Document:

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                                                                     EXHIBIT 4.2

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                            SERIES 2005-7 SUPPLEMENT
                           Dated as of August 18, 2005

                                       to

                         POOLING AND SERVICING AGREEMENT
                            Dated as of May 16, 1996,
                  as amended and restated as of April 16, 2004

                                  $700,000,000

                              --------------------

                  AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

                                  Series 2005-7

                              --------------------

                                      among

              AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION II

           AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION III LLC

            AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION IV LLC
                                 as Transferors

             AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC.
                                   as Servicer

                                       and

                              THE BANK OF NEW YORK
                                   as Trustee
                on behalf of the Series 2005-7 Certificateholders

================================================================================

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                                TABLE OF CONTENTS

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<S>                            <C>                                                                              <C>
         ARTICLE I             Creation of the Series 2005-7 Certificates........................................1

         Section 1.01.         Designation.......................................................................1

         ARTICLE II            Definitions.......................................................................2

         Section 2.01.         Definitions.......................................................................2

         ARTICLE III           Servicing Fee....................................................................14

         Section 3.01.         Servicing Compensation...........................................................14

         ARTICLE IV            Rights of Series 2005-7 Certificateholders and
                               Allocation and Application of Collections........................................15

         Section 4.01.         Collections and Allocations......................................................15

         Section 4.02.         Determination of Monthly Interest................................................17

         Section 4.03.         Principal Funding Account; Controlled Accumulation Period........................18

         Section 4.04.         Required Amount..................................................................20

         Section 4.05.         Application of Class A Available Funds, Class B Available
                               Funds, Collateral Available Funds and Available Principal Collections............20

         Section 4.06.         Defaulted Amounts; Investor Charge-Offs..........................................22

         Section 4.07.         Excess Spread; Excess Finance Charge Collections.................................23

         Section 4.08.         Reallocated Principal Collections................................................24

         Section 4.09.         Excess Finance Charge Collections................................................25

         Section 4.10.         Reallocated Investor Finance Charge Collections..................................26

         Section 4.11.         Shared Principal Collections.....................................................26

         Section 4.12.         Reserve Account..................................................................27

         Section 4.13.         Investment Instructions..........................................................28

         Section 4.14.         Determination of LIBOR...........................................................29

         ARTICLE V             Distributions and Reports to Series 2005-7 Certificateholders....................30

         Section 5.01.         Distributions....................................................................30

         Section 5.02.         Reports and Statements to Series 2005-7 Certificateholders.......................31

         ARTICLE VI            Pay-Out Events...................................................................31

         Section 6.01.         Pay-Out Events...................................................................31

         ARTICLE VII           Optional Repurchase; Series Termination..........................................33

         Section 7.01.         Optional Repurchase..............................................................33

         Section 7.02.         Series Termination...............................................................33
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                                TABLE OF CONTENTS
                                   (CONTINUED)

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<S>                            <C>                                                                              <C>
         ARTICLE VIII          Final Distributions..................................... ........................34

         Section 8.01.         Sale of Receivables or Certificateholders' Interest pursuant to
                               Section 2.06 or 10.01 of the
                               Agreement and Section 7.01 or 7.02 of this Supplement............................34

         Section 8.02.         Distribution of Proceeds of Sale, Disposition or Liquidation of
                               the Receivables pursuant to Section 9.01 of the Agreement........................35

         ARTICLE IX   Miscellaneous Provisions..................................................................36

         Section 9.01.         Ratification of Agreement........................................................36

         Section 9.02.         Counterparts.....................................................................36

         Section 9.03.         Governing Law....................................................................36

         Section 9.04.         [Reserved].......................................................................36

         Section 9.05.         [Reserved].......................................................................36

         Section 9.06.         Uncertificated Securities........................................................36

         Section 9.07.         Transfers of the Collateral Interest.............................................36

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         SERIES 2005-7 SUPPLEMENT, dated as of August 18, 2005 (the
         "Supplement"), among AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION
         II, a Delaware corporation, AMERICAN EXPRESS RECEIVABLES FINANCING
         CORPORATION III LLC, a Delaware limited liability company, and AMERICAN
         EXPRESS RECEIVABLES FINANCING CORPORATION IV LLC, a Delaware limited
         liability company, as Transferors, AMERICAN EXPRESS TRAVEL RELATED
         SERVICES COMPANY, INC., a New York corporation, as Servicer, and THE
         BANK OF NEW YORK, a banking corporation organized and existing under
         the laws of the State of New York, not in its individual capacity, but
         solely as Trustee.

         Pursuant to the Pooling and Servicing Agreement, dated as of May 16,
1996, as amended and restated as of April 16, 2004 (as amended and restated and
as otherwise amended and supplemented, the "Agreement"), among the Transferors,
the Servicer and the Trustee, the AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST
(the "Trust") has been created. Section 6.03 of the Agreement provides that the
Transferors may from time to time direct the Trustee to authenticate one or more
new Series of Investor Certificates representing fractional undivided interests
in the Trust. The Principal Terms of any new Series are to be set forth in a
Supplement to the Agreement.

         Pursuant to this Supplement, the Transferors and the Trustee shall
create a new Series of Investor Certificates and specify the Principal Terms
thereof.

                                   ARTICLE I

                   Creation of the Series 2005-7 Certificates

Section 1.01.     Designation.

         (a) There is hereby created a Series of Investor Certificates to be
issued pursuant to the Agreement and this Supplement to be known as "American
Express Credit Account Master Trust, Series 2005-7." The Series 2005-7
Certificates shall be issued in two Classes, the first of which shall be known
as the "Class A Series 2005-7 Floating Rate Asset Backed Certificates" and the
second of which shall be known as the "Class B Series 2005-7 Floating Rate Asset
Backed Certificates." In addition, there is hereby created a third Class of
uncertificated interests in the Trust which shall be known as the "Collateral
Interest, Series 2005-7" and which shall be deemed to be "Investor Certificates"
for all purposes under the Agreement and this Supplement other than for purposes
of the definition of the term "Tax Opinion" in Section 1.01 of the Agreement.
The Collateral Interest shall be considered a Class of Series 2005-7 for all
purposes of the Agreement and this Supplement, including for purposes of voting
concerning the liquidation of the Trust pursuant to Section 9.01 of the
Agreement. The Collateral Interest Holder shall be deemed to be the Series
Enhancer for all purposes under the Agreement and this Supplement.

         (b) Series 2005-7 shall be included in Group II and shall be a
Principal Sharing Series. Series 2005-7 shall be an Excess Allocation Series.
Series 2005-7 shall not be subordinated to any other Series. Notwithstanding any
provision in the Agreement or in this Supplement to the contrary, the first
Distribution Date with respect to Series 2005-7 shall be the September 2005
Distribution Date and the first Monthly Period shall begin on and include the
Closing Date and end on and include August 25, 2005.

                                       1
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         (c) Except as expressly provided herein, (i) the provisions of Article
VI and Article XII of the Agreement relating to the registration,
authentication, delivery, presentation, cancellation and surrender of Registered
Certificates shall not be applicable to the Collateral Interest, and (ii) the
provisions of Section 3.07 of the Agreement shall not cause the Collateral
Interest to be treated as debt for federal, state and local income and franchise
tax purposes, but rather the Transferors intend, and together with the
Collateral Interest Holder, agree to treat the Collateral Interest for federal,
state and local income and franchise tax purposes as representing an equity
interest in the assets of the Trust.

                                   ARTICLE II

                                   Definitions

Section 2.01.     Definitions.

         (a) Whenever used in this Supplement, the following words and phrases
shall have the following meanings, and the definitions of such terms are
applicable to the singular as well as the plural forms of such terms and the
masculine as well as the feminine and neuter genders of such terms.

         "Additional Interest" means, with respect to any Distribution Date, the
Class A Additional Interest, the Class B Additional Interest and the Collateral
Additional Interest for such Distribution Date.

         "Adjusted Invested Amount" shall mean, with respect to any date of
determination, an amount equal to the Invested Amount less the Principal Funding
Account Balance on such date of determination.

         "Assignee" shall have the meaning specified in subsection 9.07(a).

         "Available Principal Collections" shall mean, with respect to any
Monthly Period, an amount equal to the sum of (a) (i) an amount equal to the
Principal Allocation Percentage of Series 2005-7 Allocable Principal Collections
received during such Monthly Period minus (ii) the amount of Reallocated
Principal Collections with respect to such Monthly Period which pursuant to
Section 4.08 are required to fund the Required Amount for the related
Distribution Date, (b) any Shared Principal Collections with respect to other
Series that are allocated to Series 2005-7 in accordance with Section 4.04 of
the Agreement and Section 4.11 of this Supplement, and (c) any other amounts
which pursuant to Section 4.05 or 4.07 of this Supplement are to be treated as
Available Principal Collections with respect to the related Distribution Date.

         "Available Reserve Account Amount" shall mean, with respect to any
Distribution Date, the lesser of (a) the amount on deposit in the Reserve
Account on such date (before giving effect to any deposit to be made to the
Reserve Account on such date) and (b) the Required Reserve Account Amount.

         "Base Rate" shall mean, with respect to any Monthly Period, the
annualized percentage equivalent of a fraction, the numerator of which is equal
to the sum of the Class A Monthly Interest, the Class B Monthly Interest
(calculated as if the Class B Invested Amount equals the outstanding principal
balance of the Class B Certificates), the Collateral Minimum Monthly Interest
and the Monthly Servicing Fee with respect to the related Distribution Date and
the denominator of which is the Invested Amount as of the last day of the
preceding Monthly Period.

         "Class A Additional Interest" shall have the meaning specified in
subsection 4.02(a).

                                       2
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         "Class A Adjusted Invested Amount" shall mean, with respect to any date
of determination, an amount equal to the Class A Invested Amount less the
Principal Funding Account Balance (but not in excess of the Class A Invested
Amount) on such date.

         "Class A Available Funds" shall mean, with respect to any Monthly
Period, an amount equal to the sum of (a) if such Monthly Period relates to a
Distribution Date with respect to the Controlled Accumulation Period, the Class
A Floating Percentage of Principal Funding Account Investment Proceeds, if any,
with respect to such Distribution Date, (b) the Class A Floating Percentage of
the Reallocated Investor Finance Charge Collections and (c) the amount of funds,
if any, to be withdrawn from the Reserve Account which, pursuant to subsection
4.12(d), are required to be included in Class A Available Funds with respect to
such Distribution Date.

         "Class A Certificate Rate" shall mean, for any Interest Accrual Period
with respect to the Class A Certificates, a per annum rate equal to LIBOR plus
0.07%.

         "Class A Certificateholder" shall mean the Person in whose name a Class
A Certificate is registered in the Certificate Register.

         "Class A Certificates" shall mean any one of the Certificates executed
by the Transferors and authenticated by or on behalf of the Trustee,
substantially in the form of Exhibit A-l.

         "Class A Floating Percentage" shall mean, with respect to any Monthly
Period, the percentage equivalent (which percentage shall never exceed 100%) of
a fraction, the numerator of which is equal to the Class A Adjusted Invested
Amount as of the close of business on the last day of the preceding Monthly
Period and the denominator of which is equal to the Adjusted Invested Amount as
of such day; provided, however, that with respect to the first Monthly Period,
the Class A Floating Percentage shall mean the percentage equivalent of a
fraction, the numerator of which is the Class A Initial Invested Amount and the
denominator of which is the Initial Invested Amount.

         "Class A Initial Invested Amount" shall mean $584,500,000.

         "Class A Interest Shortfall" shall have the meaning specified in
subsection 4.02(a).

         "Class A Invested Amount" shall mean, on any date of determination, an
amount equal to (a) the Class A Initial Invested Amount, minus (b) the aggregate
amount of principal payments made to the Class A Certificateholders on or prior
to such date, minus (c) the excess, if any, of (i) the aggregate amount of Class
A Investor Charge-Offs for all prior Distribution Dates over (ii) Class A
Investor Charge-Offs reimbursed pursuant to subsection 4.07(b) prior to such
date.

         "Class A Investor Charge-Offs" shall have the meaning specified in
subsection 4.06(a).

         "Class A Investor Default Amount" shall mean, with respect to each
Distribution Date, an amount equal to the product of (i) the Investor Default
Amount for such Distribution Date and (ii) the Class A Floating Percentage for
such Monthly Period.

         "Class A Monthly Interest" shall have the meaning specified in
subsection 4.02(a).

         "Class A Principal Percentage" shall mean, with respect to any Monthly
Period (i) during the Revolving Period, the percentage equivalent (which
percentage shall never exceed 100%) of a fraction, the numerator of which is the
Class A Invested Amount as of the last day of the immediately preceding Monthly
Period and the denominator of which is the Invested Amount as of such day and
(ii) during the Controlled Accumulation Period, the Early Amortization Period or
any Partial Amortization Period, the percentage equivalent (which percentage
shall never exceed 100%) of a fraction, the numerator of which is the Class A
Invested Amount as of the close of business on the date on which the Revolving
Period shall have terminated and the denominator of which is the Invested Amount
as of the close of business on the date on which the Revolving Period shall have
terminated; provided, however, that with respect to the first Monthly Period,
the Class A Principal Percentage shall mean the percentage equivalent of a
fraction, the numerator of which is the Class A Initial Invested Amount and
denominator of which is the Initial Invested Amount.

                                       3
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         "Class A Required Amount" shall have the meaning specified in
subsection 4.04(a).

         "Class A Servicing Fee" shall have the meaning specified in Section
3.01.

         "Class B Additional Interest" shall have the meaning specified in
subsection 4.02(b).

         "Class B Adjusted Invested Amount" shall mean, with respect to any date
of determination, an amount equal to the Class B Invested Amount less the
positive difference, if any, between the Principal Funding Account Balance and
the Class A Invested Amount on such date.

         "Class B Available Funds" shall mean, with respect to any Monthly
Period, an amount equal to the sum of (a) the Class B Floating Percentage of the
Reallocated Investor Finance Charge Collections and (b) if such Monthly Period
relates to a Distribution Date with respect to the Controlled Accumulation
Period, the Class B Floating Percentage of the Principal Funding Account
Investment Proceeds, if any, with respect to such Distribution Date.

         "Class B Certificate Rate" shall mean, for any Interest Accrual Period
with respect to the Class B Certificates, a per annum rate equal to LIBOR plus
0.27%.

         "Class B Certificateholder" shall mean the Person in whose name a Class
B Certificate is registered in the Certificate Register.

         "Class B Certificates" shall mean any one of the Certificates executed
by the Transferors and authenticated by or on behalf of the Trustee,
substantially in the form of Exhibit A-2.

         "Class B Floating Percentage" shall mean, with respect to any Monthly
Period, the percentage equivalent (which percentage shall never exceed 100%) of
a fraction, the numerator of which is equal to the Class B Adjusted Invested
Amount as of the close of business on the last day of the preceding Monthly
Period and the denominator of which is equal to the Adjusted Invested Amount as
of the close of business on such day; provided, however, that with respect to
the first Monthly Period, the Class B Floating Percentage shall mean the
percentage equivalent of a fraction, the numerator of which is the Class B
Initial Invested Amount and the denominator of which is the Initial Invested
Amount.

         "Class B Initial Invested Amount" shall mean $52,500,000.

         "Class B Interest Shortfall" shall have the meaning specified in
subsection 4.02(b).

         "Class B Invested Amount" shall mean, on any date of determination, an
amount equal to (a) the Class B Initial Invested Amount, minus (b) the aggregate
amount of principal payments made to the Class B Certificateholders prior to
such date, minus (c) the aggregate amount of Class B Investor Charge-Offs for
all prior Distribution Dates, minus (d) the amount of Reallocated Principal
Collections allocated on all prior Distribution Dates pursuant to subsection
4.08(a) (excluding any Reallocated Principal Collections that have resulted in a
reduction in the Collateral Invested Amount pursuant to Section 4.08), minus (e)
an amount equal to the amount by which the Class B Invested Amount has been
reduced on all prior Distribution Dates pursuant to subsection 4.06(a) and plus
(f) the amount of Excess Spread and Excess Finance Charge Collections allocated
and available on all prior Distribution Dates pursuant to subsection 4.07(e) for
the purpose of reimbursing amounts deducted pursuant to the foregoing clauses
(c), (d) and (e); provided, however, that the Class B Invested Amount may not be
reduced below zero.

                                       4
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         "Class B Investor Charge-Offs" shall have the meaning specified in
subsection 4.06(b).

         "Class B Investor Default Amount" shall mean, with respect to each
Distribution Date, an amount equal to the product of (i) the Investor Default
Amount for such Distribution Date and (ii) the Class B Floating Percentage for
such Monthly Period.

         "Class B Monthly Interest" shall have the meaning specified in
subsection 4.02(b).

         "Class B Principal Percentage" shall mean, with respect to any Monthly
Period, (i) during the Revolving Period, the percentage equivalent (which
percentage shall never exceed 100%) of a fraction, the numerator of which is the
Class B Invested Amount as of the last day of the immediately preceding Monthly
Period and the denominator of which is the Invested Amount as of such day and
(ii) during the Controlled Accumulation Period, the Early Amortization Period or
any Partial Amortization Period, the percentage equivalent (which percentage
shall never exceed 100%) of a fraction, the numerator of which is the Class B
Invested Amount as of the close of business on the date on which the Revolving
Period shall have terminated and the denominator of which is the Invested Amount
as of the close of business on the date on which the Revolving Period shall have
terminated; provided, however, that with respect to the first Monthly Period,
the Class B Principal Percentage shall mean the percentage equivalent of a
fraction, the numerator of which is the Class B Initial Invested Amount and the
denominator of which is the Initial Invested Amount.

         "Class B Required Amount" shall have the meaning set forth in
subsection 4.04(b).

         "Class B Servicing Fee" shall have the meaning specified in Section
3.01.

         "Closing Date" shall mean August 18, 2005; provided that, for purposes
of determining the date on which the first Monthly Period begins, the Closing
Date shall be deemed to be the close of business on the last day of the seventh
billing cycle applicable to the Accounts ending in June 2005.

         "Collateral Additional Interest" shall have the meaning specified in
subsection 4.02(c).

         "Collateral Available Funds" shall mean with respect to any
Distribution Date, the Collateral Floating Percentage of Reallocated Investor
Finance Charge Collections with respect to the preceding Monthly Period.

         "Collateral Charge-Offs" shall have the meaning specified in subsection
4.06(c).

         "Collateral Default Amount" shall mean, with respect to any
Distribution Date, the product of the Investor Default Amount for such
Distribution Date and the Collateral Floating Percentage.

         "Collateral Floating Percentage" shall mean, with respect to any
Distribution Date, the percentage equivalent (which percentage shall never
exceed 100%) of a fraction, the numerator of which is equal to the Collateral
Invested Amount as of the close of business on the last day of the preceding
Monthly Period and the denominator of which is the Adjusted Invested Amount as
of the close of business on such last day; provided, however, that with respect
to the first Monthly Period, the Collateral Floating Percentage shall mean the
percentage equivalent of a fraction, the numerator of which is the Collateral
Initial Invested Amount and the denominator of which is the Initial Invested
Amount.

         "Collateral Initial Invested Amount" shall mean $63,000,000.

                                       5
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         "Collateral Interest" shall mean a fractional undivided interest in the
Trust which shall consist of the right to receive, (i) to the extent necessary
to make the required payments to the Collateral Interest Holder under this
Supplement, the portion of Collections allocable thereto under the Agreement and
this Supplement and funds on deposit in the Collection Account allocable thereto
pursuant to the Agreement and this Supplement and (ii) amounts available for
payment to the Collateral Interest Holder pursuant to subsections 4.07(k),
4.12(e), 4.12(f), 8.01(b), 8.02(a) and 8.02(b) or any other provision of this
Supplement.

         "Collateral Interest Holder" shall mean the entity so designated in the
Transfer Agreement.

         "Collateral Interest Shortfall" shall have the meaning specified in
subsection 4.02(c).

         "Collateral Invested Amount" shall mean, when used with respect to any
date, an amount equal to (a) the Collateral Initial Invested Amount, minus (b)
the aggregate amount of principal payments made to the Collateral Interest
Holder prior to such date, minus (c) the aggregate amount of Collateral
Charge-Offs for all prior Distribution Dates pursuant to subsection 4.06(c),
minus (d) the aggregate amount of Reallocated Principal Collections allocated on
all prior Distribution Dates pursuant to Section 4.08 allocable to the
Collateral Invested Amount, minus (e) an amount equal to the amount by which the
Collateral Invested Amount has been reduced on all prior Distribution Dates
pursuant to subsections 4.06(a) and (b), and plus (f) the amount allocated and
available on all prior Distribution Dates pursuant to subsection 4.07(i), for
the purpose of reimbursing amounts deducted pursuant to the foregoing clauses
(c), (d) and (e); provided, however, that the Collateral Invested Amount may not
be reduced below zero.

         "Collateral Minimum Interest Rate" shall mean the rate specified in the
Transfer Agreement; provided that for purposes of this Supplement, such rate
shall not exceed LIBOR plus 0.41% per annum.

         "Collateral Minimum Monthly Interest" shall have the meaning specified
in subsection 4.02(c).

         "Collateral Principal Percentage" shall mean, with respect to any
Monthly Period, (i) during the Revolving Period, the percentage equivalent
(which percentage shall never exceed 100%) of a fraction, the numerator of which
is the Collateral Invested Amount as of the last day of the immediately
preceding Monthly Period and the denominator of which is the Invested Amount as
of such day and (ii) during the Controlled Accumulation Period, the Early
Amortization Period or any Partial Amortization Period, the percentage
equivalent (which percentage shall never exceed 100%) of a fraction, the
numerator of which is the Collateral Invested Amount as of the close of business
on the date on which the Revolving Period shall have terminated and the
denominator of which is the Invested Amount as of the close of business on the
date on which the Revolving Period shall have terminated; provided, however,
that with respect to the first Monthly Period, the Collateral Principal
Percentage shall mean the percentage equivalent of a fraction, the numerator of
which is the Collateral Initial Invested Amount and the denominator of which is
the Initial Invested Amount.

         "Collateral Servicing Fee" shall have the meaning set forth in Section
3.01.

         "Controlled Accumulation Amount" shall mean, for any Distribution Date
with respect to the Controlled Accumulation Period, $53,083,333.34; provided,
however, that, if the Controlled Accumulation Period Length is determined to be
less than 12 months, the Controlled Accumulation Amount for each Distribution
Date with respect to the Controlled Accumulation Period will be equal to (i) the
product of (x) the sum of the Class A Initial Invested Amount and the Class B
Initial Invested Amount and (y) the Controlled Accumulation Period Factor for
the related Monthly Period divided by (ii) the Required Accumulation Factor
Number.

         "Controlled Accumulation Period" shall mean, unless a Pay-Out Event
shall have occurred prior thereto, the period commencing at the close of
business on the last day of the July 2011 Monthly Period or such later date as
is determined in accordance with subsection 4.03(c) and ending on the first to
occur of (a) the commencement of the Early Amortization Period, (b) the payment
in full of the Invested Amount and (c) the Expected Final Payment Date.

         "Controlled Accumulation Period Factor" shall mean, for each Monthly
Period, a fraction, the numerator of which is equal to the sum of the series
invested amounts as of the last day of the prior Monthly Period of all
outstanding Series, and the denominator of which is equal to the sum (without
duplication) of (a) the Series Invested Amount as of the last day of the prior
Monthly Period, (b) the series invested amounts as of the last day of the prior
Monthly Period of all outstanding Series (other than Series 2005-7) that are not
expected to be in their revolving periods, and (c) the series invested amounts
as of the last day of the prior Monthly Period of all other outstanding Series
that are not Principal Sharing Series and are in their revolving periods.

                                       6
<PAGE>

         "Controlled Accumulation Period Length" has the meaning specified in
subsection 4.03(c).

         "Controlled Deposit Amount" shall mean, for any Distribution Date with
respect to the Controlled Accumulation Period, an amount equal to the sum of the
Controlled Accumulation Amount for such Distribution Date and any Deficit
Controlled Accumulation Amount for the immediately preceding Distribution Date.

         "Covered Amount" shall mean, for any Distribution Date with respect to
the Controlled Accumulation Period or the first Special Payment Date, if such
Special Payment Date occurs prior to the date the Class A Invested Amount is
paid in full, an amount equal to the sum of (x) with respect to the Class A
Certificates, the product of (i) the Class A Certificate Rate, (ii) a fraction,
the numerator of which is the actual number of days from and including the prior
Distribution Date to but excluding the then current Distribution Date and the
denominator of which is 360 and, (iii) the Principal Funding Account Balance, if
any, as of the preceding Distribution Date that is allocable to the principal of
the Class A Certificates and (y) with respect to the Class B Certificates, the
product of (i) the Class B Certificate Rate, (ii) a fraction, the numerator of
which is the actual number of days from and including the prior Distribution
Date to but excluding the then current Distribution Date and the denominator of
which is 360 and (iii) the Principal Funding Account Balance, if any, as of the
preceding Distribution Date that is allocable to the principal of the Class B
Certificates.

         "Deficit Controlled Accumulation Amount" shall mean (a) on the first
Distribution Date with respect to the Controlled Accumulation Period, the
excess, if any, of the Controlled Accumulation Amount for such Distribution Date
over the amount deposited in the Principal Funding Account on such Distribution
Date and (b) on each subsequent Distribution Date with respect to the Controlled
Accumulation Period, the excess, if any, of the Controlled Deposit Amount for
such subsequent Distribution Date over the amount deposited in the Principal
Funding Account on such subsequent Distribution Date.

         "Distribution Date" shall mean September 15, 2005, and the 15th day of
each calendar month thereafter, or if such 15th day is not a Business Day, the
next succeeding Business Day.

         "Early Amortization Period" shall mean the period commencing at the
close of business on the Business Day immediately preceding the day on which a
Pay-Out Event with respect to Series 2005-7 is deemed to have occurred, and
ending on the first to occur of (i) the payment in full of the Invested Amount
or (ii) the Series 2005-7 Termination Date.

                                       7
<PAGE>

         "Excess Finance Charge Collections" shall mean collections of Finance
Charge Receivables and certain other amounts allocable to the
Certificateholders' Interest of any Excess Allocation Series in excess of the
amounts necessary to make required payments with respect to such series
(including payments to the provider of any related Series Enhancement) that are
payable out of collections of Finance Charge Receivables.

         "Excess Spread" shall mean, with respect to any Distribution Date, the
sum of the amounts, if any, specified pursuant to subsections 4.05(a)(iv),
4.05(b)(iii) and 4.05(c)(ii) with respect to such Distribution Date.

         "Expected Final Payment Date" shall mean the August 2012 Distribution
Date.

         "Finance Charge Shortfall" shall have the meaning specified in Section
4.09.

         "Floating Allocation Percentage" shall mean, with respect to any
Monthly Period, the percentage equivalent (which percentage shall never exceed
100%) of a fraction, the numerator of which is the Adjusted Invested Amount as
of the last day of the preceding Monthly Period (or with respect to the first
Monthly Period, the Initial Invested Amount) and the denominator of which is the
product of (x) the Series 2005-7 Allocation Percentage with respect to such
Monthly Period and (y) the sum of (i) the total amount of Principal Receivables
in the Trust as of such day (or with respect to the first Monthly Period, the
total amount of Principal Receivables in the Trust on the Closing Date) and (ii)
the principal amount on deposit in the Special Funding Account as of such last
day (or with respect to the first Monthly Period, as of the Closing Date);
provided, however, that with respect to any Monthly Period in which an Addition
Date for an Aggregate Addition or a Removal Date occurs the amount in (y)(i)
above shall be (1) the aggregate amount of Principal Receivables in the Trust at
the end of the day on the last day of the prior Monthly Period for the period
from and including the first day of such Monthly Period to but excluding the
related Addition Date or Removal Date and (2) the aggregate amount of Principal
Receivables in the Trust at the end of the day on the related Addition Date or
Removal Date for the period from and including the related Addition Date or
Removal Date to and including the last day of such Monthly Period.

         "Group II" shall mean Series 2005-7 and each other Series specified in
the related Supplement to be included in Group II.

         "Group II Investor Additional Amounts" shall mean, with respect to any
Distribution Date, the sum of (a) Series 2005-7 Additional Amounts for such
Distribution Date and (b) for all other Series included in Group II, the sum of
(i) the aggregate net amount by which the Invested Amounts of such Series have
been reduced as a result of investor charge-offs, subordination of principal
collections and funding the investor default amounts in respect of any Class or
Series Enhancement interests of such Series as of such Distribution Date and
(ii) if the applicable Supplements so provide, the aggregate unpaid amount of
interest at the applicable certificate rates that has accrued on the amounts
described in the preceding clause (i) for such Distribution Date.

         "Group II Investor Default Amount" shall mean, with respect to any
Distribution Date, the sum of (a) the Investor Default Amount for such
Distribution Date and (b) the aggregate amount of the investor default amounts
for all other Series included in Group II for such Distribution Date.

         "Group II Investor Finance Charge Collections" shall mean, with respect
to any Distribution Date, the sum of (a) Investor Finance Charge Collections for
such Distribution Date and (b) the aggregate amount of the investor finance
charge collections for all other Series included in Group II for such
Distribution Date.

                                       8
<PAGE>

         "Group II Investor Monthly Fees" shall mean with respect to any
Distribution Date, the sum of (a) Series 2005-7 Monthly Fees for such
Distribution Date and (b) the aggregate amount of the servicing fees, investor
fees, fees payable to any Series Enhancer and any other similar fees, which are
payable out of reallocated investor finance charge collections pursuant to the
related Supplements, for all other Series included in Group II for such
Distribution Date.

         "Group II Investor Monthly Interest" shall mean, with respect to any
Distribution Date, the sum of (a) Series 2005-7 Monthly Interest for such
Distribution Date and (b) the aggregate amount of monthly interest, including
overdue monthly interest and interest on such overdue monthly interest, if such
amounts are payable out of reallocated investor finance charge collections
pursuant to the related Supplements, for all other Series included in Group II
for such Distribution Date.

         "Initial Invested Amount" shall mean $700,000,000.

         "Interest Accrual Period" shall mean, with respect to any Distribution
Date, the period (a) from and including the Distribution Date immediately
preceding such Distribution Date (or, in the case of the first Distribution
Date, from and including the Closing Date) and (b) to but excluding such
Distribution Date.

         "Invested Amount" shall mean, as of any date of determination, an
amount equal to the sum of (a) the Class A Invested Amount as of such date, (b)
the Class B Invested Amount as of such date and (c) the Collateral Invested
Amount as of such date.

         "Investment Letter" shall have the meaning specified in subsection
9.07(a).

         "Investor Charge-Offs" shall mean Class A Investor Charge-Offs, Class B
Investor Charge-Offs and Collateral Charge-Offs.

         "Investor Default Amount" shall mean, with respect to any Distribution
Date, an amount equal to the product of (a) the Series 2005-7 Allocable
Defaulted Amount for the related Monthly Period and (b) the Floating Allocation
Percentage for such Monthly Period.

         "Investor Finance Charge Collections" shall mean with respect to any
Distribution Date, an amount equal to the product of (a) the Floating Allocation
Percentage for the related Monthly Period and (b) Series 2005-7 Allocable
Finance Charge Collections deposited in the Collection Account for the related
Monthly Period.

         "LIBOR" shall mean, for any Interest Accrual Period, a per annum
interest rate determined by the Trustee for such Interest Accrual Period in
accordance with the provisions of Section 4.14.

         "LIBOR Determination Date" shall mean August 16, 2005 for the period
from and including the Closing Date to but excluding September 15, 2005, and for
every other Interest Accrual Period, the second London Business Day prior to the
commencement of such Interest Accrual Period.

         "London Business Day" shall mean any day on which dealings in deposits
in United States dollars are transacted in the London interbank market.

                                       9
<PAGE>

         "Monthly Interest" means, with respect to any Distribution Date, the
Class A Monthly Interest, the Class B Monthly Interest and the Collateral
Minimum Monthly Interest for such Distribution Date.

         "Monthly Receivables Percentage" shall mean, for any day, the
percentage equivalent of a fraction, the numerator of which is an amount equal
to the sum of the aggregate amount of Principal Receivables outstanding in the
Trust attributable to the Transferor or Account Owner with respect to which an
Insolvency Event or a Transfer Restriction Event has occurred, and the
denominator of which is an amount equal to the sum of the aggregate amount of
Principal Receivables outstanding in the Trust, in each as of the last day of
the immediately preceding Monthly Period.

         "Monthly Servicing Fee" shall have the meaning specified in subsection
3.01.

         "Pay-Out Event" shall mean any Pay-Out Event specified in Section 6.01.

         "Permitted Assignee" shall mean any Person who, if it were the
Collateral Interest Holder or a holder of an interest in the Trust, as
applicable, would not cause the Trust to be taxable as a publicly traded
partnership for federal income tax purposes.

         "Principal Allocation Percentage" shall mean, with respect to any day
during a Monthly Period, the percentage equivalent (which percentage shall never
exceed 100%) of a fraction, the numerator of which is (a) during the Revolving
Period, the Series Adjusted Invested Amount for Series 2005-7 as of the last day
of the immediately preceding Monthly Period (or, in the case of the first
Monthly Period, the Initial Invested Amount) and (b) during the Controlled
Accumulation Period, the Early Amortization Period or any Partial Amortization
Period, the Series Adjusted Invested Amount for Series 2005-7 as of the close of
business on the date on which the Revolving Period shall have terminated and the
denominator of which is the product of (x) the sum of (i) the total amount of
Principal Receivables in the Trust as of the last day of the immediately
preceding Monthly Period (or with respect to the first Monthly Period, the total
amount of Principal Receivables in the Trust as of the Closing Date) and (ii)
the principal amount on deposit in the Special Funding Account as of such last
day (or with respect to the first Monthly Period, the Closing Date) and (y) the
Series 2005-7 Allocation Percentage as of the last day of the immediately
preceding Monthly Period; provided, however, that with respect to any Monthly
Period in which an Addition Date for an Aggregate Addition or a Removal Date
occurs the amount in (x)(i) above shall be (1) the aggregate amount of Principal
Receivables in the Trust at the end of the day on the last day of the prior
Monthly Period for the period from and including the first day of such Monthly
Period to but excluding the related Addition Date or Removal Date and (2) the
aggregate amount of Principal Receivables in the Trust at the end of the day on
the related Addition Date or Removal Date for the period from and including the
related Addition Date or Removal Date to and including the last day of such
Monthly Period; and provided further, that if after the commencement of the
Controlled Accumulation Period a Pay-Out Event occurs with respect to another
Series that was designated in the Supplement therefor as a Series that is a
"Paired Series" with respect to Series 2005-7, the Transferors may, by written
notice delivered to the Trustee and the Servicer, designate a different
numerator for the foregoing fraction, provided that (x) such numerator is not
less than the Adjusted Invested Amount as of the last day of the revolving
period for such Paired Series, (y) the Transferors shall have received written
notice from each Rating Agency that the Rating Agency Condition has been
satisfied with respect to such designation and shall have delivered copies of
each such written notice to the Servicer and the Trustee and (z) each Transferor
shall have delivered to the Trustee an Officer's Certificate of such Transferor
to the effect that, based on the facts known to such officer at such time, in
the reasonable belief of such Transferor, such designation will not cause a
Pay-Out Event or an event that, after the giving of notice or the lapse of time,
would constitute a Pay-Out Event, to occur with respect to Series 2005-7.

                                       10
<PAGE>

         "Principal Funding Account" shall have the meaning specified in
subsection 4.03(a)(i).

         "Principal Funding Account Balance" shall mean, with respect to any
date of determination during the Controlled Accumulation Period, the principal
amount, if any, on deposit in the Principal Funding Account on such date of
determination.

         "Principal Funding Account Investment Proceeds" shall have the meaning
specified in subsection 4.03(a)(ii).

         "Principal Funding Account Investment Shortfall" shall mean, with
respect to each Distribution Date during the Controlled Accumulation Period, the
amount, if any, by which the Principal Funding Account Investment Proceeds are
less than the Covered Amount.

         "Reallocated Investor Finance Charge Collections" shall mean that
portion of Group II Investor Finance Charge Collections allocated to Series
2005-7 pursuant to Section 4.10.

         "Reallocated Principal Collections" shall mean, with respect to any
Monthly Period, the product of (a) the Series 2005-7 Allocable Principal
Collections deposited in the Collection Account for such Monthly Period and (b)
the sum of the Class B Principal Percentage and the Collateral Principal
Percentage.

         "Reassignment Amount" shall mean, with respect to any Distribution
Date, after giving effect to any deposits and distributions otherwise to be made
on such Distribution Date, the sum of (i) the Adjusted Invested Amount on such
Distribution Date, plus (ii) Monthly Interest for such Distribution Date and any
Monthly Interest previously due but not distributed to the Series 2005-7
Certificateholders on a prior Distribution Date, plus (iii) the amount of
Additional Interest, if any, for such Distribution Date and any Additional
Interest previously due but not distributed to the Series 2005-7
Certificateholders on a prior Distribution Date.

         "Reference Banks" shall mean four major banks in the London interbank
market selected by the Servicer.

         "Required Accumulation Factor Number" shall be equal to a fraction,
rounded upwards to the nearest whole number, the numerator of which is one and
the denominator of which is equal to the lowest monthly principal payment rate
on the Accounts, expressed as a decimal, for the three months preceding the date
of such calculation.

         "Required Amount" shall mean, with respect to any Monthly Period, the
sum of the Class A Required Amount and the Class B Required Amount.

         "Required Reserve Account Amount" shall mean, with respect to any
Distribution Date on or after the Reserve Account Funding Date, an amount equal
to (1) 0.50% of the Class A Invested Amount as of the preceding Distribution
Date (after giving effect to all changes therein on such date) or (2) any other
percentage (which may be 0%) of the Class A Invested Amount designated by the
Transferors, provided that if such percentage is less than the percentage
specified in clause (1) above, the Transferors shall have received the prior
written consent of the Collateral Interest Holder and written notice from each
Rating Agency that the Rating Agency Condition shall have been satisfied with
respect to such designation and shall have delivered copies of each such written
notice to the Servicer and the Trustee.

         "Reserve Account" shall have the meaning specified in subsection
4.12(a).

                                       11
<PAGE>

         "Reserve Account Funding Date" shall mean the Distribution Date which
occurs not later than the earliest of (a) the Distribution Date with respect to
the Monthly Period that commences not later than three months prior to the
Distribution Date with respect to the first Monthly Period in the Controlled
Accumulation Period, (b) in the event that the average Excess Spread Percentage
for any three consecutive Monthly Periods ending in the August 2010 Monthly
Period or any Monthly Period thereafter is less than 2%, the Distribution Date
with respect to such Monthly Period, (c) in the event that the average Excess
Spread Percentage for any three consecutive Monthly Periods ending in the
February 2011 Monthly Period or any Monthly Period thereafter is less than 3%,
the Distribution Date with respect to such Monthly Period and (d) such earlier
Distribution Date as the Transferors may determine by written notice to the
Trustee and the Servicer. For this purpose, the "Excess Spread Percentage" for
any Monthly Period shall be equal to the Series Adjusted Portfolio Yield for
such Monthly Period minus the Base Rate for such Monthly Period.

         "Reserve Account Surplus" shall mean, as of any date of determination,
the amount, if any, by which the amount on deposit in the Reserve Account
exceeds the Required Reserve Account Amount.

         "Reserve Draw Amount" shall have the meaning specified in subsection
4.12(c).

         "Revolving Period" shall mean the period beginning at the close of
business on the Series Cut-Off Date and ending on the earlier of (a) the close
of business on the day immediately preceding the day the Controlled Accumulation
Period commences and (b) the close of business on the day immediately preceding
the day the Early Amortization Period commences.

         "Series Adjusted Portfolio Yield" shall mean, with respect to any
Monthly Period, the annualized percentage equivalent of a fraction, (A) the
numerator of which is equal to (a) Reallocated Investor Finance Charge
Collections with respect to such Monthly Period, plus (b) the amount of any
Principal Funding Account Investment Proceeds for the related Distribution Date,
plus (c) provided that each Rating Agency has consented in writing to the
inclusion thereof in calculating the Series Adjusted Portfolio Yield, any Excess
Finance Charge Collections that are allocated to Series 2005-7 with respect to
such Monthly Period, plus (d) the amount of funds, if any, withdrawn from the
Reserve Account which pursuant to subsection 4.12(d) are required to be
deposited into the Collection Account and included as Class A Available Funds
for the Distribution Date with respect to such Monthly Period, minus (e) the
Investor Default Amount for the Distribution Date with respect to such Monthly
Period, and (B) the denominator of which is the Invested Amount as of the last
day of the preceding Monthly Period.

         "Series Cut-Off Date" shall mean the close of business on August 18,
2005.

         "Series 2005-7" shall mean the Series of Certificates the terms of
which are specified in this Supplement.

         "Series 2005-7 Additional Amounts" shall mean, with respect to any
Distribution Date, the sum of the amounts determined pursuant to subsections
4.07(b), (e) and (i) for such Distribution Date.

         "Series 2005-7 Allocable Defaulted Amount" shall mean the Series
Allocable Defaulted Amount with respect to Series 2005-7.

         "Series 2005-7 Allocable Finance Charge Collections" shall mean the
Series Allocable Finance Charge Collections with respect to Series 2005-7.

         "Series 2005-7 Allocable Principal Collections" shall mean the Series
Allocable Principal Collections with respect to Series 2005-7.

                                       12
<PAGE>

         "Series 2005-7 Allocation Percentage" shall mean the Series Allocation
Percentage with respect to Series 2005-7.

         "Series 2005-7 Certificate" shall mean a Class A Certificate or a Class
B Certificate or the Collateral Interest.

         "Series 2005-7 Certificateholder" shall mean a Class A
Certificateholder or a Class B Certificateholder or the Collateral Interest
Holder.

         "Series 2005-7 Certificateholders' Interest" shall mean the
Certificateholders' Interest for Series 2005-7, including the Collateral
Interest.

         "Series 2005-7 Monthly Fees" shall mean, with respect to any
Distribution Date, the amount determined pursuant to subsections 4.05(a)(ii),
(b)(ii) and (c)(i) and subsection 4.07(g).

         "Series 2005-7 Monthly Interest" shall mean the amounts determined
pursuant to subsections 4.02(a), (b) and (c).

         "Series 2005-7 Principal Shortfall" shall have the meaning specified in
Section 4.11.

         "Series 2005-7 Termination Date" shall mean the March 2015 Distribution
Date.

         "Series Invested Amount" shall mean the Initial Invested Amount.

         "Series Required Transferor Amount" shall mean an amount equal to 7% of
the Invested Amount.

         "Servicing Base Amount" shall have the meaning specified in Section
3.01.

         "Servicing Fee Rate" shall mean 2.0% per annum.

         "Special Payment Date" shall mean each Distribution Date with respect
to the Early Amortization Period.

         "Telerate Page 3750" shall mean the display page currently so
designated on the Moneyline Telerate Service (or such other page as may replace
that page on that service for the purpose of displaying comparable rates or
prices).

         "Transfer" shall have the meaning specified in subsection 9.07(a).

         "Transfer Agreement" shall mean the Transfer and Administration
Agreement, dated as of August 18, 2005, among RFC II, RFC III and RFC IV, as
transferors, TRS, as administrator, and the American Express Credit Account
Secured Note Trust 2005-7, as issuer, as the same may be amended, supplemented
or otherwise modified from time to time.

         "Transferor Percentage" shall mean 100% minus (a) the Floating
Allocation Percentage, when used at any time with respect to Finance Charge
Receivables and Defaulted Receivables, or (b) the Principal Allocation
Percentage, when used at any time with respect to Principal Receivables.

         (b) Notwithstanding anything to the contrary in this Supplement or the
Agreement, the term "Rating Agency" shall mean, whenever used in this Supplement
or the Agreement with respect to Series 2005-7, Moody's and Standard & Poor's.
As used in this Supplement and in the Agreement with respect to Series 2005-7,
"highest investment category" shall mean (i) in the case of Standard & Poor's,
AAA or A-1+, as applicable and (ii) in the case of Moody's, Aaa or P-1, as
applicable.

                                       13
<PAGE>

         (c) Each capitalized term defined herein shall relate to the Series
2005-7 Certificates and no other Series of Certificates issued by the Trust,
unless the context otherwise requires. All capitalized terms used herein and not
otherwise defined herein have the meanings ascribed to them in the Agreement. In
the event that any term or provision contained herein shall conflict with or be
inconsistent with any term or provision contained in the Agreement, the terms
and provisions of this Supplement shall govern.

         (d) The words "hereof," "herein" and "hereunder" and words of similar
import when used in this Supplement shall refer to this Supplement as a whole
and not to any particular provision of this Supplement; references to any
Article, subsection, Section or Exhibit are references to Articles, subsections,
Sections and Exhibits in or to this Supplement unless otherwise specified; and
the term "including" means "including without limitation."

                                  ARTICLE III

                                  Servicing Fee

         Section 3.01. Servicing Compensation. The share of the Servicing Fee
allocable to the Series 2005-7 Certificateholders with respect to any
Distribution Date (the "Monthly Servicing Fee") shall be equal to one-twelfth of
the product of (a) the Servicing Fee Rate and (b) (i) the Adjusted Invested
Amount as of the last day of the Monthly Period preceding such Distribution Date
minus (ii) the product of the amount, if any, on deposit in the Special Funding
Account as of the last day of the Monthly Period preceding such Distribution
Date and the Series 2005-7 Allocation Percentage with respect to such Monthly
Period (the amount calculated pursuant to this clause (b) is referred to as the
"Servicing Base Amount"). The share of the Monthly Servicing Fee allocable to
the Class A Certificateholders with respect to any Distribution Date (the "Class
A Servicing Fee") shall be equal to one-twelfth of the product of (a) the Class
A Floating Percentage, (b) the Servicing Fee Rate and (c) the Servicing Base
Amount. The share of the Monthly Servicing Fee allocable to the Class B
Certificateholders with respect to any Distribution Date (the "Class B Servicing
Fee") shall be equal to one-twelfth of the product of (a) the Class B Floating
Percentage, (b) the Servicing Fee Rate and (c) the Servicing Base Amount. The
share of the Monthly Servicing Fee allocable to the Collateral Interest with
respect to any Distribution Date (the "Collateral Servicing Fee") shall be equal
to one-twelfth of the product of the (a) Collateral Floating Percentage, (b) the
Servicing Fee Rate and (c) the Servicing Base Amount. The remainder of the
Servicing Fee shall be paid by the Holders of the Transferor Certificates or the
investor certificateholders of other Series (as provided in the related
Supplements) and in no event shall the Trust, the Trustee or the Series 2005-7
Certificateholders be liable for the share of the Servicing Fee to be paid by
the Holders of the Transferor Certificates or the investor certificateholders of
any other Series. To the extent that the Class A Servicing Fee, the Class B
Servicing Fee and the Collateral Servicing Fee are not paid in full pursuant to
the preceding provisions of this Section 3.01, and Sections 4.05 and 4.07, they
shall be paid by the Holders of the Transferor Certificates.

                                       14
<PAGE>

                                   ARTICLE IV

                 Rights of Series 2005-7 Certificateholders and
                    Allocation and Application of Collections

         Section 4.01. Collections and Allocations.

         (a) Allocations. Collections of Finance Charge Receivables and
Principal Receivables and Defaulted Receivables allocated to Series 2005-7
pursuant to Article IV of the Agreement (and, as described herein, Collections
of Finance Charge Receivables reallocated from other Series in Group II) shall
be allocated and distributed or reallocated as set forth in this Article.

         (b) Payments to the Transferor. The Servicer shall on each Deposit Date
withdraw from the Collection Account and pay to the Holders of the Transferor
Certificates the following amounts:

                  (i) an amount equal to the Transferor Percentage for the
         related Monthly Period of Series 2005-7 Allocable Finance Charge
         Collections to the extent such amount is deposited in the Collection
         Account; and

                  (ii) an amount equal to the Transferor Percentage for the
         related Monthly Period of Series 2005-7 Allocable Principal Collections
         deposited in the Collection Account, if the Transferor Amount
         (determined after giving effect to any Principal Receivables
         transferred to the Trust on such Deposit Date) exceeds zero.

         The withdrawals to be made from the Collection Account pursuant to this
subsection 4.01(b) do not apply to deposits into the Collection Account that do
not represent Collections, including payment of the purchase price for the
Certificateholders' Interest pursuant to Section 2.06 or 10.01 of the Agreement,
payment of the purchase price for the Series 2005-7 Certificateholders' Interest
pursuant to Section 7.01 of this Supplement and proceeds from the sale,
disposition or liquidation of Receivables pursuant to Section 9.01 or 12.02 of
the Agreement.

         (c) Allocations to the Series 2005-7 Certificateholders. The Servicer
shall, prior to the close of business on each Deposit Date, allocate to the
Series 2005-7 Certificateholders the following amounts as set forth below:

                  (i) Allocations of Finance Charge Collections. The Servicer
         shall allocate to the Series 2005-7 Certificateholders and retain in
         the Collection Account for application as provided herein an amount
         equal to the product of (A) the Floating Allocation Percentage and (B)
         the Series 2005-7 Allocation Percentage and (C) the aggregate amount of
         Collections of Finance Charge Receivables deposited in the Collection
         Account on such Deposit Date.

                  (ii) Allocations of Principal Collections. The Servicer shall
         allocate to the Series 2005-7 Certificateholders the following amounts
         as set forth below:

                           (x) Allocations During the Revolving Period. During
                  the Revolving Period (A) an amount equal to the product of (I)
                  the sum of the Class B Principal Percentage and the Collateral
                  Principal Percentage and (II) the Principal Allocation
                  Percentage and (III) the Series 2005-7 Allocation Percentage
                  and (IV) the aggregate amount of Collections of Principal
                  Receivables deposited in the Collection Account on such
                  Deposit Date, shall be allocated to the Series 2005-7
                  Certificateholders and retained in the Collection Account
                  until applied as provided herein and (B) an amount equal to
                  the product of (I) the Class A Principal Percentage and (II)
                  the Principal Allocation Percentage and (III) the Series
                  2005-7 Allocation Percentage and (IV) the aggregate amount of
                  Collections of Principal Receivables deposited in the
                  Collection Account on such Deposit Date shall be allocated to
                  the Series 2005-7 Certificateholders and first, if any other
                  Principal Sharing Series is outstanding and in its
                  amortization period or accumulation period, retained in the
                  Collection Account for application, to the extent necessary,
                  as Shared Principal Collections on the related Distribution
                  Date, and second paid to the Holders of the Transferor
                  Certificates; provided, however, that such amount to be paid
                  to the Holders of the Transferor Certificates on any Deposit
                  Date shall be paid to such Holders only if the Transferor
                  Amount on such Deposit Date is greater than the Required
                  Transferor Amount (after giving effect to all Principal
                  Receivables transferred to the Trust on such day) and
                  otherwise shall be deposited in the Special Funding Account.

                                       15
<PAGE>

                           (y) Allocations During the Controlled Accumulation
                  Period. During the Controlled Accumulation Period (A) an
                  amount equal to the product of (I) the sum of the Class B
                  Principal Percentage and the Collateral Principal Percentage
                  and (II) the Principal Allocation Percentage and (III) the
                  Series 2005-7 Allocation Percentage and (IV) the aggregate
                  amount of Collections of Principal Receivables deposited in
                  the Collection Account on such Deposit Date, shall be
                  allocated to the Series 2005-7 Certificateholders and retained
                  in the Collection Account until applied as provided herein and
                  (B) an amount equal to the product of (I) the Class A
                  Principal Percentage and (II) the Principal Allocation
                  Percentage and (III) the Series 2005-7 Allocation Percentage
                  and (IV) the aggregate amount of Collections of Principal
                  Receivables deposited in the Collection Account on such
                  Deposit Date (the product specified in this clause (B) for any
                  such date is hereinafter referred to as a "Percentage
                  Allocation") shall be allocated to the Series 2005-7
                  Certificateholders and retained in the Collection Account
                  until applied as provided herein; provided, however, that if
                  the sum of such Percentage Allocation and all preceding
                  Percentage Allocations with respect to the same Monthly Period
                  exceeds the Controlled Deposit Amount during the Controlled
                  Accumulation Period for the related Distribution Date, then
                  such excess shall not be treated as a Percentage Allocation
                  and shall be first, if any other Principal Sharing Series is
                  outstanding and in its amortization period or accumulation
                  period, retained in the Collection Account for application, to
                  the extent necessary, as Shared Principal Collections on the
                  related Distribution Date, and second paid to the Holders of
                  the Transferor Certificates only if the Transferor Amount on
                  such Deposit Date is greater than the Required Transferor
                  Amount (after giving effect to all Principal Receivables
                  transferred to the Trust on such day) and otherwise shall be
                  deposited in the Special Funding Account.

                           (z) Allocations During the Early Amortization Period.
                  During the Early Amortization Period, an amount equal to the
                  product of (A) the Principal Allocation Percentage and (B) the
                  Series 2005-7 Allocation Percentage and (C) the aggregate
                  amount of Collections of Principal Receivables deposited in
                  the Collection Account on such Deposit Date, shall be
                  allocated to the Series 2005-7 Certificateholders and retained
                  in the Collection Account until applied as provided herein;
                  provided, however, that after the date on which an amount of
                  such Collections equal to the Adjusted Invested Amount has
                  been deposited into the Collection Account and allocated to
                  the Series 2005-7 Certificateholders, the remainder that has
                  not been so deposited and allocated shall be first, if any
                  other Principal Sharing Series is outstanding and in its
                  amortization period or accumulation period, retained in the
                  Collection Account for application, to the extent necessary,
                  as Shared Principal Collections on the related Distribution
                  Date, and second paid to the Holders of the Transferor
                  Certificates only if the Transferor Amount on such date is
                  greater than the Required Transferor Amount (after giving
                  effect to all Principal Receivables transferred to the Trust
                  on such day) and otherwise shall be deposited in the Special
                  Funding Account.

                                       16
<PAGE>

         Section 4.02. Determination of Monthly Interest.

         (a) The amount of monthly interest ("Class A Monthly Interest")
distributable from the Collection Account with respect to the Class A
Certificates on any Distribution Date shall be an amount equal to the product of
(i) a fraction, the numerator of which is the actual number of days in the
period from (and including) the immediately preceding Distribution Date (or in
the case of the first Distribution Date, the Closing Date) to (but excluding)
such Distribution Date and the denominator of which is 360, (ii) the Class A
Certificate Rate for such Distribution Date and (iii) the outstanding principal
balance of the Class A Certificates as of close of business on the immediately
preceding Record Date.

         On the Determination Date preceding each Distribution Date, the
Servicer shall determine the excess, if any (the "Class A Interest Shortfall"),
of (x) the Class A Monthly Interest for such Distribution Date over (y) the
aggregate amount of funds allocated and available to pay such Class A Monthly
Interest on such Distribution Date. If the Class A Interest Shortfall with
respect to any Distribution Date is greater than zero, on each subsequent
Distribution Date until such Class A Interest Shortfall is fully paid, an
additional amount ("Class A Additional Interest") equal to the product of (i) a
fraction, the numerator of which is the actual number of days in the period from
(and including) the immediately preceding Distribution Date (or in the case of
the first Distribution Date, the Closing Date) to (but excluding) such
Distribution Date and the denominator of which is 360, (ii) the sum of (x) the
Class A Certificate Rate and (y) 2.0% per annum and (iii) such Class A Interest
Shortfall (or the portion thereof which has not been paid to the Class A
Certificateholders) shall be payable as provided herein with respect to the
Class A Certificates. Notwithstanding anything to the contrary herein, Class A
Additional Interest shall be payable or distributed to the Class A
Certificateholders only to the extent permitted by applicable law.

         (b) The amount of monthly interest ("Class B Monthly Interest")
distributable from the Collection Account with respect to the Class B
Certificates on any Distribution Date shall be an amount equal to the product of
(i) a fraction, the numerator of which is the actual number of days in the
period from (and including) the immediately preceding Distribution Date (or in
the case of the first Distribution Date, the Closing Date) to (but excluding)
such Distribution Date and the denominator of which is 360, (ii) the Class B
Certificate Rate for such Distribution Date and (iii) the Class B Invested
Amount as of the close of business on the immediately preceding Record Date.

         On the Determination Date preceding each Distribution Date, the
Servicer shall determine the excess, if any (the "Class B Interest Shortfall"),
of (x) the Class B Monthly Interest for such Distribution Date over (y) the
aggregate amount of funds allocated and available to pay such Class B Monthly
Interest on such Distribution Date. If the Class B Interest Shortfall with
respect to any Distribution Date is greater than zero, on each subsequent
Distribution Date until such Class B Interest Shortfall is fully paid, an
additional amount ("Class B Additional Interest") equal to the product of (i) a
fraction, the numerator of which is the actual number of days in the period from
(and including) the immediately preceding Distribution Date (or in the case of
the first Distribution Date, the Closing Date) to (but excluding) such
Distribution Date and the denominator of which is 360, (ii) the sum of (x) the
Class B Certificate Rate and (y) 2.0% per annum and (iii) such Class B Interest
Shortfall (or the portion thereof which has not been paid to the Class B
Certificateholders) shall be payable as provided herein with respect to the
Class B Certificates. Notwithstanding anything to the contrary herein, Class B
Additional Interest shall be payable or distributed to the Class B
Certificateholders only to the extent permitted by applicable law.

                                       17
<PAGE>

         (c) The amount of monthly interest ("Collateral Minimum Monthly
Interest") distributable from the Collection Account with respect to the
Collateral Invested Amount on any Distribution Date shall be an amount equal to
the product of (i) (A) a fraction, the numerator of which is the actual number
of days in the period from (and including) the immediately preceding
Distribution Date (or in the case of the first Distribution Date, the Closing
Date) to (but excluding) such Distribution Date and the denominator of which is
360 and (B) the Collateral Minimum Interest Rate in effect with respect to the
period from (and including) the immediately preceding Distribution Date (or in
the case of the first Distribution Date, the Closing Date) to (but excluding)
such Distribution Date, and (ii) the Collateral Initial Invested Amount less the
aggregate amount of principal payments distributed to the Collateral Interest
Holder on all prior Distribution Dates.

         On the Determination Date preceding each Distribution Date, the
Servicer shall determine an amount (the "Collateral Interest Shortfall") equal
to (x) the aggregate Collateral Minimum Monthly Interest for such Distribution
Date minus (y) the aggregate amount of funds allocated and available to pay such
Collateral Minimum Monthly Interest on such Distribution Date. If the Collateral
Interest Shortfall with respect to any Distribution Date is greater than zero,
on each subsequent Distribution Date until such Collateral Interest Shortfall is
fully paid, an additional amount ("Collateral Additional Interest") shall be
payable as provided herein with respect to the Collateral Invested Amount equal
to the product of (i) (A) a fraction, the numerator of which is the actual
number of days in the period from (and including) the immediately preceding
Distribution Date to (but excluding) such Distribution Date and the denominator
of which is 360 and (B) the Collateral Minimum Interest Rate in effect during
the period from (and including) the immediately preceding Distribution Date to
(but excluding) such Distribution Date, and (ii) such Collateral Interest
Shortfall (or the portion thereof which has not been paid to the Collateral
Interest Holder). Notwithstanding anything to the contrary herein, Collateral
Additional Interest shall be payable or distributed to the Collateral Interest
Holder only to the extent permitted by applicable law.

         Section 4.03. Principal Funding Account; Controlled Accumulation
Period.

         (a) (i) The Servicer, for the benefit of the Series 2005-7
Certificateholders, shall establish and maintain in the name of the Trustee, on
behalf of the Trust, an Eligible Deposit Account (the "Principal Funding
Account"), bearing a designation clearly indicating that the funds deposited
therein and the property credited thereto are held for the benefit of the Series
2005-7 Certificateholders. The Principal Funding Account shall initially be
established with The Bank of New York.

            (ii) At the written direction of the Servicer, funds on deposit in
the Principal Funding Account shall be invested by the Trustee in Eligible
Investments selected by the Servicer. All such Eligible Investments shall be
held by the Trustee for the benefit of the Series 2005-7 Certificateholders;
provided that on each Distribution Date all interest and other investment income
(net of losses and investment expenses) ("Principal Funding Account Investment
Proceeds") on funds on deposit therein shall be applied as set forth in
paragraph (iii) below. Funds on deposit in the Principal Funding Account shall
be invested in Eligible Investments that will mature so that such funds will be
available at the close of business on the Transfer Date preceding the following
Distribution Date. Unless the Servicer directs otherwise, funds deposited in the
Principal Funding Account on a Transfer Date (which immediately precedes a
Distribution Date) upon the maturity of any Eligible Investments are not
required to be invested overnight. No such Eligible Investment shall be disposed
of prior to its maturity; provided, however, that the Trustee shall sell,
liquidate or dispose of any such Eligible Investment if, prior to the maturity
of such Eligible Investment, a default occurs in the payment of principal,
interest or any other amount with respect to such Eligible Investment; provided
further, however, that the Servicer shall deliver prompt written notice to the
Trustee of any such default; and provided further that, subject to Section 11.01
of the Agreement, the Trustee will not in any way be held liable by reason of
any insufficiency in such Principal Funding Account resulting from any loss on
any Eligible Investment included therein except for losses attributable to the
Trustee's failure to make payments on such Eligible Investments issued by the
Trustee, in its commercial capacity, in accordance with their terms.

                                       18
<PAGE>

           (iii) On each Distribution Date with respect to the Controlled
Accumulation Period, the Servicer shall direct the Trustee in writing to
withdraw from the Principal Funding Account and deposit into the Collection
Account all Principal Funding Account Investment Proceeds then on deposit in the
Principal Funding Account and such Principal Funding Account Investment Proceeds
shall be treated as a portion of Class A Available Funds and Class B Available
Funds.

            (iv) Reinvested interest and other investment income on funds
deposited in the Principal Funding Account shall not be considered to be
principal amounts on deposit therein for purposes of this Supplement.

         (b) (i) The Trustee shall possess all right, title and interest in all
funds and property from time to time deposited in or credited to the Principal
Funding Account and in all proceeds thereof. The Principal Funding Account shall
be under the sole dominion and control of the Trustee for the benefit of the
Series 2005-7 Certificateholders. If, at any time, the Principal Funding Account
ceases to be an Eligible Deposit Account, the Trustee (or the Servicer on its
behalf) shall within 10 Business Days (or such longer period, not to exceed 30
calendar days, as to which each Rating Agency may consent) establish a new
Principal Funding Account meeting the conditions specified in paragraph (a)(i)
above as an Eligible Deposit Account and shall transfer any cash or any
investments to such new Principal Funding Account.

            (ii) Pursuant to the authority granted to the Servicer in subsection
3.01(b) of the Agreement, the Servicer shall have the power to make withdrawals
and payments or to instruct the Trustee to make withdrawals and payments from
the Principal Funding Account for the purposes of carrying out the Servicer's or
Trustee's duties hereunder. Pursuant to the authority granted to the Paying
Agent in Section 5.01 of this Supplement and Section 6.07 of the Agreement, the
Paying Agent shall have the power to withdraw funds from the Principal Funding
Account for the purpose of making distributions to the Series 2005-7
Certificateholders.

         (c) The Controlled Accumulation Period is scheduled to commence at the
close of business on the last day of the July 2011 Monthly Period; provided,
however, that if the Controlled Accumulation Period Length (which shall be
determined as described below) is less than 12 months, the date on which the
Controlled Accumulation Period actually commences will be delayed to the close
of business on the last day of the month preceding the month that is the number
of months prior to the Expected Final Payment Date at least equal to the
Controlled Accumulation Period Length and, as a result, the number of Monthly
Periods in the Controlled Accumulation Period will at least equal the Controlled
Accumulation Period Length. On the Determination Date immediately preceding the
July 2011 Distribution Date, and on each Determination Date thereafter that
occurs prior to the Determination Date occurring in the Monthly Period in which
the Controlled Accumulation Period commences, the Servicer will determine the
"Controlled Accumulation Period Length" which will equal the number of months
such that the sum of the Controlled Accumulation Period Factors for each month
during such period will be equal to or greater than the Required Accumulation
Factor Number; provided, however, that the Controlled Accumulation Period Length
shall not be less than one month. Notwithstanding the foregoing, if the
Controlled Accumulation Period Length shall have been determined to be less than
12 months and, after the date on which such determination is made, a Pay-Out
Event or Reinvestment Event (as those terms are defined in the Supplement for
such Series) shall occur with respect to any outstanding Principal Sharing
Series other than Series 2005-7, the Controlled Accumulation Period will
commence on the earlier of (i) the first day of the Monthly Period immediately
succeeding the date that such Pay-Out Event or Reinvestment Event shall have
occurred with respect to such Series and (ii) the date on which the Controlled
Accumulation Period is then scheduled to commence.

                                       19
<PAGE>

         Section 4.04. Required Amount.

         (a) With respect to each Distribution Date, on the related
Determination Date, the Servicer shall determine the amount (the "Class A
Required Amount"), if any, by which (x) the sum of (i) Class A Monthly Interest
for such Distribution Date, (ii) any Class A Monthly Interest previously due but
not paid to the Class A Certificateholders on a prior Distribution Date, (iii)
any Class A Additional Interest for such Distribution Date and (iv) any Class A
Additional Interest previously due but not paid to the Class A
Certificateholders on a prior Distribution Date, (v) if TRS or an Affiliate of
TRS is no longer the Servicer, the Class A Servicing Fee for such Distribution
Date, (vi) if TRS or an Affiliate of TRS is no longer the Servicer, any Class A
Servicing Fee previously due but not paid to the Servicer, and (vii) the Class A
Investor Default Amount, if any, for such Distribution Date exceeds (y) the
Class A Available Funds. In the event that the difference between (x) the Class
A Required Amount for such Distribution Date and (y) the amount of Excess Spread
and Excess Finance Charge Collections applied with respect thereto pursuant to
subsection 4.07(a) on such Distribution Date is greater than zero, the Servicer
shall give written notice to the Transferors and the Trustee of such excess
Class A Required Amount on the date of computation.

         (b) With respect to each Distribution Date, on the related
Determination Date, the Servicer shall determine the amount (the "Class B
Required Amount"), if any, equal to the sum of (x) the amount, if any, by which
(A) the sum of (i) Class B Monthly Interest for such Distribution Date, (ii) any
Class B Monthly Interest previously due but not paid to the Class B
Certificateholders, (iii) Class B Additional Interest, if any, for such
Distribution Date, (iv) any Class B Additional Interest previously due but not
paid to the Class B Certificateholders on a prior Distribution Date, (v) if TRS
or an Affiliate of TRS is no longer the Servicer, the Class B Servicing Fee for
such Distribution Date and (vi) if TRS or an Affiliate of TRS is no longer the
Servicer, any Class B Servicing Fee previously due but not paid to the Servicer
exceeds (B) the Class B Available Funds and (y) the Class B Investor Default
Amount for such Distribution Date. In the event that the difference between (x)
the Class B Required Amount for such Distribution Date and (y) the amount of
Excess Spread and Excess Finance Charge Collections applied with respect thereto
pursuant to subsection 4.07(d) on such Distribution Date is greater than zero,
the Servicer shall give written notice to the Transferors and the Trustee of
such excess Class B Required Amount on the date of computation.

         Section 4.05. Application of Class A Available Funds, Class B Available
Funds, Collateral Available Funds and Available Principal Collections. The
Servicer shall apply, or shall cause the Trustee to apply by written instruction
to the Trustee, on each Distribution Date, Class A Available Funds, Class B
Available Funds, Collateral Available Funds and Available Principal Collections
on deposit in the Collection Account with respect to such Distribution Date to
make the following distributions:

         (a) On each Distribution Date, an amount equal to the Class A Available
Funds with respect to such Distribution Date will be distributed or deposited in
the following priority:

                  (i) an amount equal to Class A Monthly Interest for such
         Distribution Date, plus the amount of any Class A Monthly Interest
         previously due but not distributed to Class A Certificateholders on a
         prior Distribution Date, plus the amount of any Class A Additional
         Interest for such Distribution Date and any Class A Additional Interest
         previously due but not distributed to Class A Certificateholders on a
         prior Distribution Date, shall be distributed to the Paying Agent for
         payment to the Class A Certificateholders;

                                       20
<PAGE>

                  (ii) if TRS or an Affiliate of TRS is no longer the Servicer,
         an amount equal to the Class A Servicing Fee for such Distribution
         Date, plus the amount of any Class A Servicing Fee previously due but
         not distributed to the Servicer on a prior Distribution Date, shall be
         distributed to the Servicer;

                  (iii) an amount equal to the Class A Investor Default Amount
         for such Distribution Date shall be treated as a portion of Available
         Principal Collections for such Distribution Date; and

                  (iv) the balance, if any, shall constitute Excess Spread and
         shall be allocated and distributed or deposited as set forth in Section
         4.07.

         (b) On each Distribution Date, an amount equal to the Class B Available
Funds with respect to such Distribution Date will be distributed or deposited in
the following priority:

                  (i) an amount equal to Class B Monthly Interest for such
         Distribution Date, plus the amount of any Class B Monthly Interest
         previously due but not distributed to Class B Certificateholders on a
         prior Distribution Date, plus the amount of any Class B Additional
         Interest for such Distribution Date and any Class B Additional Interest
         previously due but not distributed to Class B Certificateholders on a
         prior Distribution Date, shall be distributed to the Paying Agent for
         payment to the Class B Certificateholders;

                  (ii) if TRS or an Affiliate of TRS is no longer the Servicer,
         an amount equal to the Class B Servicing Fee for such Distribution
         Date, plus the amount of any Class B Servicing Fee previously due but
         not distributed to the Servicer on a prior Distribution Date, shall be
         distributed to the Servicer; and

                  (iii) the balance, if any, shall constitute Excess Spread and
         shall be allocated and distributed or deposited as set forth in Section
         4.07.

         (c) On each Distribution Date, an amount equal to the Collateral
Available Funds with respect to such Distribution Date will be distributed or
deposited in the following priority:

                  (i) if TRS or an Affiliate of TRS is no longer the Servicer,
         an amount equal to the Collateral Servicing Fee for such Distribution
         Date, plus the amount of any Collateral Servicing Fee previously due
         but not distributed to the Servicer on a prior Distribution Date, shall
         be distributed to the Servicer; and

                  (ii) the balance, if any, shall constitute Excess Spread and
         shall be allocated and distributed or deposited as set forth in Section
         4.07.

         (d) On each Distribution Date with respect to the Revolving Period, an
amount equal to the Available Principal Collections deposited in the Collection
Account for the related Monthly Period shall be treated as Shared Principal
Collections and applied in accordance with Section 4.04 of the Agreement.

                                       21
<PAGE>

         (e) On each Distribution Date with respect to the Controlled
Accumulation Period, an amount equal to the Available Principal Collections
deposited in the Collection Account for the related Monthly Period shall be
distributed in the following order of priority:

                  (i) an amount equal to the lesser of (x) the Controlled
         Deposit Amount and (y) the sum of the Class A Adjusted Invested Amount
         and the Class B Adjusted Invested Amount shall be deposited in the
         Principal Funding Account;

                  (ii) for each Distribution Date beginning on the Distribution
         Date on which the Class B Invested Amount shall have been paid in full,
         an amount up to the Collateral Invested Amount shall be distributed to
         the Collateral Interest Holder; and

                  (iii) the balance of such Available Principal Collections
         shall be treated as Shared Principal Collections and applied in
         accordance with Section 4.04 of the Agreement.

         (f) On each Distribution Date with respect to the Early Amortization
Period, an amount equal to Available Principal Collections deposited in the
Collection Account for the related Monthly Period shall be distributed or
deposited in the following order of priority:

                  (i) an amount up to the Class A Adjusted Invested Amount on
         such Distribution Date shall be deposited in the Principal Funding
         Account for distribution to the Class A Certificateholders;

                  (ii) for each Distribution Date beginning on the Distribution
         Date on which the Class A Invested Amount is paid in full, an amount up
         to the Class B Adjusted Invested Amount on such Distribution Date shall
         be deposited in the Principal Funding Account for distribution to the
         Class B Certificateholders;

                  (iii) for each Distribution Date beginning on the Distribution
         Date on which the Class B Invested Amount is paid in full, an amount up
         to the Collateral Invested Amount on such Distribution Date shall be
         distributed to the Collateral Interest Holder; and

                  (iv) for each Distribution Date, after giving effect to
         paragraphs (i), (ii) and (iii) above, an amount equal to the balance,
         if any, of such Available Principal Collections will be treated as
         Shared Principal Collections and applied in accordance with Section
         4.04 of the Agreement.

         Section 4.06. Defaulted Amounts; Investor Charge-Offs.

         (a) On each Determination Date, the Servicer shall calculate the Class
A Investor Default Amount, if any, for the related Distribution Date. If, on any
Distribution Date, the Class A Required Amount for the related Monthly Period
exceeds the sum of (x) the amount of Reallocated Principal Collections allocated
to Series 2005-7 with respect to such Monthly Period and (y) the amount of
Excess Spread and the Excess Finance Charge Collections allocable to Series
2005-7 with respect to such Monthly Period, the Collateral Invested Amount, if
any, will be reduced by the amount of such excess, but not by more than the
Class A Investor Default Amount for such Distribution Date. In the event that
such reduction would cause the Collateral Invested Amount to be a negative
number, the Collateral Invested Amount will be reduced to zero and the Class B
Invested Amount shall be reduced by the amount by which the Collateral Invested
Amount would have been reduced below zero, but not by more than the excess, if
any, of the Class A Investor Default Amount for such Distribution Date over the
amount of such reduction, if any, of the Collateral Invested Amount with respect
to such Distribution Date. In the event that such reduction would cause the
Class B Invested Amount to be a negative number, the Class B Invested Amount
shall be reduced to zero, and the Class A Invested Amount shall be reduced by
the amount by which the Class B Invested Amount would have been reduced below
zero, but not by more than the excess, if any, of the Class A Investor Default
Amount for such Distribution Date over the aggregate amount of the reductions,
if any, of the Collateral Invested Amount and the Class B Invested Amount for
such Distribution Date (a "Class A Investor Charge-Off"). Class A Investor
Charge-Offs shall thereafter be reimbursed and the Class A Invested Amount
increased (but not by an amount in excess of the aggregate unreimbursed Class A
Investor Charge-Offs) on any Distribution Date by the amount of Excess Spread
and Excess Finance Charge Collections allocated and available for that purpose
pursuant to subsection 4.07(b). References to "negative numbers" above shall be
determined without regard to the requirement that the Invested Amount of a Class
not be reduced below zero.

                                       22
<PAGE>

         (b) On each Determination Date, the Servicer shall calculate the Class
B Investor Default Amount, if any, for the related Distribution Date. If, on any
Distribution Date, the Class B Required Amount for such Distribution Date
exceeds the sum of (x) the amount of Excess Spread and Excess Finance Charge
Collections allocated to Series 2005-7 with respect to the related Monthly
Period which are allocated and available to pay such amount pursuant to
subsection 4.07(d) and (y) the Reallocated Principal Collections allocable to
the Collateral Interest and not required to pay the Class A Required Amount with
respect to such Distribution Date, then the Collateral Invested Amount shall be
reduced by the amount of such excess. In the event that such reduction would
cause the Collateral Invested Amount to be a negative number, the Collateral
Invested Amount shall be reduced to zero, and the Class B Invested Amount shall
be reduced by the amount by which the Collateral Invested Amount would have been
reduced below zero, but not by more than the excess, if any, of the Class B
Investor Default Amount for such Distribution Date over the amount of such
reduction, if any, of the Collateral Invested Amount with respect to such
Distribution Date (a "Class B Investor Charge-Off"). Class B Investor
Charge-Offs shall thereafter be reimbursed and the Class B Invested Amount
increased (but not by an amount in excess of the aggregate unreimbursed Class B
Investor Charge-Offs) on any Distribution Date by the amount of Excess Spread
and Excess Finance Charge Collections allocated and available for that purpose
pursuant to subsection 4.07(e). References to "negative numbers" above shall be
determined without regard to the requirement that the Invested Amount of a Class
not be reduced below zero.

         (c) On each Determination Date, the Servicer shall calculate the
Collateral Default Amount. If on any Distribution Date the Collateral Default
Amount for the previous Monthly Period exceeds the amount of Excess Spread and
Excess Finance Charge Collections allocated to Series 2005-7 with respect to the
related Monthly Period which are allocated and available to pay such amount
pursuant to subsection 4.07(h), the Collateral Invested Amount will be reduced
by the amount of such excess but not by more than the lesser of the Collateral
Default Amount and the Collateral Invested Amount for such Distribution Date (a
"Collateral Charge-Off"). The Collateral Invested Amount will be reimbursed
after any reduction pursuant to this Section 4.06 on any Distribution Date by
the amount of Excess Spread and Excess Finance Charge Collections allocated and
available on such Distribution date for that purpose as described under
subsection 4.07(i).

         Section 4.07. Excess Spread; Excess Finance Charge Collections. The
Servicer shall apply, or shall cause the Trustee to apply by written instruction
to the Trustee, on each Distribution Date, Excess Spread and Excess Finance
Charge Collections allocated to Series 2005-7 with respect to the related
Monthly Period, to make the following distributions or deposits in the following
order of priority:

         (a) an amount equal to the Class A Required Amount, if any, with
respect to such Distribution Date shall be distributed by the Trustee to fund
the Class A Required Amount in accordance with, and in the priority set forth
in, subsections 4.05(a)(i), (ii) and (iii);

                                       23
<PAGE>

         (b) an amount equal to the aggregate amount of Class A Investor
Charge-Offs which have not been previously reimbursed shall be treated as a
portion of Available Principal Collections for such Distribution Date;

         (c) an amount equal to interest on the aggregate outstanding principal
balance of the Class B Certificates not otherwise distributed to the Class B
Certificateholders pursuant to Section 4.05(b)(i), at a rate per annum equal to
the Class B Certificate Rate, shall be distributed to the Class B
Certificateholders, except that interest previously due but not paid will accrue
interest at a rate per annum equal to the Class B Certificate Rate plus 2% per
annum;

         (d) an amount equal to the Class B Required Amount, if any, with
respect to such Distribution Date will be (i) used to fund the Class B Required
Amount and be applied in accordance with subsections 4.05(b)(i) and 4.05(b)(ii),
and then (ii) an amount up to the Class B Investor Default Amount will be
treated and applied as Available Principal Collections for such Distribution
Date;

         (e) an amount equal to the aggregate amount by which the Class B
Invested Amount has been reduced pursuant to clauses (c), (d) and (e) of the
definition of "Class B Invested Amount" in Section 2.01 of this Supplement (but
not in excess of the aggregate amount of such reductions which have not been
previously reimbursed) shall be treated as a portion of Available Principal
Collections for such Distribution Date;

         (f) an amount equal to Collateral Minimum Monthly Interest for such
Distribution Date, plus the amount of any Collateral Minimum Monthly Interest
previously due but not distributed to the Collateral Interest Holder on a prior
Distribution Date, plus the amount of any Collateral Additional Interest for
such Distribution Date and any Collateral Additional Interest previously due but
not distributed to the Collateral Interest Holder on a prior Distribution Date,
shall be distributed to the Collateral Interest Holder;

         (g) an amount equal to the Monthly Servicing Fee for such Distribution
Date that has not been paid to the Servicer and any Monthly Servicing Fee due
but not paid to the Servicer on a prior Distribution Date shall be paid to the
Servicer;

         (h) an amount equal to the Collateral Default Amount, if any, for such
Distribution Date shall be treated as a portion of Available Principal
Collections for such Distribution Date;

         (i) an amount equal to the aggregate amount by which the Collateral
Invested Amount has been reduced pursuant to clauses (c), (d) and (e) of the
definition of "Collateral Invested Amount" (but not in excess of the aggregate
amount of such reductions which have not been previously reimbursed) shall be
treated as a portion of Available Principal Collections for such Distribution
Date;

         (j) on each Distribution Date from and after the Reserve Account
Funding Date, but prior to the date on which the Reserve Account terminates
pursuant to subsection 4.12(f), 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; and

         (k) the balance, if any, will be distributed to the Collateral Interest
Holder.

         Section 4.08. Reallocated Principal Collections. On each Distribution
Date, the Servicer shall apply, or shall cause the Trustee to apply, Reallocated
Principal Collections with respect to such Distribution Date, to make the
following distributions or deposits in the following order of priority

         (a) an amount equal to the excess, if any, of (i) the Class A Required
Amount, if any, with respect to such Distribution Date over (ii) the amount of
Excess Spread and Excess Finance Charge Collections allocated to Series 2005-7
with respect to the related Monthly Period shall be distributed by the Trustee
to fund any deficiency pursuant to and in the priority set forth in subsections
4.05(a)(i), (ii) and (iii); and

                                       24
<PAGE>

         (b) an amount equal to the excess, if any, of (i) the Class B Required
Amount, if any, with respect to such Distribution Date over (ii) the amount of
Excess Spread and Excess Finance Charge Collections allocated and available to
the Class B Certificates pursuant to subsections 4.07(c) and (d) on such
Distribution Date shall be applied first to fund any deficiency pursuant to
subsections 4.05(b)(i) and (ii) and then to fund any deficiency pursuant to and
in the priority set forth in subsections 4.07(c) and (d).

         All Reallocated Principal Collections with respect to the Collateral
Invested Amount shall be applied prior to applying any such Reallocated
Principal Collections with respect to the Class B Invested Amount. Only
Reallocated Principal Collections with respect to the Collateral Invested Amount
shall be applied pursuant to clause (b) above.

         On each Distribution Date, the Collateral Invested Amount shall be
reduced by the amount of Reallocated Principal Collections for such Distribution
Date. In the event that such reduction would cause the Collateral Invested
Amount (after giving effect to any Collateral Charge-Offs for such Distribution
Date) to be a negative number, the Collateral Invested Amount (after giving
effect to any Collateral Charge-Offs for such Distribution Date) shall be
reduced to zero and the Class B Invested Amount shall be reduced by the amount
by which the Collateral Invested Amount would have been reduced below zero. In
the event that the reallocation of Reallocated Principal Collections would cause
the Class B Invested Amount (after giving effect to any Class B Investor
Charge-Offs for such Distribution Date) to be a negative number on any
Distribution Date, Reallocated Principal Collections shall be reallocated on
such Distribution Date in an aggregate amount not to exceed the amount which
would cause the Class B Invested Amount (after giving effect to any Class B
Investor Charge-Offs for such Distribution Date) to be reduced to zero.
References to "negative numbers" above shall be determined without regard to the
requirement that the Invested Amount of a Class not be reduced below zero.

         Section 4.09. Excess Finance Charge Collections. Series 2005-7 shall be
an Excess Allocation Series. Subject to Section 4.05 of the Agreement, Excess
Finance Charge Collections with respect to the Excess Allocation Series for any
Distribution Date will be allocated to Series 2005-7 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 for such Distribution Date and (y) a
fraction, the numerator of which is the Finance Charge Shortfall for Series
2005-7 for such Distribution Date and the denominator of which is the aggregate
amount of Finance Charge Shortfalls for all the Excess Allocation Series for
such Distribution Date. The "Finance Charge Shortfall" for Series 2005-7 for any
Distribution Date will be equal to the excess, if any, of (a) the full amount
required to be paid, without duplication, pursuant to subsections 4.05(a),
4.05(b) and 4.05(c) and subsections 4.07(a) through (j) on such Distribution
Date and the full amount required to be paid, without duplication, pursuant to
subsection 3.02(a)(iii) of the Transfer Agreement on the related Payment Date
(as such term is defined in the Transfer Agreement) over (b) the sum of (i) the
Reallocated Investor Finance Charge Collections, (ii) if such Monthly Period
relates to a Distribution Date with respect to the Controlled Accumulation
Period or Early Amortization Period, the amount of Principal Funding Account
Investment Proceeds, if any, with respect to such Distribution Date and (iii)
the amount of funds, if any, to be withdrawn from the Reserve Account which,
pursuant to subsection 4.12(d), are required to be included in Class A Available
Funds with respect to such Distribution Date. The amount of Excess Finance
Charge Collections for Series 2005-7 for any Distribution Date shall be
specified in subsection 3.02(a)(v) of the Transfer Agreement. On each
Distribution Date, the Trustee shall deposit into the Collection Account for
application in accordance with Section 4.05 of the Agreement the aggregate
amount of Excess Finance Charge Collections received by the Trustee pursuant to
the Transfer Agreement on such date.

                                       25
<PAGE>

         Section 4.10. Reallocated Investor Finance Charge Collections.

         (a) That portion of Group II Investor Finance Charge Collections for
any Distribution Date equal to the amount of Reallocated Investor Finance Charge
Collections for such Distribution Date will be allocated to Series 2005-7 and
will be distributed as set forth in this Supplement.

         (b) Reallocated Investor Finance Charge Collections with respect to any
Distribution Date shall equal the sum of (i) the aggregate amount of Series
2005-7 Monthly Interest, Investor Default Amount, Series 2005-7 Monthly Fees and
Series 2005-7 Additional Amounts for such Distribution Date and (ii) that
portion of excess Group II Investor Finance Charge Collections to be included in
Reallocated Investor Finance Charge Collections pursuant to subsection (c)
hereof; provided, however, that if the amount of Group II Investor Finance
Charge Collections for such Distribution Date is less than the sum of (w) Group
II Investor Monthly Interest, (x) Group II Investor Default Amount, (y) Group II
Investor Monthly Fees and (z) Group II Investor Additional Amounts, then
Reallocated Investor Finance Charge Collections shall equal the sum of the
following amounts for such Distribution Date:

                  (A) The product of (I) Group II Investor Finance Charge
         Collections (up to the amount of Group II Investor Monthly Interest)
         and (II) a fraction, the numerator of which is Series 2005-7 Monthly
         Interest and the denominator of which is Group II Investor Monthly
         Interest;

                  (B) the product of (I) Group II Investor Finance Charge
         Collections less the amount of Group II Investor Monthly Interest (up
         to the Group II Investor Default Amount) and (II) a fraction, the
         numerator of which is the Investor Default Amount and the denominator
         of which is the Group II Investor Default Amount;

                  (C) the product of (I) Group II Investor Finance Charge
         Collections less the amount of Group II Investor Monthly Interest and
         the Group II Investor Default Amount (up to Group II Investor Monthly
         Fees) and (II) a fraction, the numerator of which is Series 2005-7
         Monthly Fees and the denominator of which is Group II Investor Monthly
         Fees; and

                  (D) the product of (I) Group II Investor Finance Charge
         Collections less the sum of (i) Group II Investor Monthly Interest,
         (ii) the Group II Investor Default Amount and (iii) Group II Investor
         Monthly Fees and (II) a fraction, the numerator of which is Series
         2005-7 Additional Amounts and the denominator of which is Group II
         Investor Additional Amounts.

         (c) If the amount of Group II Investor Finance Charge Collections for
such Distribution Date exceeds the sum of (i) Group II Investor Monthly
Interest, (ii) Group II Investor Default Amount, (iii) Group II Investor Monthly
Fees and (iv) Group II Investor Additional Amounts, then Reallocated Investor
Finance Charge Collections for such Distribution Date shall include an amount
equal to the product of (x) the amount of such excess and (y) a fraction, the
numerator of which is the Invested Amount as of the last day of the second
preceding Monthly Period (or, for Series 2005-7 only, with respect to the first
Distribution Date, as of the Closing Date) and the denominator of which is the
sum of such Invested Amount and the aggregate invested amounts for all other
Series included in Group II as of such last day (or, for Series 2005-7 only,
with respect to the first Distribution Date, as of the Closing Date).

         Section 4.11. Shared Principal Collections. Subject to Section 4.04 of
the Agreement, Shared Principal Collections for any Distribution Date will be
allocated to Series 2005-7 in an amount equal to the product of (x) the
aggregate amount of Shared Principal Collections with respect to all Principal
Sharing Series for such Distribution Date and (y) a fraction, the numerator of
which is the Series 2005-7 Principal Shortfall for such Distribution Date and
the denominator of which is the aggregate amount of Principal Shortfalls for all
the Series which are Principal Sharing Series for such Distribution Date. The
"Series 2005-7 Principal Shortfall" will be equal to (a) for any Distribution
Date with respect to the Revolving Period, zero, (b) for any Distribution Date
with respect to the Controlled Accumulation Period, the excess, if any, of the
Controlled Deposit Amount with respect to such Distribution Date over the amount
of Available Principal Collections for such Distribution Date (excluding any
portion thereof attributable to Shared Principal Collections), and (c) for any
Distribution Date with respect to the Early Amortization Period, the excess, if
any, of the Invested Amount over the amount of Available Principal Collections
for such Distribution Date (excluding any portion thereof attributable to Shared
Principal Collections).

                                       26
<PAGE>

         Section 4.12. Reserve Account.

         (a) The Servicer shall establish and maintain, in the name of the
Trustee, on behalf of the Trust, for the benefit of the Series 2005-7
Certificateholders, an Eligible Deposit Account (the "Reserve Account") bearing
a designation clearly indicating that the funds deposited therein and the
property credited thereto are held for the benefit of the Series 2005-7
Certificateholders. The Reserve Account shall initially be established with The
Bank of New York. The Trustee shall possess all right, title and interest in all
funds and property from time to time deposited in or credited to the Reserve
Account and in all proceeds thereof. The Reserve Account shall be under the sole
dominion and control of the Trustee for the benefit of the Series 2005-7
Certificateholders. If at any time the Reserve Account ceases to be an Eligible
Deposit Account, the Trustee (or the Servicer on its behalf) shall within 10
Business Days (or such longer period, not to exceed 30 calendar days, as to
which each Rating Agency shall consent) establish a new Reserve Account meeting
the conditions specified above as an Eligible Deposit Account, and shall
transfer any cash or any investments to such new Reserve Account. The Trustee,
at the direction of the Servicer, shall (i) make withdrawals from the Reserve
Account from time to time in an amount up to the Available Reserve Account
Amount at such time, for the purposes set forth in this Supplement, and (ii) on
each Distribution Date (from and after the Reserve Account Funding Date) prior
to the termination of the Reserve Account make a deposit into the Reserve
Account in the amount specified in, and otherwise in accordance with, subsection
4.07(j).

         (b) Funds on deposit in the Reserve Account shall be invested at the
written direction of the Servicer by the Trustee in Eligible Investments. Funds
on deposit in the Reserve Account on any Transfer Date, after giving effect to
any withdrawals from the Reserve Account on such Transfer Date, shall be
invested in such investments that will mature so that such funds will be
available for withdrawal on or prior to the following Transfer Date. No such
Eligible Investment shall be disposed of prior to its maturity; provided,
however, that the Trustee shall sell, liquidate or dispose of any such Eligible
Investment if, prior to the maturity of such Eligible Investment, a default
occurs in the payment of principal, interest or any other amount with respect to
such Eligible Investment; provided further, however, that the Servicer shall
deliver prompt written notice to the Trustee of any such default; and provided
further that, subject to Section 11.01 of the Agreement, the Trustee will not in
any way be held liable by reason of any insufficiency in such Reserve Account
resulting from any loss on any Eligible Investment included therein except for
losses attributable to the Trustee's failure to make payments on such Eligible
Investments issued by the Trustee, in its commercial capacity, in accordance
with their terms. On each Distribution Date, all interest and earnings (net of
losses and investment expenses) accrued since the preceding Distribution Date on
funds on deposit in the Reserve Account shall be retained in the Reserve Account
(to the extent that the Available Reserve Account Amount is less than the
Required Reserve Account Amount) and the balance, if any, shall be deposited in
the Collection Account and treated as collections of Finance Charge Receivables
allocable to Series 2005-7. For purposes of determining the availability of
funds or the balance in the Reserve Account for any reason under this
Supplement, except as otherwise provided in the preceding sentence, investment
earnings on such funds shall be deemed not to be available or on deposit.

                                       27
<PAGE>

         (c) On the Determination Date preceding each Distribution Date with
respect to the Controlled Accumulation Period and the first Special Payment
Date, the Servicer shall calculate the "Reserve Draw Amount" which shall be
equal to the excess, if any, of the Covered Amount with respect to such
Distribution Date or Special Payment Date over the Principal Funding Account
Investment Proceeds with respect to such Distribution Date or Special Payment
Date; provided, that such amount will be reduced to the extent that funds
otherwise would be available for deposit in the Reserve Account under subsection
4.07(j) with respect to such Distribution Date or Special Payment Date.

         (d) In the event that for any Distribution 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 the related
Transfer Date by the Trustee (acting in accordance with the instructions of the
Servicer), deposited into the Collection Account and included in Class A
Available Funds for such Distribution Date.

         (e) In the event that the Reserve Account Surplus on any Distribution
Date, after giving effect to all deposits to and withdrawals from the Reserve
Account with respect to such Distribution Date, is greater than zero, the
Trustee, acting in accordance with the written instructions of the Servicer,
shall withdraw from the Reserve Account, and distribute to the Collateral
Interest Holder, an amount equal to such Reserve Account Surplus.

         (f) Upon the earliest to occur of (i) the day on which the Invested
Amount is paid in full to the Series 2005-7 Certificateholders, (ii) if the
Controlled Accumulation Period has not commenced, the occurrence of a Pay-Out
Event with respect to Series 2005-7, (iii) if the Controlled Accumulation Period
has commenced, the earlier of the first Special Payment Date and the Expected
Final Payment Date and (iv) the termination of the Trust pursuant to the
Agreement, the Trustee, acting in accordance with the instructions of the
Servicer, after the prior payment of all amounts owing to the Class A
Certificateholders which are payable from the Reserve Account as provided
herein, shall withdraw from the Reserve Account and pay to the Collateral
Interest Holder all amounts, if any, on deposit in the Reserve Account and the
Reserve Account shall be deemed to have terminated for purposes of this
Supplement.

         Section 4.13. Investment Instructions.

         (a) Any investment instructions required to be given to the Trustee
pursuant to the terms hereof must be given to the Trustee no later than 10:30
a.m. (New York City time) on the date such investment is to be made. In the
event the Trustee receives such investment instruction later than such time, the
Trustee may, but shall have no obligation to, make such investment. In the event
the Trustee is unable to make an investment required in an investment
instruction received by the Trustee after 10:30 a.m. (New York City time) on
such day, such investment shall be made by the Trustee on the next succeeding
Business Day. In no event shall the Trustee be liable for any investment not
made pursuant to investment instructions received after 10:30 a.m. (New York
City time) on the day such investment is requested to be made.

         (b) The Trustee shall hold each Eligible Investment that constitutes
investment property through a securities intermediary, which securities
intermediary shall agree with the Trustee that (i) such investment property at
all times shall be credited to a securities account of the Trustee, (ii) all
property credited to such securities account shall be treated as a financial
asset, (iii) such securities intermediary shall treat the Trustee as entitled to
exercise the rights that comprise each financial asset credited to such
securities account, (iv) such securities intermediary shall comply with
entitlement orders originated by the Trustee without the further consent of any
other person or entity, (v) such securities intermediary shall not agree with
any person or entity other than the Trustee to comply with entitlement orders
originated by any person or entity other than the Trustee, (vi) such securities
account and all property credited thereto shall not be subject to any lien,
security interest, right of set-off, or encumbrance in favor of such securities
intermediary or anyone claiming through such securities intermediary (other than
the Trustee), (vii) such agreement between such securities intermediary and the
Trustee shall be governed by the laws of the State of New York, and (viii) such
securities intermediary's jurisdiction for purposes of the Uniform Commercial
Code shall be the State of New York. The Trustee shall maintain possession of
each other Eligible Investment in the State of New York, separate and apart from
all other property held by the Trustee. Notwithstanding any other provision of
this Supplement, the Trustee shall not hold any Eligible Investment through an
agent except as expressly permitted by this Section 4.13(b). Each term used in
this Section 4.13(b) and defined in the New York Uniform Commercial Code shall
have the meaning set forth in the New York Uniform Commercial Code.

                                       28
<PAGE>

         Section 4.14. Determination of LIBOR.

         (a) On each LIBOR Determination Date, the Trustee will determine LIBOR
for the related Interest Accrual Period, which shall be the rate for deposits in
United States dollars for a period equal to one month (commencing on the first
day of such Interest Accrual Period) that appears on Telerate Page 3750 as of
11:00 a.m., London time, on such date. Upon such determination, the Trustee
shall notify the Servicer of LIBOR for such LIBOR Determination Date. If such
rate does not appear on Telerate Page 3750, the rate for the LIBOR Determination
Date will be determined on the basis of the rates at which deposits in United
States dollars are offered by the Reference Banks at approximately 11:00 a.m.,
London time, on that day to prime banks in the London interbank market for a
period equal to one month (commencing on the first day of such Interest Accrual
Period). The Servicer will request the principal London office of each of the
Reference Banks to provide a quotation of its rate. If at least two such
quotations are provided, the rate for that LIBOR Determination Date will be the
arithmetic mean of the quotations. If fewer than two quotations are provided as
requested, the rate for that LIBOR Determination Date will be the arithmetic
mean of the rates quoted by major banks in New York City, selected by the
Servicer, at approximately 11:00 a.m., New York City time, on that day for loans
in United States dollars to leading European banks for a period equal to one
month (commencing on the first day of such Interest Accrual Period). If the
banks selected by the Servicer are not quoting rates as provided in the
immediately preceding sentence, LIBOR for such Interest Accrual Period will be
LIBOR in effect for the immediately preceding Interest Accrual Period.

         (b) The Servicer shall determine, and promptly notify the Transferors
and the Trustee of, the Class A Certificate Rate and the Class B Certificate
Rate for the applicable Interest Accrual Period. The Class A Certificate Rate
and Class B Certificate Rate applicable to the then current and the immediately
preceding Interest Accrual Periods may be obtained by any Investor
Certificateholder by telephoning the Trustee at its Corporate Trust Office at
(212) 815-6258.

         (c) On each LIBOR Determination Date prior to 3:00 p.m., New York City
time, the Trustee shall send to the Transferors and the Servicer by facsimile,
notification of LIBOR for the following Interest Accrual Period.

                                       29
<PAGE>

                                   ARTICLE V

                          Distributions and Reports to
                        Series 2005-7 Certificateholders

         Section 5.01. Distributions.

         (a) On each Distribution Date, the Paying Agent shall distribute to
each Class A Certificateholder of record on the related Record Date (other than
as provided in Section 12.02 of the Agreement) such Class A Certificateholder's
pro rata share of the amounts held by the Paying Agent that are allocated and
available on such Distribution Date to pay interest on the Class A Certificates
pursuant to this Supplement.

         (b) On each Special Payment Date and on the Expected Final Payment
Date, the Paying Agent shall distribute (in accordance with the Certificate
delivered by the Servicer pursuant to Section 3.04(b) of the Agreement) to each
Class A Certificateholder of record on the related Record Date (other than as
provided in Section 12.02 of the Agreement) such Class A Certificateholder's pro
rata share of the amounts on deposit in the Principal Funding Account or
otherwise held by the Paying Agent that are allocated and available on such date
to pay principal of the Class A Certificates pursuant to this Supplement up to a
maximum amount on any such date equal to the Class A Invested Amount on such
date (unless there has been an optional repurchase of the Series 2005-7
Certificateholders' Interest pursuant to Section 10.01 of the Agreement, in
which event the foregoing limitation will not apply).

         (c) On each Distribution Date, the Paying Agent shall distribute (in
accordance with the Certificate delivered by the Servicer pursuant to Section
3.04(b) of the Agreement) to each Class B Certificateholder of record on the
related Record Date (other than as provided in Section 12.02 of the Agreement)
such Class B Certificateholder's pro rata share of the amounts held by the
Paying Agent that are allocated and available on such Distribution Date to pay
interest on the Class B Certificates pursuant to this Supplement.

         (d) On each Special Payment Date, and on the Expected Final Payment
Date, the Paying Agent shall distribute (in accordance with the Certificate
delivered by the Servicer pursuant to Section 3.04(b) of the Agreement) to each
Class B Certificateholder of record on the related Record Date (other than as
provided in Section 12.02 of the Agreement) such Class B Certificateholder's pro
rata share of the amounts on deposit in the Principal Funding Account or
otherwise held by the Paying Agent that are allocated and available on such date
to pay principal of the Class B Certificates pursuant to this Supplement up to a
maximum amount on any such date equal to the Class B Invested Amount on such
date (unless there has been an optional repurchase of the Series 2005-7
Certificateholders' Interest pursuant to Section 10.01 of the Agreement, in
which event the foregoing limitation will not apply).

         (e) On each Distribution Date, the Trustee shall distribute to the
Collateral Interest Holder the aggregate amount payable to the Collateral
Interest Holder pursuant to Sections 4.05, 4.07, 4.12, 8.01 and 8.02 to the
Collateral Interest Holder's account, as specified in writing by the Collateral
Interest Holder, in immediately available funds.

         (f) The distributions to be made pursuant to this Section 5.01 are
subject to the provisions of Sections 2.06, 9.02, 10.01 and 12.02 of the
Agreement and Sections 8.01 and 8.02 of this Supplement.

         (g) Except as provided in Section 12.02 of the Agreement with respect
to a final distribution, distributions to Series 2005-7 Certificateholders
hereunder shall be made by check mailed to each Series 2005-7 Certificateholder
at such Series 2005-7 Certificateholder's address appearing in the Certificate
Register without presentation or surrender of any Series 2005-7 Certificate or
the making of any notation thereon; provided, however, that with respect to
Series 2005-7 Certificates registered in the name of a Clearing Agency, such
distributions shall be made to such Clearing Agency in immediately available
funds.

                                       30
<PAGE>

         Section 5.02. Reports and Statements to Series 2005-7
Certificateholders.

         (a) On each Distribution Date, the Paying Agent, on behalf of the
Trustee, shall forward to each Series 2005-7 Certificateholder a statement
substantially in the form of Exhibit C to this Supplement prepared by the
Servicer and delivered to the Paying Agent.

         (b) Not later than each Determination Date, the Servicer shall deliver
to the Trustee, the Paying Agent, the Transferors, each Rating Agency and the
Collateral Interest Holder (i) a statement substantially in the form of Exhibit
C to this Supplement prepared by the Servicer and (ii) a certificate of a
Servicing Officer substantially in the form of Exhibit D.

         (c) A copy of each statement or certificate provided pursuant to
paragraph (a) or (b) may be obtained by any Series 2005-7 Certificateholder or
any Certificate Owner thereof by a request in writing to the Servicer.

         (d) On or before January 31 of each calendar year, beginning with
calendar year 2006, the Paying Agent, on behalf of the Trustee, shall furnish or
cause to be furnished to each Person who at any time during the preceding
calendar year was a Series 2005-7 Certificateholder, a statement prepared by the
Servicer containing the information which is required to be contained in the
statement to Series 2005-7 Certificateholders, as set forth in paragraph (a)
above aggregated for such calendar year or the applicable portion thereof during
which such Person was a Series 2005-7 Certificateholder, together with other
information as is required to be provided by an issuer of indebtedness under the
Code. Such obligation of the Servicer shall be deemed to have been satisfied to
the extent that substantially comparable information shall be provided by the
Paying Agent pursuant to any requirements of the Code as from time to time in
effect.

                                   ARTICLE VI

                                 Pay-Out Events

         Section 6.01. Pay-Out Events. If any one of the following events shall
occur with respect to the Series 2005-7 Certificates:

         (a) the occurrence of an Insolvency Event relating to any Transferor or
other holder of the Original Transferor Certificate;

         (b) the Trust becomes an investment company within the meaning of the
Investment Company Act;

         (c) failure on the part of any Transferor (i) to make any payment or
deposit required by the terms of the Agreement or this Supplement on or before
the date occurring five Business Days after the date such payment or deposit is
required to be made therein or herein or (ii) duly to observe or perform any
other covenants or agreements of the Transferors set forth in the Agreement or
this Supplement, which failure has a material adverse effect on the Series
2005-7 Certificateholders and which continues unremedied for a period of 60 days
after the date on which written notice of such failure, requiring the same to be
remedied, shall have been given to such Transferor by the Trustee, or to the
Transferors and the Trustee by any Holder of the Series 2005-7 Certificates;

                                       31
<PAGE>

         (d) any representation or warranty made by any Transferor in the
Agreement or this Supplement, or any information contained in a computer file or
microfiche list required to be delivered by any Transferor pursuant to Section
2.01 or subsection 2.08(f) of the 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 60 days after the date on
which written notice of such failure, requiring the same to be remedied, shall
have been given to such Transferor by the Trustee, or to such Transferor and the
Trustee by any Holder of the Series 2005-7 Certificates and as a result of which
the interests of the Series 2005-7 Certificateholders are materially and
adversely affected for such period; provided, however, that a Pay-Out Event
pursuant to this subsection 6.01(d) shall not be deemed to have occurred
hereunder if a Transferor has accepted reassignment of the related Receivable,
or all of such Receivables, if applicable, during such period (or such longer
period not to exceed an additional 60 days as the Trustee may specify) in
accordance with the provisions of the Agreement;

         (e) a failure by a Transferor to convey Receivables in Additional
Accounts or Participation Interests to the Trust within five Business Days after
the day on which it is required to convey such Receivables or Participation
Interests pursuant to subsection 2.09(a) of the Agreement;

         (f) any Servicer Default which would have an Adverse Effect shall
occur;

         (g) the average Series Adjusted Portfolio Yield for any three
consecutive Monthly Periods is reduced to a rate which is less than the average
of the Base Rates for such period;

         (h) the Class A Invested Amount, the Class B Invested Amount or the
Collateral Invested Amount shall not be paid in full on the Expected Final
Payment Date;

         (i) a Transfer Restriction Event shall occur;

         (j) the occurrence of an Insolvency Event as defined in the Receivables
Purchase Agreement relating to any Account Owner; or

         (k) a Transfer Restriction Event as defined in the Receivables Purchase
Agreements shall occur between an Account Owner and the related Transferor;

then, (A) in the case of any event described in subparagraph (c), (d) or (f),
after the applicable grace period, if any, set forth in such subparagraphs,
either the Trustee or the Investor Certificateholders of this Series evidencing
more than 50% of the aggregate unpaid principal amount of the Investor
Certificates of this Series by notice then given in writing to the Transferors
and the Servicer (and to the Trustee if given by the Investor Certificateholders
of this Series) may declare that a Pay-Out Event has occurred with respect to
this Series as of the date of such notice; (B) in the case of any event
described in subparagraph (b), (e), (g) or (h), a Pay-Out Event shall occur with
respect to this Series without any notice or other action on the part of the
Trustee or the Investor Certificateholders of this Series immediately upon the
occurrence of such event; and (C) in the case of any event described in
subparagraph (a), (i), (j) or (k), a Pay-Out Event shall occur with respect to
this Series without any notice or other action on the part of the Trustee or the
Investor Certificateholders of this Series immediately upon the occurrence of
such event (or, in the case of clause (y) below, immediately following the
expiration of the 60-day grace period), but only to the extent that (x) as of
the date of such event, the average of the Monthly Receivables Percentage for
the immediately preceding three Monthly Periods is equal to or greater than 10%
or (y) as of the date of such event, the average of the Monthly Receivables
Percentage for the immediately preceding three Monthly Periods is less than 10%,
and within 60 days following the occurrence of the related Insolvency Event or
Transfer Restriction Event, the aggregate amount of Principal Receivables
outstanding in the Trust does not at least equal the Required Minimum Principal
Balance (without giving effect to Principal Receivables attributable to the
Transferor or the Account Owner with respect to which the Insolvency Event or
the Transfer Restriction Event has occurred).

                                       32
<PAGE>

                                  ARTICLE VII

                     Optional Repurchase; Series Termination

         Section 7.01. Optional Repurchase.

         (a) So long as a Transferor is the Servicer or an Affiliate of the
Servicer, on any day occurring on or after the date on which the Invested Amount
is reduced to 5% or less of the Initial Invested Amount, such Transferor shall
have the option to purchase the Series 2005-7 Certificateholders' Interest, at a
purchase price equal to (i) if such day is a Distribution Date, the Reassignment
Amount for such Distribution Date or (ii) if such day is not a Distribution
Date, the Reassignment Amount for the Distribution Date following such day. If,
on the date on which a Transferor exercises such option, the long-term unsecured
debt obligations of such Transferor purchasing the Series 2005-7
Certificateholders' Interest is not rated at least in the third highest rating
category by the Rating Agency, such Transferor shall deliver to the Trustee,
with a copy to the Rating Agency, an Officer's Certificate of such Transferor
which shall have attached to it the relevant fraudulent conveyance statute, if
any, and set forth the factual basis for a conclusion that the exercise of such
optional repurchase would not constitute a fraudulent conveyance of such
Transferor.

         (b) The Transferors shall give the Servicer and the Trustee at least 30
days prior written notice of the date on which the Transferors intend to
exercise such purchase option. Not later than 12:00 noon, New York City time, on
such day the Transferors shall deposit the Reassignment Amount into the
Collection Account in immediately available funds. Such purchase option is
subject to payment in full of the Reassignment Amount. Following the deposit of
the Reassignment Amount into the Collection Amount in accordance with the
foregoing, the Invested Amount for Series 2005-7 shall be reduced to zero and
the Series 2005-7 Certificateholders shall have no further interest in the
Receivables. The Reassignment Amount shall be distributed as set forth in
subsection 8.01(b).

         Section 7.02. Series Termination.

         (a) If, on the December 2012 Distribution Date, the Invested Amount
(after giving effect to all changes therein on such date) would be greater than
zero, the Servicer, on behalf of the Trustee, shall, within the 40-day period
which begins on such Distribution Date, solicit bids for the sale of Principal
Receivables and the related Finance Charge Receivables (or interests therein) in
an amount equal to the Invested Amount at the close of business on the last day
of the Monthly Period preceding the Series 2005-7 Termination Date (after giving
effect to all distributions required to be made on the Series 2005-7 Termination
Date, except pursuant to this Section 7.02). Such bids shall require that such
sale shall (subject to subsection 7.02(b)) occur on the Series 2005-7
Termination Date. No Transferor, any Affiliate thereof, any agent thereof or any
other party consolidated with such Transferor for purposes of United States
generally accepted accounting principles shall be entitled to participate in
such bidding process or to purchase the Receivables; provided, however, that, to
the extent the Collateral Interest Holder is not a Transferor, an Affiliate
thereof, an agent thereof or any other party consolidated with a Transferor for
purposes of United States generally accepted accounting principles, the
Collateral Interest Holder may participate in such bidding process.

                                       33
<PAGE>

         (b) The Servicer, on behalf of the Trustee, shall sell such Receivables
(or interests therein) on the Series 2005-7 Termination Date to the bidder who
made the highest cash purchase offer. The proceeds of any such sale shall be
treated as Collections on the Receivables allocated to the Series 2005-7
Certificateholders pursuant to the Agreement and this Supplement; provided,
however, that the Servicer shall determine conclusively the amount of such
proceeds which are allocable to Finance Charge Receivables and the amount of
such proceeds which are allocable to Principal Receivables. During the period
from the December 2012 Distribution Date to the Series 2005-7 Termination Date,
the Servicer shall continue to collect payments on the Receivables and allocate
and deposit such Collections in accordance with the provisions of the Agreement
and the Supplements.

                                  ARTICLE VIII

                               Final Distributions

         Section 8.01. Sale of Receivables or Certificateholders' Interest
pursuant to Section 2.06 or 10.01 of the Agreement and Section 7.01 or 7.02 of
this Supplement.

         (a) (i) The amount to be paid by the Transferors with respect to Series
         2005-7 in connection with a reassignment of Receivables to the
         Transferors pursuant to Section 2.06 of the Agreement shall equal the
         Reassignment Amount for the first Distribution Date following the
         Monthly Period in which the reassignment obligation arises under the
         Agreement.

         (ii) The amount to be paid by the Transferors with respect to Series
         2005-7 in connection with a repurchase of the Certificateholders'
         Interest pursuant to Section 10.01 of the Agreement shall equal the sum
         of (x) the Reassignment Amount for the Distribution Date of such
         repurchase and (y) the sum of (A) the excess, if any, of (I) a price
         equivalent to the average of bids quoted on the Record Date preceding
         the date of repurchase or, if not a Business Day, on the next
         succeeding Business Day by at least two recognized dealers selected by
         the Trustee for the purchase by such dealers of a security which is
         similar to the Class A Certificates with a remaining maturity
         approximately equal to the remaining maturity of the Class A
         Certificates and rated by each Rating Agency in the rating category
         originally assigned to the Class A Certificates over (II) the portion
         of the Reassignment Amount attributable to the Class A Certificates and
         (B) the excess, if any, of (I) a price equivalent to the average of
         bids quoted on such Record Date, or if not a Business Day, on the next
         succeeding Business Day by at least two recognized dealers selected by
         the Trustee for the purchase by such dealers of a security which is
         similar to the Class B Certificates with a remaining maturity
         approximately equal to the remaining maturity of the Class B
         Certificates and rated by each Rating Agency in the rating category
         originally assigned to the Class B Certificates over (II) the portion
         of the Reassignment Amount attributable to the Class B Certificates.

         (b) With respect to the Reassignment Amount deposited into the
Collection Account pursuant to Section 7.01 or any amounts allocable to the
Series 2005-7 Certificateholders' Interest deposited into the Collection Account
pursuant to Section 7.02, the Trustee shall, in accordance with the written
direction of the Servicer, not later than 12:00 noon, New York City time, on the
related Distribution Date, make deposits or distributions of the following
amounts (in the priority set forth below and, in each case after giving effect
to any deposits and distributions otherwise to be made on such date) in
immediately available funds: (i) (x) the Class A Invested Amount on such
Distribution Date will be distributed to the Paying Agent for payment to the
Class A Certificateholders and (y) an amount equal to the sum of (A) Class A
Monthly Interest for such Distribution Date, (B) any Class A Monthly Interest
previously due but not distributed to the Class A Certificateholders on a prior
Distribution Date and (C) the amount of Class A Additional Interest, if any, for
such Distribution Date and any Class A Additional Interest previously due but
not distributed to the Class A Certificateholders on any prior Distribution
Date, will be distributed to the Paying Agent for payment to the Class A
Certificateholders, (ii) (x) the Class B Invested Amount on such Distribution
Date will be distributed to the Paying Agent for payment to the Class B
Certificateholders and (y) an amount equal to the sum of (A) Class B Monthly
Interest for such Distribution Date, (B) any Class B Monthly Interest previously
due but not distributed to the Class B Certificateholders on a prior
Distribution Date and (C) the amount of Class B Additional Interest, if any, for
such Distribution Date and any Class B Additional Interest previously due but
not distributed to the Class B Certificateholders on any prior Distribution
Date, will be distributed to the Paying Agent for payment to the Class B
Certificateholders and (iii) the balance, if any, will be distributed to the
Collateral Interest Holder.

                                       34
<PAGE>

         (c) Notwithstanding anything to the contrary in this Supplement or the
Agreement, all amounts distributed to the Paying Agent pursuant to subsection
8.01(b) for payment to the Series 2005-7 Certificateholders shall be deemed
distributed in full to the Series 2005-7 Certificateholders on the date on which
such funds are distributed to the Paying Agent pursuant to this Section and
shall be deemed to be a final distribution pursuant to Section 12.02 of the
Agreement.

         Section 8.02. Distribution of Proceeds of Sale, Disposition or
Liquidation of the Receivables pursuant to Section 9.01 of the Agreement.

         (a) Not later than 12:00 noon, New York City time, on the Distribution
Date following the date on which the Insolvency Proceeds are deposited into the
Collection Account pursuant to subsection 9.01(b) of the Agreement, the Trustee
shall in accordance with the written direction of the Servicer (in the following
priority and, in each case, after giving effect to any deposits and
distributions otherwise to be made on such Distribution Date) (i) deduct an
amount equal to the Class A Invested Amount on such Distribution Date from the
portion of the Insolvency Proceeds allocated to Series 2005-7 Allocable
Principal Collections and distribute such amount to the Paying Agent for payment
to the Class A Certificateholders, provided that the amount of such distribution
shall not exceed the product of (x) the portion of the Insolvency Proceeds
allocated to Series 2005-7 Allocable Principal Collections and (y) the Principal
Allocation Percentage with respect to the related Monthly Period, (ii) deduct an
amount equal to the Class B Invested Amount on such Distribution Date from the
portion of the Insolvency Proceeds allocated to Series 2005-7 Allocable
Principal Collections and distribute such amount to the Paying Agent for payment
to the Class B Certificateholders, provided that the amount of such distribution
shall not exceed (x) the product of (A) the portion of such Insolvency Proceeds
allocated to Series 2005-7 Allocable Principal Collections and (B) the Principal
Allocation Percentage with respect to the related Monthly Period minus (y) the
amount distributed to the Paying Agent pursuant to clause (i) of this sentence
and (iii) distribute the remaining amount of the Insolvency Proceeds to the
Collateral Interest Holder.

         (b) Not later than 12:00 noon, New York City time, on such Distribution
Date, the Trustee shall in accordance with the written direction of the Servicer
(in the following priority and, in each case, after giving effect to any
deposits and distributions otherwise to be made on such Distribution Date) (i)
deduct an amount equal to the sum of (w) Class A Monthly Interest for such
Distribution Date, (x) any Class A Monthly Interest previously due but not
distributed to the Class A Certificateholders on a prior Distribution Date and
(y) the amount of Class A Additional Interest, if any, for such Distribution
Date and any Class A Additional Interest previously due but not distributed to
the Class A Certificateholders on a prior Distribution Date from the portion of
the Insolvency Proceeds allocated to Collections of Finance Charge Receivables
and distribute such amount to the Paying Agent for payment to the Class A
Certificateholders, provided that the amount of such distribution shall not
exceed the product of (x) the portion of the Insolvency Proceeds allocated to
Series 2005-7 Allocable Finance Charge Collections, (y) the Floating Allocation
Percentage with respect to the related Monthly Period and (z) the Class A
Floating Percentage with respect to such Monthly Period and (ii) deduct an
amount equal to the sum of (w) Class B Monthly Interest for such Distribution
Date, (x) Class B Monthly Interest previously due but not distributed to the
Class B Certificateholders on a prior Distribution Date and (y) the amount of
Class B Additional Interest, if any, for such Distribution Date and any Class B
Additional Interest previously due but not distributed to the Class B
Certificateholders on a prior Distribution Date from the portion of the
Insolvency Proceeds allocated to Series 2005-7 Allocable Finance Charge
Collections and distribute such amount to the Paying Agent for payment to the
Class B Certificateholders, provided that the amount of such distribution shall
not exceed the product of (x) the portion of the Insolvency Proceeds allocated
to Series 2005-7 Allocable Finance Charge Collections, (y) the Floating
Allocation Percentage with respect to the related Monthly Period and (z) the
Class B Floating Percentage with respect to such Monthly Period. To the extent
that the product of (A) the portion of the Insolvency Proceeds allocated to
Series 2005-7 Allocable Finance Charge Collections and (B) the Floating
Allocation Percentage with respect to the related Monthly Period exceeds the
aggregate amount distributed to the Paying Agent pursuant to the preceding
sentence, the excess shall be distributed to the Collateral Interest Holder.

                                       35
<PAGE>

         (c) Notwithstanding anything to the contrary in this Supplement or the
Agreement, all amounts distributed to the Paying Agent pursuant to this Section
for payment to the Series 2005-7 Certificateholders shall be distributed in full
to the Series 2005-7 Certificateholders on the date on which funds are
distributed to the Paying Agent pursuant to this Section and shall be deemed to
be a final distribution pursuant to Section 12.02 of the Agreement.

                                   ARTICLE IX

                            Miscellaneous Provisions

         Section 9.01. Ratification of Agreement. As supplemented by this
Supplement, the Agreement is in all respects ratified and confirmed and the
Agreement as so supplemented by this Supplement shall be read, taken and
construed as one and the same instrument.

         Section 9.02. Counterparts. This Supplement may be executed in two or
more counterparts, and by different parties on separate counterparts, each of
which shall be an original, but all of which shall constitute one and the same
instrument.

         Section 9.03. Governing Law. THIS SUPPLEMENT 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.

         Section 9.04. [Reserved].

         Section 9.05. [Reserved].

         Section 9.06. Uncertificated Securities. The Collateral Interest shall
be delivered in uncertificated form.

         Section 9.07. Transfers of the Collateral Interest.

         (a) Unless otherwise consented to by the Transferors, no portion of the
Collateral Interest or any interest therein may be sold, conveyed, assigned,
hypothecated, pledged, participated, exchanged or otherwise transferred (each, a
"Transfer") except in accordance with this Section 9.07 and only to a Permitted
Assignee. Any attempted or purported transfer, assignment, exchange, conveyance,
pledge, hypothecation or grant other than to a Permitted Assignee shall be void.
Unless otherwise consented to by the Transferors, no portion of the Collateral
Interest or any interest therein may be Transferred to any Person (each such
Person acquiring the Collateral Interest or any interest therein, an "Assignee")
unless such Assignee shall have executed and delivered to the Transferors on or
before the effective date of any Transfer a letter substantially in the form
attached hereto as Exhibit E (an "Investment Letter"), executed by such
Assignee, with respect to the related Transfer to such Assignee of all or a
portion of the Collateral Interest.

                                       36
<PAGE>

         (b) Each Assignee will certify that the Collateral Interest or the
interest therein purchased by such Assignee will be acquired for investment only
and not with a view to any public distribution thereof, and that such Assignee
will not offer to sell or otherwise dispose of the Collateral Interest or any
interest therein so acquired by it in violation of any of the registration
requirements of the Securities Act, or any applicable state or other securities
laws. Each Assignee will acknowledge and agree that (i) it has no right to
require the Transferors to register under the Securities Act or any other
securities law the Collateral Interest or the interest therein to be acquired by
the Assignee and (ii) the sale of the Collateral Interest is not being made by
means of the prospectus prepared in connection with the sale of the Series
2005-7 Certificates. Each Assignee will agree with the Transferors that: (a)
such Assignee will deliver to the Transferors an Investment Letter and (b) all
of the statements made by such Assignee in its Investment Letter shall be true
and correct as of the date made.

         (c) No portion of the Collateral Interest or any interest therein may
be Transferred, and each Assignee will certify that it is not, (a) an "employee
benefit plan" (as defined in Section 3(3) of ERISA), including governmental
plans and church plans, (b) any "plan" (as defined in Section 4975(e)(1) of the
Code) including individual retirement accounts and Keogh plans, or (c) any other
entity whose underlying assets include "plan assets" (within the meaning of U.S.
Department of Labor Regulation Section 2510.3-101, 29 C.F.R. ss. 2510.3-101 or
otherwise under ERISA) by reason of a plan's investment in the entity,
including, without limitation, an insurance company general account.

                     [The signature page follows this page.]

                                       37
<PAGE>

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

                                   AMERICAN EXPRESS RECEIVABLES
                                          FINANCING CORPORATION II,
                                          as a Transferor

                                   By:     /s/ Maureen Ryan
                                           -------------------------------------
                                          Name: Maureen Ryan
                                          Title:   President

                                   AMERICAN EXPRESS RECEIVABLES
                                          FINANCING CORPORATION III LLC,
                                          as a Transferor

                                   By:    /s/ Andrea J. Moss
                                          --------------------------------------
                                          Name:  Andrea J. Moss
                                          Title:   Vice President and Treasurer

                                   AMERICAN EXPRESS RECEIVABLES
                                          FINANCING CORPORATION IV LLC,
                                          as a Transferor

                                   By:    /s/ Daniel L. Follett
                                          --------------------------------------
                                          Name: Daniel L. Follett
                                          Title:   President

                                   AMERICAN EXPRESS TRAVEL RELATED
                                          SERVICES COMPANY, INC.,
                                          as the Servicer

                                   By:    /s/ David L. Yowan
                                          --------------------------------------
                                          Name: David L. Yowan
                                          Title:   Treasurer

                                   THE BANK OF NEW YORK,
                                          as Trustee

                                   By:    /s/ Catherine L. Cerilles
                                          --------------------------------------
                                          Name:  Catherine L. Cerilles
                                          Title:    Assistant Vice President

                   [Signature page - Series 2005-7 Supplement]

<PAGE>

                        FORM OF CLASS A CERTIFICATE                 EXHIBIT A-1

REGISTERED                                                    $           (1)/
                                                               -----------
No. R-                                                           CUSIP No.

         Unless this Class A Certificate is presented by an authorized
representative of The Depository Trust Company, a New York corporation ("DTC"),
to American Express Receivables Financing Corporation II, American Express
Receivables Financing Corporation III LLC, American Express Receivables
Financing Corporation IV LLC or their agent for registration of transfer,
exchange or payment, and any certificate 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.

                  AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

                                  SERIES 2005-7

                 CLASS A FLOATING RATE ASSET BACKED CERTIFICATE

                          Expected Final Payment Date:
                        The August 2012 Distribution Date

                  Each $1,000 minimum denomination represents a
                         1/584,500ths undivided interest
                                in Class A of the

           AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST, SERIES 2005-7

Evidencing an undivided interest in certain assets of a trust, the corpus of
which consists primarily of an interest in receivables generated from time to
time in the ordinary course of business in a portfolio of credit and charge
accounts serviced by

             AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC.,

and other assets and interests constituting Trust Assets under the Pooling and
Servicing Agreement referred to below.

      (Not an interest in or obligation of American Express Travel Related
Services Company, Inc., American Express Centurion Bank, American Express Bank,
  FSB, American Express Receivables Financing Corporation II, American Express
    Receivables Financing Corporation III LLC, American Express Receivables
      Financing Corporation IV LLC or any of their respective affiliates)

---------------
(1) / Denominations of $1,000 and integral multiples of $1,000 in excess
thereof.

<PAGE>

This certifies that CEDE & CO. (the "Class A Certificateholder") is the
registered owner of a fractional undivided interest in certain assets of a trust
(the "Trust") created pursuant to the Pooling and Servicing Agreement, dated as
of May 16, 1996, as amended and restated as of April 16, 2004 (as amended and
restated and as otherwise amended and supplemented, the "Agreement"), as
supplemented by the Series 2005-7 Supplement, dated as of August 18, 2005 (as
amended and supplemented, the "Supplement"), among American Express Receivables
Financing Corporation II, American Express Receivables Financing Corporation III
LLC and American Express Receivables Financing Corporation IV LLC, as
transferors (together, the "Transferors"), American Express Travel Related
Services Company, Inc., as servicer, and The Bank of New York, a New York
banking corporation, as trustee (the "Trustee"). The corpus of the Trust
consists of (i) the Transferors' ownership interest in a portfolio of
receivables (the "Receivables") existing in credit and charge accounts
identified under the Agreement from time to time (the "Accounts"), (ii) all
Receivables generated under the Accounts from time to time thereafter, (iii)
funds collected or to be collected from cardmembers in respect of the
Receivables, (iv) all funds which are from time to time on deposit in the
Collection Account, the Special Funding Account and any other Series Accounts
and (v) all other assets and interests constituting the Trust. The Holder of
this Certificate is entitled to the benefits of the subordination of the Class B
Certificates and the Collateral Interest to the extent provided in the
Supplement. Although a summary of certain provisions of the Agreement and the
Supplement is set forth below and in the Summary of Terms and Conditions
attached hereto and made a part hereof, this Class A Certificate does not
purport to summarize the Agreement and the Supplement and reference is made to
the Agreement and the Supplement for information with respect to the interests,
rights, benefits, obligations, proceeds and duties evidenced hereby and the
rights, duties and obligations of the Trustee. A copy of the Agreement and the
Supplement (without schedules) may be requested from the Trustee by writing to
the Trustee at the Corporate Trust Office. To the extent not defined herein, the
capitalized terms used herein have the meanings ascribed to them in the
Agreement or the Supplement, as applicable.

         This Class A Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement and the Supplement, to which
Agreement and Supplement, each as amended and supplemented from time to time,
the Class A Certificateholder by virtue of the acceptance hereof assents and is
bound.

         It is the intent of the Transferors and the Class A Certificateholder
that, for federal, state and local income and franchise tax purposes, the Class
A Certificates will qualify as indebtedness of the Transferors secured by the
Receivables. The Class A Certificateholder, by the acceptance of this Class A
Certificate, agrees to treat this Class A Certificate for federal, state and
local income and franchise tax purposes as debt of the Transferors.

         In general, payments of principal with respect to the Class A
Certificates are limited to the Class A Invested Amount, which may be less than
the unpaid principal balance of the Class A Certificates. The Expected Final
Payment Date is the August 2012 Distribution Date, but principal with respect to
the Class A Certificates may be paid earlier or later under certain
circumstances described in the Agreement and the Supplement. If for one or more
months during the Controlled Accumulation Period there are not sufficient funds
to pay the Controlled Deposit Amount, then to the extent that excess funds are
not available on subsequent Distribution Dates with respect to the Controlled
Accumulation Period to make up for such shortfalls, the final payment of
principal of the Class A Certificates will occur later than the Expected Final
Payment Date.

         Unless the certificate of authentication hereon has been executed by or
on behalf of the Trustee, by manual signature, this Class A Certificate shall
not be entitled to any benefit under the Agreement or the Supplement or be valid
for any purpose.

                                     A-1-2
<PAGE>

         IN WITNESS WHEREOF, the Transferors have caused this Class A
Certificate to be duly executed.

                                   AMERICAN EXPRESS RECEIVABLES FINANCING
                                   CORPORATION II

                                   By:
                                          ------------------------------------
                                          Name:
                                          Title:

                                   AMERICAN EXPRESS RECEIVABLES FINANCING
                                   CORPORATION III LLC

                                   By:
                                          ------------------------------------
                                          Name:
                                          Title:

                                   AMERICAN EXPRESS RECEIVABLES FINANCING
                                   CORPORATION IV LLC

                                   By:
                                          ------------------------------------
                                          Name:
                                          Title:

Dated: [___________]

                                     A-1-3
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the American Express Credit Account Master Trust Series 2005-7
Class A Certificates described in the within-mentioned Agreement and Supplement.

                               THE BANK OF NEW YORK,
                               as Trustee

                               By:
                                      ------------------------------------
                                      Authorized Signatory

                                      or

                               By:
                                      ------------------------------------
                                      as Authenticating Agent
                                      for the Trustee

                               By:
                                      ------------------------------------
                                      Authorized Signatory

                                     A-1-4
<PAGE>

                  AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

                                  SERIES 2005-7

                 CLASS A FLOATING RATE ASSET BACKED CERTIFICATE

                         Summary of Terms and Conditions

                  The Receivables consist of Principal Receivables which arise
generally from the purchase of goods and services and amounts advanced to
cardmembers as cash advances and Finance Charge Receivables. This Class A
Certificate is one of a Series of Certificates entitled American Express Credit
Account Master Trust, Series 2005-7 (the "Series 2005-7 Certificates"), and one
of a class thereof entitled Class A Series 2005-7 Floating Rate Asset Backed
Certificates (the "Class A Certificates"), each of which represents a
fractional, undivided interest in certain assets of the Trust. The assets of the
Trust are allocated in part to the investor certificateholders of all
outstanding Series (the "Certificateholders' Interest") with the remainder
allocated to the Holders of the Transferor Certificates. The aggregate interest
represented by the Class A Certificates at any time in the Principal Receivables
in the Trust shall not exceed an amount equal to the Class A Invested Amount at
such time. The Class A Initial Invested Amount is $584,500,000. The Class A
Invested Amount on any date will be an amount equal to (a) the Class A Initial
Invested Amount, minus (b) the aggregate amount of principal payments made to
the Class A Certificateholder on or prior to such date, minus (c) the excess, if
any, of the aggregate amount of Class A Investor Charge-Offs for all prior
Distribution Dates over Class A Investor Charge-Offs reimbursed pursuant to
subsection 4.07(b) of the Supplement prior to such date.

                  Subject to the terms and conditions of the Agreement, the
Transferors may, from time to time, direct the Trustee, on behalf of the Trust,
to issue one or more new Series of Investor Certificates, which will represent
fractional, undivided interests in certain of the Trust Assets.

                  On each Distribution Date, the Paying Agent shall distribute
to each Class A Certificateholder of record on the last day of the preceding
calendar month (each a "Record Date") such Class A Certificateholder's pro rata
share of such amounts (including amounts on deposit in the Collection Account
and Principal Funding Account) as are payable to the Class A Certificateholder
pursuant to the Agreement and the Supplement. Distributions with respect to this
Class A Certificate will be made by the Paying Agent by check mailed to the
address of the Class A Certificateholder of record appearing in the Certificate
Register without the presentation or surrender of this Class A Certificate or
the making of any notation thereon (except for the final distribution in respect
of this Class A Certificate) except that with respect to Class A Certificates
registered in the name of Cede & Co., the nominee for The Depository Trust
Company, distributions will be made in the form of immediately available funds.
Final payment of this Class A Certificate will be made only upon presentation
and surrender of this Class A Certificate at the office or agency specified in
the notice of final distribution delivered by the Trustee to the Series 2005-7
Certificateholders in accordance with the Agreement and the Supplement.

                                     A-1-5
<PAGE>

                  On any day occurring on or after the day on which the Invested
Amount is reduced to 5% or less of the Initial Invested Amount, the Transferors
have the option to repurchase the Series 2005-7 Certificateholders' Interest in
the Trust. The repurchase price will be equal to (a) if such day is a
Distribution Date, the Reassignment Amount for such Distribution Date or (b) if
such day is not a Distribution Date, the Reassignment Amount for the
Distribution Date following such day. Following the deposit of the Reassignment
Amount in the Collection Account, Series 2005-7 Certificateholders will not have
any interest in the Receivables and the Series 2005-7 Certificates will
represent only the right to receive such Reassignment Amount.

                  THIS CLASS A CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF,
OR AN INTEREST IN, THE TRANSFERORS OR THE SERVICER OR ANY AFFILIATE OF ANY OF
THEM AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY. THIS CLASS A
CERTIFICATE IS LIMITED IN RIGHT OF PAYMENT TO CERTAIN COLLECTIONS WITH RESPECT
TO THE RECEIVABLES (AND CERTAIN OTHER AMOUNTS), ALL AS MORE SPECIFICALLY SET
FORTH HEREINABOVE AND IN THE AGREEMENT AND THE SUPPLEMENT.

                  The Class A Certificates are issuable only in minimum
denominations of $1,000 and integral multiples of $1,000. The transfer of this
Class A Certificate shall be registered in the Certificate Register upon
surrender of this Class A Certificate for registration of transfer at any office
or agency maintained by the Transfer Agent and Registrar accompanied by a
written instrument of transfer, in a form satisfactory to the Trustee or the
Transfer Agent and Registrar, duly executed by the Class A Certificateholder or
such Class A Certificateholder's attorney, and duly authorized in writing with
such signature guaranteed, and thereupon one or more new Class A Certificates of
authorized denominations and for the same aggregate fractional undivided
interest will be issued to the designated transferee or transferees.

                  As provided in the Agreement and subject to certain
limitations therein set forth, Class A Certificates are exchangeable for new
Class A Certificates evidencing like aggregate fractional, undivided interests
as requested by the Class A Certificateholder surrendering such Class A
Certificates. No service charge may be imposed for any such exchange but the
Servicer or Transfer Agent and Registrar may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
therewith.

                  The Servicer, the Transferors, the Trustee, the Paying Agent
and the Transfer Agent and Registrar and any agent of any of them, may treat the
person in whose name this Class A Certificate is registered as the owner hereof
for all purposes, and none of the Servicer, the Transferors, the Trustee, the
Paying Agent, the Transfer Agent and Registrar, or any agent of any of them,
shall be affected by notice to the contrary except in certain circumstances
described in the Agreement.

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

                                     A-1-6
<PAGE>

                                   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: ______________                               ________________________(2)/

                                                    Signature Guaranteed:

                                                    ------------------------
-----------------
(2) / NOTE: The signature to this assignment must correspond with the name of
the registered owner as it appears on the face of the within Certificate in
every particular, without alteration, enlargement or any change whatsoever.

                                     A-1-7
<PAGE>

                           FORM OF CLASS B CERTIFICATE              EXHIBIT A-2

THIS CLASS B CERTIFICATE MAY NOT BE ACQUIRED BY OR FOR THE ACCOUNT OF PERSONS
INVESTING ASSETS OF A BENEFIT PLAN (AS DEFINED BELOW) OR AN INDIVIDUAL
RETIREMENT ACCOUNT OTHER THAN BY INSURANCE COMPANIES INVESTING ASSETS SOLELY OF
THEIR GENERAL ACCOUNTS.

REGISTERED                                                      $          (3)/
                                                                 ---------
No. R- ______                                                   CUSIP No.

         Unless this Class B Certificate is presented by an authorized
representative of The Depository Trust Company, a New York corporation ("DTC"),
to American Express Receivables Financing Corporation II, American Express
Receivables Financing Corporation III LLC, American Express Receivables
Financing Corporation IV LLC or their agent for registration of transfer,
exchange or payment, and any certificate 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.

                  AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

                                  SERIES 2005-7

                 CLASS B FLOATING RATE ASSET BACKED CERTIFICATE

                          Expected Final Payment Date:
                        The August 2012 Distribution Date

                  Each $1,000 minimum denomination represents a
                         1/52,500ths undivided interest
                                in Class B of the

           AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST, SERIES 2005-7

Evidencing an undivided interest in certain assets of a trust, the corpus of
which consists primarily of an interest in receivables generated from time to
time in the ordinary course of business in a portfolio of credit and charge
accounts serviced by

             AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC.,

and other assets and interests constituting Trust Assets under the Pooling and
Servicing Agreement referred to below.

      (Not an interest in or obligation of American Express Travel Related
Services Company, Inc., American Express Centurion Bank, American Express Bank,
  FSB, American Express Receivables Financing Corporation II, American Express
    Receivables Financing Corporation III LLC, American Express Receivables
      Financing Corporation IV LLC or any of their respective affiliates)

-----------------
(3) /  Denominations of $1,000 and integral multiples of $1,000 in excess
thereof.

<PAGE>

This certifies that CEDE & CO. (the "Class B Certificateholder") is the
registered owner of a fractional, undivided interest in certain assets of a
trust (the "Trust") created pursuant to the Pooling and Servicing Agreement,
dated as of May 16, 1996, as amended and restated as of April 16, 2004 (as
amended and restated and otherwise amended and supplemented, the "Agreement"),
as supplemented by the Series 2005-7 Supplement, dated as of August 18, 2005 (as
amended and supplemented, the "Supplement"), among American Express Receivables
Financing Corporation II, American Express Receivables Financing Corporation III
LLC and American Express Receivables Financing Corporation IV LLC, as
transferors (together, the "Transferors"), American Express Travel Related
Services Company, Inc., as servicer, and The Bank of New York, a New York
banking corporation, as trustee (the "Trustee"). The corpus of the Trust
consists of (i) the Transferors' ownership interest in a portfolio of
receivables (the "Receivables") existing in credit and charge accounts
identified under the Agreement from time to time (the "Accounts"), (ii) all
Receivables generated under the Accounts from time to time thereafter, (iii)
funds collected or to be collected from cardmembers in respect of the
Receivables, (iv) all funds which are from time to time on deposit in the
Collection Account, the Special Funding Account, and any other Series Accounts
and (v) all other assets and interests constituting the Trust. Although a
summary of certain provisions of the Agreement and the Supplement is set forth
below and in the Summary of Terms and Conditions attached hereto and made a part
hereof, this Class B Certificate does not purport to summarize the Agreement and
the Supplement and reference is made to the Agreement and the Supplement for
information with respect to the interests, rights, benefits, obligations,
proceeds and duties evidenced hereby and the rights, duties and obligations of
the Trustee. A copy of the Agreement and the Supplement (without schedules) may
be requested from the Trustee by writing to the Trustee at the Corporate Trust
Office. To the extent not defined herein, the capitalized terms used herein have
the meanings ascribed to them in the Agreement or the Supplement, as applicable.

         This Class B Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement and the Supplement, to which
Agreement and Supplement, each as amended and supplemented from time to time,
the Class B Certificateholder by virtue of the acceptance hereof assents and is
bound.

         No Class B Certificate may be acquired by or for the account of any
employee benefit plan, trust or account, including an individual retirement
account, that is subject to the Employee Retirement Income Security Act of 1974,
as amended, or that is described in Section 4975(e)(1) of the Internal Revenue
Code of 1986, as amended, or an entity whose underlying assets include plan
assets by reason of a plan's investment in such entity (a "Benefit Plan"),
unless (i) such acquirer or holder is an insurance company, (ii) the source of
funds used to acquire or hold such Certificate (or interest therein) is an
"insurance company general account" (as defined in U.S. Department of Labor
Prohibited Transaction Class Exemption ("PTCE") 95-60), and (iii) the conditions
set forth in Sections I and III of PTCE 95-60 have been satisfied. By acquiring
any interest in this Class B Certificate, each applicable Certificate Owner
shall be deemed to have represented and warranted either (i) that it is not a
Benefit Plan and is not acting for the account of any Benefit Plan or (ii) that
(1) it is an insurance company, (2) the source of funds used to acquire or hold
an interest in such Certificate is an "insurance company general account" (as
such term is defined in PTCE 95-60), and (3) the conditions set forth in
Sections I and III of PTCE 95-60 have been satisfied.

         THIS CLASS B CERTIFICATE IS SUBORDINATED TO THE EXTENT NECESSARY TO
FUND PAYMENTS ON THE CLASS A CERTIFICATES TO THE EXTENT SPECIFIED IN THE
SUPPLEMENT.

                                     A-2-2
<PAGE>

         It is the intent of the Transferors and the Class B Certificateholder
that, for federal, state and local income and franchise tax purposes, the Class
B Certificates will qualify as indebtedness of the Transferors secured by the
Receivables. The Class B Certificateholder, by the acceptance of this Class B
Certificate, agrees to treat this Class B Certificate for federal, state and
local income and franchise tax purposes as debt of the Transferors.

         In general, payments of principal with respect to the Class B
Certificates are limited to the Class B Invested Amount, which may be less than
the unpaid principal balance of the Class B Certificates. The Expected Final
Payment Date is the August 2012 Distribution Date, but principal with respect to
the Class B Certificates may be paid earlier or later under certain
circumstances described in the Agreement and the Supplement. If for one or more
months during the Controlled Accumulation Period there are not sufficient funds
to pay the Controlled Deposit Amount, then to the extent that excess funds are
not available on subsequent Distribution Dates with respect to the Controlled
Accumulation Period to make up for such shortfalls, the final payment of
principal of the Class B Certificates will occur later than the Expected Final
Payment Date.

                  Unless the certificate of authentication hereon has been
executed by or on behalf of the Trustee, by manual signature, this Class B
Certificate shall not be entitled to any benefit under the Agreement or the
Supplement or be valid for any purpose.

                                     A-2-3
<PAGE>

         IN WITNESS WHEREOF, the Transferors have caused this Class B
Certificate to be duly executed.

                                  AMERICAN EXPRESS RECEIVABLES FINANCING
                                  CORPORATION II

                                  By:
                                         -----------------------------------
                                         Name:
                                         Title:

                                  AMERICAN EXPRESS RECEIVABLES FINANCING
                                  CORPORATION III LLC

                                  By:
                                         -----------------------------------
                                         Name:
                                         Title:

                                  AMERICAN EXPRESS RECEIVABLES FINANCING
                                  CORPORATION IV LLC

                                  By:
                                         -----------------------------------
                                         Name:
                                         Title:
Dated: [____________]

                                     A-2-4
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

                  This is one of the American Express Credit Account Master
Trust Series 2005-7 Class B Certificates described in the within mentioned
Agreement and Supplement.

                                    THE BANK OF NEW YORK,
                                    as Trustee

                                    By:
                                           -----------------------------------
                                           Authorized Signatory

                                    or

                                    By:
                                           -----------------------------------
                                           as Authenticating Agent
                                           for the Trustee

                                    By:
                                           -----------------------------------
                                           Authorized Signatory

                                     A-2-5
<PAGE>

                  AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

                                  SERIES 2005-7

                 CLASS B FLOATING RATE ASSET BACKED CERTIFICATE

                         Summary of Terms and Conditions

         The Receivables consist of Principal Receivables which arise generally
from the purchase of goods and services and amounts advanced to cardmembers as
cash advances and Finance Charge Receivables. This Class B Certificate is one of
a Series of Certificates entitled American Express Credit Account Master Trust,
Series 2005-7 (the "Series 2005-7 Certificates"), and one of a class thereof
entitled Class B Series 2005-7 Floating Rate Asset Backed Certificates (the
"Class B Certificates"), each of which represents a fractional, undivided
interest in certain assets of the Trust. The assets of the Trust are allocated
in part to the investor certificateholders of all outstanding Series (the
"Certificateholders' Interest") with the remainder allocated to the Holders of
the Transferor Certificates. The aggregate interest represented by the Class B
Certificates at any time in the Principal Receivables in the Trust shall not
exceed an amount equal to the Class B Invested Amount at such time. The Class B
Initial Invested Amount is $52,500,000. The Class B Invested Amount on any date
will be an amount equal to (a) the Class B Initial Invested Amount, minus (b)
the aggregate amount of principal payments made to the Class B Certificateholder
on or prior to such date, minus (c) the excess, if any, of the aggregate amount
of Class B Investor Charge-Offs for all prior Distribution Dates over Class B
Investor Charge-Offs reimbursed, minus (d) the amount of Reallocated Principal
Collections allocated on all prior Distribution Dates pursuant to subsection
4.08(a) of the Supplement (excluding any Reallocated Principal Collections that
have resulted in a reduction in the Collateral Invested Amount pursuant to
Section 4.08), minus (e) an amount equal to the amount by which the Class B
Invested Amount has been reduced to cover the Class A Investor Default Amount on
all prior Distribution Dates, and plus (f) the amount of Excess Spread and
Excess Finance Charge Collections allocated to Series 2005-7 and applied on all
prior Distribution Dates for the purpose of reimbursing amounts deducted
pursuant to the foregoing clauses (c), (d) and (e); provided, however, that the
Class B Invested Amount may not be reduced below zero.

         Subject to the terms and conditions of the Agreement, the Transferors
may, from time to time, direct the Trustee, on behalf of the Trust, to issue one
or more new Series of Investor Certificates, which will represent fractional,
undivided interests in certain of the Trust Assets.

         On each Distribution Date, the Paying Agent shall distribute to each
Class B Certificateholder of record on the last day of the preceding calendar
month (each a "Record Date") such Class B Certificateholder's pro rata share of
such amounts (including amounts on deposit in the Collection Account and
Principal Funding Account) as are payable to the Class B Certificateholder
pursuant to the Agreement and the Supplement. Distributions with respect to this
Class B Certificate will be made by the Paying Agent by check mailed to the
address of the Class B Certificateholder of record appearing in the Certificate
Register without the presentation or surrender of this Class B Certificate or
the making of any notation thereon (except for the final distribution in respect
of this Class B Certificate) except that with respect to Class B Certificates
registered in the name of Cede & Co., the nominee for The Depository Trust
Company, distributions will be made in the form of immediately available funds.
Final payment of this Class B Certificate will be made only upon presentation
and surrender of this Class B Certificate at the office or agency specified in
the notice of final distribution delivered by the Trustee to the Series 2005-7
Certificateholders in accordance with the Agreement and the Supplement.

                                     A-2-6
<PAGE>

         On any day occurring on or after the day on which the Invested Amount
is reduced to 5% or less of the Initial Invested Amount, the Transferors have
the option to repurchase the Series 2005-7 Certificateholders' Interest in the
Trust. The repurchase price will be equal to (a) if such day is a Distribution
Date, the Reassignment Amount for such Distribution Date or (b) if such day is
not a Distribution Date, the Reassignment Amount for the Distribution Date next
following such day. Following the deposit of the Reassignment Amount in the
Collection Account, Series 2005-7 Certificateholders will not have any interest
in the Receivables and the Series 2005-7 Certificates will represent only the
right to receive such Reassignment Amount.

         THIS CLASS B CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF, OR AN
INTEREST IN, THE TRANSFERORS OR THE SERVICER OR ANY AFFILIATE OF ANY OF THEM AND
IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY. THIS CLASS B CERTIFICATE IS
LIMITED IN RIGHT OF PAYMENT TO CERTAIN COLLECTIONS WITH RESPECT TO THE
RECEIVABLES (AND CERTAIN OTHER AMOUNTS), ALL AS MORE SPECIFICALLY SET FORTH
HEREINABOVE AND IN THE AGREEMENT AND THE SUPPLEMENT.

         The Class B Certificates are issuable only in minimum denominations of
$1,000 and integral multiples of $1,000. The transfer of this Class B
Certificate shall be registered in the Certificate Register upon surrender of
this Class B Certificate for registration of transfer at any office or agency
maintained by the Transfer Agent and Registrar accompanied by a written
instrument of transfer, in a form satisfactory to the Trustee or the Transfer
Agent and Registrar, duly executed by the Class B Certificateholder or such
Class B Certificateholder's attorney, and duly authorized in writing with such
signature guaranteed, and thereupon one or more new Class B Certificates of
authorized denominations and for the same aggregate fractional undivided
interest will be issued to the designated transferee or transferees.

         As provided in the Agreement and subject to certain limitations therein
set forth, Class B Certificates are exchangeable for new Class B Certificates
evidencing like aggregate fractional undivided interests as requested by the
Class B Certificateholder surrendering such Class B Certificates. No service
charge may be imposed for any such exchange but the Servicer or Transfer Agent
and Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection therewith.

         The Servicer, the Transferors, the Trustee, the Paying Agent and the
Transfer Agent and Registrar and any agent of any of them, may treat the person
in whose name this Class B Certificate is registered as the owner hereof for all
purposes, and none of the Servicer, the Transferors, the Trustee, the Paying
Agent, the Transfer Agent and Registrar, or any agent of any of them, shall be
affected by notice to the contrary except in certain circumstances described in
the Agreement.

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

                                     A-2-7
<PAGE>

                                   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: ______________                             ________________________(4)/

                                                  Signature Guaranteed:

                                                  ------------------------

-----------------
(4) / NOTE: The signature to this assignment must correspond with the name of
the registered owner as it appears on the face of the within Certificate in
every particular, without alteration, enlargement or any change whatsoever.

                                     A-2-8
<PAGE>

                                                                       EXHIBIT B

                    FORM OF MONTHLY PAYMENT INSTRUCTIONS AND
                           NOTIFICATION TO THE TRUSTEE

                            ------------------------

                  AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

                                  SERIES 2005-7

                            ------------------------

                  The undersigned, a duly authorized representative of American
Express Travel Related Services Company, Inc. ("TRS"), as Servicer pursuant to
the Pooling and Servicing Agreement, dated as of May 16, 1996, as amended and
restated as of April 16, 2004 (as amended and restated and as otherwise amended
and supplemented, the "Pooling and Servicing Agreement"), among TRS, American
Express Receivables Financing Corporation II, American Express Receivables
Financing Corporation III LLC and American Express Receivables Financing
Corporation IV LLC, as transferors (together, the "Transferors"), and The Bank
of New York, as trustee (the "Trustee"), does hereby certify as follows:

         1. Capitalized terms used in this Certificate have their respective
meanings set forth in the Pooling and Servicing Agreement or the Series 2005-7
Supplement, dated as of August 18, 2005, among TRS, the Transferors and the
Trustee (as amended and supplemented, the "Supplement"), as applicable.

         2. TRS is the Servicer.

         3. The undersigned is a Servicing Officer.

I. INSTRUCTION TO MAKE A WITHDRAWAL

         Pursuant to subsections 4.05(a), (b) and (c), the Servicer does hereby
instruct the Trustee (i) to make withdrawals from the Collection Account
on _________, _______, which date is a Distribution Date under the Supplement,
in the aggregate amounts (equal to the Class A Available Funds, Class B
Available Funds and Collateral Available Funds, respectively) as set forth below
in respect of the following amounts and (ii) to apply the proceeds of such
withdrawals in accordance with subsections 4.05(a), (b) and (c):

       ith respect to the Class A Certificates,

       ) Pursuant to subsection 4.05(a)(i):

         (1)      Interest at the Class A Certificate Rate for the
                  related Interest Accrual Period on the Class A
                  Invested
                  Amount.......................................$
                                                                --------

         (2)      Class A Monthly Interest previously
                  due but not
                  paid.........................................$
                                                                --------

         (3)      Class A Additional Interest and any Class A
                  Additional Interest due but not
                  paid........................................$
                                                               ---------

                                       B-1
<PAGE>

       B) Pursuant to subsection 4.05(a)(ii):

          (1)      The Class A Servicing Fee for the preceding Monthly
                   Period, if
                   applicable.................................$
                                                               ----------

          (2)      Accrued and unpaid Class A Servicing Fees,
                   if
                   applicable.................................$
                                                               ----------

       C) Pursuant to subsection 4.05(a)(iii):

          (1)      Class A Investor Default Amount for the preceding
                   Monthly
                   Period.....................................$
                                                               ----------

       With respect to the Class B Certificates,

       A) Pursuant to subsection 4.05(b)(i):

          (1)      Interest at the Class B Certificate Rate for the
                   related Interest Accrual Period on the Class B
                   Invested
                   Amount......................................$
                                                                ---------

          (2)      Class B Monthly Interest previously due but not
                   paid........................................$
                                                                ---------

          (3)      Class B Additional Interest and any Class B
                   Additional Interest previously due but not
                   paid........................................$
                                                                ---------

       B) Pursuant to subsection 4.05(b)(ii):

          (1)      The Class B Servicing Fee for the preceding Monthly
                   Period, if applicable......................$
                                                               ----------

          (2)      Accrued and unpaid Class B Servicing Fees, if
                   applicable.................................$
                                                               ----------

       With respect to the Collateral Interest.................................

       A) Pursuant to subsection 4.05(c)(i):

          (1)      The Collateral Servicing Fee for the preceding
                   Monthly Period, if
                   applicable.................................$
                                                               ----------

          (2)      Accrued and unpaid Collateral Servicing Fees, if
                   applicable.................................$
                                                               ----------

                                       B-2
<PAGE>

Pursuant to subsections 4.05(d), (e) and (f), the Servicer hereby instructs the
Trustee (i) to make withdrawals from the Collection Account on _________, which
date is a Distribution Date under the Supplement, in the aggregate amounts
(equal to the Available Principal Collections) as set forth below in respect of
the following amounts and (ii) to apply the proceeds of such withdrawals in
accordance with subsections 4.05(d), (e) and (f):

        A) Pursuant to subsection 4.05(d):

           (1)      Amount to be treated as Shared Principal
                    Collections................................$
                                                                ----------

        B) Pursuant to subsection 4.05(e):

           (1)      The lesser of the Controlled Deposit Amount and the
                    sum of the Class A Adjusted Invested Amount and the
                    Class B Adjusted Invested Amount deposited in the
                    Principal Funding
                    Account....................................$
                                                                ----------

           (2)      After the Class B Invested Amount is paid in full,
                    the amount paid to the Collateral Interest Holder
                    (up to the Collateral Invested
                    Amount)....................................$
                                                                ----------

           (3)      Prior to the date the Class B Invested Amount is
                    paid in full, amount to be treated as Shared
                    Principal
                    Collections................................$
                                                                ----------

        C) Pursuant to subsection 4.05(f):

           (1)      An amount up to the Class A Adjusted Invested
                    Amount deposited in the Principal Funding
                    Account....................................$
                                                                ----------

           (2)      On and after the Distribution Date on which the
                    Class A Invested Amount is paid in full, an amount
                    up to the Class B Invested Amount deposited in the
                    Principal Funding
                    Account....................................$
                                                                ----------

           (3)      On and after the Distribution Date on which
                    the
                    Class B Invested Amount is paid in full, an amount
                    up to the Collateral Invested Amount distributed to
                    the Collateral Interest Holder
                    ...........................................$
                                                                ----------

                                      B-3
<PAGE>

Pursuant to Section 4.07, the Servicer does hereby instruct the Trustee to apply
on ________, which is a Distribution Date under the Supplement, any Excess
Spread and Excess Finance Charge Collections allocated to Series 2005-7 as
follows:

        A) Pursuant to subsection 4.07(a):

           Class A Required Amount applied in the priority set forth in
           subsections 4.05(a)(i), (ii) and
           (iii)...............................................$
                                                                ----------

        B) Pursuant to subsection 4.07(b):

           Aggregate amount of Class A Investor Charge-Offs not
           previously reimbursed allocated to Available Principal
           Collections.........................................$
                                                                ----------

        C) Pursuant to subsection 4.07(c):

           Class B Required Amount applied in the priority set forth in
           subsections 4.05(b)(i).............................$
                                                               -----------

        D) Pursuant to subsection 4.07(d):

           Interest accrued on aggregate outstanding principal
           balance of the Class B Certificates not otherwise
           distributed to Class B Certificateholders pursuant to
           Section 4.07(c) ....................................$
                                                                -----------

        E) Pursuant to subsection 4.07(d):

           Amount (up to the Class B Investor Default) to be applied as
           Available Principal
           Collections.........................................$
                                                                -----------

        F) Pursuant to subsection 4.07(e):

           The amount by which the "Class B Invested Amount" has been
           reduced pursuant to clauses (c), (d) and (e) of the
           definition thereof allocated to Available Principal
           Collections.........................................$
                                                                -----------

        G) Pursuant to subsection 4.07(f):

           (1)      Collateral Minimum Monthly Interest.............$
                                                                     -----------

           (2)      Collateral Minimum Monthly Interest previously due
                    but not
                    paid.......................................$
                                                                -----------

           (3)      Collateral Additional Interest and any Collateral
                    Additional Interest previously due and not
                    paid.......................................$
                                                                -----------

        H) Pursuant to subsection 4.07(g):

           Monthly Servicing Fee for such Distribution Date that has
           not been paid to the Servicer and any Monthly Servicing Fee
           previously due but not paid to the
           Servicer............................................$
                                                                -----------

        I) Pursuant to subsection 4.07(h):

           Collateral Default Amount allocated to Available Principal
           Collections.........................................$
                                                               -----------

        J) Pursuant to subsection 4.07(i):

           The amount by which the "Collateral Invested Amount" has
           been reduced pursuant to clauses (c), (d) and (e) of the
           definition thereof allocated to Available Principal
           Collections.........................................$
                                                               -----------

        K) Pursuant to subsection 4.07(j):

           The excess of the Required Reserve Account Amount over the
           Available Reserve Amount deposited into the Reserve
           Account.............................................$
                                                               -----------

        L) Pursuant to subsection 4.07(k):

           Amount distributed to the Collateral Interest Holder
           ....................................................$
                                                                -----------

                                      B-4
<PAGE>

         Pursuant to Section 4.08, the Servicer does hereby instruct the Trustee
to apply on _________, which is a Distribution Date under the Pooling and
Servicing Agreement, $ _________ of Reallocated Principal Collections to fund
any deficiencies in the Required Amount after applying Class A Available Funds,
Class B Available Funds, Excess Spread and Excess Finance Charge Collections
thereto.

II. INSTRUCTION TO MAKE CERTAIN PAYMENTS

         Pursuant to Section 5.01 of the Series Supplement, the Servicer does
hereby instruct the Trustee to pay in accordance with Section 5.01 from the
Interest Funding Account or the Principal Funding Account, as applicable, on
__________, which date is a Payment Date under the Supplement, the following
amounts as set forth below:

        A) Pursuant to subsection 5.01(a):

           Interest to be distributed to Class A
           Certificateholders..................................$
                                                                -----------

        B) Pursuant to subsection 5.01(b):

           On the Expected Final Payment Date or a Special Payment
           Date, principal to be distributed to the Class A
           Certificateholders..................................$
                                                                -----------

        C) Pursuant to subsection 5.01(c):

           Interest to be distributed to Class B
           Certificateholders..................................$
                                                                -----------

        D) Pursuant to subsection 5.01(d):

           On the Expected Final Payment Date or a Special
           Payment Date, on or after the date Class A Invested
           Amount is paid in full, principal to be distributed
           to the Class B Certificateholders...................$
                                                                -----------

        E) Pursuant to subsection 5.01(e):

           Aggregate amount to be distributed to the Collateral
           Interest Holder.....................................$
                                                                -----------

                                      B-5
<PAGE>

III. ACCRUED AND UNPAID AMOUNTS

         After giving effect to the withdrawals and transfers to be made in
accordance with this notice, the following amounts will be accrued and unpaid
with respect to all Monthly Periods preceding the current calendar month.

         1. Subsection 4.06(a):

            The aggregate amount of all unreimbursed Class A Investor
            Charge-Offs.........................................$
                                                                 -----------

         2. Subsection 4.06(a), (b) and 4.08(a):

            The aggregate amount by which the "Class B Invested
            Amount" has been reduced pursuant to clauses (c), (d)
            and (e) of the definition thereof....................$
                                                                 -----------

         3. Subsection 4.06(a), (b), (c) and 4.08(a) and (b):

            The aggregate amount by which the "Collateral Invested
            Amount" has been reduced pursuant to clauses (c), (d) and
            (e) of the definition
            thereof.............................................$
                                                                 -----------

         IN WITNESS WHEREOF, the undersigned has duly executed this Certificate
this day of ____________ , _______.

                                     AMERICAN EXPRESS TRAVEL RELATED
                                     SERVICES COMPANY, INC., as Servicer

                                     By:
                                            ------------------------------
                                            Name:
                                            Title:

                                      B-6
<PAGE>

                                                                       EXHIBIT C

                            FORM OF MONTHLY STATEMENT

                  AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST
                                  SERIES 2005-7

         Pursuant to the Pooling and Servicing Agreement, dated as of May 16,
1996, as amended and restated as of April 16, 2004 (hereinafter as such
agreement may have been or may be from time to time, amended or otherwise
modified, the "Pooling and Servicing Agreement"), among American Express Travel
Related Services Company, Inc. ("TRS"), as Servicer, American Express
Receivables Financing Corporation II, American Express Receivables Financing
Corporation III LLC and American Express Receivables Financing Corporation IV
LLC, as transferors (together, the "Transferors"), and The Bank of New York, as
trustee (the "Trustee"), as supplemented by the Series 2005-7 Supplement, dated
as of August 18, 2005 (the "Supplement"), among TRS, the Transferors and the
Trustee, TRS, as Servicer is required to prepare certain information each month
regarding current distributions to the Series 2005-7 Certificateholders and the
performance of the American Express Credit Account Master Trust (the "Trust")
during the previous month. The information which is required to be prepared with
respect to the Distribution Date of __________, and with respect to the
performance of the Trust during the month of ____________ is set forth below.
Certain of the information is presented on the basis of an original principal
amount of $1,000 per Series 2005-7 Certificate (a "Certificate"). Certain other
information is presented based on the aggregate amounts for the Trust as a
whole. Capitalized terms used in this Monthly Statement have their respective
meanings set forth in the Pooling and Servicing Agreement and the Supplement.

        A)       Information regarding distributions in respect of the
                 Class A Certificates per $1,000 original certificate
                 principal amount

                 (1) The total amount of the
                     distribution..............................$
                                                                -------------

                 (2) The amount of the distribution set forth in
                     paragraph 1 above in respect of Class A Monthly
                     Interest..................................$
                                                                -------------

                 (3) The amount of the distribution set forth in
                     paragraph 1 above in respect of Class A
                     Outstanding Monthly Interest..............$
                                                                -------------

                 (4) The amount of the distribution set forth in
                     paragraph 1 above in respect of Class A
                     Additional Interest.......................$
                                                                -------------

                 (5) The amount of the distribution set forth in
                     paragraph 1 above in respect of principal of
                     the Class A Certificates..................$
                                                                -------------

                                      C-1
<PAGE>

        B) Class A Investor Charge Offs and Reimbursement of
           Class A Charge Offs

           (1)      The total amount of Class A Investor Charge
                    Offs......,................................$
                                                                -------------

           (2)      The amount of Class A Investor Charge Offs set
                    forth in paragraph 1 above, per $1,000 original
                    certificate principal amount................$
                                                                -------------

           (3)      The total amount reimbursed in respect of
                    Class A Investor Charge Offs................$
                                                                -------------

           (4)      The amount set forth in paragraph 3 above, per
                    $1,000 original certificate principal
                    amount......................................$
                                                                -------------

           (5)      The amount, if any, by which the outstanding
                    principal balance of the Class A Certificates
                    exceeds the Class A Invested Amount after giving
                    effect to all transactions on such Distribution
                    Date........................................$
                                                                -------------

        C) Information regarding distributions in respect of the
           Class B Certificates, per $1,000 original certificate
           principal amount

           (1)      The total amount of the distribution in respect
                    of Class B
                    Certificates...............................$
                                                                -------------

           (2)      The amount of the distribution set forth in
                    paragraph 1 above in respect of Class B Monthly
                    Interest...................................$
                                                                -------------

           (3)      The amount of the distribution set forth in
                    paragraph 1 above in respect of Class B
                    Outstanding Monthly Interest...............$
                                                                -------------

           (4)      The amount of the distribution set forth in
                    paragraph 1 above in respect of Class B
                    Additional Interest.........................$
                                                                -------------

           (5)      The amount of the distribution set forth in
                    paragraph 1 above in respect of principal of
                    the Class B Certificates...................$
                                                                -------------

                                      C-2
<PAGE>

        D) Amount of reductions in Class B Invested Amount
           pursuant to clauses (c), (d), and (e) of the
           definition of Class B Invested Amount

           (1)      The amount of reductions in Class B Invested
                    Amount pursuant to clauses (c), (d) and (e) of
                    the definition of Class B Invested
                    Amount.....................................$
                                                                -------------

           (2)      The amount of the reductions in the Class B
                    Invested Amount set forth in paragraph 1 above,
                    per $1,000 original certificate principal
                    amount.....................................$
                                                                -------------

           (3)      The total amount reimbursed in respect of such
                    reductions in the Class B Invested
                    Amount.....................................$
                                                                -------------

           (4)      The amount set forth in paragraph 3 above, per
                    $1,000 original certificate principal
                    amount.....................................$
                                                                -------------

           (5)      The amount, if any, by which the outstanding
                    principal balance of the Class B Certificates
                    exceeds the Class B Invested Amount after giving
                    effect to all transactions on such Distribution
                    Date.......................................$
                                                                -------------

        E) Information regarding certain distributions to the
           Collateral Interest Holder

           (1)      The total amount distributed to the Collateral
                    Interest
                    Holder.....................................$
                                                                -------------

           (2)      The amount of the distribution in paragraph
                    1
                    above in respect of Collateral Minimum Monthly
                    Interest...................................$
                                                                -------------

                                      C-3
<PAGE>

           (3) The amount of the distribution in paragraph 1
                    above in respect of Collateral Additional
                    Interest...................................$
                                                                -------------

           (4)      The amount distributed to the Collateral Interest
                    Holder in respect of principal on the Collateral
                    Invested
                    Amount.....................................$
                                                                -------------

           (5)      The amount of the distribution in paragraph 1
                    above in respect of remaining Excess
                    Spread.....................................$
                                                                -------------

        F) Amount of reductions in Collateral Invested Amount
           pursuant to clauses (c), (d), and (e) of the
           definition of Collateral Invested Amount

           (1)      The amount of reductions in the Collateral
                    Invested Amount pursuant to clauses (c), (d) and
                    (e) of the definition of Collateral Invested
                    Amount.....................................$
                                                                -------------

           (2)      The total amount reimbursed in respect of
                    such reductions in the Collateral Invested
                    Amount.....................................$
                                                                -------------

                                   AMERICAN EXPRESS TRAVEL RELATED
                                   SERVICES COMPANY, INC., as Servicer

                                   By:
                                         -------------------------------
                                         Name:
                                         Title:

                                      C-4
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
TRUST ACTIVITY                                               TRUST TOTALS
------------------------------------------------------------------------------------------------------------------------------
<S>                                                          <C>                      <C>                    <C>
Number of days in Monthly Period
                                                             ---------
------------------------------------------------------------------------------------------------------------------------------
  Beginning of the Month Principal Receivable Balance
                                                             $--------
------------------------------------------------------------------------------------------------------------------------------
Special Funding Account Balance                              $________
------------------------------------------------------------------------------------------------------------------------------
Beginning Total Principal Balance                            $________
------------------------------------------------------------------------------------------------------------------------------
Finance Charge Collections (excluding Recoveries)            $________
------------------------------------------------------------------------------------------------------------------------------
Recoveries                                                   $________
------------------------------------------------------------------------------------------------------------------------------
Total Collections of Finance Charge Receivables              $________
------------------------------------------------------------------------------------------------------------------------------
Total Collections of Principal Receivables                   $________
------------------------------------------------------------------------------------------------------------------------------
Monthly Payment Rate                                         ________%
------------------------------------------------------------------------------------------------------------------------------
Defaulted Amount                                             $________
------------------------------------------------------------------------------------------------------------------------------
Annualized Default Rate                                      ________%
------------------------------------------------------------------------------------------------------------------------------
Trust Portfolio Yield                                        ________%
------------------------------------------------------------------------------------------------------------------------------
New Principal Receivables                                    $________
------------------------------------------------------------------------------------------------------------------------------
End of the Month Principal Receivables Balance               $________
------------------------------------------------------------------------------------------------------------------------------
End of the Month Required Minimum Principal Balance          $--------
------------------------------------------------------------------------------------------------------------------------------
End of the Month Transferors' Amount                         $________
------------------------------------------------------------------------------------------------------------------------------
End of the Month Special Funding Account Balance             $--------
------------------------------------------------------------------------------------------------------------------------------
End of the Month Total Principal Balance                     $________
------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------
SERIES ALLOCATIONS
------------------------------------------------------------------------------------------------------------------------------
Group Number                                                 _________
------------------------------------------------------------------------------------------------------------------------------
Invested Amount                                              $________
------------------------------------------------------------------------------------------------------------------------------
Adjusted Invested Amount                                     $________
------------------------------------------------------------------------------------------------------------------------------
Principal Funding Account Balance
                                                             $--------
------------------------------------------------------------------------------------------------------------------------------
Series Required Transferor Amount                            $________
------------------------------------------------------------------------------------------------------------------------------
Series Allocation Percentage                                 ________%
------------------------------------------------------------------------------------------------------------------------------
Series Allocable Finance Charge Collections                  $________
------------------------------------------------------------------------------------------------------------------------------
Series Allocable Recoveries                                  $________
------------------------------------------------------------------------------------------------------------------------------
Series Allocable Principal Collections                       $________
------------------------------------------------------------------------------------------------------------------------------
Series Allocable Defaulted Amount                            $________
------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------
GROUP ALLOCATIONS
------------------------------------------------------------------------------------------------------------------------------
Invested Amount                                              $________
------------------------------------------------------------------------------------------------------------------------------
Investor Finance Charge Collections                          $________
------------------------------------------------------------------------------------------------------------------------------
Investor Monthly Interest                                    $________
------------------------------------------------------------------------------------------------------------------------------
Investor Default Amount                                      $________
------------------------------------------------------------------------------------------------------------------------------
Investor Monthly Fees                                        $________
------------------------------------------------------------------------------------------------------------------------------
Investor Additional Amounts                                  $________
------------------------------------------------------------------------------------------------------------------------------
Total                                                        $________
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      C-5
<PAGE>

<TABLE>
<S>                                   <C>                    <C>                    <C>                    <C>
------------------------------------------------------------------------------------------------------------------------------
Reallocated Investor Finance
Charge Collections                                           $________
------------------------------------------------------------------------------------------------------------------------------
Investment Funding Account Proceeds                          $________
------------------------------------------------------------------------------------------------------------------------------
Available Excess                                             $________
------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------
TRUST PERFORMANCE
------------------------------------------------------------------------------------------------------------------------------
Delinquencies
------------------------------------------------------------------------------------------------------------------------------
                                      31-60 Days Delinquent
                                                             ---------
------------------------------------------------------------------------------------------------------------------------------
                                      61-90 Days Delinquent
                                                             ---------
------------------------------------------------------------------------------------------------------------------------------
                                      90+ Days Delinquent
                                                             ---------
------------------------------------------------------------------------------------------------------------------------------
                                      Total 30+ Days
                                      Delinquent             _________
------------------------------------------------------------------------------------------------------------------------------

<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
INVESTOR/TRANSFEROR                   SERIES ALLOCATIONS     TOTAL INVESTOR         TRANSFERORS' INTEREST
ALLOCATIONS                                                  INTEREST
------------------------------------------------------------------------------------------------------------------------------
<S>                                   <C>                    <C>                    <C>                    <C>
Beginning of the Month Invested
Amount/Transferors' Amount
                                      $------------          $------------          $------------
------------------------------------------------------------------------------------------------------------------------------
Beginning of the Month Adjusted
Invested Amount                       $____________          $____________          $____________
------------------------------------------------------------------------------------------------------------------------------
Floating Allocation Percentage        ---------%             ---------%             ---------%
------------------------------------------------------------------------------------------------------------------------------
Principal Allocation Percentage       ---------%             ---------%             ---------%
------------------------------------------------------------------------------------------------------------------------------
Collections of Finance Charge
Receivables                           $____________          $____________          $____________
------------------------------------------------------------------------------------------------------------------------------
Collections of Principal Receivables  $____________          $____________          $____________
------------------------------------------------------------------------------------------------------------------------------
Defaulted Amount                      $____________          $____________          $____________
------------------------------------------------------------------------------------------------------------------------------
End of the Month Invested
Amount/Transferors' Amount            $____________          $____________          $____________
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      C-6
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
MONTHLY PERIOD FUNDING REQUIREMENTS   CLASS A                CLASS B                COLLATERAL INTEREST    TOTAL
------------------------------------------------------------------------------------------------------------------------------
<S>                                   <C>                    <C>                    <C>                    <C>
Principal Funding Account Balance
                                      $------------          $------------          $------------          $------------
------------------------------------------------------------------------------------------------------------------------------
Investment Proceeds for Monthly
Period                                $____________          $____________          $____________          $____________
------------------------------------------------------------------------------------------------------------------------------
Reserve Draw Amount                   $____________          $____________          $____________          $____________
------------------------------------------------------------------------------------------------------------------------------
Reserve Account Surplus               $____________          $____________          $____________          $____________
------------------------------------------------------------------------------------------------------------------------------
Coupon (__/__/__ to __/__/__)
                                      ---------%             ---------%             ---------%             ---------%
------------------------------------------------------------------------------------------------------------------------------
Monthly Interest Due                  $____________          $____________          $____________          $____________
------------------------------------------------------------------------------------------------------------------------------
Outstanding Monthly Interest Due
                                      $------------          $------------          $------------          $------------
------------------------------------------------------------------------------------------------------------------------------
Additional Interest Due               $____________          $____________          $____________          $____________
------------------------------------------------------------------------------------------------------------------------------
Total Interest Due                    $____________          $____________          $____________          $____________
------------------------------------------------------------------------------------------------------------------------------
Investor Default Amount               $____________          $____________          $____________          $____________
------------------------------------------------------------------------------------------------------------------------------
Investor Monthly Fees Due             $____________          $____________          $____________          $____________
------------------------------------------------------------------------------------------------------------------------------
Investor Additional Amounts Due       $------------          $------------          $------------          $------------
------------------------------------------------------------------------------------------------------------------------------
Total Due                             $____________          $____________          $____________          $____________
------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------
Reallocated Investor Finance Charge
Collections                                                                                                $____________
------------------------------------------------------------------------------------------------------------------------------
Interest and Principal Funding
Investment Proceeds                                                                                        $____________
------------------------------------------------------------------------------------------------------------------------------
Interest on Reserve Account                                                                                $____________
------------------------------------------------------------------------------------------------------------------------------
Series Adjusted Portfolio Yield                                                                            ---------%
------------------------------------------------------------------------------------------------------------------------------
Base Rate                                                                                                  _________%
------------------------------------------------------------------------------------------------------------------------------
Excess Spread Percentage                                                                                   _________%
------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------
CERTIFICATES - BALANCES AND           CLASS A                CLASS B                COLLATERAL INTEREST    TOTAL
DISTRIBUTIONS
------------------------------------------------------------------------------------------------------------------------------
Beginning of the Month Certificates
Balance                               $____________          $____________          $____________          $____________
------------------------------------------------------------------------------------------------------------------------------
Distributions of Interest             $____________          $____________          $____________          $____________
------------------------------------------------------------------------------------------------------------------------------
Deposits to the Principal Funding
Account                               $____________          $____________          $____________          $____________
------------------------------------------------------------------------------------------------------------------------------
Distributions of Principal            $____________          $____________          $____________          $____________
------------------------------------------------------------------------------------------------------------------------------
Total Distributions                   $____________          $____________          $____________          $____________
------------------------------------------------------------------------------------------------------------------------------
End of the Month Certificates
Balance                               $____________          $____________          $____________          $____________
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      C-7
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
APPLICATION OF REALLOCATED INVESTOR FINANCE CHARGE COLLECTIONS
------------------------------------------------------------------------------------------------------------------------------
<S>                                                           <C>                    <C>                    <C>
1.  CLASS A AVAILABLE FUNDS
------------------------------------------------------------------------------------------------------------------------------
         a.  Class A Monthly Interest                                               $____________
         b.  Class A Outstanding Monthly Interest                                   $____________
         c.  Class A Additional Interest                                            $____________
         d.  Class A Investor Default Amount (treated as
              Available Principal Collections)                                      $____________
         e.  Excess Spread                                                          $____________
------------------------------------------------------------------------------------------------------------------------------
2.  CLASS B AVAILABLE FUNDS
------------------------------------------------------------------------------------------------------------------------------
         a.  Class B Monthly Interest                                               $____________
         b.  Class B Outstanding Monthly Interest                                   $____________
         c.  Class B Additional Interest                                            $____________
         d.  Excess Spread                                                          $____________
------------------------------------------------------------------------------------------------------------------------------
3. COLLATERAL AVAILABLE FUNDS
------------------------------------------------------------------------------------------------------------------------------
         a.  Excess Spread                                                          $____________
------------------------------------------------------------------------------------------------------------------------------
4. TOTAL EXCESS SPREAD                                                              $____________
------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------
REALLOCATED PRINCIPAL COLLECTIONS
------------------------------------------------------------------------------------------------------------------------------
1.  Principal Allocation Percentage                                                 ________%
------------------------------------------------------------------------------------------------------------------------------
2.  Series 2005-7 Allocable Principal Collections                                   $____________
------------------------------------------------------------------------------------------------------------------------------
3.  Principal Allocation Percentage of Series
    2005-7 Allocable Principal Collections                                          $____________
------------------------------------------------------------------------------------------------------------------------------
4.  Reallocated Principal Collections Required to Fund the
    Required Amount                                                                 $____________
------------------------------------------------------------------------------------------------------------------------------
5.  Item 3 minus Item 4                                                             $____________
------------------------------------------------------------------------------------------------------------------------------
6.  Shared Principal Collections from other Series
    allocated to Series 2005-7                                                      $____________
------------------------------------------------------------------------------------------------------------------------------
7. Other amounts treated as Available Principal
    Collections                                                                     $____________
------------------------------------------------------------------------------------------------------------------------------
8. Available Principal Collections (total of items 5, 6
    and 7)                                                                          $____________
------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------
APPLICATION OF AVAILABLE PRINCIPAL COLLECTIONS DURING REVOLVING PERIOD
------------------------------------------------------------------------------------------------------------------------------
1.  Collateral Invested Amount                                                      $____________
------------------------------------------------------------------------------------------------------------------------------
2.  Required Collateral Invested Amount                                             $____________
------------------------------------------------------------------------------------------------------------------------------
3.  Excess of Collateral Invested Amount over Required
    Collateral Invested Amount                                                      $____________
------------------------------------------------------------------------------------------------------------------------------
4.  Treated as Shared Principal Collections                                         $____________
------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------
APPLICATION OF PRINCIPAL COLLECTIONS DURING ACCUMULATION OR AMORTIZATION PERIOD
------------------------------------------------------------------------------------------------------------------------------
1.  Principal Funding Account                                                       $____________
------------------------------------------------------------------------------------------------------------------------------
2.  Excess of Collateral Invested Amount over Required
    Collateral Invested Amount                                                      $____________
------------------------------------------------------------------------------------------------------------------------------
3.  Distribution of Principal                                                       $____________
------------------------------------------------------------------------------------------------------------------------------
4.  Treated as Shared Principal Collections                                         $____________
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      C-8
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
APPLICATION OF EXCESS SPREAD AND EXCESS FINANCE CHARGE COLLECTIONS ALLOCATED TO SERIES 2005-7
------------------------------------------------------------------------------------------------------------------------------
<S>                                                          <C>                    <C>                    <C>
1.  Excess Spread                                                                   $____________
------------------------------------------------------------------------------------------------------------------------------
2.  Excess Finance Charge Collections                                               $____________
------------------------------------------------------------------------------------------------------------------------------
3.  Applied to Fund Class A Required Amount                                         $____________
------------------------------------------------------------------------------------------------------------------------------
4. Class A Investor Charge-offs treated as Available
    Principal Collections                                                           $____________
------------------------------------------------------------------------------------------------------------------------------
5.  Applied to fund overdue Class B Interest                                        $____________
------------------------------------------------------------------------------------------------------------------------------
6.  Applied to fund Class B Required Amount                                         $____________
------------------------------------------------------------------------------------------------------------------------------
7. Reduction of Class B Invested Amount treated as
    Available Principal Collections                                                 $____________
------------------------------------------------------------------------------------------------------------------------------
8.  Applied to Collateral Minimum Monthly Interest                                  $------------
------------------------------------------------------------------------------------------------------------------------------
9.  Applied to unpaid Monthly Servicing Fee                                         $____________
------------------------------------------------------------------------------------------------------------------------------
10.  Collateral Default Amount treated as Available
     Principal Collections                                                          $____________
------------------------------------------------------------------------------------------------------------------------------
11.  Reduction of Collateral Invested Amount treated as
     Available Principal Collections                                                $____________
------------------------------------------------------------------------------------------------------------------------------
12.  Deposited to Reserve Account                                                   $____________
------------------------------------------------------------------------------------------------------------------------------
13.  Remaining Excess Spread Distributed to Collateral
     Interest Holder                                                                $____________
------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------
YIELD AND BASE RATE
------------------------------------------------------------------------------------------------------------------------------
1.  Base Rate
------------------------------------------------------------------------------------------------------------------------------
                                      Current Monthly
                                      Period                                        ________%
------------------------------------------------------------------------------------------------------------------------------
                                      Prior Monthly Period                          --------%
------------------------------------------------------------------------------------------------------------------------------
                                      Second Prior Monthly
                                      Period                                        ________%
------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------
2.  Three Month Average Base Rate
                                                                                    --------%
------------------------------------------------------------------------------------------------------------------------------
    3.  Series Adjusted Portfolio
    Yield
------------------------------------------------------------------------------------------------------------------------------
                                      Current Monthly
                                      Period                                        ________%
------------------------------------------------------------------------------------------------------------------------------
                                      Prior Monthly Period
                                                                                    --------%
------------------------------------------------------------------------------------------------------------------------------
                                      Second Prior Monthly
                                      Period                                        ________%
------------------------------------------------------------------------------------------------------------------------------
4.  Three Month Average Series
Adjusted Portfolio Yield
                                                                                    --------%
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

       AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC., as Servicer

                                          By:
                                               --------------------------
                                               Name:
                                               Title:

                                      C-9
<PAGE>

                                                                       EXHIBIT D

                     FORM OF MONTHLY SERVICER'S CERTIFICATE

             AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC.

                  AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST
                                  SERIES 2005-7

         The undersigned, a duly authorized representative of American Express
Travel Related Services Company, Inc., as Servicer ("TRS"), pursuant to the
Pooling and Servicing Agreement, dated as of May 16, 1996, as amended and
restated as of April 16, 2004 (as amended and restated and as otherwise amended
and supplemented, the "Agreement"), as supplemented by the Series 2005-7
Supplement, dated as of August 18, 2005 (as amended and supplemented, the
"Series Supplement"), among TRS, as Servicer, American Express Receivables
Financing Corporation II, American Express Receivables Financing Corporation III
LLC and American Express Receivables Financing Corporation IV LLC, as
Transferors, and The Bank of New York, as Trustee, does hereby certify as
follows:

         1. Capitalized terms used in this Certificate have their respective
meanings as set forth in the Agreement or the Series Supplement, as applicable.

         2. TRS is, as of the date hereof, the Servicer under the Agreement.

         3. The undersigned is a Servicing Officer.

         4. This Certificate relates to the Distribution Date occurring on
_____________, 200 ____.

         5. As of the date hereof, to the best knowledge of the undersigned, the
Servicer has performed in all material respects all its obligations under the
Agreement through the Monthly Period preceding such Distribution Date [or, if
there has been a default in the performance of any such obligation, set forth in
detail the (i) nature of such default, (ii) the action taken by the Servicer, if
any, to remedy such default and (iii) the current status of each such default;
if applicable, insert "None"].

         6. As of the date hereof, to the best knowledge of the undersigned, no
Pay Out Event occurred on or prior to such Distribution Date.

         IN WITNESS WHEREOF, the undersigned has duly executed and delivered
this Certificate this ______ day of ______________ , 20 ___.

                                   AMERICAN EXPRESS TRAVEL RELATED
                                   SERVICES COMPANY, INC.,
                                   as Servicer

                                    By:
                                         --------------------------------
                                         Name:
                                         Title:

                                      D-1
<PAGE>

                                                                       EXHIBIT E

                            FORM OF INVESTMENT LETTER

                                     [Date]

         Re:      American Express Credit Account Master Trust;
                  Purchases of Series 2005-7 Collateral Interest

Ladies and Gentlemen:

         This letter (the "Investment Letter") is delivered by the undersigned
(the "Purchaser") pursuant to Section 9.07 of the Series 2005-7 Supplement,
dated as of August 18, 2005 (the "Series Supplement") to the Pooling and
Servicing Agreement, dated as of May 16, 1996, as amended and restated as of
April 16, 2004 (as amended and restated and as otherwise amended and
supplemented, the "Agreement"), each among The Bank of New York, as Trustee,
American Express Receivables Financing Corporation II, American Express
Receivables Financing Corporation III LLC and American Express Receivables
Financing Corporation IV LLC, as Transferors, and American Express Travel
Related Services Company, Inc., as Servicer. Capitalized terms used herein
without definition shall have the meanings set forth in the Agreement. The
Purchaser represents to and agrees with the Transferors as follows:

         (a)      The Purchaser has such knowledge and experience in financial
                  and business matters as to be capable of evaluating the merits
                  and risks of its investment in the Collateral Interest and is
                  able to bear the economic risk of such investment.

         (b)      The Purchaser is an "accredited investor," as defined in Rule
                  501, promulgated by the Securities and Exchange Commission
                  (the "Commission") under the Securities Act of 1933, as
                  amended (the "Securities Act"), or is a sophisticated
                  institutional investor. The Purchaser understands that the
                  offering and sale of the Collateral Interest has not been and
                  will not be registered under the Securities Act and has not
                  and will not be registered or qualified under any applicable
                  "Blue Sky" law, and that the offering and sale of the
                  Collateral Interest has not been reviewed by, passed on or
                  submitted to any federal or state agency or commission,
                  securities exchange or other regulatory body.

         (c)      The Purchaser is acquiring an interest in the Collateral
                  Interest without a view to any distribution, resale or other
                  transfer thereof except, with respect to any Collateral
                  Interest or any interest or participation therein, as
                  contemplated in the following sentence. The Purchaser will not
                  resell or otherwise transfer any interest or participation in
                  the Collateral Interest, except in accordance with Section
                  9.07 of the Series Supplement and (i) in a transaction exempt
                  from the registration requirements of the Securities Act and
                  applicable state securities or "blue sky" laws; (ii) to a
                  Transferor or any affiliate of a Transferor; or (iii) to a
                  person who the Purchaser reasonably believes is a qualified
                  institutional buyer (within the meaning thereof in Rule 144A
                  under the Securities Act) that is aware that the resale or
                  other transfer is being made in reliance upon Rule 144A. In
                  connection therewith, the Purchaser hereby agrees that it will
                  not resell or otherwise transfer the Collateral Interest or
                  any interest therein unless the purchaser thereof provides to
                  the addressee hereof a letter substantially in the form
                  hereof.

                                      E-1
<PAGE>

         (d)      No portion of the Collateral Interest or any interest therein
                  may be Transferred, and each Assignee will certify that it is
                  not, (a) an "employee benefit plan" (as defined in Section
                  3(3) of ERISA), including governmental plans and church plans,
                  (b) any "plan" (as defined in Section 4975(e)(1) of the Code)
                  including individual retirement accounts and Keogh plans, or
                  (c) any other entity whose underlying assets include "plan
                  assets" (within the meaning of Department of Labor Regulation
                  Section 2510.3-101, 29 C.F.R. ss. 2510.3-101 or otherwise
                  under ERISA) by reason of a plan's investment in the entity,
                  including, without limitation, an insurance company general
                  account.

         (e)      This Investment Letter has been duly executed and delivered
                  and constitutes the legal, valid and binding obligation of the
                  Purchaser, enforceable against the Purchaser in accordance
                  with its terms, except as such enforceability may be limited
                  by bankruptcy, insolvency, reorganization, moratorium or
                  similar laws or equitable principles affecting the enforcement
                  of creditors' rights generally and general principles of
                  equity.

                                                  Very truly yours,

                                                  [NAME OF PURCHASER]

                                                  By:  ________________________
                                                     Name:
                                                     Title:
AGREED TO AS OF THE DATE FIRST ABOVE
WRITTEN:

AMERICAN EXPRESS RECEIVABLES
FINANCING CORPORATION II,
as Transferor

By:  _______________________
   Name:
   Title:

AMERICAN EXPRESS RECEIVABLES
FINANCING CORPORATION III LLC,
as Transferor

By:  _______________________
   Name:
   Title:

AMERICAN EXPRESS RECEIVABLES
FINANCING CORPORATION IV LLC,
as Transferor

By:  _______________________
   Name:
   Title:

                                      E-2<PAGE>

                                                                  EXHIBIT 4.14.1

                                  EPIXTAR CORP.

                          SECURITIES PURCHASE AGREEMENT

                                  JULY 15, 2005

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                              PAGE
                                                                                                              ----
<S>      <C>                                                                                                   <C>
1.       Agreement to Sell and Purchase.........................................................................1

2.       Fees...................................................................................................1

3.       Closing, Delivery and Payment; Certain Closing Conditions..............................................1
         3.1      Closing.......................................................................................1
         3.2      Delivery......................................................................................1

4.       Representations and Warranties of the Company..........................................................2
         4.1      Organization, Good Standing and Qualification.................................................2
         4.2      Subsidiaries..................................................................................2
         4.3      Capitalization; Voting Rights.................................................................2
         4.4      Authorization; Binding Obligations............................................................3
         4.5      Liabilities...................................................................................3
         4.6      Agreements; Action............................................................................3
         4.7      Obligations to Related Parties................................................................4
         4.8      Changes.......................................................................................4
         4.9      Title to Properties and Assets; Liens, Etc....................................................5
         4.10     Intellectual Property.........................................................................6
         4.11     Compliance with Other Instruments.............................................................6
         4.12     Litigation....................................................................................6
         4.13     Tax Returns and Payments......................................................................6
         4.14     Employees.....................................................................................7
         4.15     Registration Rights and Voting Rights.........................................................7
         4.16     Compliance with Laws; Permits.................................................................7
         4.17     Environmental and Safety Laws.................................................................7
         4.18     Valid Offering................................................................................8
         4.19     Full Disclosure...............................................................................8
         4.20     Insurance.....................................................................................8
         4.21     SEC Reports...................................................................................8
         4.22     Listing.......................................................................................8
         4.23     No Integrated Offering........................................................................8
         4.24     Stop Transfer.................................................................................9
         4.25     Dilution......................................................................................9
         4.26     Patriot Act...................................................................................9

5.       Representations and Warranties of the Purchaser........................................................9
         5.1      No Shorting...................................................................................9
         5.2      Requisite Power and Authority.................................................................9
         5.3      Investment Representations...................................................................10
         5.4      Purchaser Bears Economic Risk................................................................10
         5.5      Acquisition for Own Account..................................................................10
         5.6      Purchaser Can Protect Its Interest...........................................................10
         5.7      Accredited Investor..........................................................................10
         5.8      Legends......................................................................................10

6.       Covenants of the Company..............................................................................11
         6.1      Stop-Orders..................................................................................11
         6.2      Listing......................................................................................11
         6.3      Market Regulations...........................................................................11
         6.4      Reporting Requirements.......................................................................11
         6.5      Use of Funds.................................................................................12
         6.6      Access to Facilities.........................................................................12
         6.7      Taxes........................................................................................12
         6.8      Insurance....................................................................................13
         6.9      Intellectual Property........................................................................13
</TABLE>

                                       i
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               PAGE
                                                                                                               ----
<S>      <C>                                                                                                   <C>
         6.10     Properties...................................................................................13
         6.11     Confidentiality..............................................................................14
         6.12     Required Approvals...........................................................................14
         6.13     Reissuance of Securities.....................................................................14
         6.14     Opinion......................................................................................15
         6.15     Margin Stock.................................................................................15

7.       Covenants of the Purchaser............................................................................15
         7.1      Confidentiality..............................................................................15
         7.2      Non-Public Information.......................................................................15
         7.3      Limitation on Acquisition of Common Stock of the Company.....................................15

8.       Covenants of the Company and Purchaser Regarding Indemnification......................................15
         8.1      Company Indemnification......................................................................15
         8.2      Purchaser's Indemnification..................................................................16

9.       Conversion of Convertible Note........................................................................16
         9.1      Mechanics of Conversion......................................................................16

10.      Registration Rights...................................................................................17
         10.1     Registration Rights Granted..................................................................17
         10.2     Offering Restrictions........................................................................17

11.      Miscellaneous.........................................................................................17
         11.1     Governing Law................................................................................17
         11.2     Survival.....................................................................................18
         11.3     Successors...................................................................................18
         11.4     Entire Agreement.............................................................................18
         11.5     Severability.................................................................................18
         11.6     Amendment and Waiver.........................................................................18
         11.7     Delays or Omissions..........................................................................18
         11.8     Notices......................................................................................19
         11.9     Titles and Subtitles.........................................................................20
         11.10    Facsimile Signatures; Counterparts...........................................................20
         11.11    Broker's Fees................................................................................20
         11.12    Construction.................................................................................20
</TABLE>

                                       ii
<PAGE>

                                LIST OF EXHIBITS

Form of Convertible Term Note                                Exhibit A

                                      iii
<PAGE>

                          SECURITIES PURCHASE AGREEMENT

         THIS SECURITIES PURCHASE AGREEMENT (this "Agreement") is made and
entered into as of July 15, 2005 by and between EPIXTAR CORP., a Florida
corporation (the "Company"), and Laurus Master Fund, Ltd., a Cayman Islands
company (the "Purchaser").

                                    RECITALS

         WHEREAS, the Company has authorized the sale to the Purchaser of a
Convertible Term Note in the aggregate principal amount of Six Million Two
Hundred Thousand Dollars ($6,200,000) (as amended, modified, restated or
supplemented from time to time, the "Note"), which Note is convertible into
shares of the Company's common stock, $0.001 par value per share ("Common
Stock"), at the fixed conversion price set forth in the Note ("Fixed Conversion
Price");

         WHEREAS, Purchaser desires to purchase the Note on the terms and
conditions set forth herein; and

         WHEREAS, the Company desires to issue and sell the Note to Purchaser on
the terms and conditions set forth herein.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the foregoing recitals and the
mutual promises, representations, warranties and covenants hereinafter set forth
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

         Agreement to Sell and Purchase. Pursuant to the terms and conditions
set forth in this Agreement, on the Closing Date (as defined in Section 3), the
Company agrees to sell to the Purchaser, and the Purchaser hereby agrees to
purchase from the Company, a Note in the aggregate principal amount of
$6,200,000 convertible in accordance with the terms thereof into shares of the
Company's Common Stock in accordance with the terms of the Note and this
Agreement. The Note purchased on the Closing Date shall be known as the
"Offering." A form of the Note is annexed hereto as Exhibit A. The Note will
mature on the Maturity Date (as defined in the Note) subject to certain
extensions pursuant to the terms thereof. Collectively, the Note and Common
Stock issuable in payment of the Note and upon conversion of the Note are
referred to as the "Securities."

         Fees. On the Closing Date, the Company shall reimburse the Purchaser
for its reasonable expenses (including attorney's fees) for services rendered to
the Purchaser in preparation of this Agreement and the Related Agreements (as
hereinafter defined). The expenses referred to in this Section 2 shall be paid
at closing out of funds held pursuant to a Funds Escrow Agreement of even date
herewith among the Company, Purchaser, and an Escrow Agent (the "Funds Escrow
Agreement") and a disbursement letter between the Company and Purchaser (the
"Disbursement Letter"). In addition, the Company shall pay to Laurus Capital
Management, L.L.C., the manager of the Purchaser, a closing payment in an amount
equal to four percent (4%) of the aggregate principal amount of the Note, which
such payments shall be made simultaneously with each drawdown of the Note in an
amount equal to four percent (4%) of the drawdown amount so advanced by the
Purchaser to the Company.

         CLOSING, DELIVERY AND PAYMENT; CERTAIN CLOSING CONDITIONS.

         Closing. Subject to the terms and conditions herein, the closing of the
transactions contemplated hereby (the "Closing"), shall take place on the date
hereof, at such time or place as the Company and Purchaser may mutually agree
(such date is hereinafter referred to as the "Closing Date").

         Delivery. Pursuant to the Funds Escrow Agreement, at the Closing on the
Closing Date, the Company will deliver to the Purchaser, among other things, a
Note in the form attached as Exhibit A representing the aggregate principal
amount of $6,200,000 and the Purchaser will deliver to the Company, among other
things, the amounts set forth in the Disbursement Letter by certified funds or
wire transfer.

                                       1
<PAGE>

         Preferred Stock. On the Closing Date, as additional consideration for
the purchase of the Note, the Company shall issue and deliver, and shall cause
certain Subsidiaries of the Company to issue and deliver, to the Purchaser 1,000
shares of Series B Preferred Stock of the Company and 1000 shares of Series A
Preferred Stock of each such Subsidiary, in each case, with a par value $0.001
per share.

         Irrevocable Proxies. On the Closing Date, as additional consideration
for the purchase of the Note, the Company shall cause Trans Voice LLC, Sheldon
Goldstein and Marty Miller to issue and deliver to the Purchaser an irrevocable
proxy relating to its/his rights as a shareholder of the Company.

    REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby represents
and warrants to the Purchaser as follows (which representations and warranties
are supplemented by the Company's filings under the Securities Exchange Act of
1934 (collectively, the "Exchange Act Filings"), copies of which have been
provided to the Purchaser):

         Organization, Good Standing and Qualification. Each of the Company and
each of its Subsidiaries is a corporation, partnership or limited liability
company, as the case may be, duly organized, validly existing and in good
standing under the laws of its jurisdiction of organization. Each of the Company
and each of its Subsidiaries has the corporate power and authority to own and
operate its properties and assets, to execute and deliver (i) this Agreement,
(ii) the Note to be issued in connection with this Agreement, (iii) the
Registration Rights Agreement relating to the Securities dated as of the date
hereof between the Company and the Purchaser, (iv) the Reaffirmation and
Ratification Agreement dated as of the date hereof made by the Company and
certain Subsidiaries of the Company (as amended, modified or supplemented from
time to time, the "Reaffirmation Agreement"), (v) the Escrow Agreement dated as
of the date hereof among the Company, the Purchaser and the escrow agent
referred to therein, and (vi) all other documents, instruments and agreements
related to this Agreement and the Note (the preceding clauses (ii) through (v),
collectively, the "Related Agreements"), to issue and sell the Note and the
shares of Common Stock issuable upon conversion of the Note (the "Note Shares")
and to carry out the provisions of this Agreement and the Related Agreements and
to carry on its business as presently conducted. Each of the Company and each of
its Subsidiaries is duly qualified and is authorized to do business and is in
good standing as a foreign corporation, partnership or limited liability
company, as the case may be, in all jurisdictions in which the nature of its
activities and of its properties (both owned and leased) makes such
qualification necessary, except for those jurisdictions in which failure to do
so has not, or could not reasonably be expected to have, individually or in the
aggregate, a material adverse effect on the business, assets, liabilities,
condition (financial or otherwise), properties, operations or prospects of the
Company and it Subsidiaries, taken individually and as a whole (a "Material
Adverse Effect").

         Subsidiaries. Each direct and indirect Subsidiary of the Company, the
direct owner of such Subsidiary and its percentage ownership thereof, is set
forth on Schedule 4.2. No Immaterial Subsidiary owns any assets (other than
immaterial assets) or has any significant operations. For the purpose of this
Agreement, (x) a "Subsidiary" of any person or entity means (i) a corporation or
other entity whose shares of stock or other ownership interests having ordinary
voting power (other than stock or other ownership interests having such power
only by reason of the happening of a contingency) to elect a majority of the
directors of such corporation, or other persons or entities performing similar
functions for such person or entity, are owned, directly or indirectly, by such
person or entity or (ii) a corporation or other entity in which such person or
entity owns, directly or indirectly, more than 50% of the equity interests at
such time and (y) the "Immaterial Subsidiaries" shall mean, collectively,
Epixtar Communications Corp., a Florida corporation, Epixtar Prepaid
Communications Corp., a Delaware corporation, Epixtar Solutions Corp., a
Delaware corporation, IMS International, Inc., a Phillippines corporation,
Epixtar International Contact Centers, Ltd., a Mauritius corporation, Epixtar
Information Technology Private, Ltd., a Calcutta corporation, Epixtar
International Contact Center Group, Ltd., a Bermuda corporation, and each
Subsidiary of the Company that is not a Credit Party and does not own any assets
(other than immaterial assets) or have any significant operations.

         Capitalization; Voting Rights.

         The authorized capital stock of the Company, as of the date hereof
     consists of 60,000,000 shares, of which 50,000,000 are shares of Common
     Stock, par value $0.001 per share, 12,150,356 shares of which are issued
     and outstanding, and 10,000,000 are shares of Series A Preferred STOCK, PAR
     VALUE $0.001 PER share of which 16,500 shares of preferred stock are issued
     and outstanding. The authorized capital stock of each Subsidiary of the
     Company is set forth on Schedule 4.3.

                                       2
<PAGE>

         Except as disclosed on Schedule 4.3, other than: (i) the shares
     reserved for issuance under the Company's stock option plans; and (ii)
     shares which may be granted pursuant to this Agreement and the Related
     Agreements, there are no outstanding options, warrants, rights (including
     conversion or preemptive rights and rights of first refusal), proxy or
     stockholder agreements, or arrangements or agreements of any kind for the
     purchase or acquisition from the Company of any of its securities. Except
     as disclosed on Schedule 4.3, neither the offer, issuance or sale of the
     Note, or the issuance of any of the Note Shares, nor the consummation of
     any transaction contemplated hereby will result in a change in the price or
     number of any securities of the Company outstanding, under anti-dilution or
     other similar provisions contained in or affecting any such securities.

         All issued and outstanding shares of the Company's Common Stock: (i)
     have been duly authorized and validly issued and are fully paid and
     nonassessable; and (ii) were issued in compliance with all applicable state
     and federal laws concerning the issuance of securities.

         The rights, preferences, privileges and restrictions of the shares of
     the Common Stock are as stated in the Company's Certificate of
     Incorporation (the "Charter"). The Note Shares have been duly and validly
     reserved for issuance. When issued in compliance with the provisions of
     this Agreement and the Company's Charter, the Securities will be validly
     issued, fully paid and nonassessable, and will be free of any liens or
     encumbrances; provided, however, that the Securities may be subject to
     restrictions on transfer under state and/or federal securities laws as set
     forth herein or as otherwise required by such laws at the time a transfer
     is proposed.

         Authorization; Binding Obligations. All corporate, partnership or
limited liability company, as the case may be, action on the part of the Company
and each of its Subsidiaries (including the respective officers and directors)
necessary for the authorization of this Agreement and the Related Agreements,
the performance of all obligations of the Company and its Subsidiaries hereunder
and under the other Related Agreements at the Closing and, the authorization,
sale, issuance and delivery of the Note has been taken or will be taken prior to
the Closing. This Agreement and the Related Agreements, when executed and
delivered and to the extent it is a party thereto, will be valid and binding
obligations of each of the Company and each of its Subsidiaries, enforceable
against each such entity in accordance with their terms, except:

         as limited by applicable bankruptcy, insolvency, reorganization,
     moratorium or other laws of general application affecting enforcement of
     creditors' rights; and

         general principles of equity that restrict the availability of
     equitable or legal remedies.

The sale of the Note and the subsequent conversion of the Note into Note Shares
are not and will not be subject to any preemptive rights or rights of first
refusal that have not been properly waived or complied with.

         Liabilities. Neither the Company nor any of its Subsidiaries has any
contingent liabilities, except current liabilities incurred in the ordinary
course of business and liabilities disclosed in any Exchange Act Filings.

         Agreements; Action. Except as set forth on Schedule 4.6 or as disclosed
in any Exchange Act Filings:

         there are no agreements, understandings, instruments, contracts,
     proposed transactions, judgments, orders, writs or decrees to which the
     Company or any of its Subsidiaries is a party or by which it is bound which
     may involve: (i) obligations (contingent or otherwise) of, or payments to,
     the Company in excess of $50,000 (other than obligations of, or payments
     to, the Company arising from agreements entered into in the ordinary course
     of business); or (ii) the transfer or license of any patent, copyright,
     trade secret or other proprietary right to or from the Company (other than
     licenses arising from the purchase of "off the shelf" or other standard
     products); or (iii) provisions restricting the development, manufacture or
     distribution of the Company's products or services; or (iv) indemnification
     by the Company with respect to infringements of proprietary rights.

                                       3
<PAGE>

         Since December 31, 2004, neither the Company nor any of its
     Subsidiaries has: (i) declared or paid any dividends, or authorized or made
     any distribution upon or with respect to any class or series of its capital
     stock; (ii) incurred any indebtedness for money borrowed or any other
     liabilities (other than ordinary course obligations) individually in excess
     of $50,000 or, in the case of indebtedness and/or liabilities individually
     less than $50,000, in excess of $100,000 in the aggregate; (iii) made any
     loans or advances to any person not in excess, individually or in the
     aggregate, of $100,000, other than ordinary course advances for travel
     expenses; or (iv) sold, exchanged or otherwise disposed of any of its
     assets or rights, other than the sale of its inventory in the ordinary
     course of business.

         For the purposes of subsections (a) and (b) above, all indebtedness,
     liabilities, agreements, understandings, instruments, contracts and
     proposed transactions involving the same person or entity (including
     persons or entities the Company has reason to believe are affiliated
     therewith) shall be aggregated for the purpose of meeting the individual
     minimum dollar amounts of such subsections.

         Obligations to Related Parties. Except as set forth on Schedule 4.7,
there are no obligations of the Company or any of its Subsidiaries to officers,
directors, stockholders or employees of the Company or any of its Subsidiaries
other than:

         for payment of salary for services rendered and for bonus payments;

         reimbursement for reasonable expenses incurred on behalf of the
     Company and its Subsidiaries;

         for other standard employee benefits made generally available to all
     employees (including stock option agreements outstanding under any stock
     option plan approved by the Board of Directors of the Company); and

         obligations listed in the Company's financial statements or disclosed
     in any of its Exchange Act Filings.

Except as described above or set forth on Schedule 4.7, none of the officers,
directors or, to the best of the Company's knowledge, key employees or
stockholders of the Company or any members of their immediate families, are
indebted to the Company, individually or in the aggregate, in excess of $50,000
or have any direct or indirect ownership interest in any firm or corporation
with which the Company is affiliated or with which the Company has a business
relationship, or any firm or corporation which competes with the Company, other
than passive investments in publicly traded companies (representing less than
one percent (1%) of such company) which may compete with the Company. Except as
described above, no officer, director or stockholder, or any member of their
immediate families, is, directly or indirectly, interested in any material
contract with the Company and no agreements, understandings or proposed
transactions are contemplated between the Company and any such person. Except as
set forth on Schedule 4.7, the Company is not a guarantor or indemnitor of any
indebtedness of any other person, firm or corporation.

         Changes. Since December 31, 2004, except as disclosed in any Exchange
Act Filing or in any Schedule to this Agreement (including Schedule 4.8) or to
any of the Related Agreements, there has not been:

         any change in the business, assets, liabilities, condition (financial
     or otherwise), properties, operations or prospects of the Company or any of
     its Subsidiaries, which individually or in the aggregate has had, or could
     reasonably be expected to have, individually or in the aggregate, a
     Material Adverse Effect;

         any resignation or termination of any officer, key employee or group
     of employees of the Company or any of its Subsidiaries;

                                       4
<PAGE>

         any material change, except in the ordinary course of business, in the
     contingent obligations of the Company or any of its Subsidiaries by way of
     guaranty, endorsement, indemnity, warranty or otherwise;

         any damage, destruction or loss, whether or not covered by insurance,
     has had, or could reasonably be expected to have, individually or in the
     aggregate, a Material Adverse Effect;

         any waiver by the Company or any of its Subsidiaries of a valuable
     right or of a material debt owed to it;

         any direct or indirect loans made by the Company or any of its
     Subsidiaries to any stockholder, employee, officer or director of the
     Company or any of its Subsidiaries, other than advances made in the
     ordinary course of business;

         any material change in any compensation arrangement or agreement with
     any employee, officer, director or stockholder of the Company or any of its
     Subsidiaries;

         any declaration or payment of any dividend or other distribution of
     the assets of the Company or any of its Subsidiaries;

         any labor organization activity related to the Company or any of its
     Subsidiaries;

         any debt, obligation or liability incurred, assumed or guaranteed by
     the Company or any of its Subsidiaries, except those for immaterial amounts
     and for current liabilities incurred in the ordinary course of business;

         any sale, assignment or transfer of any patents, trademarks,
     copyrights, trade secrets or other intangible assets owned by the Company
     or any of its Subsidiaries;

         any change in any material agreement to which the Company or any of
     its Subsidiaries is a party or by which either the Company or any of its
     Subsidiaries is bound which either individually or in the aggregate has
     had, or could reasonably be expected to have, individually or in the
     aggregate, a Material Adverse Effect;

         any other event or condition of any character that, either
     individually or in the aggregate, has had, or could reasonably be expected
     to have, individually or in the aggregate, a Material Adverse Effect; or

         any arrangement or commitment by the Company or any of its
     Subsidiaries to do any of the acts described in subsection (a) through (m)
     above.

         Title to Properties and Assets; Liens, Etc. Except as set forth on
Schedule 4.9, each of the Company and each of its Subsidiaries has good and
marketable title to its properties and assets, and good title to its leasehold
estates, in each case subject to no mortgage, pledge, lien, lease, encumbrance
or charge, other than:

         those resulting from taxes which have not yet become delinquent;

         minor liens and encumbrances which do not materially detract from the
     value of the property subject thereto or materially impair the operations
     of the Company or any of its Subsidiaries; and

         those that have otherwise arisen in the ordinary course of business.

All facilities, machinery, equipment, fixtures, vehicles and other properties
owned, leased or used by the Company and its Subsidiaries are in good operating
condition and repair and are reasonably fit and usable for the purposes for
which they are being used. Except as set forth on Schedule 4.9, the Company and
its Subsidiaries are in compliance with all material terms of each lease to
which it is a party or is otherwise bound.

                                       5
<PAGE>

         Intellectual Property.

         Each of the Company and each of its Subsidiaries owns or possesses
     sufficient legal rights to all patents, trademarks, service marks, trade
     names, copyrights, trade secrets, licenses, information and other
     proprietary rights and processes necessary for its business as now
     conducted and to the Company's knowledge, as presently proposed to be
     conducted (the "Intellectual Property"), without any known infringement of
     the rights of others. There are no outstanding options, licenses or
     agreements of any kind relating to the foregoing proprietary rights, nor is
     the Company or any of its Subsidiaries bound by or a party to any options,
     licenses or agreements of any kind with respect to the patents, trademarks,
     service marks, trade names, copyrights, trade secrets, licenses,
     information and other proprietary rights and processes of any other person
     or entity other than such licenses or agreements arising from the purchase
     of "off the shelf" or standard products.

         Neither the Company nor any of its Subsidiaries has received any
     communications alleging that the Company or any of its Subsidiaries has
     violated any of the patents, trademarks, service marks, trade names,
     copyrights or trade secrets or other proprietary rights of any other person
     or entity, nor is the Company or any of its Subsidiaries aware of any basis
     therefor.

         The Company does not believe it is or will be necessary to utilize any
     inventions, trade secrets or proprietary information of any of its
     employees made prior to their employment by the Company or any of its
     Subsidiaries, except for inventions, trade secrets or proprietary
     information that have been rightfully assigned to the Company or any of its
     Subsidiaries.

         Compliance with Other Instruments. Neither the Company nor any of its
Subsidiaries is in violation or default of (x) any term of its Certificate of
Incorporation or Bylaws, (y) any term of the Sands Documents (as defined in the
Intercreditor and Collateral Agency Agreement dated as of April 29, 2005 among
the Purchaser and the Sands Creditors referred to therein, and acknowledged and
agreed to by the Company and certain of its Subsidiaries, the "Intercreditor
Agreement") or (z) of any provision of any indebtedness, mortgage, indenture,
contract, agreement or instrument to which it is party or by which it is bound
or of any judgment, decree, order or writ, which violation or default, in the
case of this clause (z), has had, or could reasonably be expected to have,
either individually or in the aggregate, a Material Adverse Effect. The
execution, delivery and performance of and compliance with this Agreement and
the Related Agreements to which it is a party, and the issuance and sale of the
Note by the Company and the other Securities by the Company each pursuant hereto
and thereto, will not, with or without the passage of time or giving of notice,
result in any such material violation, or be in conflict with or constitute a
default under any such term or provision, or result in the creation of any
mortgage, pledge, lien, encumbrance or charge upon any of the properties or
assets of the Company or any of its Subsidiaries or the suspension, revocation,
impairment, forfeiture or nonrenewal of any permit, license, authorization or
approval applicable to the Company, its business or operations or any of its
assets or properties.

         Litigation. Except as set forth on Schedule 4.12 hereto, there is no
action, suit, proceeding or investigation pending or, to the Company's
knowledge, currently threatened against the Company or any of its Subsidiaries
that prevents the Company or any of its Subsidiaries from entering into this
Agreement or the other Related Agreements, or from consummating the transactions
contemplated hereby or thereby, or which has had, or could reasonably be
expected to have, either individually or in the aggregate, a Material Adverse
Effect or any change in the current equity ownership of the Company or any of
its Subsidiaries, nor is the Company aware that there is any basis to assert any
of the foregoing. Neither the Company nor any of its Subsidiaries is a party or
subject to the provisions of any order, writ, injunction, judgment or decree of
any court or government agency or instrumentality. There is no action, suit,
proceeding or investigation by the Company or any of its Subsidiaries currently
pending or which the Company or any of its Subsidiaries intends to initiate.

         Tax Returns and Payments. Each of the Company and each of its
Subsidiaries has timely filed all tax returns (federal, state and local)
required to be filed by it. All taxes shown to be due and payable on such
returns, any assessments imposed, and all other taxes due and payable by the
Company or any of its Subsidiaries on or before the Closing, have been paid or
will be paid prior to the time they become delinquent. Except as set forth on
Schedule 4.13, neither the Company nor any of its Subsidiaries has been advised:

                                       6
<PAGE>

         that any of its returns, federal, state or other, have been or are
     being audited as of the date hereof; or

         of any deficiency in assessment or proposed judgment to its federal,
     state or other taxes.

The Company has no knowledge of any liability of any tax to be imposed upon its
properties or assets as of the date of this Agreement that is not adequately
provided for.

         Employees. Except as set forth on Schedule 4.14, neither the Company
nor any of its Subsidiaries has any collective bargaining agreements with any of
its employees. There is no labor union organizing activity pending or, to the
Company's knowledge, threatened with respect to the Company or any of its
Subsidiaries. Except as disclosed in the Exchange Act Filings or on Schedule
4.14, neither the Company nor any of its Subsidiaries is a party to or bound by
any currently effective employment contract, deferred compensation arrangement,
bonus plan, incentive plan, profit sharing plan, retirement agreement or other
employee compensation plan or agreement. To the Company's knowledge, no employee
of the Company or any of its Subsidiaries, nor any consultant with whom the
Company or any of its Subsidiaries has contracted, is in violation of any term
of any employment contract, proprietary information agreement or any other
agreement relating to the right of any such individual to be employed by, or to
contract with, the Company or any of its Subsidiaries because of the nature of
the business to be conducted by the Company or any of its Subsidiaries; and to
the Company's knowledge the continued employment by the Company or any of its
Subsidiaries of its present employees, and the performance of the Company's and
its Subsidiaries' contracts with its independent contractors, will not result in
any such violation. Neither the Company nor any of its Subsidiaries is aware
that any of its employees is obligated under any contract (including licenses,
covenants or commitments of any nature) or other agreement, or subject to any
judgment, decree or order of any court or administrative agency, that would
interfere with their duties to the Company or any of its Subsidiaries. Neither
the Company nor any of its Subsidiaries has received any notice alleging that
any such violation has occurred. Except for employees who have a current
effective employment agreement with the Company or any of its Subsidiaries, and
the Company's CEO, no employee of the Company or any of its Subsidiaries has
been granted the right to continued employment by the Company or any of its
Subsidiaries or to any material compensation following termination of employment
with the Company or any of its Subsidiaries. Except as set forth on Schedule
4.14, the Company is not aware that any officer, key employee or group of
employees intends to terminate his, her or their employment with the Company or
any of its Subsidiaries, nor does the Company or any of its Subsidiaries have a
present intention to terminate the employment of any officer, key employee or
group of employees.

         Registration Rights and Voting Rights. Except as set forth on Schedule
4.15 and except as disclosed in Exchange Act Filings, neither the Company nor
any of its Subsidiaries is presently under any obligation, and neither the
Company nor any of its Subsidiaries has granted any rights, to register any of
the Company's or its Subsidiaries' presently outstanding securities or any of
its securities that may hereafter be issued. Except as set forth on Schedule
4.15 and except as disclosed in Exchange Act Filings, to the Company's
knowledge, no stockholder of the Company or any of its Subsidiaries has entered
into any agreement with respect to the voting of equity securities of the
Company or any of its Subsidiaries.

         Compliance with Laws; Permits. Neither the Company nor any of its
Subsidiaries is in violation of any applicable statute, rule, regulation, order
or restriction of any domestic or foreign government or any instrumentality or
agency thereof in respect of the conduct of its business or the ownership of its
properties which has had, or could reasonably be expected to have, either
individually or in the aggregate, a Material Adverse Effect. No governmental
orders, permissions, consents, approvals or authorizations are required to be
obtained and no registrations or declarations are required to be filed in
connection with the execution and delivery of this Agreement or any other
Related Agreement and the issuance of any of the Securities, except such as has
been duly and validly obtained or filed, or with respect to any filings that
must be made after the Closing, as will be filed in a timely manner. Each of the
Company and its Subsidiaries has all material franchises, permits, licenses and
any similar authority necessary for the conduct of its business as now being
conducted by it, the lack of which could, either individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

         Environmental and Safety Laws. Neither the Company nor any of its
Subsidiaries is in violation of any applicable statute, law or regulation
relating to the environment or occupational health and safety, and to its
knowledge, no material expenditures are or will be required in order to comply
with any such existing statute, law or regulation. Except as set forth on
Schedule 4.17, no Hazardous Materials (as defined below) are used or have been
used, stored, or disposed of by the Company or any of its Subsidiaries or, to
the Company's knowledge, by any other person or entity on any property owned,
leased or used by the Company or any of its Subsidiaries. For the purposes of
the preceding sentence, "Hazardous Materials" shall mean:

                                       7
<PAGE>

         materials which are listed or otherwise defined as "hazardous" or
     "toxic" under any applicable local, state, federal and/or foreign laws and
     regulations that govern the existence and/or remedy of contamination on
     property, the protection of the environment from contamination, the control
     of hazardous wastes, or other activities involving hazardous substances,
     including building materials; or

         any petroleum products or nuclear materials.

         Valid Offering. Assuming the accuracy of the representations and
warranties of the Purchaser contained in this Agreement, the offer, sale and
issuance of the Securities will be exempt from the registration requirements of
the Securities Act of 1933, as amended (the "Securities Act"), and will have
been registered or qualified (or are exempt from registration and qualification)
under the registration, permit or qualification requirements of all applicable
state securities laws.

         Full Disclosure. Each of the Company and each of its Subsidiaries has
provided the Purchaser with all information requested by the Purchaser in
connection with its decision to purchase the Note, including all information the
Company and its Subsidiaries believe is reasonably necessary to make such
investment decision. Neither this Agreement, the Related Agreements, the
exhibits and schedules hereto and thereto nor any other document delivered by
the Company or any of its Subsidiaries to Purchaser or its attorneys or agents
in connection herewith or therewith or with the transactions contemplated hereby
or thereby, contain any untrue statement of a material fact nor omit to state a
material fact necessary in order to make the statements contained herein or
therein, in light of the circumstances in which they are made, not misleading.
Any financial projections and other estimates provided to the Purchaser by the
Company or any of its Subsidiaries were based on the Company's and its
Subsidiaries' experience in the industry and on assumptions of fact and opinion
as to future events which the Company or any of its Subsidiaries, at the date of
the issuance of such projections or estimates, believed to be reasonable.

         Insurance. Each of the Company and each of its Subsidiaries has general
commercial, product liability, fire and casualty insurance policies with
coverages which the Company believes are customary for companies similarly
situated to the Company and its Subsidiaries in the same or similar business.

         SEC Reports. Except as set forth on Schedule 4.21, the Company has
filed all proxy statements, reports and other documents required to be filed by
it under the Securities Exchange Act 1934, as amended (the "Exchange Act"). The
Company has furnished the Purchaser with copies of: (i) its Annual Reports on
Form 10-KSB for its fiscal year ended December 31, 2004, (ii) its Quarterly
Report on Form 10-QSB for its fiscal quarter ended March 31, 2005 and (iii) the
Form 8-K filings which it has made during the fiscal year 2005 to date
(collectively, the "SEC Reports"). Except as set forth on Schedule 4.21, each
SEC Report was, at the time of its filing, in substantial compliance with the
requirements of its respective form and none of the SEC Reports, nor the
financial statements (and the notes thereto) included in the SEC Reports, as of
their respective filing dates, contained any untrue statement of a material fact
or omitted to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they
were made, not misleading.

         Listing. The Common Stock is listed for trading on the National
Association of Securities Dealers Over the Counter Bulletin Board ("NASD OTCBB")
and satisfies all requirements for the continuation of such trading. The Company
has not received any notice that the Common Stock will not be eligible to be
traded on the NASD OTCBB or that the Common Stock does not meet all requirements
for such trading.

         No Integrated Offering. Neither the Company, nor any of its
Subsidiaries or affiliates, nor any person acting on its or their behalf, has
directly or indirectly made any offers or sales of any security or solicited any
offers to buy any security under circumstances that would cause the offering of
the Securities pursuant to this Agreement or any of the Related Agreements to be
integrated with prior offerings by the Company for purposes of the Securities
Act which would prevent the Company from selling the Securities pursuant to Rule
506 under the Securities Act, or any applicable exchange-related stockholder
approval provisions, nor will the Company or any of its affiliates or
Subsidiaries take any action or steps that would cause the offering of the
Securities to be integrated with other offerings.

                                       8
<PAGE>

         Stop Transfer. The Securities are restricted securities as of the date
of this Agreement. Neither the Company nor any of its Subsidiaries will issue
any stop transfer order or other order impeding the sale and delivery of any of
the Securities at such time as the Securities are registered for public sale or
an exemption from registration is available, except as required by state and
federal securities laws.

         Dilution. The Company specifically acknowledges that its obligation to
issue the shares of Common Stock upon conversion of the Note is binding upon the
Company and enforceable regardless of the dilution such issuance may have on the
ownership interests of other shareholders of the Company.

         Patriot Act. The Company certifies that, to the best of Company's
knowledge, neither the Company nor any of its Subsidiaries has been designated,
and is not owned or controlled, by a "suspected terrorist" as defined in
Executive Order 13224. The Company hereby acknowledges that the Purchaser seeks
to comply with all applicable laws concerning money laundering and related
activities. In furtherance of those efforts, the Company hereby represents,
warrants and agrees that: (i) none of the cash or property that the Company or
any of its Subsidiaries will pay or will contribute to the Purchaser has been or
shall be derived from, or related to, any activity that is deemed criminal under
United States law; and (ii) no contribution or payment by the Company or any of
its Subsidiaries to the Purchaser, to the extent that they are within the
Company's and/or its Subsidiaries' control shall cause the Purchaser to be in
violation of the United States Bank Secrecy Act, the United States International
Money Laundering Control Act of 1986 or the United States International Money
Laundering Abatement and Anti-Terrorist Financing Act of 2001. The Company shall
promptly notify the Purchaser if any of these representations ceases to be true
and accurate regarding the Company or any of its Subsidiaries. The Company
agrees to provide the Purchaser any additional information regarding the Company
or any of its Subsidiaries that the Purchaser deems necessary or convenient to
ensure compliance with all applicable laws concerning money laundering and
similar activities. The Company understands and agrees that if at any time it is
discovered that any of the foregoing representations are incorrect, or if
otherwise required by applicable law or regulation related to money laundering
similar activities, the Purchaser may undertake appropriate actions to ensure
compliance with applicable law or regulation, including but not limited to
segregation and/or redemption of the Purchaser's investment in the Company. The
Company further understands that the Purchaser may release confidential
information about the Company and its Subsidiaries and, if applicable, any
underlying beneficial owners, to proper authorities if the Purchaser, in its
sole discretion, determines that it is in the best interests of the Purchaser in
light of relevant rules and regulations under the laws set forth in subsection
(ii) above.

    REPRESENTATIONS AND WARRANTIES OF THE PURCHASER. The Purchaser hereby
represents and warrants to the Company as follows (such representations and
warranties do not lessen or obviate the representations and warranties of the
Company set forth in this Agreement):

         No Shorting. The Purchaser or any of its affiliates and investment
     partners has not, will not and will not cause any person or entity,
     directly or indirectly, to engage in "short sales" of the Company's Common
     Stock as long as the Note shall be outstanding.

         Requisite Power and Authority. The Purchaser has all necessary power
     and authority under all applicable provisions of law to execute and deliver
     this Agreement and the Related Agreements and to carry out their
     provisions. All corporate action on Purchaser's part required for the
     lawful execution and delivery of this Agreement and the Related Agreements
     have been or will be effectively taken prior to the Closing. Upon their
     execution and delivery, this Agreement and the Related Agreements will be
     valid and binding obligations of Purchaser, enforceable in accordance with
     their terms, except:

         as limited by applicable bankruptcy, insolvency, reorganization,
     moratorium or other laws of general application affecting enforcement of
     creditors' rights; and

         as limited by general principles of equity that restrict the
     availability of equitable and legal remedies.

                                       9
<PAGE>

         Investment Representations. Purchaser understands that the Securities
are being offered and sold pursuant to an exemption from registration contained
in the Securities Act based in part upon Purchaser's representations contained
in the Agreement, including, without limitation, that the Purchaser is an
"accredited investor" within the meaning of Regulation D under the Securities
Act of 1933, as amended (the "Securities Act"). The Purchaser confirms that it
has received or has had full access to all the information it considers
necessary or appropriate to make an informed investment decision with respect to
the Note to be purchased by it under this Agreement and the Note Shares acquired
by it upon the conversion of the Note. The Purchaser further confirms that it
has had an opportunity to ask questions and receive answers from the Company
regarding the Company's and its Subsidiaries' business, management and financial
affairs and the terms and conditions of the Offering, the Note and the
Securities and to obtain additional information (to the extent the Company
possessed such information or could acquire it without unreasonable effort or
expense) necessary to verify any information furnished to the Purchaser or to
which the Purchaser had access.

         Purchaser Bears Economic Risk. The Purchaser has substantial experience
in evaluating and investing in private placement transactions of securities in
companies similar to the Company so that it is capable of evaluating the merits
and risks of its investment in the Company and has the capacity to protect its
own interests. The Purchaser must bear the economic risk of this investment
until the Securities are sold pursuant to: (i) an effective registration
statement under the Securities Act; or (ii) an exemption from registration is
available with respect to such sale.

         Acquisition for Own Account. The Purchaser is acquiring the Note and
the Note Shares for the Purchaser's own account for investment only, and not as
a nominee or agent and not with a view towards or for resale in connection with
their distribution.

         Purchaser Can Protect Its Interest. The Purchaser represents that by
reason of its, or of its management's, business and financial experience, the
Purchaser has the capacity to evaluate the merits and risks of its investment in
the Note and the Securities and to protect its own interests in connection with
the transactions contemplated in this Agreement and the Related Agreements.
Further, Purchaser is aware of no publication of any advertisement in connection
with the transactions contemplated in the Agreement or the Related Agreements.

         Accredited Investor. Purchaser represents that it is an accredited
investor within the meaning of Section 501(a)(3) of Regulation D under the
Securities Act.

         Legends.

         THE NOTE SHALL BEAR SUBSTANTIALLY THE FOLLOWING LEGEND:

         "THIS NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE
         HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
         OR ANY APPLICABLE, STATE SECURITIES LAWS. THIS NOTE AND THE COMMON
         STOCK ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE SOLD, OFFERED
         FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
         REGISTRATION STATEMENT AS TO THIS NOTE OR SUCH SHARES UNDER SAID ACT
         AND APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL
         REASONABLY SATISFACTORY TO EPIXTAR CORP. THAT SUCH REGISTRATION IS NOT
         REQUIRED."

         THE NOTE SHARES, IF NOT ISSUED BY DWAC SYSTEM (AS HEREINAFTER
     DEFINED), SHALL BEAR A LEGEND WHICH SHALL BE IN SUBSTANTIALLY THE FOLLOWING
     FORM UNTIL SUCH SHARES ARE COVERED BY AN EFFECTIVE REGISTRATION STATEMENT
     FILED WITH THE SEC:

         "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE
         SECURITIES LAWS. THESE SHARES MAY NOT BE SOLD, OFFERED FOR SALE,
         PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
         STATEMENT UNDER SUCH SECURITIES ACT AND APPLICABLE STATE LAWS OR AN
         OPINION OF COUNSEL REASONABLY SATISFACTORY TO EPIXTAR CORP. THAT SUCH
         REGISTRATION IS NOT REQUIRED."

                                       10
<PAGE>

    COVENANTS OF THE COMPANY. THE COMPANY COVENANTS AND AGREES WITH THE
PURCHASER AS FOLLOWS:

         Stop-Orders. The Company will advise the Purchaser, promptly after it
     receives notice of issuance by the Securities and Exchange Commission (the
     "SEC"), any state securities commission or any other regulatory authority
     of any stop order or of any order preventing or suspending any offering of
     any securities of the Company, or of the suspension of the qualification of
     the Common Stock of the Company for offering or sale in any jurisdiction,
     or the initiation of any proceeding for any such purpose.

         Listing.

         The Company shall promptly secure the listing of the shares of Common
     Stock issuable upon conversion of the Note on the Principal Market (as
     defined below) (subject to official notice of issuance) and shall maintain
     such listing so long as any other shares of Common Stock shall be so
     listed. The Company will maintain the listing of Common Stock on the
     Principal Market, and will comply in all material respects with the
     Company's reporting, filing and other obligations under the bylaws or rules
     of the National Association of Securities Dealers ("NASD") and such
     exchanges, as applicable.

         For purposes hereof, the term "Principal Market" means the NASD Over
     The Counter Bulletin Board, NASDAQ SmallCap Market, NASDAQ National Markets
     System, American Stock Exchange or New York Stock Exchange (whichever of
     the foregoing is at the time the principal trading exchange or market for
     the Common Stock).

         Market Regulations. The Company shall notify the SEC, NASD and
applicable state authorities, in accordance with their requirements, of the
transactions contemplated by this Agreement, and shall take all other necessary
action and proceedings as may be required and permitted by applicable law, rule
and regulation, for the legal and valid issuance of the Securities to the
Purchaser and promptly provide copies thereof to the Purchaser.

         Reporting Requirements. The Company shall timely file with the SEC all
reports required to be filed pursuant to the Exchange Act and refrain from
terminating its status as an issuer required by the Exchange Act to file reports
thereunder even if the Exchange Act or the rules or regulations thereunder would
permit such termination. The Company will deliver, or cause to be delivered, to
the Purchaser each of the following, which shall be in form and detail
acceptable to the Purchaser:

         As soon as available, and in any event within ninety (90) days after
     the end of each fiscal year of the Company, each of the Company's and each
     of its Subsidiaries' audited financial statements with a report of
     independent certified public accountants of recognized standing selected by
     the Company and acceptable to the Purchaser (the "Accountants"), which
     annual financial statements shall be without qualification and shall
     include each of the Company's and each of its Subsidiaries' balance sheet
     as at the end of such fiscal year and the related statements of each of the
     Company's and each of its Subsidiaries' income, retained earnings and cash
     flows for the fiscal year then ended, prepared on a consolidating and
     consolidated basis to include the Company, each Subsidiary of the Company
     and each of their respective affiliates, all in reasonable detail and
     prepared in accordance with GAAP, together with (i) if and when available,
     copies of any management letters prepared by the Accountants; and (ii) a
     certificate of the Company's President, Chief Executive Officer or Chief
     Financial Officer stating that such financial statements have been prepared
     in accordance with GAAP and whether or not such officer has knowledge of
     the occurrence of any Event of Default (as defined in the Note) and, if so,
     stating in reasonable detail the facts with respect thereto;

         As soon as available and in any event within forty five (45) days
     after the end of each fiscal quarter of the Company, an unaudited/internal
     balance sheet and statements of income, retained earnings and cash flows of
     the Company and each of its Subsidiaries as at the end of and for such
     quarter and for the year to date period then ended, prepared on a
     consolidating and consolidated basis to include all the Company, each
     Subsidiary of the Company and each of their respective affiliates, in
     reasonable detail and stating in comparative form the figures for the
     corresponding date and periods in the previous year, all prepared in
     accordance with GAAP, subject to year-end adjustments and accompanied by a
     certificate of the Company's President, Chief Executive Officer or Chief
     Financial Officer, stating (i) that such financial statements have been
     prepared in accordance with GAAP, subject to year-end audit adjustments,
     and (ii) whether or not such officer has knowledge of the occurrence of any
     Event of Default (as defined in the Note) not theretofore reported and
     remedied and, if so, stating in reasonable detail the facts with respect
     thereto;

                                       11
<PAGE>

         As soon as available and in any event within fifteen (15) days after
     the end of each calendar month, an unaudited/internal balance sheet and
     statements of income, retained earnings and cash flows of each of the
     Company and its Subsidiaries as at the end of and for such month and for
     the year to date period then ended, prepared on a consolidating and
     consolidated basis to include the Company, each Subsidiary of the Company
     and each of their respective affiliates, in reasonable detail and stating
     in comparative form the figures for the corresponding date and periods in
     the previous year, all prepared in accordance with GAAP, subject to
     year-end adjustments and accompanied by a certificate of the Company's
     President, Chief Executive Officer or Chief Financial Officer, stating (i)
     that such financial statements have been prepared in accordance with GAAP,
     subject to year-end audit adjustments, and (ii) whether or not such officer
     has knowledge of the occurrence of any Event of Default (as defined in the
     Note) not theretofore reported and remedied and, if so, stating in
     reasonable detail the facts with respect thereto;

         Promptly after (i) the filing thereof, copies of the Company's most
     recent registration statements and annual, quarterly, monthly or other
     regular reports which the Company files with the Securities and Exchange
     Commission (the "SEC"), and (ii) the issuance thereof, copies of such
     financial statements, reports and proxy statements as the Company shall
     send to its stockholders; and

         No later than Tuesday of each week, updated weekly cash flow
     projections of the Company and its Subsidiaries for the six month period
     commencing on Monday of such week which shall show projected cash receipts
     and cash disbursements on a weekly basis with such projections to be
     prepared on a reasonable basis and in good faith and to be based upon
     assumptions believed by the Company to be reasonable at the time furnished.

         The Company shall deliver, or cause the applicable Subsidiary of the
     Company to deliver, such other information as the Purchaser shall
     reasonably request.

         Use of Funds. The Company agrees that it will use the proceeds of the
sale of the Note (x) for general working capital purposes and (y) for the
development and acquisition of certain contact centers in the Philippines.

         Access to Facilities. Each of the Company and each of its Subsidiaries
will permit any representatives designated by the Purchaser (or any successor of
the Purchaser), at any and all times, at the Company's expense, to:

         visit and inspect any of the properties of the Company or any of its
     Subsidiaries;

         examine the corporate and financial records of the Company or any of
     its Subsidiaries and make copies thereof or extracts therefrom; and

         discuss the affairs, finances and accounts of the Company or any of
     its Subsidiaries with the directors, officers, employees and independent
     accountants of the Company or any of its Subsidiaries.

         Taxes. Each of the Company and each of its Subsidiaries will promptly
pay and discharge, or cause to be paid and discharged, when due and payable, all
lawful taxes, assessments and governmental charges or levies imposed upon the
income, profits, property or business of the Company and its Subsidiaries;
provided, however, that any such tax, assessment, charge or levy need not be
paid if the validity thereof shall currently be contested in good faith by
appropriate proceedings and if the Company and/or such Subsidiary shall have set
aside on its books adequate reserves with respect thereto, and provided,
further, that the Company and its Subsidiaries will pay all such taxes,
assessments, charges or levies forthwith upon the commencement of proceedings to
foreclose any lien which may have attached as security therefor.

                                       12
<PAGE>

         Insurance. Each of the Company and its Subsidiaries will keep its
assets which are of an insurable character insured by financially sound and
reputable insurers against loss or damage by fire, explosion and other risks
customarily insured against by companies in similar business similarly situated
as the Company and its Subsidiaries; and the Company and its Subsidiaries will
maintain, with financially sound and reputable insurers, insurance against other
hazards and risks and liability to persons and property to the extent and in the
manner which the Company reasonably believes is customary for companies in
similar business similarly situated as the Company and its Subsidiaries and to
the extent available on commercially reasonable terms. The Company, and each of
its Subsidiaries will jointly and severally bear the full risk of loss from any
loss of any nature whatsoever with respect to the assets pledged to the
Purchaser as security for its obligations hereunder and under the Related
Agreements. At the Company's and each of its Subsidiaries' joint and several
cost and expense in amounts and with carriers reasonably acceptable to
Purchaser, the Company and each of its Subsidiaries shall (i) keep all its
insurable properties and properties in which it has an interest insured against
the hazards of fire, flood, sprinkler leakage, those hazards covered by extended
coverage insurance and such other hazards, and for such amounts, as is customary
in the case of companies engaged in businesses similar to the Company's or the
respective Subsidiary's including business interruption insurance; (ii) maintain
a bond in such amounts as is customary in the case of companies engaged in
businesses similar to the Company's or the respective Subsidiary's insuring
against larceny, embezzlement or other criminal misappropriation of insured's
officers and employees who may either singly or jointly with others at any time
have access to the assets or funds of the Company or any of its Subsidiaries
either directly or through governmental authority to draw upon such funds or to
direct generally the disposition of such assets; (iii) maintain public and
product liability insurance against claims for personal injury, death or
property damage suffered by others; (iv) maintain all such worker's compensation
or similar insurance as may be required under the laws of any state or
jurisdiction in which the Company or the respective Subsidiary is engaged in
business; and (v) furnish Purchaser with (x) copies of all policies and evidence
of the maintenance of such policies at least thirty (30) days before any
expiration date, (y) excepting the Company's workers' compensation policy,
endorsements to such policies naming Purchaser as "co-insured" or "additional
insured" and appropriate loss payable endorsements in form and substance
satisfactory to Purchaser, naming Purchaser as loss payee, and (z) evidence that
as to Purchaser the insurance coverage shall not be impaired or invalidated by
any act or neglect of the Company or any Subsidiary and the insurer will provide
Purchaser with at least thirty (30) days notice prior to cancellation. The
Company and each Subsidiary shall instruct the insurance carriers that in the
event of any loss thereunder, the carriers shall make payment for such loss to
the Company and/or the Subsidiary and Purchaser jointly. In the event that as of
the date of receipt of each loss recovery upon any such insurance, the Purchaser
has not declared an event of default with respect to this Agreement or any of
the Related Agreements, then the Company and/or such Subsidiary shall be
permitted to direct the application of such loss recovery proceeds toward
investment in property, plant and equipment that would comprise "Collateral"
secured by Purchaser's security interest pursuant to its security agreement,
with any surplus funds to be applied toward payment of the obligations of the
Company to Purchaser. In the event that Purchaser has properly declared an event
of default with respect to this Agreement or any of the Related Agreements, then
all loss recoveries received by Purchaser upon any such insurance thereafter may
be applied to the obligations of the Company hereunder and under the Related
Agreements, in such order as the Purchaser may determine. Any surplus (following
satisfaction of all Company obligations to Purchaser) shall be paid by Purchaser
to the Company or applied as may be otherwise required by law. Any deficiency
thereon shall be paid by the Company or the Subsidiary, as applicable, to
Purchaser, on demand.

         Intellectual Property. Each of the Company and each of its Subsidiaries
shall maintain in full force and effect its existence, rights and franchises and
all licenses and other rights to use Intellectual Property owned or possessed by
it and reasonably deemed to be necessary to the conduct of its business.

         Properties. Each of the Company and each of its Subsidiaries will keep
its properties in good repair, working order and condition, reasonable wear and
tear excepted, and from time to time make all needful and proper repairs,
renewals, replacements, additions and improvements thereto; and each of the
Company and each of its Subsidiaries will at all times comply with each
provision of all leases to which it is a party or under which it occupies
property if the breach of such provision could, either individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

                                       13
<PAGE>

         Confidentiality. The Company agrees that it will not disclose, and will
not include in any public announcement, the name of the Purchaser, unless
expressly agreed to by the Purchaser or unless and until such disclosure is
required by law or applicable regulation, and then only to the extent of such
requirement. Notwithstanding the foregoing, the Company may disclose Purchaser's
identity and the terms of this Agreement to its current and prospective debt and
equity financing sources.

         Required Approvals. The Company, without the prior written consent of
the Purchaser, shall not, and shall not permit any of its Subsidiaries to:

         (i) directly or indirectly declare or pay any dividends, (ii) issue
     any preferred stock (other than the issuance of preferred stock to the
     Purchaser) or (iii) redeem any of its preferred stock or other equity
     interests;

         liquidate, dissolve or effect a reorganization;

         become subject to (including, without limitation, by way of amendment
     to or modification of) any agreement or instrument which by its terms would
     (under any circumstances) restrict the Company's or any of its
     Subsidiaries' right to perform the provisions of this Agreement, any
     Related Agreement or any of the agreements contemplated hereby or thereby;

         alter or change the scope of the business of the Company and its
     Subsidiaries taken as a whole;

         (i) create, incur, assume or suffer to exist any indebtedness
     (exclusive of trade debt and debt incurred to finance the purchase of
     equipment (not in excess of five percent (5%) per annum of the fair market
     value of the Company's assets) whether secured or unsecured other than (w)
     lease obligations (capitalized or otherwise) incurred by the Company or any
     of its Subsidiaries in the ordinary course of business, (x) the Sands
     Obligations (as defined in the Intercreditor Agreement) and the Laurus
     Obligations (as defined in the Intercreditor Agreement), (y) indebtedness
     set forth on Schedule 6.12(e) attached hereto and made a part hereof and
     any refinancings or replacements thereof on terms no less favorable to the
     Purchaser than the indebtedness being refinanced or replaced, and (z) any
     debt incurred in connection with the purchase of assets in the ordinary
     course of business, or any refinancings or replacements thereof on terms no
     less favorable to the Purchaser than the indebtedness being refinanced or
     replaced; (ii) cancel any debt owing to it in excess of $50,000 in the
     aggregate during any 12 month period; (iii) assume, guarantee, endorse or
     otherwise become directly or contingently liable in connection with any
     obligations of any other Person, except the endorsement of negotiable
     instruments by the Company for deposit or collection or similar
     transactions in the ordinary course of business or guarantees of
     indebtedness otherwise permitted to be outstanding pursuant to this clause
     (e);

         create or acquire any Subsidiary after the date hereof;

         make, or permit any of its Subsidiaries to make, any investments in,
     or any loans or advances to, any Subsidiary of the Company; and

         enter into any contract or agreement that is material to its business
     or operations or involves an amount equal to or greater than $100,000.

         Reissuance of Securities. The Company agrees to reissue certificates
representing the Securities without the legends set forth in Section 5.7 above
at such time as:

         the holder thereof is permitted to dispose of such Securities pursuant
     to Rule 144(k) under the Securities Act; or

                                       14
<PAGE>

         upon resale subject to an effective registration statement after such
     Securities are registered under the Securities Act.

The Company agrees to cooperate with the Purchaser in connection with all
resales pursuant to Rule 144(d) and Rule 144(k) and provide legal opinions
necessary to allow such resales provided the Company and its counsel receive
reasonably requested representations from the selling Purchaser and broker, if
any.

         Opinion. On the Closing Date, the Company will deliver to the Purchaser
an opinion acceptable to the Purchaser from the Company's external legal
counsel. The Company will provide, at the Company's expense, such other legal
opinions in the future as are deemed reasonably necessary by the Purchaser (and
acceptable to the Purchaser) in connection with the conversion of the Note.

         Margin Stock. The Company will not permit any of the proceeds of the
Note to be used directly or indirectly to "purchase" or "carry" "margin stock"
or to repay indebtedness incurred to "purchase" or "carry" "margin stock" within
the respective meanings of each of the quoted terms under Regulation U of the
Board of Governors of the Federal Reserve System as now and from time to time
hereafter in effect.

         Covenants of the Purchaser. The Purchaser covenants and agrees with the
Company as follows:

         Confidentiality. The Purchaser agrees that it will not disclose, and
will not include in any public announcement, the name of the Company, unless
expressly agreed to by the Company or unless and until such disclosure is
required by law or applicable regulation, and then only to the extent of such
requirement.

         Non-Public Information. The Purchaser agrees not to effect any sales in
the shares of the Company's Common Stock while in possession of material,
non-public information regarding the Company if such sales would violate
applicable securities law.

         Limitation on Acquisition of Common Stock of the Company.
Notwithstanding anything to the contrary contained in this Agreement, any
Ancillary Agreement or any document, instrument or agreement entered into in
connection with any other transactions between the Purchaser and the Company,
the Purchaser may not acquire stock in the Company (including, without
limitation, pursuant to a contract to purchase, by exercising an option or
warrant, by converting any other security or instrument, by acquiring or
exercising any other right to acquire, shares of stock or other security
convertible into shares of stock in the Company, or otherwise, and such
contracts, options, warrants, conversion or other rights shall not be
enforceable or exercisable) to the extent such stock acquisition would cause any
interest (including any original issue discount) payable by the Company to
Laurus not to qualify as "portfolio interest" within the meaning of Section
881(c)(2) of the Code, by reason of Section 881(c)(3) of the Code, taking into
account the constructive ownership rules under Section 871(h)(3)(C) of the Code
(the "Stock Acquisition Limitation"). The Stock Acquisition Limitation shall
automatically become null and void without any notice to the Company upon the
earlier to occur of either (a) the Company's delivery to the Purchaser of a
Notice of Redemption (as defined in the Note) or (b) the existence of an Event
of Default (as defined in the Note) at a time when the average closing price of
the Company's common stock as reported by Bloomberg, L.P. on the Principal
Market for the immediately preceding five trading days is greater than or equal
to 150% of the Fixed Conversion Price (as defined in the Note).

    COVENANTS OF THE COMPANY AND PURCHASER REGARDING INDEMNIFICATION.

         Company Indemnification. The Company agrees to indemnify, hold
harmless, reimburse and defend the Purchaser, each of the Purchaser's officers,
directors, agents, affiliates, control persons, and principal shareholders,
against any claim, cost, expense, liability, obligation, loss or damage
(including reasonable legal fees) of any nature, incurred by or imposed upon the
Purchaser which results, arises out of or is based upon: (i) any
misrepresentation by the Company or any of its Subsidiaries or breach of any
warranty by the Company or any of its Subsidiaries in this Agreement, any
Related Agreement or in any exhibits or schedules attached hereto or thereto; or
(ii) any breach or default in performance by Company or any of its Subsidiaries
of any covenant or undertaking to be performed by Company or any of its
Subsidiaries hereunder, under any other Related Agreement or any other agreement
entered into by the Company and/or any of its Subsidiaries and Purchaser
relating hereto or thereto.

                                       15
<PAGE>

         Purchaser's Indemnification. Purchaser agrees to indemnify, hold
harmless, reimburse and defend the Company and each of the Company's officers,
directors, agents, affiliates, control persons and principal shareholders, at
all times against any claim, cost, expense, liability, obligation, loss or
damage (including reasonable legal fees) of any nature, incurred by or imposed
upon the Company which results, arises out of or is based upon: (i) any
misrepresentation by Purchaser or breach of any warranty by Purchaser in this
Agreement or in any exhibits or schedules attached hereto or any Related
Agreement; or (ii) any breach or default in performance by Purchaser of any
covenant or undertaking to be performed by Purchaser hereunder, or any other
agreement entered into by the Company and Purchaser relating hereto.

    CONVERSION OF CONVERTIBLE NOTE.

         Mechanics of Conversion.

         Provided the Purchaser has notified the Company of the Purchaser's
     intention to sell the Note Shares and the Note Shares are included in an
     effective registration statement or are otherwise exempt from registration
     when sold: (i) upon the conversion of the Note or part thereof, the Company
     shall, at its own cost and expense, take all necessary action (including
     the issuance of an opinion of counsel reasonably acceptable to the
     Purchaser following a request by the Purchaser) to assure that the
     Company's transfer agent shall issue shares of the Company's Common Stock
     in the name of the Purchaser (or its nominee) or such other persons as
     designated by the Purchaser in accordance with Section 9.1(b) hereof and in
     such denominations to be specified representing the number of Note Shares
     issuable upon such conversion; and (ii) the Company warrants that no
     instructions other than these instructions have been or will be given to
     the transfer agent of the Company's Common Stock and that after the
     Effectiveness Date (as defined in the respective Registration Rights
     Agreement) the Note Shares issued will be freely transferable subject to
     the prospectus delivery requirements of the Securities Act and the
     provisions of this Agreement, and will not contain a legend restricting the
     resale or transferability of the Note Shares.

         Purchaser will give notice of its decision to exercise its right to
     convert the Note or part thereof by telecopying or otherwise delivering an
     executed and completed notice of the number of shares to be converted to
     the Company (the "Notice of Conversion"). The Purchaser will not be
     required to surrender the Note until the Purchaser receives a credit to the
     account of the Purchaser's prime broker through the DWAC system (as defined
     below), representing the Note Shares or until the Note has been fully
     satisfied. Each date on which a Notice of Conversion is telecopied or
     delivered to the Company in accordance with the provisions hereof shall be
     deemed a "Conversion Date." Pursuant to the terms of the Notice of
     Conversion, the Company will issue instructions to the transfer agent
     accompanied by an opinion of counsel within one (1) business day of the
     date of the delivery to the Company of the Notice of Conversion and shall
     cause the transfer agent to transmit the certificates representing the
     Conversion Shares to the Purchaser by crediting the account of the
     Purchaser's prime broker with the Depository Trust Company ("DTC") through
     its Deposit Withdrawal Agent Commission ("DWAC") system within three (3)
     business days after receipt by the Company of the Notice of Conversion (the
     "Delivery Date").

         The Company understands that a delay in the delivery of the Note
     Shares in the form required pursuant to Section 9 hereof beyond the
     Delivery Date could result in economic loss to the Purchaser. In the event
     that the Company fails to direct its transfer agent to deliver the Note
     Shares to the Purchaser via the DWAC system within the time frame set forth
     in Section 9.1(b) above and the Note Shares are not delivered to the
     Purchaser by the Delivery Date, as compensation to the Purchaser for such
     loss, the Company agrees to pay late payments to the Purchaser for late
     issuance of the Note Shares in the form required pursuant to Section 9
     hereof upon conversion of the Note in the amount equal to the greater of:
     (i) $500 per business day after the Delivery Date; or (ii) the Purchaser's
     actual damages from such delayed delivery. Notwithstanding the foregoing,
     the Company will not owe the Purchaser any late payments if the delay in
     the delivery of the Note Shares beyond the Delivery Date is solely out of
     the control of the Company and the Company is actively trying to cure the
     cause of the delay. The Company shall pay any payments incurred under this
     Section in immediately available funds upon demand and, in the case of
     actual damages, accompanied by reasonable documentation of the amount of
     such damages. Such documentation shall show the number of shares of Common
     Stock the Purchaser is forced to purchase (in an open market transaction)
     which the Purchaser anticipated receiving upon such conversion, and shall
     be calculated as the amount by which (A) the Purchaser's total purchase
     price (including customary brokerage commissions, if any) for the shares of
     Common Stock so purchased exceeds (B) the aggregate principal and/or
     interest amount of the Note, for which such Conversion Notice was not
     timely honored.

                                       16
<PAGE>

Nothing contained herein or in any document referred to herein or delivered in
connection herewith shall be deemed to establish or require the payment of a
rate of interest or other charges in excess of the maximum permitted by
applicable law. In the event that the rate of interest or dividends required to
be paid or other charges hereunder exceed the maximum amount permitted by such
law, any payments in excess of such maximum shall be credited against amounts
owed by the Company to a Purchaser and thus refunded to the Company.

    REGISTRATION RIGHTS.

         Registration Rights Granted. The Company hereby grants registration
rights to the Purchaser pursuant to a Registration Rights Agreement dated as of
even date herewith between the Company and the Purchaser.

         Offering Restrictions. Except as previously disclosed in the SEC
Reports or in the Exchange Act Filings, or stock or stock options granted to
employees or directors of the Company (these exceptions hereinafter referred to
as the "Excepted Issuances"), neither the Company nor any of its Subsidiaries
will issue any securities with a continuously variable/floating conversion
feature which are or could be (by conversion or registration) free-trading
securities (i.e. common stock subject to a registration statement) prior to the
full repayment or conversion of the Note (together with all accrued and unpaid
interest and fees related thereto) (the "Exclusion Period"), provided that a
securities with a variable/floating rate conversion feature that is not less
than the Fixed Conversion Price (as defined in the Note) shall be permitted.

    MISCELLANEOUS.

         Governing Law. THIS AGREEMENT AND EACH RELATED AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. EXCEPT AS SET FORTH BELOW IN
THIS SECTION 11.1, ANY AND ALL DISPUTES, CONTROVERSIES AND CLAIMS THAT THE
COMPANY OR ANY OF ITS SUBSIDIARIES MAY ASSERT AGAINST THE PURCHASER ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR ANY RELATED AGREEMENT SHALL BE DETERMINED
EXCLUSIVELY BY ARBITRATION (EACH SUCH ARBITRATION, AN "ARBITRATION") IN NEW YORK
CITY BEFORE A PANEL OF THREE NEUTRAL ARBITRATORS AGREED TO BY THE PURCHASER AND
THE COMPANY (COLLECTIVELY, THE "ARBITRATORS") IN ACCORDANCE WITH AND PURSUANT TO
THE THEN EXISTING COMMERCIAL ARBITRATION RULES OF THE AMERICAN ARBITRATION
ASSOCIATION. THE COMPANY (ON ITS BEHALF AND ON BEHALF OF ITS SUBSIDIARIES)
HEREBY IRREVOCABLY WAIVES ANY RIGHT TO ASSERT SUCH CLAIMS IN ANY OTHER FORUM.
THE ARBITRATORS SHALL HAVE THE POWER IN THEIR DISCRETION TO AWARD SPECIFIC
PERFORMANCE OR INJUNCTIVE RELIEF (BUT SHALL NOT HAVE THE POWER TO RENDER ANY
INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES) AND REASONABLE ATTORNEYS' FEES AND
EXPENSES TO ANY PARTY IN ANY ARBITRATION. THE ARBITRATORS MAY NOT CHANGE, MODIFY
OR ALTER ANY EXPRESS CONDITION, TERM OR PROVISION OF THIS AGREEMENT OR OF ANY
RELATED AGREEMENT NOR SHALL THEY HAVE THE POWER TO RENDER ANY AWARD AGAINST THE
PURCHASER THAT WOULD HAVE SUCH EFFECT. EACH ARBITRATION AWARD SHALL BE FINAL AND
BINDING UPON THE PARTIES SUBJECT THERETO AND JUDGMENT MAY BE ENTERED THEREON IN
ANY COURT OF COMPETENT JURISDICTION. THE SERVICE OF ANY NOTICE, PROCESS, MOTION
OR OTHER DOCUMENT IN CONNECTION WITH AN ARBITRATION OR FOR THE ENFORCEMENT OF
ANY ARBITRATION AWARD MAY BE MADE IN THE SAME MANNER AS COMMUNICATIONS MAY BE
GIVEN UNDER SECTION 11.8 HEREOF. NOTWITHSTANDING THE FOREGOING, THE PROVISIONS
OF THIS SECTION 11.1 NOR ANY OTHER PROVISION CONTAINED IN THIS AGREEMENT OR IN
ANY RELATED AGREEMENT SHALL LIMIT IN ANY MANNER WHATSOEVER THE PURCHASER'S RIGHT
TO COMMENCE AN ACTION AGAINST OR IN CONNECTION WITH THE COMPANY, ANY OF ITS
SUBSIDIARIES OR THEIR RESPECTIVE PROPERTIES IN ANY COURT OF COMPETENT
JURISDICTION OR OTHERWISE UTILIZE JUDICIAL PROCESS IN CONNECTION WITH OR ARISING
OUT OF THE PURCHASER'S RIGHTS AND REMEDIES UNDER THIS AGREEMENT AND/OR ANY
RELATED AGREEMENT OR OTHERWISE (ANY SUCH ACTION, A "COURT ACTION"). COURT
ACTIONS MAY BE BROUGHT BY THE PURCHASER IN ANY STATE OR FEDERAL COURT OF
COMPETENT JURISDICTION AND THE COMPANY (ON ITS BEHALF AND ON BEHALF OF ITS
SUBSIDIARIES) IRREVOCABLY SUBMITS TO THE JURISDICTION OF SUCH STATE AND FEDERAL
COURTS AND IRREVOCABLY WAIVES ANY CLAIM OR DEFENSE OF INCONVENIENT FORUM OR LACK
OF PERSONAL JURISDICTION IN SUCH FORUM OR RIGHT OF REMOVAL OR RIGHT TO JURY
TRIAL UNDER ANY APPLICABLE LAW OR DECISION OR OTHERWISE. SERVICE OF ANY NOTICE,
PROCESS, MOTION OR OTHER DOCUMENT IN CONNECTION WITH A COURT ACTION MAY BE MADE
IN THE SAME MANNER AS COMMUNICATIONS MAY BE GIVEN UNDER SECTION 11.8. IN
ADDITION, THE PURCHASER MAY SERVE PROCESS IN ANY OTHER MANNER PERMITTED UNDER
APPLICABLE LAW. IN THE EVENT THAT ANY PROVISION OF THIS AGREEMENT OR ANY RELATED
AGREEMENT DELIVERED IN CONNECTION HEREWITH IS INVALID OR UNENFORCEABLE UNDER ANY
APPLICABLE STATUTE OR RULE OF LAW, THEN SUCH PROVISION SHALL BE DEEMED
INOPERATIVE TO THE EXTENT THAT IT MAY CONFLICT THEREWITH AND SHALL BE DEEMED
MODIFIED TO CONFORM WITH SUCH STATUTE OR RULE OF LAW. ANY SUCH PROVISION WHICH
MAY PROVE INVALID OR UNENFORCEABLE UNDER ANY LAW SHALL NOT AFFECT THE VALIDITY
OR ENFORCEABILITY OF ANY OTHER PROVISION OF THIS AGREEMENT OR ANY RELATED
AGREEMENT.

                                       17
<PAGE>

         Survival. The representations, warranties, covenants and agreements
made herein shall survive any investigation made by the Purchaser and the
closing of the transactions contemplated hereby to the extent provided therein.
All statements as to factual matters contained in any certificate or other
instrument delivered by or on behalf of the Company pursuant hereto in
connection with the transactions contemplated hereby shall be deemed to be
representations and warranties by the Company hereunder solely as of the date of
such certificate or instrument.

         Successors. Except as otherwise expressly provided herein, the
provisions hereof shall inure to the benefit of, and be binding upon, the
successors, heirs, executors and administrators of the parties hereto and shall
inure to the benefit of and be enforceable by each person who shall be a holder
of the Securities from time to time, other than the holders of Common Stock
which has been sold by the Purchaser pursuant to Rule 144 or an effective
registration statement. Purchaser may not assign its rights hereunder to a
competitor of the Company.

         Entire Agreement. This Agreement, the Related Agreements, the exhibits
and schedules hereto and thereto and the other documents delivered pursuant
hereto constitute the full and entire understanding and agreement between the
parties with regard to the subjects hereof and no party shall be liable or bound
to any other in any manner by any representations, warranties, covenants and
agreements except as specifically set forth herein and therein.

         Severability. In case any provision of the Agreement shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

         Amendment and Waiver.

         This Agreement may be amended or modified only upon the written
     consent of the Company and the Purchaser.

         The obligations of the Company and the rights of the Purchaser under
     this Agreement may be waived only with the written consent of the
     Purchaser.

         The obligations of the Purchaser and the rights of the Company under
     this Agreement may be waived only with the written consent of the Company.

         Delays or Omissions. It is agreed that no delay or omission to exercise
any right, power or remedy accruing to any party, upon any breach, default or
noncompliance by another party under this Agreement or the Related Agreements,
shall impair any such right, power or remedy, nor shall it be construed to be a
waiver of any such breach, default or noncompliance, or any acquiescence
therein, or of or in any similar breach, default or noncompliance thereafter
occurring. All remedies, either under this Agreement or the Related Agreements,
by law or otherwise afforded to any party, shall be cumulative and not
alternative.

                                       18
<PAGE>

         Notices. All notices required or permitted hereunder shall be in
writing and shall be deemed effectively given:

         upon personal delivery to the party to be notified;

         when sent by confirmed facsimile if sent during normal business hours
     of the recipient, if not, then on the next business day;

         three (3) business days after having been sent by registered or
     certified mail, return receipt requested, postage prepaid; or

         one (1) day after deposit with a nationally recognized overnight
     courier, specifying next day delivery, with written verification of
     receipt.

All communications shall be sent as follows:

         If to the Company, to:          Epixtar Corp.
                                         11900 Biscayne Boulevard, Suite 700
                                         Miami, Florida 33181
                                         Attention:   Corporate Secretary
                                         Facsimile:   305-503-8610

                                         with a copy to:

                                         Michael DiGiovanna, Esq.
                                         212 Carnegie Center
                                         Suite 206
                                         Princeton, New Jersey 08540
                                         Facsimile: 609-452-9473

         If to the Purchaser, to:        Laurus Master Fund, Ltd.
                                         c/o M&C Corporate Services Limited
                                         P.O.  Box 309 GT
                                         Ugland House
                                         George Town
                                         South Church Street
                                         Grand Cayman, Cayman Islands
                                         Facsimile:   345-949-8080

                                         with a copy to:

                                         John E.  Tucker, Esq.
                                         825 Third Avenue 14th Floor
                                         New York, NY 10022
                                         Facsimile:   212-541-4434

                                         and:

                                       19
<PAGE>

                                         Loeb & Loeb LLP
                                         345 Park Avenue
                                         New York, New York 10154
                                         Scott J. Giordano, Esq.
                                         Facsimile:   212-407-4990

or at such other address as the Company or the Purchaser may designate by
written notice to the other parties hereto given in accordance herewith.

         Titles and Subtitles. The titles of the sections and subsections of
this Agreement are for convenience of reference only and are not to be
considered in construing this Agreement.

         Facsimile Signatures; Counterparts. This Agreement may be executed by
facsimile signatures and in any number of counterparts, each of which shall be
an original, but all of which together shall constitute one instrument.

         Broker's Fees. Except as set forth on Schedule 11.12 hereof, each party
hereto represents and warrants that no agent, broker, investment banker, person
or firm acting on behalf of or under the authority of such party hereto is or
will be entitled to any broker's or finder's fee or any other commission
directly or indirectly in connection with the transactions contemplated herein.
Each party hereto further agrees to indemnify each other party for any claims,
losses or expenses incurred by such other party as a result of the
representation in this Section 11.12 being untrue.

         Construction. Each party acknowledges that its legal counsel
participated in the preparation of this Agreement and the Related Agreements
and, therefore, stipulates that the rule of construction that ambiguities are to
be resolved against the drafting party shall not be applied in the
interpretation of this Agreement to favor any party against the other.

         [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                       20
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed the SECURITIES
PURCHASE AGREEMENT as of the date set forth in the first paragraph hereof.

<TABLE>
<S>                                                          <C>
COMPANY:                                                     PURCHASER:

EPIXTAR CORP.                                                LAURUS MASTER FUND, LTD.

By:                                                          By:
    ----------------------------------------------------          ---------------------------------------------------
Name:                                                        Name:
      --------------------------------------------------           --------------------------------------------------
Title:                                                       Title:
      --------------------------------------------------           --------------------------------------------------
</TABLE>

                                       21
<PAGE>

                                    EXHIBIT A
                                                        FORM OF CONVERTIBLE NOTE

                                       22

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