Document:

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                                                                   EXHIBIT 10.1

Dated March 23, 2005

                          FERRING PHARMACEUTICALS INC.

                                       and

                          SAVIENT PHARMACEUTICALS, INC.

                              COPROMOTION AGREEMENT

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                                      INDEX

1. DEFINITIONS

2. LIAISON TEAM

3. SAVIENT SALES FORCE

4. SAVIENT'S FINANCIAL COMMITMENT

5. AUDITS AND INSPECTIONS

6. FERRING'S OBLIGATION

7. PHARMACOVIGILANCE AND REGULATORY AFFAIRS

8. CONFIDENTIALITY

9. REVENUE SHARE

10. PAYMENT TERMS

11. JOINT INVENTIONS AND DISCOVERIES; COPYRIGHT MATERIAL

12. INTELLECTUAL PROPERTY AND INFRINGEMENT

13. TRADEMARKS

14. TERM AND TERMINATION

15. INDEMNIFICATIONS

16. ASSIGNMENT

17. INDEPENDENT CONTRACTOR

18. NOTICES

19. ENTIRE AGREEMENT

20. SEVERABILITY

21. REGISTRATIONS

22. GOVERNING LAW AND DISPUTE RESOLUTION

23. EXECUTION IN COUNTERPARTS

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This agreement (hereinafter "Agreement") is made as of the 23rd day of March,
2005

BETWEEN

(1)      Ferring Pharmaceuticals Inc., having its registered office at 400 Rella
         Boulevard, Suite 300, Suffern, NY 10901 USA (hereinafter "Ferring")

AND

(2)      Savient Pharmaceuticals, Inc., a company duly organised under the laws
         of Delaware and having its registered office at One Tower Center, 14th
         floor, East Brunswick, NJ 08816, USA (hereinafter "Savient")

WITNESSES THAT

WHEREAS:

(A)      Ferring has acquired the rights to market and sell the Product in the
         Territory

(B)      Savient is prepared, at its own expense, to undertake certain
         co-promotional activities with a view to a future share in the
         commercial returns of the said Product.

NOW THEREFORE, in consideration of the covenants and obligations expressed below
and intending to be legally bound.

THE PARTIES HEREBY AGREE AS FOLLOWS:

1.       DEFINITIONS

1.01     ADVERSE EVENT

         Any untoward medical occurrence in a patient or clinical investigation
         subject administered a pharmaceutical product and which does not
         necessarily have to have a causal relationship with this treatment.

1.02     AFFILIATE

         Any corporation, firm or other entity whether de jure or de facto which
         directly or indirectly owns, is owned by or is under common control
         with a party to this Agreement to the extent of at least 50% of the
         equity (or such less a percentage which is the maximum allowed to be
         owned by a foreign corporation in a particular jurisdiction) having the
         right to vote on or direct the affairs of the entity.

1.03     CONFIDENTIAL INFORMATION

         Any and all information regarding a party's technology, products,
         business information or objectives disclosed to the other party in
         connection with the performance of this Agreement. Notwithstanding the
         foregoing, Confidential Information shall not include information that:

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         (a)      was known or used by the receiving party or its Affiliates
                  prior to its date of disclosure to the receiving party as
                  demonstrated by contemporaneous written records (not including
                  information relating to the Product or the business sold by
                  Savient to Ferring and/or its Affiliates that was known or
                  used by Savient at the time of such sale);

         (b)      either before or after the date of the disclosure to the
                  receiving party is lawfully disclosed to the receiving party
                  or its Affiliates by sources other than the disclosing party
                  rightfully in possession of such information and not bound by
                  confidentiality obligations to the disclosing party, provided
                  that, with respect to such information disclosed to Savient,
                  such disclosure occurs after the sale to Ferring and/or its
                  Affiliates of the Product or business sold by Savient to
                  Ferring and/or its Affiliates;

         (c)      is independently developed by or for the receiving party or
                  its Affiliates without reference to or reliance upon the
                  Confidential Information of the disclosing party as
                  demonstrated by contemporaneous written records (not including
                  information relating to the Product or the business sold by
                  Savient to Ferring and/or its Affiliates that was known or
                  used by Savient at the time of such sale); or

         (d)      either before or after the date of the disclosure to the
                  receiving party or its Affiliates is or becomes published or
                  otherwise is or becomes part of the public domain without any
                  breach of this Agreement on the part of the receiving party or
                  its Affiliates.

1.04     EFFECTIVE DATE

         The Closing Date, as defined in the Share Purchase Agreement of even
         date herewith, between Savient and Ferring B.V., a Dutch corporation.

1.05     LAUNCH DATE

         With respect to any Product and to any country the date on which such
         Product was made available to the medical community other than by way
         of participation in a clinical trial.

1.06     LIAISON TEAM

         Savient and Ferring marketing and sales staff and other appropriate
         personnel assembled in accordance with Clause 2.01.

1.07     LICENSE INCOME

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         All amounts received by Ferring and/or its Affiliates from third
         parties in connection with or related to the licensing to such third
         parties of marketing or sales rights to the Product, including without
         limitation (a) all fees, milestone payments and royalties, (b) transfer
         pricing amounts paid in respect of Products supplied to such third
         parties, (c) investments in securities and (d) research and development
         funding, but (notwithstanding the foregoing) excluding:

         (i)      transfer pricing amounts equal to Ferring's and/or its
                  Affiliates' actual costs in respect of Products supplied to
                  such third parties,

         (ii)     amounts received by Ferring and/or its Affiliates from such
                  third parties as the purchase price for Ferring's and/or its
                  Affiliates' debt or equity securities at prices not in excess
                  of the then-current market price of such securities or, if
                  such securities are not publicly traded, the then-current fair
                  market value of such securities, and

         (iii)    amounts received by Ferring and/or its Affiliates for future
                  research and development activities undertaken for, or in
                  collaboration with, such third parties at rates not to exceed
                  the fair market value of such services.

         If non-monetary consideration is received from third parties by Ferring
         and/or its Affiliates, then a commercially reasonable monetary value
         will be assigned for purposes of calculating License Income.

1.08     NET SALES

         (a)      The worldwide gross invoiced sales of the Product by Ferring,
                  its Affiliates and its licensees to unrelated third party
                  customers, to any national or local governments, hospitals,
                  drug wholesalers, pharmacies, and other third party customers
                  (such as distributors, agents or surgicenters and other
                  institutions, the primary business of which is providing
                  medical care), less the following deductions ("Deductions"):
                  (i) direct or indirect credits and allowances or adjustments
                  (consistent with United States generally accepted accounting
                  principles, to the extent applicable) granted to such
                  customers on account of price adjustments, government or other
                  rebates (e.g. Medicare or Medicaid rebates), rejections,
                  recalls or returns in respect of the Product previously sold;
                  (ii) any trade and cash discounts (including any discounts for
                  prompt payment), rebates, and charge-backs granted to
                  customers in the case of sales by drug wholesalers where there
                  are no direct shipments by Ferring, and its Affiliates, to
                  such customers, and administrative fees paid during the
                  relevant time period to group purchasing organisations or to
                  third parties such as pharmaceutical benefit management
                  companies who are not customers but who are involved in the
                  acquisition dispensing, utulization or management of
                  prescriptions, in each case pursuant to this clause (ii) to
                  the extent and only to the extent such amounts relate to, and
                  only to, specific sales of the Product; (iii) bad debt amounts
                  included in Net Sales in prior periods that have remained
                  uncollected for more than one hundred eighty (180) days
                  (provided that if such bad debt amounts are subsequently
                  collected, such amounts will be included in Net Sales in the
                  period in which they are collected) and (iv) any sales or
                  other like taxes imposed upon the sale of the Product to the
                  extent included in the gross sales price (e.g. Value Added
                  Tax), but excluding any taxes on Ferring's or its Affiliates'
                  or licensees' income. In the event that Ferring or its
                  Affiliates obtain marketing authorisation for any Product
                  other than the Product authorised for sale in the USA under
                  the tradename NUFLEXXA as of the Effective Date, the parties
                  shall in good faith negotiate an adjustment to the calculation
                  of Net Sales for such new Product that excludes any
                  incremental portion of the sales price of the new Product
                  fairly attributable to value-adding component(s) or additional
                  cost of goods such as in relation to a premium delivery
                  device.

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1.09     PRODUCT

         The injectable product containing 1% sodium hyaluronate authorised for
         sale in the USA under the tradename NUFLEXXA and as may be approved for
         sale in any other country of the world under that or any other
         tradename, on application by Ferring, an Affiliate of Ferring or a
         third party so authorised to make such application by Ferring or an
         Affiliate of Ferring, as well as any new formulations, dosage
         strengths, combination products based on such product, and products
         sold in combination with premium delivery devices.

1.10     REASONABLE COMMERCIAL EFFORTS

         Such commercial efforts as are consistent with the commercial efforts
         generally applied to products of similar potential at similar stages in
         their life cycles by pharmaceutical companies of a similar size to the
         Ferring affiliate having management responsibility for the particular
         country under consideration.

1.11     SERIOUS ADVERSE EVENT

         A Serious Adverse Event is an Adverse Event that fulfils one or more of
         the following criteria: o fatal o immediately life threatening o
         results in persistent or significant disability/incapacity o results in
         in-patient hospitalisation or prolongs an existing hospitalisation o
         congenital abnormality/birth defect o cancer o manifested signs and
         symptoms caused by overdose

1.12     TERRITORY

         United States of America, its territories and dependents.

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1.13     THRESHOLD

         The worldwide Net Sales in United States Dollars which must be exceeded
         in any particular year for any revenue share to be due to Savient,
         being in 2006 USD 20 million, in 2007 USD 30 million and in 2008 USD 40
         million.

2.       LIAISON TEAM

2.01     The parties will each promptly after the date hereof appoint three
         members of staff to a Liaison Team. The Liaison Team shall meet as
         required at the reasonable request of either party until termination of
         this Agreement but in any case at least twice per year. It is the
         intention of the parties that the Liaison Team establish the mode,
         method and frequency of communications between the parties with respect
         to the activities under this Agreement. The parties will endeavour to
         maintain continuity in the staffing of the Liaison Team; however, the
         choice of members shall be a matter for the sole discretion of the
         appointing party. The Liaison Team will be chaired by a member of
         Ferring's staff, who shall have a casting vote in the event of any tied
         vote. In the event of a decision being made by a casting vote, any
         member of the Liaison Team may request that the decision be reviewed by
         the senior management of both parties before such decision is given
         effect. This Agreement may only be modified in accordance with Clause
         19.01 and not by the decision of the Liaison Team or the exercise of a
         casting vote.

2.02     The Liaison Team will manage and allocate resources for the creation
         and implementation of all promotional and educational programmes for
         the Product in the Territory including all aspects of design and
         implementation of such programmes and including spending for
         advertising, promotion, medical education, sales forces, Product
         samples and related matters. Such promotional and educational
         programmes shall be updated annually and provided to the senior
         management of each party for review. In managing and allocating
         resources for such programmes, the Liaison Team shall be guided by the
         principle that Reasonable Commercial Efforts are to be made to maximize
         the sales of the Product in the Territory.

3        SAVIENT SALES FORCE

3.01     Subject to the terms and conditions of this Agreement, Ferring hereby
         grants Savient the right to promote the Product in the Territory.

         Savient will establish a dedicated rheumatology sales force, which
         shall include a sufficient number of sales representatives to perform
         the call plan for such sales force established in accordance with
         Clause 2.02; provided that such obligations shall in no event require
         Savient to expend more financial resources in any given year than its
         financial commitment for such year pursuant to Clause 4. This sales
         force will promote the Product primarily to rheumatologist physicians
         treating osteoarthritis of the knee in the Territory. Savient shall be
         permitted to utilise the sales force to promote other products;
         provided that the Product shall in such cases be promoted in the
         primary promotion position and the Product must continue to be detailed
         with the agreed upon call reach and frequency as directed by the
         Liaison Team. Savient shall ensure that no products manufactured by any
         other person, firm or company which compete directly with the Product
         are included in any detail in which the Product is included.

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3.02     The sale representatives utilised by Savient will in each case be
         employees or agents of Savient and Savient shall manage all obligations
         in respect of their employment, including without prejudice to the
         foregoing generality, their salary, bonuses and other benefits, social
         security obligations, accommodation and subsistance. Notwithstanding
         the foregoing, any bonus plan shall be reasonably designed, consistent
         with industry norms, to incentivize Savient's sales representatives to
         promote the Product. Savient shall ensure that its staff engaged in
         carrying out any activities hereunder work at all times in full
         compliance with all applicable laws, regulations and codes of ethical
         conduct including the Prescription Drug Marketing Act of 1987. Savient
         shall be responsible for all disciplinary matters relating to its sales
         representatives; however, Savient shall give reasonable consideration
         to any request by Ferring that Savient replace any sales represenative
         whom Ferring believes is underperforming or who fails to promote the
         Product in a professional and competent manner.

3.03     Savient shall ensure that its staff has an adequate level of training
         and knowledge of the Product, and company strategy to carry out its
         obligations hereunder and shall provide such specific training for the
         disease area and Product as the Liaison Team shall direct.

3.04     Savient will cooperate with respect to any training meetings, fairs and
         exhibitions approved by the Liaison Team and shall ensure that its
         sales force use only marketing material developed and expressly
         approved by Ferring and shall make no claims for the Product beyond
         those contained in the marketing authorisation and expressly approved
         by Ferring. During the term of this Agreement Savient shall furnish
         Ferring with those periodic forecasts reports and work plans as may be
         agreed by the Liaison Team from time to time.

3.05     During the term of this Agreement and for a period of one (1) year
         thereafter, neither party shall solicit sales representatives employed
         or otherwise engaged by the other party for activities under this
         Agreement to seek employment or other engagement with such first party;
         however, neither party shall be prohibited from engaging any sales
         representatives of the other party who independently seek employment
         with such first party or who respond to a public advertisement placed
         by such first party.

3.06     Savient shall be responsible for sample accountability for its sales
         representatives, who shall provide samples to physicians as directed by
         the annual marketing plan agreed by the Liaison Team.

3.07     All documents, data and other records obtained by Savient from Ferring
         as a result of the Agreement, including any promotional or training
         materials, will be and remain the property of Ferring. Such documents,
         data and other records shall be kept safely and securely and, with the
         exception of those distributed or otherwise used up in the course of
         Savient's performance hereunder, shall be promptly returned to Ferring
         together with all remaining samples upon expiry or termination of the
         Agreement.

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4        SAVIENT'S FINANCIAL COMMITMENT

         Savient hereby commits to an expenditure of USD 20 million during the
         period between the Effective Date and December 31, 2006 (which
         expenditures during such period shall be allocated by the Liaison Team
         with the intent of applying such expenditures to the effective
         promotion of the Product) and USD 10 million per year during the
         remainder of the term of this Agreement. This shall include the cost of
         creating and maintaining the sales force detailed above in Section 3
         and Savient's reasonable and documented internal costs reasonably
         allocated to Savient's performance of obligations hereunder, with any
         sales force costs pro rated for any additional products the Savient
         sales force may promote. To the extent that Savient spends less than
         its expenditure commitment (as described above in this Clause 4) in any
         period, Savient shall contribute the balance of such expenditure
         commitment towards the advertising, promotion and medical education
         spend for the Product in the Territory as directed by the Liaison Team.
         In exceptional circumstances the Liaison Team may agree that a spending
         commitment for one period may be carried forward into the following
         period. Notwithstanding the foregoing, if the Effective Date of this
         Agreement occurs after July 31, 2005, the Liaison Team will discuss and
         agree upon changes, if any, to the timing (but not the amounts) of
         Savient's financial commitments under this Section 4 required based on
         any resulting delay in the commencement of activities under this
         Agreement.

5.       AUDITS AND INSPECTIONS:

         Ferring or its agents shall be entitled during the term of this
         Agreement and for six months thereafter in its absolute discretion to
         audit or inspect, not more than once per calendar year, the conduct by
         Savient of any work undertaken hereunder and Savient's associated
         expenditure. Such audits and inspections shall take such form as
         Ferring may reasonably think fit and shall include without prejudice to
         the foregoing generality the right to inspect any facility being used
         by Savient or any subcontractor in relation to such work and to examine
         and make copies of any procedures and records both commercial and
         financial, relating to the work, always provided that such audits and
         inspections are not incompatible with local laws, that such audits and
         inspections do not cause unreasonable disruption to the operations of
         Savient and that such audits and inspections are undertaken during
         normal working hours. Ferring shall give not less than 5 days prior
         notice to Savient of its intention to audit or inspect as aforesaid. No
         such auditing or inspecting by Ferring shall relieve Savient of any of
         its obligations hereunder.

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         With respect to audits or inspections required by third parties, such
         as regulatory or governmental authorities, the parties agree to give
         each other such notice as is reasonably practicable of any such audit
         or inspection of which they become aware and shall grant the other such
         access to data, personnel or facilities as may be reasonably necessary
         to comply with such audit or inspection. Savient will advise Ferring
         promptly of any adverse action by regulatory authorities in relation to
         its sales and marketing activities, whether or not the relevant action
         is in relation to the work hereunder. The rights of access and
         information granted under this Clause 5 shall be without prejudice to
         the obligations of confidentiality and rights of ownership contained
         elsewhere in the Agreement.

         In addition, Ferring shall have the right to monitor the performance
         and activities of the Savient sales force in accordance with a plan
         approved by the Liaison Team.

6.       FERRING'S OBLIGATIONS

6.01     Ferring will commit to a spending level during the term of the
         Agreement sufficient to support the sales and marketing effort
         necessary to ensure that Reasonable Commercial Efforts are utilised to
         maximise sales of the Product in the Territory taking into account the
         efforts of Savient's sale force under Clause 3 above and Savient's
         financial commitment under Clause 4 above. Outside the Territory
         Ferring will ensure that its Affiliates are offered the Product for
         each of the countries in which they are active and will launch the
         Product themselves or license the rights to third party to launch the
         Product if it is commercially reasonable to do so however the decision
         as to whether or not a such launch or outlicensing is commercially
         reasonable shall be in the sole discretion of the Affiliate concerned
         as shall any decisions relating to any subsequent marketing or
         promotion of the Product in any such countries outside the Territory.

6.02     Within the Territory Ferring will primarily promote the Product to
         orthopaedic surgeons and high prescribing physicians treating
         osteoarthritis of the knee.

7.       PHARMACOVIGILANCE AND REGULATORY AFFAIRS

7.01     During the term of this Agreement, Ferring shall be responsible for
         reporting Adverse Events with respect to the Product to the appropriate
         regulatory authorities in accordance with the laws and regulations of
         the relevant countries and authorities; however, in the event that
         Savient becomes aware of an Adverse Event or Serious Adverse Event it
         shall report such information to Ferring's Director of Regulatory
         Affairs as follows:

         1.       Fatal unexpected Adverse Events by telephone or facsimile
                  within one (1) working day of receipt.

         2.       All other Serious Adverse Events in writing within five (5)
                  working days of receipt.

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         3        A summary of all Adverse Events, including Serious Adverse
                  Events in writing on a monthly basis and giving as far as
                  reasonably possible a considered interpretation of all such
                  events, and indicating those cases which have previously been
                  reported to Ferring. Further information received on any
                  Serious Adverse Event (or any information which changes an
                  Adverse Event from an Adverse Event to a Serious Adverse
                  Event) will also be reported to Ferring within one (1) or five
                  (5) working days of receipt, according to the above criteria.

         Savient's sales representatives shall provide to the physicians they
         call upon the telephone number to Ferring's Adverse Event reporting
         line (such telephone number to be provided to Savient by Ferring) to
         which all Adverse Event reports are to be made. Ferring shall provide
         to Savient a bi-monthly summary of Adverse Events reported to Ferring
         as well as a copy of each annual safety report that Ferring submits to
         the FDA.

7.02     Ferring shall have sole responsibility for contacts with the FDA and
         all other regulatory authorities and, except as otherwise required by
         applicable law or regulation, Savient shall refer all FDA enquiries
         regarding the Product to Ferring. Similarly Savient shall, except as
         otherwise required by applicable law or regulation, refer all medical
         enquiries regarding the Product to Ferring.

8.       CONFIDENTIALITY

8.01     Neither party will disclose or use, at any time during or subsequent
         to the term of this Agreement, any Confidential Information of the
         other party, its Affiliates or its commercial partners obtained by
         such first party in the course of performing its obligations
         hereunder, except as required in connection with such first party's
         performance of obligations pursuant to this Agreement or with the
         other party's prior written approval.

         Each party shall only disclose Confidential Information of the other
         party to its employees or agents as reasonably required for the
         purposes contemplated under this Agreement. Each party shall be
         responsible for the acts and omissions of its employees and agents
         who have received Confidential Information of the other party, as if
         such were such first party's own acts or omissions.

         Neither party's obligation of confidence and limitation on use
         hereunder shall apply to information that is required by law to be
         disclosed; provided that, in the event of any such legal requirement,
         the party subject to such requirement shall give prompt notice of the
         requirement to the other party so that it may seek appropriate relief
         to prevent or limit such disclosure; provided further that any such
         legally required disclosure shall be only to the extent so required.

         Each party agrees, in addition, not to make any statement on the
         other party's behalf or concerning the other party to the press,
         media, investors, brokers, banks, financial analysts and/or any other
         third party without the prior approval of the other party. Neither
         party will use the name of the other party or that of the other
         party's staff for advertising or publicity purposes without their
         respective consents, except that each may include in its promotional
         material or otherwise, references to and quotations from
         publications. Notwithstanding anything to the contrary in this Clause
         8, either party shall have the right to disclose such information
         about the subject matter of this Agreement as such party reasonably
         determines is necessary to comply with applicable securities laws or
         regulations or the rules of any stock exchange or NASDAQ. This Clause
         8 will survive any expiry or termination of this Agreement.

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9.       REVENUE SHARE

9.01     Ferring shall book all the worldwide sales of the Product. Commencing
         with the 2006 calendar year, Savient shall be entitled to receive 50%
         of the worldwide Net Sales of the Product for all indications exceeding
         the applicable annual Threshold.

9.02     In the event that, subject to Clause 6.01, Ferring or an Affiliate of
         Ferring licenses the marketing and sales rights to the Product to a
         third party outside the Territory, all License Income received by
         Ferring or its Affiliate with respect to such licence (and not the
         licensee's Net Sales) shall be deemed to constitute Net Sales for the
         purpose of determining the parties' sharing of Net Sales pursuant to
         Clause 9.01. For the avoidance of doubt, Ferring shall not license the
         marketing or sales rights to the Product in the Territory, or in any
         other way sell or dispose of the marketing or sales rights to the
         Product in the Territory, during the term of this Agreement.

9.03     All payments made to Savient pursuant to this Clause 9 are in
         consideration for Savient's performance of promotional obligations in
         the Territory. Therefore, the parties acknowledge that no foreign
         withholding tax or similar tax based on foreign source economic
         activity shall be withheld from any amount payable to Savient pursuant
         to this Clause 9.

10.      PAYMENT TERMS

10.01    Commencing with the 2006 calendar year, beginning in the calendar
         quarter in which the relevant Threshold has been reached for any
         calendar year during the term of this Agreement, payments due under
         Clause 9 above shall be calculated quarterly on a calendar basis and
         shall be payable within thirty (30) days after the end of the relevant
         quarter. Each remittance shall be accompanied by a true accounting of
         all Net Sales, sales by licensees or co-promoters and License Income
         received by Ferring and its Affiliates and any other relevant
         information. In addition, during the term of this Agreement, Ferring
         shall report all Net Sales, sales by licensees or co-promoters and
         License Income received by Ferring and its Affiliates on a monthly
         basis to Savient within ten (10) days after the end of each calendar
         month.

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10.02    Savient with respect to any payment due hereunder shall have the right
         at its own expense (save as provided below) for an independent
         certified public accountant or like person reasonably acceptable to
         Ferring to examine all records, including those held by licensees and
         co-promoters, relating to Net Sales, sales by licensee and co-promoters
         and License Income received by Ferring and its Affiliates and any other
         relevant information during regular business hours during the life of
         this Agreement and for one (1) year after its termination, provided
         however that such examination shall not take place more than once a
         year and shall not cover such records for more than the preceding two
         (2) years and, provided further that such accountant shall report to
         Savient only as to the accuracy of the payments made to it by Ferring
         under this Agreement. In the event that such inspection reveals a
         discrepancy in payments made in excess of 5% for any calendar quarter,
         Ferring shall pay Savient's reasonable costs incurred in connection
         with the inspection. Any sums found to be owing to either party as a
         result of the inspection shall be paid over promptly with interest as
         set forth in Clause 10.05; provided that Savient shall not be required
         to pay interest on any overpayment by Ferring discovered as a result of
         such inspection.

10.03    All payments due under this Agreement shall be payable in United States
         Dollars.

10.04    Monetary conversion of Net Sales into United States Dollars shall be
         calculated in accordance with the rates and methodology utilised by
         Ferring in preparing its own monthly accounts as verified by Ferring's
         auditors.

10.05    Either party shall, without prejudice to its other rights, be entitled
         to charge the other interest on overdue payments of 2% (two percent)
         per annum above the EURIBOR accruing at a daily rate from the date
         payment becomes due until payment is made.

11.      JOINT INVENTIONS AND DISCOVERIES; COPYRIGHT MATERIAL

         Any invention, discovery or know-how (whether patentable or not) made
         jointly by the parties in the course of activities under this Agreement
         shall be jointly owned by the parties; provided that any such joint
         invention or discovery that is incorporated into or otherwise applied
         to the Product shall not be incorporated into or applied to any product
         that competes with the Product by either party.

         Any copyright material which may be created by Savient or to which
         Savient may contribute under this Agreement will belong absolutely to
         Ferring, provided that such copyright material is created in the course
         of fulfilling Savient's obligations hereunder. Savient will at
         Ferring's request and expense, assign to Ferring its title to any such
         copyright material.

         No royalty or other payment will be due by either party to the other in
         respect of any such joint invention, discovery or know-how, or by
         Ferring to Savient in respect of any such copyright material.

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12.      INTELLECTUAL PROPERTY AND INFRINGEMENT

12.01    Savient shall promptly inform Ferring of any information that comes to
         its attention involving actual or apparent infringements or
         misappropriations of patents, know-how or trademarks by any third party
         or any claims of intellectual infringement made by any third party
         regarding the manufacture, import, offer for sale, sale or use of the
         Product. In the event of such infringement by a third party, it shall
         be a matter for Ferring's sole discretion whether and what action to
         take in response to any such information but in the event that Ferring
         decides to initiate any action or proceeding against an alleged
         infringer Savient will provide all such reasonable support and
         assistance as Ferring may request all at Ferring's expense. In the
         event of any claim of intellectual infringement made by any third party
         regarding the manufacture, import, offer for sale, sale or use of the
         Product, Ferring shall indemnify and hold harmless Savient, its
         officers, directors, shareholders, employees, successors and assigns
         from any loss, damage or liability including reasonable attorneys' fees
         resulting from such claim and any related complaint, suit, proceeding
         or cause of action; provided that Ferring shall not have any obligation
         to indemnify or hold harmless Savient for any matter as to which
         Savient has an obligation to indemnify Ferring or any Affiliate of
         Ferring pursuant to the agreement under which Savient transferred
         ownership rights in the Product to an Affiliate of Ferring.

12.02    Any compensation awarded from third parties as a result of Ferring's
         enforcement of its rights shall, after deduction of Ferring's costs and
         expenses incurred in relation to obtaining such compensation, be
         retained by Ferring, save for any portions of any award that are
         reasonably attributable to lost sales, which portions shall be deemed
         to constitute Net Sales for the purpose of determining the parties'
         sharing of Net Sales pursuant to Clause 9.01.

13.      TRADEMARKS

13.01    In connection with its co-promotion function hereunder Savient shall be
         entitled to use the trademarks of Ferring and/or its Affiliates in the
         form in which they are displayed on the labels, packaging and
         advertising provided or approved by Ferring. Savient shall not acquire
         any property rights whatsoever in Ferring's trademarks nor shall it use
         any other trademark in relation to the use or marketing of the Product.

14.      TERM AND TERMINATION

14.01    Notwithstanding anything to the contrary herein, neither party shall
         have any obligations under this Agreement (other than Sections 2 and 8)
         until the Effective Date. This Agreement shall become effective on the
         Effective Date (except for Sections 2 and 8, which shall become
         effective on the date hereof) and shall, unless earlier terminated,
         remain in effect until 31 December 2008. Savient shall be entitled to
         terminate this Agreement effective as of 31 March 2007 in the event
         that worldwide Net Sales of the Product fail to exceed USD 20 million
         during 2006. For each calendar quarter commencing after 31 December
         2006, Savient may also terminate this Agreement effective as of the
         close of the next ensuing calendar quarter, in the event that worldwide
         Net Sales of the Product during such calendar quarter do not meet or
         exceed the sum of (a) one quarter of the Threshold set for the
         applicable calendar year plus (b) USD 5 million. Savient's notice of
         its intention to terminate must in each case be provided to Ferring no
         less than ten (10) days after Savient's receipt, pursuant to Clause
         10.01, of (i) with respect to 2006, the Net Sales report for the fourth
         quarter of 2006 and (ii) with respect to any subsequent calendar
         quarter, the Net Sales report for such calendar quarter.

                                       14
<PAGE>

14.02    If either party fails or neglects to perform material covenants or
         provisions of this Agreement and if such default is not corrected
         within sixty (60) days after (or, in the case of payment defaults, ten
         (10) days after) receiving written notice from the other party with
         respect to such material default, such other party shall have the right
         to terminate this Agreement by giving written notice to the party in
         default, provided the notice of termination is given within six (6)
         months of the default and prior to correction of the default.

14.03    Either party may terminate this Agreement at any time if the other
         party shall file in any Court or agency pursuant to any statute or
         regulation of any state or country a petition in bankruptcy or
         insolvency or for re-organisation (other than for the purposes of
         merger or amalgamation) or for an arrangement with its creditors or for
         the appointment of a receiver or trustee of the party or of all or a
         significant portion of its assets or if that party proposes a written
         agreement of composition or extension of its debts or shall be served
         with an involuntary petition against it filed in any insolvency
         proceeding, and such petition shall not be dismissed within one hundred
         twenty (120) days after the filing thereof or if such party shall
         propose or be a party to any dissolution or liquidation or shall make
         an assignment for the benefit of its creditors.

14.04    Termination of this Agreement shall not affect the rights of either
         party accrued up to the date of termination.

14.05    Notwithstanding termination of this Agreement for whatever reason, the
         terms of Clauses 1, 5, 6, 8, 10.02, 10.05, 11, 12 15, 18, 20, 22 and 23
         shall remain in full force and effect.

                                       15
<PAGE>

15.      INDEMNIFICATIONS

15.01    Ferring shall indemnify and hold harmless Savient, its officers,
         directors, shareholders, employees, successors and assigns from any
         loss, damage or liability including reasonable attorneys' fees
         resulting from any claim, complaint, suit, proceeding or cause of
         action against any of them alleging physical or other injury including
         death brought by or on behalf of an injured party, loss of service or
         consortium or a similar such claim, complaint, suit, proceeding or
         cause of action brought by a friend, spouse, relative or companion of
         an injured third party due to such physical injury or death and arising
         out of the administration, utilisation and/or ingestion of Product
         manufactured, sold or otherwise provided to the injured party by
         Ferring (or its Affiliates, co-marketeers, co-promoters, distributors
         or licensees). Savient shall indemnify and hold harmless Ferring, its
         officers, directors, shareholders, employees, successors and assigns
         from any loss, damage or liability including reasonable attorneys' fees
         resulting from any claim, complaint, suit, proceeding or cause of
         action against any of them alleging physical or other injury including
         death brought by or on behalf of an injured third party, loss of
         service or consortium or a similar such claim, complaint, suit,
         proceeding or cause of action brought by a friend, spouse, relative or
         companion of an injured third party due to such physical injury or
         death, and arising out of the administration, utilisation and/or
         ingestion of Product manufactured, sold or otherwise provided to the
         injured third party by Savient or its Affiliates, and arising out of
         the negligence, wilful misconduct or unlawful activity of, or promotion
         of any claim not expressly approved by Ferring by, Savient or any
         member of its staff, its agents or contractors. In either case:

         (a)      the indemnifying party shall not be obligated under this
                  clause if it is shown by evidence acceptable in a court of law
                  having jurisdiction over the subject matter and meeting the
                  appropriate degree of proof for such action that the injury
                  was the result of the negligence or wilful misconduct or
                  unlawful activity of any employee or agent of the other party.

         (b)      the indemnifying party shall have no obligation under this
                  clause to the extent:

                  1.       the party seeking indemnification fails to give the
                           indemnifying party prompt written notice of any claim
                           or lawsuit or other action for which the party
                           seeking indemnification seeks to be indemnified under
                           this Agreement and, as a consequence, the
                           indemnifying party is prejudiced;

                  2.       the indemnifying party acknowledges that it is
                           obligated to indemnify and hold harmless the party
                           seeking indemnification from such lawsuit or other
                           action and the party seeking indemnification refuses
                           to grant the indemnifying party full authority and
                           control over the defence and settlement of such
                           lawsuit or other action; or

                  3.       the party seeking indemnification fails to co-operate
                           as reasonably requested by the indemnifying party and
                           its agents in the defence of the claims or lawsuit or
                           other action.

         (c)      The indemnified party shall have the right to participate in
                  the defence of any such claim, complaint, suit, proceeding or
                  cause of action referred to in this clause utilising legal
                  counsel of its choice providing, however, that the
                  indemnifying party shall have full authority and control to
                  handle any such claim, complaint, suit, proceeding or cause of
                  action including any settlement or other disposition thereof
                  for which indemnification is sought under this clause;
                  provided that the indemnifying party shall not settle any such
                  claim, complaint, suit, proceeding or cause of action unless
                  such settlement includes a full release of all liabilities and
                  obligations of the party seeking indemnification in connection
                  therewith other than financial liabilities against which the
                  indemnifying party will indemnify and hold harmless the party
                  seeking indemnification.

                                       16
<PAGE>

15.02    Each party shall defend, indemnify and hold harmless the other and said
         other's officers, directors, shareholders, employees, successors and
         assigns from and against any and all third party damages, claims,
         costs, law suits, liabilities or expenses including reasonable
         professional fees arising out of or resulting from or in connection
         with such party's breach of this Agreement or the negligence or wilful
         misconduct or unlawful activity of any employee or agent of such party,
         provided:

         (a)      the indemnifying party shall not be obligated under this
                  clause if it is shown by evidence acceptable in a court of law
                  having jurisdiction over the subject matter and meeting the
                  appropriate degree of proof for such action that the injury
                  was the result of the negligence or wilful misconduct or
                  unlawful activity of any employee or agent of the other party.

         (b)      the indemnifying party shall have no obligation under this
                  clause to the extent:

                  1.       the party seeking indemnification fails to give the
                           indemnifying party prompt written notice of any claim
                           or lawsuit or other action for which the party
                           seeking indemnification seeks to be indemnified under
                           this Agreement and, as a consequence, the
                           indemnifying party is prejudiced;

                  2.       the indemnifying party acknowledges that it is
                           obligated to indemnify and hold harmless the party
                           seeking indemnification from such lawsuit or other
                           action and the party seeking indemnification refuses
                           to grant the indemnifying party full authority and
                           control over the defence and settlement of such
                           lawsuit or other action; or

                  3.       the party seeking indemnification fails to co-operate
                           as reasonably requested by the indemnifying party and
                           its agents in the defence of the claims or lawsuit or
                           other action.

         (c)      The indemnified party shall have the right to participate in
                  the defence of any such claim, complaint, suit, proceeding or
                  cause of action referred to in this clause utilising legal
                  counsel of its choice providing, however, that the
                  indemnifying party shall have full authority and control to
                  handle any such claim, complaint, suit, proceeding or cause of
                  action including any settlement or other disposition thereof
                  for which indemnification is sought under this clause;
                  provided that the indemnifying party shall not settle any such
                  claim, complaint, suit, proceeding or cause of action unless
                  such settlement includes a full release of all liabilities and
                  obligations of the party seeking indemnification in connection
                  therewith other than financial liabilities against which the
                  indemnifying party will indemnify and hold harmless the party
                  seeking indemnification.

                                       17
<PAGE>

16.      ASSIGNMENT

16.01    This Agreement and the licences herein granted shall be binding upon
         and inure to the benefit of the successors in interest of the
         respective parties.

16.02    Neither party shall assign any of its rights or obligations under this
         Agreement without the prior written consent of the other party, save
         that either party may assign its rights and obligations under this
         Agreement to any of its respective Affiliates or to any company with
         which it may merge or consolidate or to any company to whom it may
         transfer all or substantially all of its assets or to any company by
         which it may be acquired (including in each case any company created as
         a new vehicle upon any such merger, transfer or acquisition), provided
         that such company undertakes directly to the other original party under
         this Agreement to be bound by the terms of this Agreement.

17.      INDEPENDENT CONTRACTORS

17.01    The parties are independent contractors under this Agreement and no
         other relationship is intended, including without limitation any
         partnership, joint venture or agency relationship. Neither party shall
         act in a manner that expresses or implies a relationship other than of
         independent contractor nor bind the other party except as otherwise
         expressly provided in this Agreement. Nothing in this Agreement shall
         be deemed to infer any direct relationship between Savient and any
         Affiliate of Ferring.

18.      NOTICES

18.01    Any notice required or permitted under this Agreement shall be sent by
         air mail, postage pre-paid to the following addresses of the parties
         (except as otherwise provided by Clause 7.01).

         Ferring Pharmaceuticals Inc.         400 Rella Boulevard, Suite 300
                                              Suffern, New York 10901 USA

                                              (Attention President)
         with a copy to

         Ferring International Center SA      Avenue de Rhodanie 60
                                              1007 Lausanne
                                              Switzerland
                                              (Attention: General Counsel)

         Savient Pharmaceuticals, Inc.        One Tower Center, 14th floor
                                              East Brunswick, NJ 08816 USA
                                              (Attention: General Counsel)

                                       18
<PAGE>

         with a copy to

         Wilmer Cutler Pickering
           Hale and Dorr LLP                  399 Park Avenue
                                              New York, New York 10022 USA
                                              Attention:  David E. Redlick, Esq.

18.02    Any notice required or permitted to be given concerning this Agreement
         shall be effective upon receipt by the party to whom it is addressed.

19.      ENTIRE AGREEMENT

19.01    This Agreement constitutes the entire Agreement between the parties
         relating to the subject matter hereof and supersedes all previous
         writings and understandings. No terms or provisions of this Agreement
         shall be varied or modified in any prior or subsequent statement,
         conduct or act of either of the parties, except that the parties may
         amend this Agreement by written instruments executed on behalf of both
         parties and making express reference to this Agreement.

20.      SEVERABILITY

20.01    In the event any portion of this Agreement shall be held illegal, void
         or ineffective, the remaining portions hereof shall remain in full
         force and effect.

20.02    If any of the terms or provisions of this Agreement are in conflict
         with any applicable statute or rule of law, then such terms or
         provisions shall be deemed inoperative to the extent that they may
         conflict therewith and shall be deemed to be modified to conform with
         such statute or rule of law.

20.03    In the event that the terms and conditions of this Agreement are
         materially altered as a result of Clause 20.01 or 20.02 above, the
         parties will renegotiate the terms and conditions of this Agreement to
         resolve any inequities.

21.      REGISTRATION

21.01    Either party shall have the right at any time to record, register or
         otherwise notify this Agreement to appropriate governmental or
         regulatory offices having first given thirty (30) days' written notice
         to the other party of its intention so to do. The other party shall
         provide reasonable assistance in effecting such recording, registering
         or notifying.

                                       19
<PAGE>

22.      GOVERNING LAW AND DISPUTE RESOLUTION

22.01.   This Agreement shall be governed by the laws of State of New York
         (excluding any rules of conflicts of laws that would apply the
         substantive laws of any other jurisdiction). Any disputes arising from
         this Agreement, which can not be resolved through good faith
         discussions, shall be referred to and finally settled by in accordance
         with the procedure set out in Appendix A.

23.      EXECUTION IN COUNTERPARTS

23.01    This Agreement may be executed in any number of counterparts, each of
         which shall be deemed an original but all of which together shall
         constitute one and the same instrument.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of
the date first written above.

                          FERRING PHARMACEUTICALS INC.

                          By: /s/ Wayne C. Anderson
                              -------------------------------------------
                              Name: Wayne C. Anderson
                              Title: President & CEO

                          SAVIENT PHARMACEUTICALS, INC.

                          By: /s/ Philip K. Yachmetz
                              ---------------------------------------------
                              Name: Philip K. Yachmetz
                              Title: Senior Vice President -
                                     Corporate Strategy & General
                                     Counsel

                                       20
<PAGE>

                                   APPENDIX A

                          DISPUTE RESOLUTION MECHANISM

The parties recognise that a bona fide dispute as to certain matters may arise
from time to time during the term of this Agreement that relates to either
party's rights and/or obligations. To have such a dispute resolved by this
Alternative Dispute ("ADR") provision, a party first must send written notice of
the dispute to the other party for attempted resolution by good faith
negotiations between the parties. In the event that the parties fail to reach a
negotiated resolution within fourteen (14) days after written notice of the
dispute, the matter shall be referred to their respective Chief Executive
Officers.

If the matter has not been resolved by the parties' respective Chief Executive
Officers within fourteen (14) days after referral to such Chief Executive
Officers, either party may initiate an ADR proceeding as provided herein. The
parties shall have the right to be represented by counsel in such a proceeding.

1.   To begin an ADR proceeding, a party shall provide written notice to the
     other party of the issues to be resolved by ADR. Within fourteen (14) days
     after its receipt of such notice, the other party may, by written notice to
     the party initiating the ADR, add additional issues to be resolved within
     the same ADR.

2.   Within twenty-one (21) days following receipt of the original ADR notice,
     the parties shall select a mutually acceptable neutral to preside in the
     resolution of any disputes in this ADR proceeding. If the parties are
     unable to agree on a mutually acceptable neutral within such period, either
     party may request the President of the CPR Institute for Dispute Resolution
     ("CPR"), 366 Madison Avenue, 14th Floor, New York, NY 10017, to select a
     neutral pursuant to the following procedures:

     (a)  The CPR shall submit to the parties a list of not less than five (5)
          candidates within fourteen (14) days after receipt of the request,
          along with a Curriculum Vitae for each candidate. No candidate shall
          be an employee, director, or shareholder of either party or any of
          their subsidiaries or Affiliates.

     (b)  Such list shall include a statement of disclosure by each candidate of
          any circumstances likely to affect his or her impartiality.

     (c)  Each party shall number the candidates in order of preference (with
          the number one (1) signifying the greatest preference) and shall
          deliver the list to the CPR within seven (7) days following receipt of
          the list of candidates. If a party believes a conflict of interest
          exists regarding any of the candidates, that party shall provide a
          written explanation of the conflict to the CPR along with its list
          showing its order of preference for the candidates. Any party failing
          to return a list of preferences on time shall be deemed to have no
          order of preference.

                                       21
<PAGE>

     (d)  If the parties collectively have identified fewer than three (3)
          candidates deemed to have conflicts, the CPR immediately shall
          designate as the neutral the candidate for whom the parties collective
          have indicated the greatest preference. If a tie should result between
          two (2) candidates, the CPR may designate either candidate. If the
          parties collectively have identified three (3) or more candidates
          deemed to have conflicts, the CPR shall review the explanations
          regarding conflicts and, in its sole discretion, may either (i)
          immediately designate as the neutral the candidate for whom the
          parties collectively have indicated the greatest preference, or (ii)
          issue a new list of not less than five (5) candidates, in which case
          the procedures set forth in subparagraphs 2(a) - 2(d) shall be
          repeated.

3.   No earlier than twenty-eight (28) days or later than fifty-six (56) days
     after selection, the neutral shall hold a hearing to resolve each of the
     issues identified by the parties. The ADR proceeding shall take place at a
     location agreed upon by the parties. If the parties cannot agree, the
     neutral shall designate a location other than the principal place of
     business of either party or any of their subsidiaries or Affiliates.

4.   Each party to the proceeding shall be entitled to make one (1) document
     request to the other party, limited to no more than five (5) specific
     requests, subject to the right of the neutral to rule on any objection to
     such request, which shall not be subject to appeal. Any such document
     request shall be delivered no later than twenty-four (24) days prior to the
     hearing. Documents in response to such requests shall be provided within
     ten (10) days of the request. Each party may also take up to three (3)
     depositions, subject to the right of the neutral to rule on any objection
     to such deposition, which shall not be subject to appeal.

5.   At least seven (7) days prior to the hearing, each party shall submit the
     following to the other party and the neutral:

     (a)  a copy of all exhibits on which such party intends to rely in any oral
          or written presentation to the neutral;

     (b)  a list of any witnesses such party intends to call at the hearing, and
          a short summary of the anticipated testimony of each witness;

     (c)  a pre-hearing brief setting forth the party's factual and legal
          contentions, as well as its contentions on damages claimed. The brief
          shall not exceed twenty (20) pages. This page limitation shall apply
          regardless of the number of issues raised in the ADR proceeding.

6.   The hearing shall be conducted on two (2) consecutive days and shall be
     governed by the following rules:

     (a)  Each party shall be entitled to five (5) hours of hearing time to
          present its case. The neutral shall determine whether each party has
          had the five (5) hours to which it is entitled.

                                       22
<PAGE>

     (b)  Each party shall be entitled, but not required, to make an opening
          statement, to present regular and rebuttal testimony, documents or
          other evidence, to cross-examine witnesses, and to make a closing
          argument. Cross-examination of witnesses shall occur immediately after
          their direct testimony, and cross-examination time shall be charged
          against the party conducting the cross-examination.

     (c)  The party initiating the ADR shall begin the hearing and, if it
          chooses to make an opening statement, shall address not only issues it
          raised but also any issues raised by the responding party. The
          responding party, if it chooses to make an opening statement, also
          shall address all issues raised in the ADR. Thereafter, the
          presentation of regular and rebuttal testimony and documents, other
          evidence, and closing arguments shall proceed in the same sequence.

     (d)  Except when testifying, witnesses shall be excluded from the hearing
          until closing arguments.

     (e)  Settlement negotiations, including any statements made therein, shall
          not be admissible under any circumstances. Affidavits prepared for
          purposes of the ADR hearing also shall not be admissible. As to all
          other matters, the neutral shall have sole discretion regarding the
          admissibility of any evidence.

7.   Within seven (7) days following completion of the hearing, each party may
     submit to the other party and the neutral a post-hearing brief in support
     of its contentions, provided that such brief shall not contain or discuss
     any new evidence and shall not exceed ten (10) pages. This page limitation
     shall apply regardless of the number of issues raised in the ADR
     proceeding.

8.   The neutral shall rule on each disputed issue within fourteen (14) days
     following completion of the hearing. Such ruling shall adopt in its
     entirety the proposed ruling and remedy of one of the parties on each
     disputed issue but may adopt one party's proposed rulings and remedies on
     some issues and the other party's proposed rulings and remedies on the
     other issues. The neutral shall not issue any written opinion or otherwise
     explain the basis of the ruling.

9.   The neutral shall be paid a reasonable fee plus expenses. These fees and
     expenses, along with the reasonable legal fees and expenses of the
     prevailing party (including all expert witness fees and expenses), the fees
     and expenses of a court reporter, and any expenses for a hearing room,
     shall be paid as follows:

     (a)  If the neutral rules in favour of the one party on all disputed issues
          in the ADR, the losing party shall pay one hundred percent (100%) of
          such fees and expenses.

     (b)  If the neutral rules in favour of one party on some issues and the
          other party on other issues, the neutral shall issue with the rulings
          a written determination as to how such fees and expenses shall be
          allocated between the parties. The neutral shall allocate fees and
          expenses in a way that bears a reasonable relationship to the outcome
          of the ADR, with the party prevailing on more issues, or on issues of
          greater value or gravity, recovering a relatively larger share of its
          legal fees and expenses.

                                       23
<PAGE>

10.  The rulings of the neutral, including rulings on the allocation of fees and
     expenses, shall be binding, non-reviewable, and non-appealable, and may be
     entered as a final judgement in any court having jurisdiction.

11.  Except as provided in paragraph 10 or as required by law, the existence of
     the dispute, any settlement negotiations, the ADR hearing, any submissions
     (including exhibits, testimony, proposed rulings and briefs), and the
     rulings shall be deemed Confidential Information. The neutral shall have
     the authority to impose sanctions for unauthorised disclosures of
     Confidential Information.

                                       25<PAGE>

                                                                     EXHIBIT 4.1

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

                            SERIES 2005-1 SUPPLEMENT
                           Dated as of March 24, 2005

                                       to

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

                                  $600,000,000

                                   ----------

                  AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST

                                  Series 2005-1

                                   ----------

                                      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 2005-1 Certificateholders

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

<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                PAGE
<S>            <C>                                                                              <C>
ARTICLE I       Creation of the Series 2005-1 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 2005-1 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..................................25

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...........................................................28

ARTICLE V       Distributions and Reports to Series 2005-1 Certificateholders....................29

Section 5.01.   Distributions....................................................................29

Section 5.02.   Reports and Statements to Series 2005-1 Certificateholders.......................30

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

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

ARTICLE VII     Optional Repurchase; Series Termination..........................................32

Section 7.01.   Optional Repurchase..............................................................32

Section 7.02.   Series Termination...............................................................32
</TABLE>

                                      -i-
<PAGE>

                               TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                PAGE
<S>            <C>                                                                              <C>
ARTICLE VIII    Final Distributions..............................................................33

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............................33

Section 8.02.   Distribution of Proceeds of Sale, Disposition or Liquidation of the
                Receivables pursuant to Section 9.01 of the Agreement............................34

ARTICLE IX      Miscellaneous Provisions.........................................................35

Section 9.01.   Ratification of Agreement........................................................35

Section 9.02.   Counterparts.....................................................................35

Section 9.03.   Governing Law....................................................................35

Section 9.04.   [Reserved].......................................................................35

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

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

Section 9.07.   Transfers of the Collateral Interest.............................................36
</TABLE>

                                      -ii-
<PAGE>

         SERIES 2005-1 SUPPLEMENT, dated as of March 24, 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 2005-1 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 2005-1." The Series 2005-1
Certificates shall be issued in two Classes, the first of which shall be known
as the "Class A Series 2005-1 Floating Rate Asset Backed Certificates" and the
second of which shall be known as the "Class B Series 2005-1 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 2005-1" 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 2005-1 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 2005-1 shall be included in Group II and shall be a
Principal Sharing Series. Series 2005-1 shall be an Excess Allocation Series.
Series 2005-1 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 2005-1 shall be the April 2005
Distribution Date and the first Monthly Period shall begin on and include the
Closing Date and end on and include March 27, 2005.

                                       1
<PAGE>

         (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 2005-1 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 2005-1 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).

         "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.

                                       2
<PAGE>

         "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
0.03%.

         "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 $501,000,000.

         "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
<PAGE>

         "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
0.12%.

         "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 $45,000,000.

         "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
<PAGE>

         "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 March 24, 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 February 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 $54,000,000.

                                       5
<PAGE>

         "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 0.33% 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, $45,500,000; 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.

                                       6
<PAGE>

         "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 February 2009 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 2005-1) 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.

         "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 April 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 2005-1 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 2005-1 Termination Date.

         "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.

                                       7
<PAGE>

         "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 March 2010 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 2005-1 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 2005-1 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 2005-1 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.

         "Group II Investor Monthly Fees" shall mean with respect to any
Distribution Date, the sum of (a) Series 2005-1 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.

                                       8
<PAGE>

         "Group II Investor Monthly Interest" shall mean, with respect to any
Distribution Date, the sum of (a) Series 2005-1 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 $600,000,000.

         "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 2005-1 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 2005-1 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 March 22, 2005 for the period
from and including the Closing Date to but excluding April 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.

         "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.

                                       9
<PAGE>

         "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 2005-1 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 2005-1 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 2005-1 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 2005-1, 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 2005-1.

         "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).

                                       10
<PAGE>

         "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
2005-1 pursuant to Section 4.10.

         "Reallocated Principal Collections" shall mean, with respect to any
Monthly Period, the product of (a) the Series 2005-1 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 2005-1
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 2005-1
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.

                                       11
<PAGE>

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

         "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 March 2008 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
September 2008 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 2005-1 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 March 24,
2005.

         "Series 2005-1" shall mean the Series of Certificates the terms of
which are specified in this Supplement.

         "Series 2005-1 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 2005-1 Allocable Defaulted Amount" shall mean the Series
Allocable Defaulted Amount with respect to Series 2005-1.

         "Series 2005-1 Allocable Finance Charge Collections" shall mean the
Series Allocable Finance Charge Collections with respect to Series 2005-1.

         "Series 2005-1 Allocable Principal Collections" shall mean the Series
Allocable Principal Collections with respect to Series 2005-1.

         "Series 2005-1 Allocation Percentage" shall mean the Series Allocation
Percentage with respect to Series 2005-1.

         "Series 2005-1 Certificate" shall mean a Class A Certificate or a Class
B Certificate or the Collateral Interest.

         "Series 2005-1 Certificateholder" shall mean a Class A
Certificateholder or a Class B Certificateholder or the Collateral Interest
Holder.

         "Series 2005-1 Certificateholders' Interest" shall mean the
Certificateholders' Interest for Series 2005-1, including the Collateral
Interest.

                                       12
<PAGE>

         "Series 2005-1 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 2005-1 Monthly Interest" shall mean the amounts determined
pursuant to subsections 4.02(a), (b) and (c).

         "Series 2005-1 Principal Shortfall" shall have the meaning specified in
Section 4.11.

         "Series 2005-1 Termination Date" shall mean the October 2012
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 March 24, 2005, among RFC II, RFC III and RFC IV, as
transferors, TRS, as administrator, and the American Express Credit Account
Secured Note Trust 2005-1, 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 2005-1, Moody's and Standard
& Poor's. As used in this Supplement and in the Agreement with respect to Series
2005-1, "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.

         (c)      Each capitalized term defined herein shall relate to the
Series 2005-1 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."

                                       13
<PAGE>

                                  ARTICLE III

                                 Servicing Fee

         Section 3.01. Servicing Compensation. The share of the Servicing Fee
allocable to the Series 2005-1 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 2005-1 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 2005-1
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.

                                   ARTICLE IV

                 Rights of Series 2005-1 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 2005-1
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 2005-1 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 2005-1 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.

                                       14
<PAGE>

         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 2005-1 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 2005-1 Certificateholders. The
Servicer shall, prior to the close of business on each Deposit Date, allocate to
the Series 2005-1 Certificateholders the following amounts as set forth below:

                  (i)      Allocations of Finance Charge Collections. The
         Servicer shall allocate to the Series 2005-1 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 2005-1 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 2005-1 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 2005-1 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 2005-1
                  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
                  2005-1 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 2005-1 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 2005-1 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 2005-1 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 2005-1 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 2005-1
                  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 2005-1 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 2005-1 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 2005-1 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.

         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.

                                       16
<PAGE>

         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.

         (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.

                                       17
<PAGE>

         Section 4.03.   Principal Funding Account; Controlled Accumulation
Period.

         (a)      (i)      The Servicer, for the benefit of the Series 2005-1
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
2005-1 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 2005-1 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.

                  (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 2005-1 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.

                                       18
<PAGE>

                  (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 2005-1
         Certificateholders.

         (c)      The Controlled Accumulation Period is scheduled to commence at
the close of business on the last day of the February 2009 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 February 2009 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 2005-1, 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.

         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.

                                       19
<PAGE>

         (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;

                  (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;

                                       20
<PAGE>

                  (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.

         (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;

                                       21
<PAGE>

                  (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 2005-1 with respect to such Monthly Period and (y) the
amount of Excess Spread and the Excess Finance Charge Collections allocable to
Series 2005-1 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.

         (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 2005-1 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.

                                       22
<PAGE>

         (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 2005-1 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 2005-1 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);

         (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;

                                       23
<PAGE>

         (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 2005-1 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

         (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 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.

                                       24
<PAGE>

         Section 4.09.   Excess Finance Charge Collections. Series 2005-1 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 2005-1 in an amount equal to the
product of (x) the aggregate amount of Excess Finance Charge Collections with
respect to all the Excess Allocation Series for such Distribution Date and (y) a
fraction, the numerator of which is the Finance Charge Shortfall for Series
2005-1 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 2005-1 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 2005-1 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.

         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 2005-1
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 2005-1 Monthly Interest, Investor Default Amount, Series 2005-1 Monthly
Fees and Series 2005-1 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 2005-1 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 2005-1
         Monthly Fees and the denominator of which is Group II Investor Monthly
         Fees; and

                                       25
<PAGE>

                  (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
         2005-1 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 2005-1 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 2005-1 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 2005-1 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 2005-1 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 2005-1 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).

         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 2005-1
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 2005-1
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 2005-1
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).

                                       26
<PAGE>

         (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 2005-1. 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.

         (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 2005-1 Certificateholders, (ii) if
the Controlled Accumulation Period has not commenced, the occurrence of a
Pay-Out Event with respect to Series 2005-1, (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.

                                       27
<PAGE>

         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.

         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.

                                       28
<PAGE>

         (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.

                                   ARTICLE V

                          Distributions and Reports to
                        Series 2005-1 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 2005-1
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 2005-1 Certificateholders' Interest pursuant to Section 10.01 of the
Agreement, in which event the foregoing limitation will not apply).

                                       29
<PAGE>

         (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 2005-1
Certificateholders hereunder shall be made by check mailed to each Series 2005-1
Certificateholder at such Series 2005-1 Certificateholder's address appearing in
the Certificate Register without presentation or surrender of any Series 2005-1
Certificate or the making of any notation thereon; provided, however, that with
respect to Series 2005-1 Certificates registered in the name of a Clearing
Agency, such distributions shall be made to such Clearing Agency in immediately
available funds.

         Section 5.02.   Reports and Statements to Series 2005-1
Certificateholders.

         (a)      On each Distribution Date, the Paying Agent, on behalf of the
Trustee, shall forward to each Series 2005-1 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 2005-1 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 2005-1 Certificateholder, a statement prepared by the
Servicer containing the information which is required to be contained in the
statement to Series 2005-1 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 2005-1 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 2005-1 Certificates:

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

                                       30
<PAGE>

         (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 2005-1 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 2005-1
Certificates;

         (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 2005-1 Certificates and as a result of which
the interests of the Series 2005-1 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;

                                       31
<PAGE>

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).

                                  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 2005-1 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 2005-1
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 2005-1 shall be reduced to zero and
the Series 2005-1 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 August 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 2005-1 Termination Date (after giving
effect to all distributions required to be made on the Series 2005-1 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 2005-1
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.

                                       32
<PAGE>

         (b)      The Servicer, on behalf of the Trustee, shall sell such
Receivables (or interests therein) on the Series 2005-1 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
2005-1 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 August 2012 Distribution Date to the Series 2005-1 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 2005-1 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 2005-1 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.

                                       33
<PAGE>

         (b)      With respect to the Reassignment Amount deposited into the
Collection Account pursuant to Section 7.01 or any amounts allocable to the
Series 2005-1 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.

         (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 2005-1 Certificateholders shall be
deemed distributed in full to the Series 2005-1 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 2005-1
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 2005-1 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 2005-1 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 2005-1 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.

                                       34
<PAGE>

         (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 2005-1 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 2005-1 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 2005-1 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 2005-1 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.

         (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 2005-1 Certificateholders shall be distributed
in full to the Series 2005-1 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.

                                       35
<PAGE>

         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.

         (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
2005-1 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.]

                                       36
<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/ Traci L. Memmott
                                             -----------------------------------
                                             Name:  Traci L. Memmott
                                             Title: Vice President and Treasurer

                                        AMERICAN EXPRESS RECEIVABLES
                                             FINANCING CORPORATION IV LLC,
                                             as a Transferor

                                        By:  /s/ Robert C. Radle
                                             -----------------------------------
                                             Name:  Robert C. Radle
                                             Title: President

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

                                        By:  /s/ David L. Yowan
                                             -----------------------------------
                                             Name:  David L. Yowan
                                             Title: Senior Vice President and
                                                    Treasurer

                                        THE BANK OF NEW YORK,
                                             as Trustee

                                        By:  /s/ John Bobko
                                             Name:  John Bobko
                                             Title: Assistant Vice President

                  [Signature page - Series 2005-1 Supplement]
<PAGE>

                          FORM OF CLASS A CERTIFICATE                EXHIBIT A-1

REGISTERED                                                        $          (1)
                                                                  --------------

No. R-                                                     CUSIP No. 02582J DH 0
      --------------

         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 2005-1

                 CLASS A FLOATING RATE ASSET BACKED CERTIFICATE

                          Expected Final Payment Date:
                        The March 2010 Distribution Date

                 Each $1,000 minimum denomination represents a
                        1/501,000ths undivided interest
                               in Class A of the

          AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST, SERIES 2005-1

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 2005-1 Supplement, dated as of March 24, 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 March 2010 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 2005-1
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 2005-1

                 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 2005-1 (the "Series 2005-1 Certificates"), and one of a class thereof
entitled Class A Series 2005-1 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 $501,000,000. 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 2005-1
Certificateholders in accordance with the Agreement and the Supplement.

         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 2005-1 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 2005-1 Certificateholders will not have any interest
in the Receivables and the Series 2005-1 Certificates will represent only the
right to receive such Reassignment Amount.

                                     A-1-5
<PAGE>

         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. 02582J DJ 6
      --------------

         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 2005-1

                 CLASS B FLOATING RATE ASSET BACKED CERTIFICATE

                          Expected Final Payment Date:
                        The March 2010 Distribution Date

                 Each $1,000 minimum denomination represents a
                         1/45,000ths undivided interest
                               in Class B of the

          AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST, SERIES 2005-1

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 2005-1 Supplement, dated as of March 24, 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 March 2010 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
2005-1 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 2005-1

                 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 2005-1 (the "Series 2005-1 Certificates"), and one of a class thereof
entitled Class B Series 2005-1 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 $45,000,000. 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 2005-1 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 2005-1
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 2005-1 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 2005-1 Certificateholders will not have any interest
in the Receivables and the Series 2005-1 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 2005-1

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

         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 2005-1 Supplement, dated as of March 24, 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):

         With respect to the Class A Certificates,

         A)       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.............................. $
                                                                      ----------

                                      B-1
<PAGE>

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

         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......... $
                                                                      ----------

         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 2005-1 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.............................. $
                                                                      ----------

                                      B-3
<PAGE>

         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.............................. $
                                                                      ----------

                                      B-4
<PAGE>

         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............................................. $
                                                                      ----------

         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 2005-1

         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 2005-1 Supplement, dated
as of March 24, 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 2005-1 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
2005-1 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..... $
                                                                      ----------

         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........................... $
                                                                      ----------

                                      C-2
<PAGE>

                  (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....... $
                                                                      ----------

                  (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-3
<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-4
<PAGE>

<TABLE>
<CAPTION>
<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             _________
-------------------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------------------
INVESTOR/TRANSFEROR                   SERIES ALLOCATIONS     TOTAL INVESTOR         TRANSFERORS' INTEREST
ALLOCATIONS                                                  INTEREST
------------------------------------- ---------------------- ---------------------- ---------------------- --------------------
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            $____________          $____________          $____________
-------------------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------------------
MONTHLY PERIOD FUNDING REQUIREMENTS   CLASS A                CLASS B                COLLATERAL INTEREST    TOTAL
------------------------------------- ---------------------- ---------------------- ---------------------- --------------------
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                             $____________          $____________          $____________          $____________
------------------------------------- ---------------------- ---------------------- ---------------------- --------------------
</TABLE>

                                C-5
<PAGE>
<TABLE>
<CAPTION>
<S>                                  <C>                    <C>                    <C>                    <C>
------------------------------------- ---------------------- ---------------------- ---------------------- --------------------
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                               $____________          $____________          $____________          $____________
-------------------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------------------
APPLICATION OF REALLOCATED INVESTOR FINANCE CHARGE COLLECTIONS
-------------------------------------------------------------------------------------------------------------------------------
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                                                          $------------
----------------------------------------------------------------------------------- ---------------------- --------------------
</TABLE>

                                      C-6
<PAGE>

<TABLE>
<CAPTION>
<S>                                  <C>                    <C>                    <C>                    <C>
3. COLLATERAL AVAILABLE FUNDS
----------------------------------------------------------------------------------- ---------------------- --------------------
         a.  Excess Spread                                                          $____________
----------------------------------------------------------------------------------- ---------------------- --------------------
4. TOTAL EXCESS SPREAD                                                              $____________
-------------------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------------------
REALLOCATED PRINCIPAL COLLECTIONS
-------------------------------------------------------------------------------------------------------------------------------
1.  Principal Allocation Percentage                                                 ________%
------------------------------------------------------------ ---------------------- ---------------------- --------------------
2.  Series 2005-1 Allocable Principal Collections                                   $____________
------------------------------------------------------------ ---------------------- ---------------------- --------------------
3.  Principal Allocation Percentage of Series
    2005-1 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 2005-1                                                      $____________
------------------------------------------------------------ ---------------------- ---------------------- --------------------
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-7
<PAGE>
<TABLE>
<CAPTION>
<S>                                  <C>                    <C>                    <C>                    <C>
-------------------------------------------------------------------------------------------------------------------------------
APPLICATION OF EXCESS SPREAD AND EXCESS FINANCE CHARGE COLLECTIONS ALLOCATED TO SERIES 2005-1
-------------------------------------------------------------------------------------------------------------------------------
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-8
<PAGE>

                                                                       EXHIBIT D

                     FORM OF MONTHLY SERVICER'S CERTIFICATE

             AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC.

                  AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST
                                 SERIES 2005-1

         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 2005-1
Supplement, dated as of March 24, 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 2005-1 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 2005-1 Supplement,
dated as of March 24, 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

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