICLE
II

Creation
of the Series 2016-1 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 “Synchrony
Credit Card Master Note Trust, Series 2016-1” or the “Series 2016-1 Notes.” The Series 2016-1 Notes
shall be issued in four Classes, known as the “Class A Series 2016-1 Fixed Rate Asset Backed Notes”, the “Class
B Series 2016-1 Fixed Rate Asset Backed Notes”, the “Class C Series 2016-1 Fixed Rate Asset Backed Notes”
and the “Class D Series 2016-1 Fixed Rate Asset Backed Notes.”

 

(b)          Series 2016-1 shall
be included in Group One and shall be a Principal Sharing Series. Series 2016-1 shall be an Excess Allocation Series with respect
to Group One only. Series 2016-1 shall not be subordinated to any other Series.

 

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

 

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

 

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

 

    	 	16	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	17	 

     

    

 

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

 

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

 

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

 

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

 

    	 	18	 

     

    

 

ARTICLE
III

REPRESENTATIONS,
WARRANTIES and Covenants

 

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

 

SECTION 3.2. Representations,
Warranties and Covenants with respect to ERISA. By acquiring a Series 2016-1 Note (or interest therein), each purchaser and
subsequent transferee shall be deemed to represent and warrant that either (i) it is not (and for so long as it holds such Series
2016-1 Note will not be), is not acting on behalf of (and for so long as it holds such Series 2016-1 Note will not be acting on
behalf of), and is not investing the assets of a Benefit Plan or a governmental plan, church plan or non-U.S. plan that is subject
to any Similar Law or (ii) its acquisition, continued holding and disposition of such Series 2016-1 Note will not result in a non-exempt
prohibited transaction under ERISA or Section 4975 of the Code or a violation of any Similar Law. Benefit Plans may not acquire
the Series 2016-1 Notes at any time that the Series 2016-1 Notes do not have a current investment grade rating from a nationally
recognized statistical rating organization.

 

ARTICLE
IV

Rights
of Series 2016-1 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 30 (but in the case of the initial Interest
Period, 27) and the denominator of which is 360, (ii) the Class A Note Interest Rate in effect with respect to the related Interest
Period and (iii) the Class A Note Principal Balance as of the close of business on the last day of the preceding Monthly Period
(or, with respect to the initial Payment Date, the Class A Note Initial Principal Balance).

 

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

 

    	 	19	 

     

    

 

(b)          The amount of monthly
interest (“Class B Monthly Interest”) due and payable with respect to the Class B Notes on any Payment Date
shall be an amount equal to the product of (i) a fraction, the numerator of which is 30 (but in the case of the initial Interest
Period, 27) and the denominator of which is 360, (ii) the Class B Note Interest Rate in effect with respect to the related Interest
Period and (iii) the Class B Note Principal Balance as of the close of business on the last day of the preceding Monthly Period
(or, with respect to the initial Payment Date, the Class B Note Initial Principal Balance).

 

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

 

(c)          The amount of monthly
interest (“Class C Monthly Interest”) due and payable with respect to the Class C Notes on any Payment Date
shall be an amount equal to the product of (i) a fraction, the numerator of which is 30 (but in the case of the initial Interest
Period, 27) and the denominator of which is 360, (ii) the Class C Note Interest Rate in effect with respect to the related Interest
Period and (iii) the Class C Note Principal Balance as of the close of business on the last day of the preceding Monthly Period
(or, with respect to the initial Payment Date, the Class C Note Initial Principal Balance).

 

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

 

    	 	20	 

     

    

 

(d)          The amount of monthly
interest (“Class D Monthly Interest”) due and payable with respect to the Class D Notes on any Payment Date
shall be an amount equal to the product of (i) a fraction, the numerator of which is 30 (but in the case of the initial Interest
Period, 27) and the denominator of which is 360, (ii) the Class D Note Interest Rate in effect with respect to the related Interest
Period and (iii) the Class D Note Principal Balance as of the close of business on the last day of the preceding Monthly Period
(or, with respect to the initial Payment Date, the Class D Note Initial Principal Balance).

 

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

 

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

 

SECTION 4.2. Establishment
of Accounts.

 

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

 

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

 

    	 	21	 

     

    

 

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

 

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

 

SECTION 4.3. Calculations
and Series Allocations.

 

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

 

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

 

    	 	22	 

     

    

 

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

 

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

 

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

 

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

 

    	 	23	 

     

    

 

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

 

(i)          to pay,
on a pari passu basis, the following amounts, to the extent allocated to Series 2016-1 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 the related Transfer Date, plus the amount of any Noteholder Servicing Fee previously
due but not paid by the Issuer on a prior Payment Date, shall be paid to the Servicer;

 

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

 

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

 

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

 

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

 

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

 

    	 	24	 

     

    

 

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

 

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

 

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

 

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

 

(xii)        [Reserved];

 

(xiii)       unless
an Early Amortization Event shall have occurred and be continuing, on a pari passu basis any amounts owed to such Persons listed
in clause (i) above that have been allocated to Series 2016-1 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

 

(xiv)       the
balance, if any, will constitute a portion of Excess Finance Charge Collections for such Payment Date and will be applied in accordance
with Section 8.6 of the Indenture; provided, that during an Early Amortization Period, if any such Excess Finance
Charge Collections would be paid to the Transferor in accordance with Section 8.6 of the Indenture, the portion of such
Excess Finance Charge Collections that would otherwise be payable to the Transferor, first shall be used to pay Monthly
Principal pursuant to Section 4.4(c) to the extent not paid in full from Available Principal Collections (calculated without
regard to amounts available to be treated as Available Principal Collections pursuant to this clause (xiv)), second,
shall be used to pay on a pari passu basis any amounts owed to such Persons listed in clause (i) above that have been allocated
to Series 2016-1 pursuant to Section 8.4(d) of the Indenture and that have not been paid pursuant to clauses (i)
and (xiii) above, and, third, any amounts remaining after payment in full of the Monthly Principal and amounts owed
to such Persons listed in clause (i) above shall be paid to the Issuer.

 

    	 	25	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	26	 

     

    

 

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

 

SECTION 4.5. Distributions.

 

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

 

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

 

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

 

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

 

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

 

(f)          All payments to
Noteholders hereunder shall be made by (i) check mailed to each Series 2016-1 Noteholder (at such Noteholder’s address as
it appears in the Note Register), except that for any Series 2016-1 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 2016-1 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)(vii) with respect to such Transfer Date, the Collateral Amount will be reduced
(but not below zero) by the amount of such excess (such reduction, an “Investor Charge-Off”).

 

    	 	27	 

     

    

 

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

 

SECTION 4.8. Excess
Finance Charge Collections. Series 2016-1 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 with respect to any
Monthly Period will be allocated to Series 2016-1 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 Monthly Period and (y) a fraction, the
numerator of which is the Finance Charge Shortfall for Series 2016-1 for such Monthly Period and the denominator of which is the
aggregate amount of Finance Charge Shortfalls for all the Excess Allocation Series in Group One, in each case with respect to payments
to be made on or prior to the Payment Date following such Monthly Period. The “Finance Charge Shortfall” for
Series 2016-1 for any date on which Excess Finance Charge Collections are allocated pursuant to Section 8.6 of the Indenture
will be equal to the excess, if any, of (a) the full amount required to be paid, without duplication, pursuant to Sections
4.4(a)(i) through (xiii) with respect to the next following Payment Date over (b) the Available Finance
Charge Collections with respect to the related Monthly Period (excluding any portion thereof attributable to Excess Finance Charge
Collections).

 

SECTION 4.9. Shared
Principal Collections. Subject to Section 8.5 of the Indenture, Shared Principal Collections allocable to Series
2016-1 with respect to any Monthly Period will be equal to the product of (x) the aggregate amount of Shared Principal Collections
with respect to all Principal Sharing Series for such Monthly Period and (y) a fraction, the numerator of which is the Principal
Shortfall for Series 2016-1 for such Monthly Period and the denominator of which is the aggregate amount of Principal Shortfalls
for all the Series which are Principal Sharing Series, in each case with respect to payments to be made on or prior to the Payment
Date following such Monthly Period. The “Principal Shortfall” for Series 2016-1 for any date on which Shared
Principal Collections are allocated pursuant to Section 8.5 of the Indenture will be equal to (a) for any allocation date
with respect to the Revolving Period or any allocation date during the Early Amortization Period prior to the earlier of (i) the
end of the Monthly Period immediately preceding the Expected Principal Payment Date and (ii) the date on which all outstanding
Series are in early amortization periods, zero, (b) for any allocation date with respect to the Controlled Accumulation Period,
the excess, if any, of the Controlled Deposit Amount with respect to the next following Payment Date over the amount of
Available Principal Collections for the related Monthly Period (excluding any portion thereof attributable to Shared Principal
Collections or amounts available to be treated as Available Principal Collections pursuant to clause (ix) of Section
4.4(a)) and (c) for any allocation date on or after the earlier of (i) the end of the Monthly Period immediately preceding
the Expected Principal Payment Date and (ii) the date on which all outstanding Series are in early amortization periods, the Note
Principal Balance.

 

    	 	28	 

     

    

 

SECTION 4.10. Reserve
Account.

 

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

 

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

 

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

 

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

 

(e)          Upon the earliest
to occur of (i) the termination of the Trust pursuant to Article VIII of the Trust Agreement, (ii) the first Transfer
Date relating to the Early Amortization Period and (iii) the Expected Principal Payment Date, the Issuer, after the prior payment
of all amounts owing to the Series 2016-1 Noteholders that are payable from the Reserve Account as provided herein, shall withdraw
from the Reserve Account all amounts, if any, on deposit in the Reserve Account and distribute any such amounts to the holders
of the Transferor Interest. The Reserve Account shall thereafter be deemed to have terminated for purposes of this Indenture Supplement.

 

SECTION 4.11. Spread
Account.

 

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

 

    	 	29	 

     

    

 

(b)          Unless an Early
Amortization Event occurs, the Issuer will withdraw from the Spread Account and deposit in the Collection Account for payment to
the Class D Noteholders on the Expected Principal Payment Date for the Series 2016-1 Notes an amount equal to the lesser of: (i)
the amount on deposit in the Spread Account after application of any amounts set forth in clause (a) above and (ii) the
Class D Note Principal Balance.

 

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

 

(d)          On any day following
the occurrence of an Event of Default with respect to Series 2016-1 that has resulted in the acceleration of the Series 2016-1
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 2016-1 Notes in the following order of priority until all amounts owed to such Noteholders have
been paid in full: (i) the Class D Noteholders, (ii) the Class A Noteholders, (iii) the Class B Noteholders and (iv) the Class
C Noteholders.

 

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

 

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

 

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

 

    	 	30	 

     

    

 

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

 

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

 

(d)          On each Transfer
Date (but subject to Section 4.11(a)), the Investment Earnings, if any, credited since the preceding Transfer Date on funds
on deposit in the Spread Account shall be retained in the Spread Account (to the extent that the Available Spread Account Amount
is less than the Required Spread Account Amount) and, on or before the related Payment Date, the balance, if any, shall be paid
to the holders of the Transferor Interest. For purposes of determining the availability of funds or the balance in the Spread Account
for any reason under this Indenture Supplement (subject to Section 4.11(a)), all Investment Earnings shall be deemed not
to be available or on deposit; provided, that after the maturity of the Series 2016-1 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 on the first day of the third Monthly Period
preceding the Expected Principal Payment Date; provided, that if the Controlled Accumulation Period Length (determined as
described below) on any Determination Date is less than or more than the number of months in the scheduled Controlled Accumulation
Period, upon written notice to the Indenture Trustee, with a copy to each Rating Agency, the Issuer shall either postpone or accelerate,
as applicable, the date on which the Controlled Accumulation Period actually commences, so that, as a result, the number of Monthly
Periods in the Controlled Accumulation Period will equal the Controlled Accumulation Period Length; provided, that the length
of the Controlled Accumulation Period will not be less than one month. The “Controlled Accumulation Period Length”
will mean a number of whole months such that the amount available for payment of principal on the Notes on the Expected Principal
Payment Date is expected to equal or exceed the Note Principal Balance, assuming for this purpose that (1) the payment rate with
respect to Principal Collections remains constant at the lowest level of such payment rate during the twelve preceding Monthly
Periods, (2) the total amount of Principal Receivables in the Trust (and the principal amount on deposit in the Excess Funding
Account, if any) remains constant at the level on such date of determination, (3) no Early Amortization Event with respect to any
Series will subsequently occur and (4) no additional Series (other than any Series being issued on such date of determination)
will be subsequently issued. Any notice by Issuer modifying the commencement of the Controlled Accumulation Period pursuant to
this Section 4.13 shall specify (i) the Controlled Accumulation Period Length, (ii) the commencement date of the Controlled
Accumulation Period and (iii) the Controlled Accumulation Amount with respect to each Monthly Period during the Controlled Accumulation
Period.

 

SECTION 4.14. [Reserved].

 

    	 	31	 

     

    

 

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

 

ARTICLE
V

Delivery
of Series 2016-1 Notes;

Reports
to Series 2016-1 Noteholders

 

SECTION 5.1. Delivery
and Payment for the Series 2016-1 Notes.

 

The Issuer shall execute
and issue, and the Indenture Trustee shall authenticate, the Series 2016-1 Notes in accordance with Section 2.2 of
the Indenture. The Indenture Trustee shall deliver the Series 2016-1 Notes to or upon the written order of the Issuer when so authenticated.

 

SECTION 5.2. Reports
and Statements to Series 2016-1 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.

 

(b)          A copy of each statement
or certificate provided pursuant to Section 5.2(a) may be obtained by any Series 2016-1 Noteholder by a request in writing
to the Issuer.

 

(c)          On or before January
31 of each calendar year, beginning with January 31, 2017, the Issuer shall furnish or cause to be furnished to each Person who
at any time during the preceding calendar year was a Series 2016-1 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
(5) Business Days prior to the end of the period required by applicable law, the information required to complete a Form 1099-INT.

 

    	 	32	 

     

    

 

ARTICLE
VI

Series
2016-1 Early Amortization Events

 

SECTION 6.1. Series
2016-1 Early Amortization Events. If any one of the following events shall occur with respect to the Series 2016-1 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 2016-1 Noteholders and which continues unremedied for a period of sixty (60) days after the
date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Transferor by the
Indenture Trustee, or to the Transferor and the Indenture Trustee by any Noteholder of the Series 2016-1 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 (60) days after the date
on which written notice of such failure, requiring the same to be remedied, shall have been given to the Transferor by the Indenture
Trustee, or to the Transferor and the Indenture Trustee by any Noteholder of the Series 2016-1 Notes and as a result of which the
interests of the Series 2016-1 Noteholders are materially and adversely affected for such period; provided, however,
that a Series 2016-1 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 (as such term is defined in the Transfer
Agreement) or Participation Interests to the Trust when it is required to convey such Transferred Receivables pursuant to Section
2.6(a) of the Transfer Agreement;

 

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

 

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

 

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

 

    	 	33	 

     

    

 

(g)          without limiting
the foregoing, the occurrence of an Event of Default with respect to Series 2016-1 and acceleration of the maturity of the Series
2016-1 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 2016-1 Notes evidencing more than 50% of the aggregate unpaid principal amount
of Series 2016-1 Notes by notice then given in writing to the Issuer (and to the Indenture Trustee if given by the Series 2016-1
Noteholders) may declare that a “Series Early Amortization Event” with respect to Series 2016-1 (a “Series
2016-1 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) or (g) a Series 2016-1 Early Amortization Event shall occur without any
notice or other action on the part of the Indenture Trustee or the Series 2016-1 Noteholders immediately upon the occurrence of
such event.

 

ARTICLE
VII

Redemption
of Series 2016-1 Notes; Final Distributions; Series Termination

 

SECTION 7.1. Optional
Redemption of Series 2016-1 Notes; Final Distributions.

 

(a)          On any day occurring
on or after the date on which the outstanding principal balance of the Series 2016-1 Notes is reduced to 10% or less of the initial
outstanding principal balance of Series 2016-1 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 2016-1 shall be reduced to zero and
the Series 2016-1 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 2016-1 in connection with a reassignment of Transferred Receivables to the Transferor
pursuant to Section 6.1(f) of the Transfer Agreement shall not be less than the Redemption Amount for the first Payment
Date following the Monthly Period in which the reassignment obligation arises under the Transfer Agreement.

 

(ii)          The amount
to be paid by the Issuer with respect to Series 2016-1 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.

 

    	 	34	 

     

    

 

(d)          With respect to
(i) the Redemption Amount deposited into the Distribution Account pursuant to this Section 7.1 or (ii) the proceeds
of any sale of Transferred Receivables pursuant to Section 5.3 of the Indenture with respect to Series 2016-1, 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 Noteholders,
(iii) (x) the Class C Note Principal Balance on such Payment Date will be paid to the Class C Noteholders and (y) an amount
equal to the sum of (A) Class C Monthly Interest due and payable on such Payment Date or any prior Payment Date, (B) any Class
C Deficiency Amount for such Payment Date and (C) the amount of Class C Additional Interest, if any, for such Payment Date and
any Class C Additional Interest previously due but not paid to the Class C Noteholders on any prior Payment Date, will be paid
to the Class C Noteholders, (iv) (x) the Class D Note Principal Balance on such Payment Date will be paid to the Class D Noteholders
and (y) an amount equal to the sum of (A) Class D Monthly Interest due and payable on such Payment Date or any prior Payment Date,
(B) any Class D Deficiency Amount for such Payment Date and (C) the amount of Class D Additional Interest, if any, for such Payment
Date and any Class D Additional Interest previously due but not paid to the Class D Noteholders on any prior Payment Date, will
be paid to the Class D Noteholders and (v) any excess shall be released to the Issuer.

 

SECTION 7.2. Series
Termination.

 

On the Series Maturity
Date, the unpaid principal amount of the Series 2016-1 Notes shall be due and payable.

 

SECTION 7.3. Sale of
Collateral.

 

If the Indenture Trustee
exercises its right to sell any portion of the Collateral in accordance with Section 5.16 of the Indenture upon the occurrence
of an Event of Default with respect to Series 2016-1, SYNCHRONY FINANCIAL shall have a right of first refusal to purchase any portion
of the Collateral for which the Indenture Trustee has received a bona fide offer from a third-party that is not an affiliate of
the Transferor at a price equal to the highest price bid for such Collateral by such third-party bidder.

 

    	 	35	 

     

    

 

ARTICLE
VIII

Miscellaneous
Provisions

 

SECTION 8.1. Ratification
of Indenture; Amendments. As supplemented by this Indenture Supplement, the Indenture is in all respects ratified and confirmed
and the Indenture as so supplemented by this Indenture Supplement shall be read, taken and construed as one and the same instrument.
This Indenture Supplement may be amended only by a Supplemental Indenture entered in accordance with the terms of Section 9.1
or 9.2 of the Indenture. For purposes of the application of Section 9.2 to any amendment of this Indenture Supplement,
the Series 2016-1 Noteholders shall be the only Noteholders whose vote shall be required.

 

SECTION 8.2. Form of
Delivery of the Series 2016-1 Notes. The Class A Notes, the Class B Notes, the Class C Notes and the Class D Notes shall be
Book-Entry Notes and shall be delivered as provided in Sections 2.1 and 2.2 of the Indenture.

 

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

 

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

 

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

 

    	 	36	 

     

    

 

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

 

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

 

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

 

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

 

    	 	37	 

     

    

 

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

 

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

 

SECTION 8.10. Deemed
Consent. The Series 2016-1 Noteholders will be deemed to have consented to any amendment to any Related Document that changes
the definition of “Rating Agency Condition” in such Related Document to match the definition of “Rating Agency
Condition” in this Indenture Supplement.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 	38	 

     

    

 

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

 

	 	SYNCHRONY CREDIT CARD MASTER NOTE TRUST, as Issuer
	 	 	 	 
	 	By:	BNY Mellon Trust of Delaware, not in its individual capacity, but solely as Trustee on behalf of Issuer 
	 	 	 
	 	By: 	/s/ Kristine K. Gullo
	 	 	Name:	Kristine K. Gullo
	 	 	Title:	Vice President
	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, as Indenture Trustee
	 	 	 	 
	 	By:	/s/ Mark Esposito
	 	 	Name:	Mark Esposito
	 	 	Title:	Assistant Vice President
	 	 	 	 
	 	By:  	/s/ Maria Inoa
	 	 	Name:	Maria Inoa
	 	 	Title:	Assistant Vice President

 

    	 	S-1	Indenture Supplement 
 Series 2016-1

     

    

 

EXHIBIT A-1

FORM OF CLASS A SERIES 2016-1 FIXED RATE ASSET
BACKED NOTE

 

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

 

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

 

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

 

    	 	Exhibit A-1 (Page 1)	 

     

    

 

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

 

    	 	Exhibit A-1 (Page 2)	 

     

    

  

	
        REGISTERED

        No. R-                      
	
        $750,000,000

        CUSIP NO. 87165L AX9

 

SYNCHRONY
CREDIT CARD

MASTER NOTE
TRUST SERIES 2016-1

 

CLASS A SERIES
2016-1 FIXED RATE ASSET BACKED NOTE

 

Synchrony Credit Card Master
Note Trust (herein referred to as the “Issuer” or the “Trust”), a Delaware statutory trust governed by
a Trust Agreement dated as of September 25, 2003, for value received, hereby promises to pay to Cede & Co., or registered assigns,
subject to the following provisions, the principal sum of SEVEN HUNDRED FIFTY MILLION DOLLARS, or such greater or lesser amount
as determined in accordance with the Indenture, on the March 2022 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 2022 Payment Date). Interest on this
Note will accrue for each Payment Date from and including the most recent Payment Date on which interest has been paid to but excluding
such Payment Date or, for the initial Payment Date, from and including the Closing Date to but excluding such Payment Date. Interest
will be computed on the basis of a 360-day year and twelve 30-day months (and in the case of the initial interest period, for a
period of 27 days). Principal of this Note shall be paid in the manner specified in the Indenture Supplement referred to on the
reverse hereof.

 

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

 

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

 

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

 

    	 	Exhibit A-1 (Page 3)	 

     

    

 

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

 

	 	SYNCHRONY CREDIT CARD MASTER NOTE TRUST, as Issuer
	 	 	 
	 	By:	
        BNY
Mellon Trust of Delaware,

not in its individual capacity but solely as 

Trustee on behalf of Issuer

	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

Dated:                            ,
          

 

    	 	Exhibit A-1 (Page 4)	 

     

    

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, as Indenture Trustee
	 	 	 
	 	By:	 
	 	 	Authorized Signatory

 

    	 	Exhibit A-1 (Page 5)	 

     

    

 

SYNCHRONY CREDIT CARD

MASTER NOTE TRUST SERIES 2016-1

 

CLASS A SERIES 2016-1 FIXED RATE ASSET BACKED
NOTE

 

Summary of Terms and Conditions

 

This Class A Note is one
of a duly authorized issue of Notes of the Issuer, designated as Synchrony Credit Card Master Note Trust, Series 2016-1 (the “Series
2016-1 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 18, 2016 (the “Indenture Supplement”), and representing
the right to receive certain payments from the Issuer. The term “Indenture,” unless the context otherwise requires,
refers to the Master Indenture as supplemented by the Indenture Supplement. The Notes are subject to all of the terms of the Indenture.
All terms used in this Note that are defined in the Indenture shall have the meanings assigned to them in or pursuant to the Indenture.
In the event of any conflict or inconsistency between the Indenture and this Note, the Indenture shall control.

 

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

 

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

 

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

 

THIS CLASS A NOTE DOES
NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN, GENERAL ELECTRIC CAPITAL CORPORATION, SYNCHRONY BANK, SYNCHRONY FINANCIAL, RFS
HOLDING, L.L.C., OR ANY OF THEIR AFFILIATES, AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY. THIS CLASS A NOTE IS LIMITED IN RIGHT OF PAYMENT TO CERTAIN COLLECTIONS OF THE RECEIVABLES
(AND CERTAIN OTHER COLLATERAL) ALLOCATED TO THE SERIES 2016-1 NOTES, ALL AS MORE SPECIFICALLY SET FORTH HEREINABOVE AND IN THE
MASTER INDENTURE AND INDENTURE SUPPLEMENT.

 

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

 

    	 	Exhibit A-1 (Page 6)	 

     

    

 

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

 

    	 	Exhibit A-1 (Page 7)	 

     

    

 

ASSIGNMENT

 

	Social Security or other identifying number of assignee 	 

 

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

 

	Dated: 	 	 	 	**
	 	 	 	Signature Guaranteed:	 

 

 

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

 

    	 	Exhibit A-1 (Page 8)	 

     

    

 

EXHIBIT A-2

FORM OF CLASS B SERIES 2016-1 FIXED RATE
ASSET BACKED NOTE

 

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

 

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

 

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

 

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

 

    	 	Exhibit A-2 (Page 1 )	 

     

    

 

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

 

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

 

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

 

    	 	Exhibit A-2 (Page 2 )	 

     

    

 

	REGISTERED

No. R-                                 	$71,917,808

CUSIP NO. 87165L AY7

 

SYNCHRONY CREDIT CARD

MASTER NOTE TRUST SERIES 2016-1

CLASS B SERIES 2016-1 FIXED RATE ASSET BACKED NOTE

 

Synchrony Credit Card
Master Note Trust (herein referred to as the “Issuer” or the “Trust”), a Delaware statutory trust governed
by a Trust Agreement dated as of September 25, 2003, for value received, hereby promises to pay to Cede & Co., or registered
assigns, subject to the following provisions, the principal sum of SEVENTY-ONE MILLION NINE HUNDRED SEVENTEEN THOUSAND EIGHT HUNDRED
EIGHT DOLLARS, or such greater or lesser amount as determined in accordance with the Indenture, on the March 2022 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 2022 Payment Date). Interest on this Note will accrue for each Payment Date from and including the most recent Payment
Date on which interest has been paid to but excluding such Payment Date or, for the initial Payment Date, from and including the
Closing Date to but excluding such Payment Date. Interest will be computed on the basis of a 360-day year and twelve 30-day months
(and in the case of the initial interest period, for a period of 27 days). Principal of this Note shall be paid in the manner specified
in the Indenture Supplement referred to on the reverse hereof.

 

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

 

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

 

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

 

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

 

    	 	Exhibit A-2 (Page 3 )	 

     

    

 

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

 

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

 

Dated:               ,
       

 

    	 	Exhibit A-2 (Page 4 )	 

     

    

 

INDENTURE TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

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

 

	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, as Indenture Trustee
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	Exhibit A-2 (Page 5 )	 

     

    

 

SYNCHRONY CREDIT CARD

MASTER NOTE TRUST SERIES 2016-1

CLASS B SERIES 2016-1 FIXED RATE ASSET BACKED
NOTE

Summary of Terms and Conditions

 

This Class B Note is
one of a duly authorized issue of Notes of the Issuer, designated as Synchrony Credit Card Master Note Trust, Series 2016-1 (the
“Series 2016-1 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 18, 2016 (the “Indenture Supplement”),
and representing the right to receive certain payments from the Issuer. The term “Indenture,” unless the context otherwise
requires, refers to the Master Indenture as supplemented by the Indenture Supplement. The Notes are subject to all of the terms
of the Indenture. All terms used in this Note that are defined in the Indenture shall have the meanings assigned to them in or
pursuant to the Indenture. In the event of any conflict or inconsistency between the Indenture and this Note, the Indenture shall
control.

 

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

 

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

 

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

 

THIS CLASS B NOTE DOES
NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN, GENERAL ELECTRIC CAPITAL CORPORATION, SYNCHRONY BANK, SYNCHRONY FINANCIAL, RFS
HOLDING, L.L.C., OR ANY OF THEIR AFFILIATES, AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY. THIS CLASS B NOTE IS LIMITED IN RIGHT OF PAYMENT TO CERTAIN COLLECTIONS OF THE RECEIVABLES
(AND CERTAIN OTHER COLLATERAL) ALLOCATED TO THE SERIES 2016-1 NOTES, ALL AS MORE SPECIFICALLY SET FORTH HEREINABOVE AND IN THE
MASTER INDENTURE AND INDENTURE SUPPLEMENT.

 

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

 

    	 	Exhibit A-2 (Page 6 )	 

     

    

 

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

 

    	 	Exhibit A-2 (Page 7 )	 

     

    

 

ASSIGNMENT

 

Social Security or other identifying number of assignee                                                                                                                

 

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

 

	Dated:	 	 	 	**
	 	 	 	Signature Guaranteed:	 

 

 

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

 

    	 	Exhibit A-2 (Page 8 )	 

     

    

 

EXHIBIT A-3

FORM OF CLASS C SERIES 2016-1 FIXED RATE
ASSET BACKED NOTE

 

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

 

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

 

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

 

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

 

    	 	Exhibit A-3 (Page 1 )	 

     

    

 

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

 

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

 

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

 

    	 	Exhibit A-3 (Page 2 )	 

     

    

 

	REGISTERED

No. R-                                  	$61,643,836

CUSIP NO. 87165L AZ4

 

SYNCHRONY CREDIT CARD

MASTER NOTE TRUST SERIES 2016-1

CLASS C SERIES 2016-1 FIXED RATE ASSET BACKED NOTE

 

Synchrony Credit Card
Master Note Trust (herein referred to as the “Issuer” or the “Trust”), a Delaware statutory trust governed
by a Trust Agreement dated as of September 25, 2003, for value received, hereby promises to pay to Cede & Co., or registered
assigns, subject to the following provisions, the principal sum of SIXTY-ONE MILLION SIX HUNDRED FORTY-THREE THOUSAND EIGHT HUNDRED
THIRTY SIX DOLLARS, or such greater or lesser amount as determined in accordance with the Indenture, on the March 2022 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 2022 Payment Date). Interest on this Note will accrue for each Payment Date from and including the most
recent Payment Date on which interest has been paid to but excluding such Payment Date or, for the initial Payment Date, from and
including the Closing Date to but excluding such Payment Date. Interest will be computed on the basis of a 360-day year and twelve
30-day months (and in the case of the initial interest period, for a period of 27 days). Principal of this Note shall be paid in
the manner specified in the Indenture Supplement referred to on the reverse hereof.

 

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

 

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

 

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

 

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

 

    	 	Exhibit A-3 (Page 3 )	 

     

    

 

 

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

 

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

 

Dated:                      ,           

 

    	 	Exhibit A-3 (Page 4 )	 

     

    

 

INDENTURE TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

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

 

	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, as Indenture Trustee
	 	 	 
		By:	 
	 	 	Name:
	 	 	Title:

 

    	 	Exhibit A-3 (Page 5 )	 

     

    

 

SYNCHRONY CREDIT CARD

MASTER NOTE TRUST SERIES 2016-1

CLASS C SERIES 2016-1 FIXED RATE ASSET BACKED NOTE

Summary of Terms and Conditions

 

This Class C Note is
one of a duly authorized issue of Notes of the Issuer, designated as Synchrony Credit Card Master Note Trust, Series 2016-1 (the
“Series 2016-1 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 18, 2016 (the “Indenture Supplement”),
and representing the right to receive certain payments from the Issuer. The term “Indenture,” unless the context otherwise
requires, refers to the Master Indenture as supplemented by the Indenture Supplement. The Notes are subject to all of the terms
of the Indenture. All terms used in this Note that are defined in the Indenture shall have the meanings assigned to them in or
pursuant to the Indenture. In the event of any conflict or inconsistency between the Indenture and this Note, the Indenture shall
control.

 

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

 

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

 

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

 

THIS CLASS C NOTE DOES
NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN, GENERAL ELECTRIC CAPITAL CORPORATION, SYNCHRONY BANK, SYNCHRONY FINANCIAL, RFS
HOLDING, L.L.C., OR ANY OF THEIR AFFILIATES, AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY. THIS CLASS C NOTE IS LIMITED IN RIGHT OF PAYMENT TO CERTAIN COLLECTIONS OF THE RECEIVABLES
(AND CERTAIN OTHER COLLATERAL) ALLOCATED TO THE SERIES 2016-1 NOTES, ALL AS MORE SPECIFICALLY SET FORTH HEREINABOVE AND IN THE
MASTER INDENTURE AND INDENTURE SUPPLEMENT.

 

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

 

    	 	Exhibit A-3 (Page 6 )	 

     

    

 

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

 

    	 	Exhibit A-3 (Page 7 )	 

     

    

 

ASSIGNMENT

 

Social Security or other identifying number of assignee                                                                                                                

 

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

 

 

	Dated:	 	 	 	**
	 	 	 	Signature Guaranteed:	 

 

 

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

 

 

    	 	Exhibit A-3 (Page 8 )	 

     

    

 

EXHIBIT A-4

FORM OF CLASS D SERIES 2016-1 FIXED RATE
ASSET BACKED NOTE

 

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

 

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

 

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

 

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

 

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

 

    	 	Exhibit A-4 (Page 1 )	 

     

    

 

 

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

 

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

 

    	 	Exhibit A-4 (Page 2 )	 

     

    

 

	REGISTERED

No. R-                 	$92,465,753

CUSIP NO. 87165L BA8

 

SYNCHRONY CREDIT CARD

MASTER NOTE TRUST SERIES 2016-1

 

CLASS D SERIES 2016-1 FIXED RATE ASSET BACKED
NOTE

 

Synchrony Credit Card
Master Note Trust (herein referred to as the “Issuer” or the “Trust”), a Delaware statutory
trust governed by a Trust Agreement dated as of September 25, 2003, for value received, hereby promises to pay to Cede & Co.,
or registered assigns, subject to the following provisions, the principal sum of NINETY-TWO MILLION FOUR HUNDRED SIXTY-FIVE THOUSAND
SEVEN HUNDRED FIFTY-THREE DOLLARS, or such greater or lesser amount as determined in accordance with the Indenture, on the March
2022 Payment Date, except as otherwise provided below or in the Indenture. The Issuer will pay interest on the unpaid principal
amount of this Note at the Class D Note Interest Rate on each Payment Date until the Final Payment Date (which is the earlier to
occur of (a) the Payment Date on which the Note Principal Balance is paid in full, (b) the date on which the Collateral Amount
is reduced to zero and (c) the March 2022 Payment Date). Interest on this Note will accrue for each Payment Date from and including
the most recent Payment Date on which interest has been paid to but excluding such Payment Date or, for the initial Payment Date,
from and including the Closing Date to but excluding such Payment Date. Interest will be computed on the basis of a 360-day year
and twelve 30-day months (and in the case of the initial interest period, for a period of 27days). Principal of this Note shall
be paid in the manner specified in the Indenture Supplement referred to on the reverse hereof.

 

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

 

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

 

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

 

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

 

    	 	Exhibit A-4 (Page 3 )	 

     

    

 

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

 

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

 

Dated:                 ,                                    

 

    	 	Exhibit A-4 (Page 4 )	 

     

    

  

INDENTURE TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

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

 

	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, as Indenture Trustee
	 	 
	 	By:	 
	 	 	Authorized Signatory

 

    	 	Exhibit A-4 (Page 5 )	 

     

    

  

SYNCHRONY CREDIT CARD

MASTER NOTE TRUST SERIES 2016-1

 

CLASS D SERIES 2016-1 FIXED RATE ASSET BACKED
NOTE

 

Summary of Terms and Conditions

 

This Class D Note is
one of a duly authorized issue of Notes of the Issuer, designated as Synchrony Credit Card Master Note Trust, Series 2016-1 (the
“Series 2016-1 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 18, 2016 (the “Indenture Supplement”),
and representing the right to receive certain payments from the Issuer. The term “Indenture,” unless the context otherwise
requires, refers to the Master Indenture as supplemented by the Indenture Supplement. The Notes are subject to all of the terms
of the Indenture. All terms used in this Note that are defined in the Indenture shall have the meanings assigned to them in or
pursuant to the Indenture. In the event of any conflict or inconsistency between the Indenture and this Note, the Indenture shall
control.

 

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

 

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

 

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

 

THIS CLASS D NOTE DOES
NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN, GENERAL ELECTRIC CAPITAL CORPORATION, SYNCHRONY BANK, SYNCHRONY FINANCIAL, RFS
HOLDING, L.L.C., OR ANY OF THEIR AFFILIATES, AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY. THIS CLASS D NOTE IS LIMITED IN RIGHT OF PAYMENT TO CERTAIN COLLECTIONS OF THE RECEIVABLES
(AND CERTAIN OTHER COLLATERAL) ALLOCATED TO THE SERIES 2016-1 NOTES, ALL AS MORE SPECIFICALLY SET FORTH HEREINABOVE AND IN THE
MASTER INDENTURE AND INDENTURE SUPPLEMENT.

 

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

 

    	 	Exhibit A-4 (Page 6 )	 

     

    

  

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

 

    	 	Exhibit A-4 (Page 7 )	 

     

    

  

ASSIGNMENT

 

Social Security or other identifying number of assignee                                                                                                                

 

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

 

	Dated:	 	 	 	**
	 	 	Signature Guaranteed:	 

  

 

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

  

    	 	Exhibit A-4 (Page 8 )	 

     

    

  

EXHIBIT B

 

FORM OF MONTHLY NOTEHOLDER’S STATEMENT

 

Monthly Noteholder’s Statement

Synchrony Credit Card Master Note Trust

 

Series 2016-1

Class A 2.04% Notes

Class B 2.39% Notes

Class C 2.88% Notes

Class D 3.38% Notes

 

Pursuant to the Master
Indenture, dated as of September 25, 2003 (as amended and supplemented, the “Indenture”) between Synchrony Credit
Card Master Note Trust (the “Issuer”) and Deutsche Bank Trust Company Americas, as indenture trustee (the “Indenture
Trustee”), as supplemented by the Series 2016-1 Indenture Supplement (the “Indenture Supplement”),
dated as of March 18, 2016, between the Issuer and the Indenture Trustee, the Issuer is required to prepare, or cause the Servicer
to prepare, certain information each month regarding current distributions to the Series 2016-1 Noteholders and the performance
of the Trust during the previous month. The information required to be prepared with respect to the Payment Date of [●], 20[●],
and with respect to the performance of the Trust during the Monthly Period ended [●], 20[●] is set forth below.
Capitalized terms used herein are defined in the Indenture and the Indenture Supplement. The Discount Percentage (as defined in
the Transfer Agreement) remains at 0% for all the Receivables in the Trust until otherwise indicated. The undersigned, an Authorized
Officer of the Servicer, does hereby certify as follows:

 

 

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

 

	I.	Trust Receivables Information

 

		a.	Number of Accounts Beginning

		b.	Number of Accounts Ending

		c.	Average Account Balance (q/b)

		d.	BOP Principal Receivables

 

    	 	Exhibit B (Page 1 )	 

     

    

  

		e.	BOP Finance Charge Receivables

		f.	BOP Total Receivables

		g.	Increase in Principal Receivables from Additional Accounts

		h.	Increase in Principal Activity on Existing Securitized Accounts

		i.	Increase in Finance Charge Receivables from Additional Accounts

		j.	Increase in Finance Charge Activity on Existing Securitized Accounts

		k.	Increase in Total Receivables

		l.	Decrease in Principal Receivables due to Account Removal

		m.	Decrease in Principal Activity on Existing Securitized Accounts

		n.	Decrease in Finance Charge Receivables due to Account Removal

		o.	Decrease in Finance Charge Activity on Existing Securitized Accounts

		p.	Decrease in Total Receivables

		q.	EOP Aggregate Principal Receivables

		r.	EOP Finance Charge Receivables

		s.	EOP Total Receivables

		t.	Excess Funding Account Balance

		u.	Required Principal Balance

		v.	Minimum Free Equity Amount (EOP Aggregate Principal Receivables * 5.5%)

		w.	Free Equity Amount (EOP Principal Receivables - EOP Collateral Amount (II.d.ii+II.a.ii+II.b.ii+II.b.iii))

 

		II.	Investor Information (Sum of all Series, excluding new issuances and additional draws subsequent to end of the Monthly Period)

 

		a.	Note Principal Balance

		i.	Beginning of Interest Period

		ii.	Increase in Note Principal Balance due to New Issuance / Additional draws

		iii.	Decrease in Note Principal Balance due to Principal Paid and Notes Retired

		iv.	As of Payment Date

 

		b.	Excess Collateral Amount

		i.	Beginning of Interest Period

		ii.	Change to Excess Collateral Amount in connection with the Supplemental Indenture

		iii.	Increase in Excess Collateral Amount due to New Issuance

		iv.	Reductions in Required Excess Collateral Amount

		v.	Increase in Unreimbursed Investor Charge-Off

 

    	 	Exhibit B (Page 2 )	 

     

    

  

		vi.	Decrease in Unreimbursed Investor Charge-Off

		vii.	Increase in Unreimbursed Reallocated Principal Collections

		viii.	Decrease in Unreimbursed Reallocated Principal Collections

		ix.	As of Payment Date

 

		c.	Principal Accumulation Account Balance

		i.	Beginning of Interest Period

		ii.	Controlled Deposit Amount

		iii.	Withdrawal for Principal Payment

		iv.	As of Payment Date

 

		d.	Collateral Amount

		i.	End of Prior Monthly Period

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

		iii.	As of Payment Date

 

		III.	Trust Performance Data (Monthly Period)

 

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

		i.	Current

		ii.	Prior Monthly Period

		iii.	Two Months Prior Monthly Period

		iv.	Three-Month Average

 

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

		i.	Current

		ii.	Prior Monthly Period

		iii.	Two Months Prior Monthly Period

		iv.	Three-Month Average

 

		c.	Gross Charge-Off Rate excluding Fraud (Default Amount for Defaulted Accounts – Fraud Amount / BOP Principal Receivables)

		i.	Current

		ii.	Prior Monthly Period

		iii.	Two Months Prior Monthly Period

		iv.	Three-Month Average

 

		d.	Gross Charge-Off Rate (Default Amount for Defaulted Accounts / BOP Principal Receivables)

 

		e.	Net Charge-Off Rate excluding Fraud (Default Amount for Defaulted Accounts – Recoveries – Fraud Amount / BOP Principal
Receivables

		i.	Current

		ii.	Prior Monthly Period

		iii.	Two Months Prior Monthly Period

		iv.	Three-Month Average

 

    	 	Exhibit B (Page 3 )	 

     

    

  

		f.	Net Charge-Off Rate (Default Amount for Defaulted Accounts – Recoveries / BOP Principal Receivables)

 

		g.	Trust excess spread percentage ((FC Coll – Charged-Off Rec – Monthly Interest +/- Net Swaps – Monthly Servicing
Fee) / BOP Principal Receivables)

 

		h.	Default Amount for Defaulted Accounts

 

		i.	Recovery Amount

 

		j.	Collections

		i.	Total Trust Finance Charge Collections

		ii.	Total Trust Principal Collections

		iii.	Total Trust Collections

 

	k.  Delinquency Data	Percentage	 	Total Receivables	 

		i.	1-29 Days Delinquent

		ii.	30-59 Days Delinquent

		iii.	60-89 Days Delinquent

		iv.	90-119 Days Delinquent

		v.	120-149 Days Delinquent

		vi.	150-179 Days Delinquent

		vii.	180 or Greater Days Delinquent

 

		IV.	Series Performance Data

 

		a.	Portfolio Yield (Finance Charge Collections + Recoveries – Aggregate Investor Default Amount + PAA Inv Proceeds / BOP
Collateral)

		i.	Current

		ii.	Prior Monthly Period

		iii.	Two Months Prior Monthly Period

		iv.	Three-Month Average

 

		b.	Base Rate (Noteholder Servicing Fee + Admin Fee + Monthly Interest / + Swap Payments – Swap Receipts / BOP Collateral)

		i.	Current

		ii.	Prior Monthly Period

		iii.	Two Months Prior Monthly Period

		iv.	Three-Month Average

 

		c.	Excess Spread Percentage (Portfolio Yield – Base Rate)

		i.	Current

		ii.	Prior Monthly Period

		iii.	Two Months Prior Monthly Period

		iv.	Quarterly Excess Spread Percentage

 

    	 	Exhibit B (Page 4 )	 

     

    

  

		V.	Investor Information Regarding Distributions to Noteholders

 

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

 

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

 

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

 

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

 

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

 

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

 

		g.	The total amount of the distribution to Class C Noteholders per $1000 Note Initial Principal Balance.

 

		h.	The amount of the distribution set forth in paragraph g. above in respect of interest on the Class C Notes, per $1000 Note
Initial Principal Balance.

 

		i.	The amount of the distribution set forth in paragraph g. above in respect of principal on the Class C Notes, per $1000 Note
Initial Principal Balance.

 

		j.	The total amount of the distribution to Class D Noteholders per $1000 Note Initial Principal Balance.

 

		k.	The amount of the distribution set forth in paragraph j. above in respect of interest on the Class D Notes, per $1000 Note
Initial Principal Balance.

 

		l.	The amount of the distribution set forth in paragraph j. above in respect of principal on the Class D Notes, per $1000 Note
Initial Principal Balance.

 

		VI.	Investor Information

 

		a.	Class A Note Initial Principal Balance

		b.	Class B Note Initial Principal Balance

		c.	Class C Note Initial Principal Balance

		d.	Class D Note Initial Principal Balance

 

    	 	Exhibit B (Page 5 )	 

     

    

 

 

		e.	Initial Excess Collateral Amount

 

		f.	Initial Collateral Amount

 

		g.	Class A Note Principal Balance

		i.	Beginning of Interest Period

		ii.	Principal Payment

		iii.	As of Payment Date

 

		h.	Class B Note Principal Balance

		i.	Beginning of Interest Period

		ii.	Principal Payment

		iii.	As of Payment Date

 

		i.	Class C Note Principal Balance

		i.	Beginning of Interest Period

		ii.	Principal Payment

		iii.	As of Payment Date

 

		j.	Class D Note Principal Balance

		i.	Beginning of Interest Period

		ii.	Principal Payment

		iii.	As of Payment Date

 

		k.	Excess Collateral Amount

		i.	Beginning of Interest Period

		ii.	Increase in Excess Collateral Amount in connection with the Supplemental Indenture

iii. Reduction in Excess Collateral
Amount

		iv.	As of Payment Date

 

		l.	Collateral Amount

		i.	Beginning of Interest Period

		ii.	Increase in Excess Collateral Amount in connection with the Supplemental Indenture

		iii.	Increase/Decrease in Unreimbursed Investor Charge-Offs

		iv.	Increase/Decrease in Reallocated Principal Collections

		v.	Reduction in Excess Collateral Amount

		vi.	Principal Accumulation Account Deposit

		vii.	As of Payment Date

		viii.	Collateral Amount as a Percentage of Note Trust Principal
Balance

		ix.	Amount by which Note Principal Balance exceeds Collateral
Amount

 

		m.	Required Excess Collateral Amount

 

		VII.	Investor Charge-Offs and Reallocated Principal Collections

(Section references relate to Indenture Supplement)

 

		a.	Beginning Unreimbursed Investor Charge-Offs

 

    	 	Exhibit B (Page 6 )	 

     

    

  

		b.	Current Unreimbursed Investor Defaults

		c.	Current Unreimbursed Investor Uncovered Dilution Amount

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

		e.	Ending Unreimbursed Investor Charge-Offs

		f.	Beginning Unreimbursed Reallocated Principal Collections

		g.	Current Reallocated Principal Collections pursuant to Section 4.7

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

		i.	Ending Unreimbursed Reallocated Principal Collections

 

		VIII.	Investor Percentages –BOP Balance and Series Account
Information

 

		a.	Allocation Percentage Numerator – for Finance Charge Collections and Default Amounts

		b.	Allocation Percentage Numerator – for Principal Collections

		c.	Allocation Percentage Denominator

		i.	Aggregate Principal Receivables Balance as of Prior Monthly Period

		ii.	Number of Days at Balance

		iii.	Weighted Average Principal Balance

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

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

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

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

		h.	Series Allocation Percentage

 

		IX.	Collections and Allocations

 

	 	Trust	 	Series	 

		a.	Finance Charge Collections

		b.	Recoveries

		c.	Principal Collections

		d.	Default Amount

		e.	Dilution

		f.	Investor Uncovered Dilution Amount

		g.	Dilution including Fraud Amount

		h.	Available Finance Charge Collections

		i.	Investor Finance Charge Collections

		ii.	Excess Finance Charge Collections allocable to Series 2016-1

		iii.	Principal Accumulation Account Investment Proceeds

 

    	 	Exhibit B (Page 7 )	 

     

    

  

		iv.	Investment earnings in the Reserve Account

		v.	Reserve Account Draw Amount

vi. Net Swap Receipts

		vii.	Recoveries

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

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

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

 

		X.	Application of Available Funds pursuant to Section 4.4(a) of the Indenture Supplement

 

		a.	Available Finance Charge Collections

		i.	On a pari passu basis:

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

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

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

 

		ii.	To the Servicer:

		a.	Noteholder Servicing Fee

		b.	Noteholder Servicing Fee previously due but not paid

		c.	Total Noteholder Servicing Fee

 

		iii.	On a pari passu basis:

		a.	Class A Monthly Interest

		b.	Class A Deficiency Amount

		c.	Class A Additional Interest

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

 

		iv.	On a pari passu basis:

		a.	Class B Monthly Interest

		b.	Class B Deficiency Amount

		c.	Class B Additional Interest

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

 

		v.	On a pari passu basis:

		a.	Class C Monthly Interest

		b.	Class C Deficiency Amount

		c.	Class C Additional Interest

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

 

		vi.	On a pari passu basis:

		a.	Class D Monthly Interest

 

    	 	Exhibit B (Page 8 )	 

     

    

  

		b.	Class D Deficiency Amount

		c.	Class D Additional Interest

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

 

		vii.	To be treated as Available Principal Collections

		a.	Aggregate Investor Default Amount

		b.	Aggregate Investor Uncovered Dilution Amount

 

		viii.	To be treated as Available Principal Collections, to the extent not previously reimbursed

		a.	Investor Charge-offs

		b.	Reallocated Principal Collections

 

		ix.	Excess of Required Reserve Account Amount Over Available Reserve Account Amount

 

		x.	Amounts required to be deposited to the Spread Account or Reserve Account

 

		xi.	To be treated as Available Principal Collections: Series Allocation Percentage of Minimum Free Equity Shortfall

 

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

 

		xiii.	The balance, if any, will constitute a portion of Excess Finance Charge Collections for such Payment Date and first will be
available for allocation to other Series in Group One and, then:

		a.	Unless an Early Amortization Event has occurred, to the Transferor; or

		b.	If an Early Amortization Event has occurred, first, to pay Monthly Principal in accordance with Section 4.4(c) of the Indenture
Supplement to the extent not paid in full from Available Principal Collections (calculated without regard to amounts available
to be treated as Available Principal Collections pursuant to this clause), second, to pay on a pari passu basis any amounts owed
to such Persons listed in clause (a)(i) above that have been allocated to Series 2016-1 in accordance with Section 8.4(d) of the
Indenture and that have not been paid pursuant to clauses (a)(i) and (a)(xii) above, and, third, any amounts remaining after payment
in full of the Monthly Principal and amounts owed to such Persons listed in clause (a)(i) above shall be paid to the Issuer.

 

		XI.	Excess Finance Charge Collections (Group One)

 

		a.	Total Excess Finance Charge Collections in Group One

 

    	 	Exhibit B (Page 9 )	 

     

    

  

		b.	Finance Charge Shortfall for Series 2016-1

		c.	Finance Charge Shortfall for all Series in Group One

		d.	Excess Finance Charges Collections Allocated to Series 2016-1

 

		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)(vii)

 

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

 

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

 

		g.	Available Principal Collections (Deposited to Principal Account)

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

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

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

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

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

		a.	Principal paid to Class A Noteholders

		b.	Principal paid to Class B Noteholders

		c.	Principal paid to Class C Noteholders

		d.	Principal paid to Class D Noteholders

		vi.	Total Principal Collections Available to Share (Inclusive of Series 2016-1)

		vii.	Series Principal Shortfall

		viii.	Shared Principal Collections allocated to this Series from other Series

 

    	 	Exhibit B (Page 10 )	 

     

    

  

		XIII.	Series 2016-1 Accumulation

 

		a.	Controlled Accumulation Period Length in months (scheduled)

 

		b.	Controlled Accumulation Amount

 

		c.	Controlled Deposit Amount

 

		d.	Accumulation Shortfall

 

		e.	Principal Accumulation Account Balance

		i.	Beginning of Interest Period

		ii.	Controlled Deposit Amount

		iii.	Withdrawal for Principal Payment

		iv.	As of Payment Date

 

		XIV.	Reserve Account Funding (Section references relate to
Indenture Supplement)

 

		a.	Reserve Account Funding Date (scheduled)

 

		b.	Required Reserve Account Amount (0.50% of Note Principal Balance beginning on Reserve Account Funding Date)

 

		c.	Beginning Available Reserve Account Amount

 

		d.	Reserve Draw Amount

 

		e.	Deposit pursuant to 4.4(a)(ix) the excess of b. over c.

 

		f.	Withdrawal for Reserve Account Surplus paid to Transferor pursuant to Section 4.10(d)

 

		g.	Withdrawal for Reserve Account Surplus paid to Transferor pursuant to Section 4.10(e)

 

		h.	Ending Available Reserve Account Amount

 

		XV.	Spread Account Funding (Section references relate to
Indenture Supplement)

 

		a.	Spread Account Percentage

 

		b.	Required Spread Account Amount

 

		c.	Beginning Available Spread Account Amount

 

		d.	Withdrawal pursuant to 4.11(a) – Section 4.4(a)(vi) Shortfall

 

		e.	Withdrawal pursuant to 4.11(b) – Class D Expected Principal Payment Date

 

		f.	Withdrawal pursuant to 4.11(c) – Early Amortization Event

 

		g.	Withdrawal pursuant to 4.11(d) – Event of Default

 

		h.	Deposit pursuant to 4.4(a)(x) – Spread Account Deficiency

 

    	 	Exhibit B (Page 11 )	 

     

    

  

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

 

		j.	Ending Available Spread Account Amount

 

		XVI.	Series Early Amortization Events

 

		a.	The Free Equity Amount is less than the Minimum Free Equity Amount

 

Free Equity:

 

		i.	Free Equity Amount

		ii.	Minimum Free Equity Amount

		iii.	Excess Free Equity Amount

 

		b.	The Note Trust Principal Balance is less than the Required Principal Balance Note Trust Principal Balance:

		i.	Note Trust Principal Balance

		ii.	Required Principal Balance

		iii.	Excess Principal Balance

 

		c.	The three-month Average Portfolio Yield is less than three-month average Base Rate Portfolio Yield:

		i.	Three month Average Portfolio Yield

		ii.	Three month Average Base Rate

		iii.	Three Month Average Excess Spread

 

		d.	The Note Principal Balance is outstanding beyond the Expected Principal Payment Date

		i.	Expected Principal Payment Date

		ii.	Current Payment Date

		e.	Are there any material modifications, extensions or waivers to pool asset terms, fees, penalties or payments?

		f.	Are there any material breaches or pool of assets representations and warranties or covenants?

		g.	Are there any material changes in criteria used to originate, acquire, or select new pool assets?

		h.	Has an early amortization event occurred?

 

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

 

	 	SYNCHRONY FINANCIAL, as Servicer
	 	 
	 	By:	     
	 	Name:   
	 	Title:     

 

    	 	Exhibit B (Page 12 )	 

     

    

  

SCHEDULE I

 

PERFECTION REPRESENTATIONS, WARRANTIES

AND COVENANTS (WITH RESPECT TO RECEIVABLES)

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(7)        Notwithstanding
any other provision of the Indenture, the representations and warranties set forth in this Schedule I shall be continuing,
and remain in full force and effect, until such time as the Series 2016-1 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
are requested by the Indenture Trustee) to maintain and perfect, as a first priority interest, the Indenture Trustee’s security
interest in the Receivables.

 

    	 	Schedule I (Page 1 )Exhibit 10.1

 

AGREEMENT

 

This
Agreement (this “Agreement”) is made and entered into as of March 22, 2016, by and among MYR Group Inc. (the
“Company”), Engine Capital, L.P., Engine Capital Management, LLC, Engine Jet Capital, L.P., Engine Airflow Capital,
L.P., Engine Investments, LLC, Engine Investments II, LLC, Arnaud Ajdler (collectively, “Engine” and each an
“Engine Member”), and John P. Schauerman (together with Arnaud Ajdler, the “Engine Appointees”).
The Company, each Engine Member and each Engine Appointee is a “Party” to this Agreement, and collectively they
are the “Parties”.

 

RECITALS

 

WHEREAS,
the Company and certain Engine Members have engaged in various discussions and communications concerning the Company’s business,
financial performance and strategic plans;

 

WHEREAS,
Engine is deemed to beneficially own shares of common stock of the Company (the “Common Stock”) totaling, in
the aggregate, 956,690 shares, or approximately 4.6%, of the Common Stock issued and outstanding on the date hereof;

 

WHEREAS,
Engine submitted a nomination letter to the Company on January 6, 2016 (the “Nomination Letter”) notifying the
Company of its intention to nominate director candidates for election to the Company’s board of directors (the “Board”)
at the 2016 annual meeting of stockholders of the Company (the “2016 Annual Meeting”); and

 

WHEREAS,
the Company and Engine have determined to come to an agreement with respect to the appointment of members of the Board, certain
matters related to the 2016 Annual Meeting and certain other matters, as provided in this Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements contained herein, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally
bound hereby, agree as follows:

 

1.      Board Matters; Board Appointments; 2016 Annual Meeting.

 

(a)   The Company agrees that, as promptly as practicable following the execution of this Agreement, the Board and all applicable
committees of the Board will take all action necessary to:

 

(i)  expand
the size of the Board from nine (9) directors to ten (10) directors, with the newly created vacancy apportioned to the Class III
directors;

 

(ii)  appoint
John P. Schauerman (“Mr. Schauerman”) to fill the newly created vacancy on the Board as a Class III director, with a
term expiring at the 2016 Annual Meeting; and

 

(iii)  nominate
Mr. Schauerman for election to the Board as a Class III director as part of the Company’s slate of director nominees for the
2016 Annual Meeting.

 

    	 

     

    

 

 

(b)  
The Company agrees that, immediately following the 2016 Annual Meeting, the Board and all applicable committees of the
Board will take all action necessary to (x) expand the size of the Board from ten (10) directors to eleven (11) directors, with
the newly created vacancy apportioned to the Class I directors, and (y) appoint Arnaud Ajdler (“Mr. Ajdler”)
to fill the newly created vacancy on the Board as a Class I director, with a term expiring at the 2017 Annual Meeting.

 

(c)   The Company agrees that it will recommend, support and solicit proxies for the election of Mr. Schauerman at the 2016 Annual
Meeting in the same manner as for the Company’s other nominees standing for election to the Board at the 2016 Annual Meeting.
The Company shall use its reasonable best efforts to hold the 2016 Annual Meeting no later than April 28, 2016.

 

(d)   If any Engine Appointee is unable to serve as a director or nominee or resigns as a director prior to the expiration of
the Standstill Period, Engine shall have the ability to recommend a replacement person(s) (any such person shall be referred to
as a “Engine Replacement Appointee”) (x) for appointment to the Board if the replaced Engine Appointee had
been serving on the Board, or (y) for nomination for election to the Board if the replaced Engine Appointee had been nominated
for election to the Board, each in accordance with this Section 1(d). Upon the recommendation of an Engine Replacement Appointee
by Engine, the Board and any applicable committee thereof shall vote on the appointment or nomination of such Engine Replacement
Appointee, as applicable, no later than five (5) business days after such recommendation; provided, however, that if the
Board does not appoint or nominate such Engine Replacement Appointee as recommended, the Parties shall continue to follow the
procedures of this Section 1(d) until an Engine Replacement Appointee is appointed or elected to the Board as recommended. Upon
an Engine Replacement Appointee’s appointment to the Board, the Board and all applicable committees of the Board shall take
all actions necessary to appoint such Engine Replacement Appointee to any applicable committee of the Board of which the resigned
director was a member immediately prior to such director’s resignation. Any Engine Replacement Appointee designated pursuant
to this Section 1(d) to replace any Engine Appointee that was appointed prior to the 2016 Annual Meeting shall be appointed following
the 2016 Annual Meeting.

 

(e)   During
the period commencing with the date of this Agreement through the expiration or termination of the Standstill Period, the Board
and all applicable committees of the Board shall take all actions necessary (including with respect to nominations for election
at the 2016 Annual Meeting) so that the size of the Board is no more (x) than ten (10) directors at any time prior to the 2016
Annual Meeting, and (y) eleven (11) directors at any time following the 2016 Annual Meeting, unless Engine consents in writing
to enlarging the Board, such consent not to be unreasonably withheld, conditioned or delayed.

 

(f)   The
Board and all applicable committees of the Board will take all action necessary to (i) appoint Mr. Schauerman to each of the
Nominating and Corporate Governance Committee and Audit Committee, as promptly as practicable following the execution of this
Agreement and (ii) appoint Mr. Ajdler to the Compensation Committee, as promptly as practicable following the 2016
Annual Meeting, subject, in each case, to his or her eligibility to serve in such capacity pursuant to applicable law and
stock exchange regulations, as they may be amended from time to time. Additionally, the Board and all applicable committees
of the Board will take all action necessary to insure that each committee of the Board, including any committee of the Board
created during the Standstill Period, will include at least one Engine Appointee, subject to his or her eligibility to serve
in such capacity pursuant to applicable law and stock exchange regulations, as
they may be amended from time to time.

 

    	 	- 2 -	 

     

    

 

 

(g)   Upon
the execution of this Agreement, Engine hereby irrevocably withdraws its Nomination Letter, and Engine hereby agrees not to (i)
nominate any person for election at the 2016 Annual Meeting, (ii) submit any proposal for consideration at, or bring any other
business before, the 2016 Annual Meeting, directly or indirectly, or (iii) initiate, encourage or participate in any “withhold”
or similar campaign with respect to the 2016 Annual Meeting, directly or indirectly, and will not permit any of its Affiliates
or Associates to do any of the items in this Section 1(g). Engine will not publicly or privately encourage or support any other
stockholder to take any of the actions described in this Section 1(g).

 

(h)   At
the 2016 Annual Meeting, Engine agrees to appear in person or by proxy and vote all shares of Common Stock beneficially owned
by it (i) in favor of the election of each of the Company’s nominees for election to the Board (ratably with respect to
all nominees), (ii) in accordance with the Board’s recommendation with respect to the Company’s “say-on-pay”
proposal and (iii) to ratify the appointment of the independent registered public accounting firm designated by the Board as the
Company’s independent registered public accounting firm for the fiscal year ending December 31, 2016.

 

(i)    Engine
agrees that it will cause each of its Affiliates and Associates to comply with the terms of this Agreement. As used in this Agreement,
the terms “Affiliate” and “Associate” will have the respective meanings set forth in Rule 12b-2 promulgated
by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, or the rules or regulations promulgated
thereunder (the “Exchange Act”) and will include all persons or entities that at any time during the term of
this Agreement become Affiliates or Associates of any person or entity referred to in this Agreement.

 

2.     Standstill
Provisions.

 

(a)    Engine
agrees that, from the date of this Agreement until the earlier of (x) the date that is fifteen (15) business days prior to the
deadline for the submission of stockholder nominations for the 2017 Annual Meeting pursuant to the Company’s bylaws or (y)
the date that is ninety (90) days prior to the first anniversary of the 2016 Annual Meeting (the “Standstill Period”),
neither it nor any of its Affiliates or Associates under its control or direction will, and it will cause each of its Affiliates
and Associates under its control not to, directly or indirectly, in any manner:

 

(i)  engage
in any solicitation of proxies or consents or become a “participant” in a “solicitation” as such terms
are defined in Regulation 14A under the Exchange Act of proxies or consents (including, without limitation, any solicitation of
consents that seeks to call a special meeting of stockholders), in each case, with respect to securities of the Company;

 

(ii)  form, join or in any way participate in any “group” (within the meaning
of Section 13(d)(3) of the Exchange Act) with respect to the Common Stock (other than a “group” that includes all
or some of the Engine Members, but does not include any other entities or persons not identified as Engine Members as of the date
hereof); provided, however, that nothing herein will limit the ability of an Affiliate or Associate of Engine to
join its respective “group” following the execution of this Agreement, so long as any such Affiliate or Associate
agrees to be bound by the terms and conditions of this Agreement;

 

    	 	- 3 -	 

     

    

 

 

(iii)  deposit
any Common Stock in any voting trust or subject any Common Stock to any arrangement or agreement with respect to the voting of
any Common Stock, other than any such voting trust, arrangement or agreement solely among the Engine Members and otherwise in
accordance with this Agreement;

 

(iv)  seek or encourage any person to submit nominations in furtherance of a “contested
solicitation” for the election or removal of directors with respect to the Company or seek, encourage or take any other
action with respect to the election or removal of any directors; provided, however, that nothing in this Agreement shall
prevent Engine or its Affiliates or Associates from taking actions in furtherance of identifying director candidates in connection
with the 2017 Annual Meeting so long as such actions do not create a public disclosure obligation for Engine or the Company and
are undertaken on a basis reasonably designed to be confidential;

 

(v)  (A)
make any proposal for consideration by stockholders at any annual or special meeting of stockholders of the Company, (B) make
any offer or proposal (with or without conditions) with respect to a merger, acquisition, recapitalization, restructuring, disposition
or other business combination involving the Company, or encourage, initiate or support any other third party in any such related
activity or (C) make any public communication in opposition to any Company acquisition or disposition activity approved by the
Board;

 

(vi)  vote for any director or directors for election to the Board other than those nominated
or supported by the Board;

 

(vii)  except in accordance with Section 1, seek to advise, encourage, support or influence
any person with respect to the voting or disposition of any securities of the Company at any annual or special meeting of stockholders
(other than such encouragement, support or influence that is consistent with the Company’s management or the Board’s
recommendation in connection with such matter);

 

(viii)  seek
to call, or to request the call of, a special meeting of the Company’s stockholders, or make a request for a list of the
Company’s stockholders or for any books and records of the Company; provided, however, any Engine Appointee shall
have the right to request stocklist materials or other books and records of the Company in his or her capacity as a director of
the Company;

 

(ix)  acquire,
announce an intention to acquire, offer or propose to acquire, or agree to acquire, directly or indirectly, by purchase or otherwise,
beneficial ownership of any Common Stock of the Company representing in the aggregate (among Engine and its Affiliates and Associates)
in excess of 9.9% of the Company’s then outstanding Common Stock (other than securities issued or purchased by the Company
pursuant to a stock split, stock dividend, stock repurchase or similar corporate action initiated by the Company with respect
to any Common Stock beneficially owned by Engine Capital on the date of this Agreement);

 

    	 	- 4 -	 

     

    

 

 

(x)  other
than through open market broker sale transactions where the identity of the purchaser is unknown, sell, offer or agree to sell,
directly or indirectly, through swap or hedging transactions or otherwise, any security of the Company or any right decoupled
from such underlying security held by Engine to any third party that would to Engine’s knowledge result in such third party,
together with its Affiliates, owning, controlling or otherwise having any beneficial or other ownership interest of any third
party who, together with its Affiliates, has a beneficial or other ownership interest in the aggregate of 5% or more of the shares
of Common Stock outstanding at such time, except in each case either (A) in a transaction approved by the Board or (B) to a third
party who is entitled, and following such transaction continues to be entitled, to file statements on Schedule 13G pursuant to
Rule 13d-1(b) or Rule 13d-1(c) promulgated under the Exchange Act; or

 

(xi)  make
any request or submit any proposal to amend the terms of this Agreement other than through non-public communications with the
Company that would not be reasonably determined to trigger public disclosure obligations for any Party.

 

(b)   Except as expressly provided in Section 1 or Section 2(a), each Engine Member will be entitled to:

 

(i)  vote
its shares on any other proposal duly brought before the 2016 Annual Meeting, or otherwise vote as each Engine Member determines
in its sole discretion provided that all Engine Members vote their shares in the same manner; or

 

(ii)  disclose,
publicly or otherwise, how it intends to vote or act with respect to any securities of the Company, any stockholder proposal or
other matter to be voted on by the stockholders of the Company and the reasons therefore; provided that, as applicable, all such
activity is in compliance with the requirements of this Agreement and that such disclosure is made in a consistent manner and
includes all Engine Members.

 

(c)   Nothing in this Section 2 shall be deemed to limit the exercise in good faith by an Engine Appointee of his or her
fiduciary duties solely in his or her capacity as a director of the Company.

 

3.      Board Policies and Procedures. Each Engine Appointee understands and acknowledges
that all members of the Board, including the Engine Appointees, are required to comply with all policies, procedures, processes,
codes, rules, standards and guidelines applicable to Board members, including the Company’s code of business conduct and
ethics, securities trading policies, director confidentiality policies, and corporate governance guidelines, and agrees to preserve
the confidentiality of Company business and information, including discussions of matters considered in meetings of the Board or
Board committees. Each Engine Appointee and Engine shall provide the Company with such information concerning such Engine Appointee
or Engine, as the case may be, as is required to be disclosed under applicable law or stock exchange regulations, in each case
as promptly as practicable following the Company’s written request therefor.

 

    	 	- 5 -	 

     

    

 

 

4.      Representations and Warranties of the Company. The Company represents and warrants
to Engine that (a) the Company has the corporate power and authority to execute this Agreement and to bind it thereto, (b) this
Agreement has been duly and validly authorized, executed and delivered by the Company, constitutes a valid and binding obligation
and agreement of the Company, and is enforceable against the Company in accordance with its terms, except as enforcement thereof
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally
affecting the rights of creditors and subject to general equity principles and (c) the execution, delivery and performance of this
Agreement by the Company does not and will not (i) violate or conflict with any law, rule, regulation, order, judgment or decree
applicable to the Company, or (ii) result in any breach or violation of or constitute a default (or an event which, with notice
or lapse of time or both, could constitute such a breach, violation or default) under or pursuant to, or result in the loss of
a material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document,
agreement, contract, commitment, understanding or arrangement to which the Company is a party or by which it is bound.

 

5.      Representations and Warranties of Engine. 

 

(a)    Engine represents and warrants to the Company that (i) the authorized signatory of
each Engine Member set forth on the signature page hereto has the power and authority to execute this Agreement and any other documents
or agreements to be entered into in connection with this Agreement and to bind it thereto, (ii) this Agreement has been duly authorized,
executed and delivered by each Engine Member, and is a valid and binding obligation of such Engine Member, enforceable against
such Engine Member in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general
equity principles, (iii) to the extent that any Engine Member is a legal entity, the execution of this Agreement, the consummation
of any of the transactions contemplated hereby, and the fulfillment of the terms hereof, in each case in accordance with the terms
hereof, will not conflict with, or result in a breach or violation of the organizational documents of such Engine Member as currently
in effect, and (iv) the execution, delivery and performance of this Agreement by each Engine Member does not and will not (A) violate
or conflict with any law, rule, regulation, order, judgment or decree applicable to such Engine Member, (B) violate or conflict
with any agreement, arrangement or understanding among the Engine Members, or (C) result in any breach or violation of or
constitute a default (or an event which, with notice or lapse of time or both, could constitute such a breach, violation or default)
under or pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment, acceleration
or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which such Engine
Member is a party or by which it is bound. 

 

(b)    Engine represents and warrants to the Company that, as of the date of this Agreement,
(i) Engine is deemed to beneficially own, in the aggregate, 956,690 shares of Common Stock and (ii) Engine does not currently have,
and does not currently have any right to acquire, any interest in any other securities of the Company (or any rights, options or
other securities convertible into or exercisable or exchangeable (whether or not convertible, exercisable or exchangeable immediately
or only after the passage of time or the occurrence of a specified event) for such securities or any obligations measured by the
price or value of any securities of the Company or any of its Affiliates, including any swaps or other derivative arrangements
designed to produce economic benefits and risks that correspond to the ownership of Common Stock, whether or not any of the foregoing
would give rise to beneficial ownership (as determined under Rule 13d-3 promulgated under the Exchange Act), and whether or not
to be settled by delivery of Common Stock, payment of cash or by other consideration, and without regard to any short position
under any such contract or arrangement).

 

    	 	- 6 -	 

     

    

 

 

6.      Mutual Non-Disparagement. Subject to applicable law, each of the Parties covenants
and agrees that, during the Standstill Period or, if earlier, until such time as the other Party or any of its agents, subsidiaries,
affiliates, successors, assigns, officers, key employees or directors shall have breached this Section, neither it nor any of its
respective agents, subsidiaries, affiliates, successors, assigns, officers, key employees or directors, will in any way publicly
disparage, call into disrepute, defame, slander or otherwise criticize the other Parties or such other Parties’ subsidiaries,
affiliates, successors, assigns, officers (including any current officer of a Party or a Parties’ subsidiaries who no longer
serves in such capacity following the execution of this Agreement), directors (including any current director of a Party or a Parties’
subsidiaries who no longer serves in such capacity following the execution of this Agreement), employees, shareholders, agents,
attorneys or representatives, or any of their products or services, in any manner that would damage the business or reputation
of such other Parties, their products or services or their subsidiaries, affiliates, successors, assigns, officers (or former officers),
directors (or former directors), employees, shareholders, agents, attorneys or representatives.

 

7.      Press Release. Promptly following the execution of this Agreement, the Company
and Engine will jointly issue a mutually agreeable press release (the “Mutual Press Release”) announcing certain
terms of this Agreement, in the form attached hereto as Exhibit A. Prior to the issuance of the Mutual Press Release, neither
the Company nor any Engine Member will issue any press release or public announcement regarding this Agreement without the prior
written consent of the other Parties. Until the 2016 Annual Meeting, neither the Company nor any Engine Member nor Mr. Ajdler or
Mr. Schauerman will make any public announcement or statement that is inconsistent with or contrary to the statements made in the
Mutual Press Release, except as required by law or the rules of any stock exchange or with the prior written consent of the other
Party.

 

8.      Expenses. Promptly following the execution of this Agreement, the Company shall
reimburse Engine for its reasonable, documented out-of-pocket fees and expenses (including legal expenses) incurred in connection
with seeking Board representation at the Company at the 2016 Annual Meeting and the negotiation and execution of this Agreement,
provided that such reimbursement shall not exceed $150,000 in the aggregate.

 

9.      Termination. Upon the expiration of the Standstill Period in accordance with
Section 2(a), this Agreement will immediately and automatically terminate and no Party shall have any further right or obligation
under this Agreement; provided that Sections 3 and 9 through 14 shall survive any termination of this Agreement.

 

10.    Specific Performance. Each of the Parties acknowledge and agree that irreparable
injury to the other Party would occur in the event any of the provisions of this Agreement were not performed in accordance with
their specific terms or were otherwise breached and that such injury would not be adequately compensable by the remedies available
at law (including the payment of money damages). It is accordingly agreed that Engine, on the one hand, and the Company, on the
other hand (the “Moving Party”), will each be entitled to specific enforcement of, and injunctive relief to
prevent any violation of, the terms hereof, and the other Party will not take action, directly or indirectly, in opposition to
the Moving Party seeking such relief on the grounds that any other remedy or relief is available at law or in equity. This Section
10 is not the exclusive remedy for any violation of this Agreement.

 

    	 	- 7 -	 

     

    

 

 

11.    Severability. If any term, provision, covenant or restriction of this Agreement
is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants
and restrictions of this Agreement will remain in full force and effect and will in no way be affected, impaired or invalidated.
It is hereby stipulated and declared to be the intention of the Parties that the Parties would have executed the remaining terms,
provisions, covenants and restrictions without including any of such which may be hereafter declared invalid, void or unenforceable.
In addition, the Parties agree to use their best efforts to agree upon and substitute a valid and enforceable term, provision,
covenant or restriction for any of such that is held invalid, void or enforceable by a court of competent jurisdiction.

 

12.    Notices. Any notices, consents, determinations, waivers or other communications
required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered:
(i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is
mechanically or electronically generated and kept on file by the sending party); or (iii) one business day after deposit with a
nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses
and facsimile numbers for such communications are as follows:

 

If to the Company:

MYR Group Inc.

1701 Golf Road, Suite 3-1012

Rolling Meadows, Illinois 60008

Attention: Gerald B. Engen, Jr.

Telephone: (847) 290-1891

Facsimile: (847) 290-1892

 

with a copy (which will not constitute
notice) to:

Jones Day

901 Lakeside Avenue

Cleveland, Ohio 44114-1190

Attention: James P. Dougherty

Telephone: (216) 586-7302

Facsimile: (216) 579-0212

 

    	 	- 8 -	 

     

    

 

 

If to Engine or any Engine Member:

Engine Capital, L.P.

1370 Broadway, 5th Floor

New York, New York 10018

Attention: Arnaud Ajdler

Telephone: (212) 321-0048

Facsimile: (646) 380-1220

 

with a copy (which will not constitute
notice) to:

Olshan Frome Wolosky LLP

Park Avenue Tower

65 East 55th Street

New York, New York 10022

Attention: Andrew M. Freedman

Telephone: (212) 451-2250

Facsimile: (212) 451-2222

 

13.             
Applicable Law. This Agreement will be governed by and construed and enforced
in accordance with the laws of the State of Delaware without reference to the conflict of laws principles thereof. Each of the
Parties irrevocably agrees that any legal action or proceeding with respect to this Agreement and the rights and obligations arising
hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising
hereunder brought by the other Party or its successors or assigns, will be brought and determined exclusively in the Delaware Court
of Chancery and any state appellate court therefrom within the State of Delaware (or, if the Delaware Court of Chancery declines
to accept jurisdiction over a particular matter, any state or federal court within the State of Delaware). Each of the Parties
hereby irrevocably submits, with regard to any such action or proceeding for itself and in respect of its property, generally and
unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will not bring any action relating to
this Agreement in any court other than the aforesaid courts. Each of the Parties hereby irrevocably waives, and agrees not to assert
in any action or proceeding with respect to this Agreement, (i) any claim that it is not personally subject to the jurisdiction
of the above-named courts for any reason, (ii) any claim that it or its property is exempt or immune from jurisdiction of any such
court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment
in aid of execution of judgment, execution of judgment or otherwise) and (iii) to the fullest extent permitted by applicable legal
requirements, any claim that (A) the suit, action or proceeding in such court is brought in an inconvenient forum, (B) the venue
of such suit, action or proceeding is improper or (C) this Agreement, or the subject matter hereof, may not be enforced in or by
such courts.

 

14.             
Entire Agreement; Amendment and Waiver; Successors and Assigns; Third Party Beneficiaries.
This Agreement contains the entire understanding of the Parties with respect to its subject matter. There are no restrictions,
agreements, promises, representations, warranties, covenants or undertakings between the Parties other than those expressly set
forth herein. No modifications of this Agreement can be made except in writing signed by an authorized representative of each of
the Company and Engine, except that the signature of an authorized representative of the Company will not be required to permit
an Affiliate of Engine to agree to be an Engine Member and be bound by the terms and conditions of this Agreement. No failure on
the part of any Party to exercise, and no delay in exercising, any right, power or remedy hereunder will operate as a waiver thereof,
nor will any single or partial exercise of such right, power or remedy by such Party preclude any other or further exercise thereof
or the exercise of any other right, power or remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies
provided by law. The terms and conditions of this Agreement will be binding upon, inure to the benefit of, and be enforceable by
the Parties and their respective successors, heirs, executors, legal representatives and permitted assigns. No Party will assign
this Agreement or any rights or obligations hereunder without, with respect to any Engine Member, the prior written consent of
the Company, and with respect to the Company, the prior written consent of Engine. This Agreement is solely for the benefit of
the Parties and is not enforceable by any other persons.

 

    	 	- 9 -	 

     

    

 

 

15.             
Counterparts. This Agreement may be executed in two or more counterparts, each
of which will be considered one and the same agreement and will become effective when counterparts have been signed by each of
the Parties and delivered to the other Party (including by means of electronic delivery or facsimile).

 

[Signature Page Follows]

 

 

    	 	- 10 -	 

     

    

 

 

 

IN WITNESS WHEREOF, this Agreement has been
duly executed and delivered by the duly authorized signatories of the Parties as of the date hereof.

 

	 	THE COMPANY:
	 	 	 	 	 
	 	MYR GROUP INC.
	 	 	 	 
	 	By:	/s/ William A. Koertner	 
	 	 	Name: William A. Koertner
	 	 	Title: Chief Executive Officer
	 	 	 	 	 
	 	ENGINE:
	 	 	 	 	 
	 	ENGINE CAPITAL MANAGEMENT, LLC
	 	 	 	 	 
	 	By:	/s/ Arnaud Ajdler	 
	 	 	Name: Arnaud Ajdler
	 	 	Title: Managing Member
	 	 	 	 	 
	 	 	 	 	 
	 	ENGINE CAPITAL, L.P.
	 	 	 	 	 
	 	By:	Engine Investments, LLC,
	 	 	General Partner
	 	 	 	 	 
	 	 	By:	/s/ Arnaud Ajdler	 
	 	 	 	Name: Arnaud Ajdler	 
	 	 	 	Title: Managing Member	 
	 	 	 	 	 
	 	ENGINE JET CAPITAL, L.P.
	 	 	 	 	 
	 	By:	Engine Investments, LLC,
	 	 	General Partner
	 	 	 	 	 
	 	 	By:	/s/ Arnaud Ajdler	 
	 	 	 	Name: Arnaud Ajdler
	 	 	 	Title: Managing Member
	 	 	 	 	 
	 	ENGINE AIRFLOW CAPITAL, L.P.
	 	 	 	 	 
	 	By:	Engine Investments, LLC,
	 	 	General Partner
	 	 	 	 	 
	 	 	By:	/s/ Arnaud Ajdler	 
	 	 	 	Name: Arnaud Ajdler
	 	 	 	Title: Managing Member

 

 

[Signature
Page to Settlement Agreement]

    	 

     

    

  

	 	ENGINE INVESTMENTS, LLC
	 	 	 	 
	 	By:	/s/ Arnaud Ajdler	 
	 	 	Name: Arnaud Ajdler
	 	 	Title: Managing Member
	 	 	 	 
	 	ENGINE INVESTMENTS II, LLC
	 	 	 	 
	 	By:	/s/ Arnaud Ajdler	 
	 	 	Name: Arnaud Ajdler
	 	 	Title: Managing Member
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	/s/ Arnaud Ajdler
	 
	 	ARNAUD AJDLER
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	/s/ John P. Schauerman	 
	 	JOHN P. SCHAUERMAN

 

 

[Signature
Page to Settlement Agreement]

    	 

     

    

 

 

Exhibit A

 

Press Release

 

FOR IMMEDIATE RELEASE

 

MYR GROUP ANNOUNCES AGREEMENT WITH ENGINE
CAPITAL

 

Agrees
to Appoint John P. Schauerman and Arnaud Ajdler as Independent Directors to the Board

 

Rolling
Meadows, IL and New York, NY – March 22, 2016 – MYR Group Inc. (“MYR Group” or the “Company”)
(NASDAQ:MYRG), a leading specialty contractor serving the electrical infrastructure market in the United States and Canada, today
announced that it has entered into an agreement with Engine Capital, L.P. and its affiliates (“Engine Capital”) regarding
the composition of the MYR Group Board of Directors (the “Board”). Under
the terms of the agreement, John P. Schauerman has been appointed to the Board, effective immediately, and Arnaud Ajdler, Managing
Member of Engine Capital, will join the Board, effective immediately following the 2016 annual meeting of stockholders of the Company
(the “2016 Annual Meeting”). With these appointments, the Company’s Board will be expanded to 11 directors, 10
of whom are independent. 

 

“MYR Group has long benefited from a diverse Board with
directors who represent different functional disciplines, experiences and points of view,” said Bill Koertner, MYR Group’s
President and CEO. “As the Company’s results show, we are making good progress executing our three-pronged strategy
of prudent organic growth, acquisitions and returning capital to shareholders. We look forward to working closely with John and
Arnaud as well as the rest of the Board to enhance long-term value for all MYR Group shareholders.”

 

Arnaud Ajdler, Managing Member of Engine Capital, said, “We
have had a productive dialogue with MYR Group and are pleased to have reached an agreement which we believe is a good outcome for
all shareholders. We believe the addition of the two new independent directors to the Board will help the Company identify and
execute upon opportunities to further enhance value for the benefit of all MYR Group shareholders. We look forward to continuing
to work closely with the Company and the Board.”

 

Under
the terms of the agreement between MYR Group and Engine Capital, Engine Capital has agreed to customary standstill and voting commitments.
Mr. Schauerman will be appointed to the Board immediately to serve as a Class III director and will be nominated for election to
the Board as part of the Company’s slate for the 2016 Annual Meeting and Mr. Ajdler will be appointed to the Board following
the 2016 Annual Meeting to serve as a Class I director. The agreement also provides that Mr. Schauerman will be appointed to each
of the Nominating and Corporate Governance Committee and Audit Committee and Mr. Ajdler will be appointed to the Compensation Committee,
subject to their eligibility to serve in such capacities pursuant to applicable
law and stock exchange regulations. The complete agreement will be included as an exhibit to a Current Report on Form 8-K and filed
by MYR Group with the U.S. Securities and Exchange Commission. 

 

     

     

    

 

About Arnaud Ajdler

 

Mr. Ajdler is currently the Managing Member of Engine Capital
Management, LLC, which serves as the investment manager to value-oriented special situations funds, that invest both actively and
passively in companies undergoing change, and is the Managing Member of each of Engine Investments, LLC and Engine Investments
II, LLC. Prior to founding Engine Capital Management, LLC in March 2013, Mr. Ajdler served as a Managing Director of Crescendo
Partners L.P., a principal investment firm, from December 2005 to February 2013. In addition, Mr. Ajdler has served as a director
of Destination Maternity Corporation, the world’s largest designer and retailer of maternity apparel , since March 2008,
and as Non-Executive Chairman of its board of directors since February 2011. He has also served as a director and on the compensation
and nominating and corporate governance committees of Stewart Information Services Corporation, a company that provides title insurance
and real estate services worldwide, since May 2014, and as a director of StarTek, Inc., a provider of business process outsourcing
services, since May 2015. Mr. Ajdler is also an Adjunct Professor at Columbia University Business School where he teaches a course
in Value Investing. He also previously served as a director and on the audit committee of Imvescor Restaurant Group, Inc., a Canadian
franchisor of restaurant concepts from July 2013 to March 2016, as a director and chair of the corporate governance and nominating
committee of Charming Shoppes, Inc., an apparel retailer, from 2008 until the company was acquired in June 2012, and as a director
and on the compensation and human resources committee of O’Charley’s Inc., a multi-concept restaurant company, from
March 2012 until the company was acquired in April 2012. Since its inception in June 2006 and until its combination with Primoris
Services Corporation in July 2008, Mr. Ajdler served as a member of the board of directors and as the Secretary of Rhapsody Acquisition
Corp., an OTC Bulletin Board-listed blank check company formed to effect a business combination with an operating business. From
June 2004 until June 2006, Mr. Ajdler served as the Chief Financial Officer, a director and the Secretary of Arpeggio Acquisition
Corporation, a specified purpose acquisition company (“Arpeggio”). Arpeggio completed its business combination with
Hill International, Inc., a worldwide construction consulting firm, in June 2006, and until June 2009, Mr. Ajdler served as a director
of the surviving company, a NYSE listed company. From August 2006 until the company was acquired in October 2007, Mr. Ajdler served
as a director of The Topps Company, Inc., a company that provides baseball, football, hockey, entertainment, and pop culture products.

About John P. Schauerman

 

Mr. Schauerman served as Executive Vice President of Corporate
Development of Primoris Services Corporation (“Primoris”), a specialty construction and infrastructure company (“Primoris”),
from February 2009 to May 2013, where he was responsible for developing and integrating Primoris’ overall strategic plan,
including the evaluation and structuring of new business opportunities and acquisitions. Prior to that, Mr. Schauerman served as
Primoris’ Chief Financial Officer from February 2008 to February 2009, during which time Primoris went public through a merger
with Rhapsody Acquisition Corp. He also served as a director of Primoris from July 2008 to May 2013 and as a director of its predecessor
entity, ARB, Inc. (“ARB”) from 1993 to July 2008. Mr. Schauerman joined ARB in 1993 as Senior Vice President. Previously,
he served as Senior Vice President of Wedbush Morgan Securities, Inc., a regional investment bank focused on financing activities
for middle market companies (n/k/a Wedbush Securities, Inc.). Mr. Schauerman has served on the Boards of Directors of Harmony Merger
Corp., a blank check company, since March 2015 and Wedbush Securities, Inc., a leading financial services and investment firm,
since August 2014. He previously served as a director of Quartet Merger Corporation, a blank check company, from November 2013
to October 2014. Mr. Schauerman holds an M.B.A. in Finance from Columbia University and a B.S. in Electrical Engineering from the
University of California, Los Angeles.

 

     

     

    

  

About MYR Group Inc.

 

MYR Group is a leading specialty contractor serving the electrical
infrastructure market throughout the United States and Canada, and has the experience and expertise to complete electrical installations
of any type and size. MYR Group’s comprehensive services on electric transmission and distribution networks and substation
facilities include design, engineering, procurement, construction, upgrade, maintenance and repair services. MYR Group’s
transmission and distribution customers include investor-owned utilities, cooperatives, private developers, government-funded utilities,
independent power producers, independent transmission companies, industrial facility owners and other contractors. MYR Group also
provides commercial and industrial electrical contracting services to general contractors, commercial and industrial facility owners,
local governments and developers generally throughout the western and northeastern United States. For more information, visit myrgroup.com.

 

About Engine Capital

 

Engine Capital is a value-oriented special situations fund that
invests both actively and passively in companies undergoing change.

 

Forward-Looking Statements

 

Various statements in this announcement,
including those that express a belief, expectation, or intention, as well as those that are not statements of historical fact,
are forward-looking statements. The forward-looking statements may include projections and estimates concerning the timing and
success of specific projects and our future production, revenue, income, capital spending, segment improvements and investments.
Forward-looking statements are generally accompanied by words such as “anticipate,” “believe,” “estimate,”
“expect,” “intend,” “may,” “objective,” “outlook,” “plan,”
“project,” “likely,” “unlikely,” “possible,” “potential,” “should”
or other words that convey the uncertainty of future events or outcomes. The forward-looking statements in this announcement speak
only as of the date of this announcement; we disclaim any obligation to update these statements (unless required by securities
laws), and we caution you not to rely on them unduly. We have based these forward-looking statements on our current expectations
and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are
inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties,
most of which are difficult to predict and many of which are beyond our control. No forward-looking statement can be guaranteed
and actual results may differ materially from those projected. Forward-looking statements in this press announcement should be
evaluated together with the many uncertainties that affect MYR’s business, particularly those mentioned in the risk factors
and cautionary statements in Item 1A of MYR’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, and
in any risk factors or cautionary statements contained in MYR’s Quarterly Reports on Form 10-Q or Current Reports on Form
8-K.

 

Additional Information

 

MYR Group, its directors and certain of its executive officers
may be deemed to be participants in the solicitation of proxies from MYR Group stockholders in connection with the matters to be
considered at MYR Group’s 2016 Annual Meeting. MYR Group filed a preliminary proxy statement with the U.S. Securities and
Exchange Commission (the “SEC”) and will be filing a definitive proxy statement with the SEC in connection with the
solicitation of proxies from MYR Group stockholders for MYR Group’s 2016 Annual Meeting. MYR GROUP STOCKHOLDERS ARE STRONGLY
ENCOURAGED TO READ ANY SUCH PROXY STATEMENT WHEN IT BECOMES AVAILABLE AS IT WILL CONTAIN IMPORTANT INFORMATION. Information regarding
the ownership of MYR Group’s directors and executive officers in MYR Group securities is included in their SEC filings on
Forms 3, 4 and 5. More detailed information regarding the identity of potential participants, and their direct or indirect interests,
by security holdings or otherwise, will be set forth in the definitive proxy statement and other materials to be filed with the
SEC in connection with MYR Group’s 2016 Annual Meeting. Information can also be found in MYR Group’s most recent Annual
Report on Form 10-K and in MYR Group’s preliminary proxy statement for the 2016 Annual Meeting. Stockholders will be able
to obtain any proxy statement, any amendments or supplements to the proxy statement and other documents filed by MYR Group with
the SEC for no charge at the SEC’s website at www.sec.gov. Copies will also be available at no charge at MYR Group’s
website at www.myrgroup.com or by writing to our Corporate Secretary, at MYR Group Inc., 1701 Golf Road, Suite 3-1012, Rolling
Meadows, Illinois 60008.

 

     

     

    

 

Contact:

Betty R. Johnson

Chief Financial Officer

847-290-1891

investorinfo@myrgroup.com

 

Matt Sherman / Barrett Golden / Adam Pollack

Joele Frank, Wilkinson Brimmer Katcher, 212-355-4449

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