<SUBMISSION>
<ACCESSION-NUMBER>0000950123-02-008012
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>6
<PERIOD>20020630
<FILING-DATE>20020814
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>MASTERCARD INC
<CIK>0001141391
<ASSIGNED-SIC>7389
<IRS-NUMBER>134172551
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>333-67544
<FILM-NUMBER>02735404
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2000 PURCHASE STREET
<CITY>PURCHASE
<STATE>NY
<ZIP>10577
<PHONE>9142492000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>2000 PURCHASE STREET
<CITY>PURCHASE
<STATE>NY
<ZIP>10577
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>y62583e10vq.htm
<DESCRIPTION>MASTERCARD INCORPORATED
<TEXT>
<HTML>
<HEAD>
<TITLE>FORM 10-Q</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

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</DIV>

<DIV align="left">
<HR size="1" width="100%" align="left" noshade>
</DIV>

<P align="center">
<B><FONT size="4">SECURITIES AND EXCHANGE COMMISSION</FONT></B>

<DIV align="center">
<B>Washington, D.C. 20549</B>
</DIV>

<P align="center">
<B><FONT size="5">Form&nbsp;10-Q</FONT></B>

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    <TD width="17%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="80%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2"><FONT face="wingdings">&#254;</FONT>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <B><FONT size="2">QUARTERLY REPORT PURSUANT TO SECTION&nbsp;13
    OR 15 (d)<BR>
    OF THE SECURITIES EXCHANGE ACT OF 1934</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <B><FONT size="2">For the quarterly period ended June&nbsp;30,
    2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <B><FONT size="2">or</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2"><FONT face="wingdings">&#111;</FONT></FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <B><FONT size="2">TRANSITION REPORT PURSUANT TO SECTION&nbsp;13
    OR 15 (d)<BR>
    OF THE SECURITIES EXCHANGE ACT OF 1934</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <B><FONT size="2">For the transition period
    from&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to</FONT></B></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<B><FONT size="2">Commission file number:</FONT></B>

<P align="center">
<B><FONT size="6">MasterCard Incorporated</FONT></B>

<DIV align="center">
<I><FONT size="2">(Exact name of registrant as specified in its
charter)</FONT></I>
</DIV>

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<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="56%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="41%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Delaware</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <B><FONT size="2">13-4172551</FONT></B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <I><FONT size="2">(State or other jurisdiction of<BR>
    Incorporation or organization)</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <I><FONT size="2">(IRS Employer<BR>
    Identification Number)</FONT></I></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B><FONT size="2">2000 Purchase Street<BR>
    Purchase, NY<BR>
     </FONT></B><I><FONT size="2">(Address of principal executive
    offices)</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <B><FONT size="2">10577<BR>
     </FONT></B><I><FONT size="2">(Zip Code)</FONT></I></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<B><FONT size="2">(914)&nbsp;249-2000</FONT></B>

<DIV align="center">
<I><FONT size="2">(Registrant&#146;s telephone number, including
area code)</FONT></I>
</DIV>

<P align="center">
<B><FONT size="2">NOT APPLICABLE</FONT></B>

<DIV align="center">
<I><FONT size="2">(Former name, former address and former fiscal
year,</FONT></I>
</DIV>

<DIV align="center">
<I><FONT size="2">if changed since last report)</FONT></I>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Indicate by check mark whether the registrant
(1)&nbsp;has filed all reports required to be filed by
Section&nbsp;13 or 15 (d)&nbsp;of the Securities Exchange Act of
1934 during the preceding 12&nbsp;months (or for such shorter
period that the registrant was required to file such reports),
and (2)&nbsp;has been subject to such filing requirements for
the past
90&nbsp;days.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;<FONT face="wingdings">&#254;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;<FONT face="wingdings">&#111;</FONT>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Indicate the number of shares outstanding of each
of the issuer&#146;s classes of common stock, as of the latest
practicable date.
</FONT>

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<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="53%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="44%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Class</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Outstanding at July&nbsp;31, 2002</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Class&nbsp;A redeemable common stock,<BR>
    par value $.01 per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">84,000,000
    </FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Class&nbsp;B convertible common stock,<BR>
    par value $.01 per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">16,000,000
    </FONT></TD>
</TR>

</TABLE>
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<HR size="1" width="100%" align="left" noshade>
</DIV>

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<P><HR noshade><P>

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
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	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">CONSOLIDATED STATEMENTS OF INCOME (Unaudited)</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">CONSOLIDATED BALANCE SHEETS (Unaudited)</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS&#146;/MEMBERS&#146; EQUITY (Unaudited)</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)</A></TD></TR>
<TR><TD colspan="9"><A HREF="#005">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)</A></TD></TR>
<TR><TD colspan="9"><A HREF="#006">Item 2. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</A></TD></TR>
<TR><TD colspan="9"><A HREF="#007">Item 3. Quantitative and Qualitative Disclosures About Market Risk</A></TD></TR>
<TR><TD colspan="9"><A HREF="#008">Item 1. Legal Proceedings</A></TD></TR>
<TR><TD colspan="9"><A HREF="#009">Item 6. Exhibits and Reports on Form 8-K</A></TD></TR>
<TR><TD colspan="9"><A HREF="#010">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="y62583exv3w2wa.txt">AMENDED AND RESTATED CERTIFICATE OF INCORPORATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="y62583exv3w2wb.txt">AMENDED AND RESTATED BYLAWS</A></TD></TR>
<TR><TD colspan="9"><A HREF="y62583exv10w1.txt">CREDIT AGREEMENT</A></TD></TR>
<TR><TD colspan="9"><A HREF="y62583exv99w1.txt">CERTIFICATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="y62583exv99w2.txt">CERTIFICATION</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>

<P align="center">
<B><FONT size="2">FORM 10-Q</FONT></B>

<P align="center">
<B><FONT size="2">TABLE OF CONTENTS</FONT></B>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="79%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Page No.</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="7" align="center" valign="top">
    <B><FONT size="2">PART I&nbsp;&#151; FINANCIAL
    INFORMATION</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">ITEM&nbsp;1.&nbsp;&nbsp;CONSOLIDATED FINANCIAL
    STATEMENTS (Unaudited)</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Consolidated Statements of Income&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Three Months Ended June&nbsp;30, 2002 and 2001
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Six Months Ended June&nbsp;30, 2002 and 2001
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Consolidated Balance Sheets&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">June&nbsp;30, 2002 and December&nbsp;31, 2001
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Consolidated Statements of Cash Flows&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Six Months Ended June&nbsp;30, 2002 and 2001
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Consolidated Statements of Changes in
    Stockholders&#146;/ Members&#146; Equity&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Six Months Ended June&nbsp;30, 2002 and 2001
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Consolidated Statements of Comprehensive
    Income&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Three Months Ended June&nbsp;30, 2002 and 2001
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Six Months Ended June&nbsp;30, 2002 and 2001
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Notes to Consolidated Financial Statements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">ITEM&nbsp;2.&nbsp;&nbsp;MANAGEMENT&#146;S
    DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
    OPERATIONS</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">ITEM&nbsp;3.&nbsp;&nbsp;QUANTITATIVE AND
    QUALITATIVE DISCLOSURES ABOUT MARKET RISK</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Report of Independent Accountants
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="7" align="center" valign="top">
    <B><FONT size="2">PART&nbsp;II&nbsp;&#151; OTHER
    INFORMATION</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">ITEM&nbsp;1.&nbsp;&nbsp;LEGAL
    PROCEEDINGS</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">ITEM&nbsp;4.&nbsp;&nbsp;SUBMISSION OF MATTERS
    TO A VOTE OF SECURITY HOLDERS</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">ITEM&nbsp;6.&nbsp;&nbsp;EXHIBITS AND REPORTS
    ON FORM 8-K</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">SIGNATURES</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">1
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>

<DIV>&nbsp;</DIV>

<!-- link1 "CONSOLIDATED STATEMENTS OF INCOME (Unaudited)" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="center">
<B><FONT size="2">CONSOLIDATED STATEMENTS OF INCOME</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Unaudited)</FONT></B>
</DIV>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="53%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Three Months Ended</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Six Months Ended</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">June&nbsp;30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">June&nbsp;30,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><B><FONT size="1">(In thousands, except net income per share)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Revenue</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">448,757</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">417,413</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">840,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">792,906</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Operating Expenses</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">General and administrative
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">217,888</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">205,991</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">415,061</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">394,808</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Advertising and market development
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">159,191</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">126,090</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">259,117</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">211,630</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Depreciation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,164</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,970</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,257</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,556</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,765</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,479</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,090</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,613</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total operating expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">396,008</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">348,530</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">709,525</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">638,607</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">52,749</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">68,883</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">131,073</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">154,299</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="18"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Other Income and Expense</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Investment income, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,486</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,351</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,030</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,532</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest expense
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,087</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,385</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,537</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,889</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Minority interest in earnings of subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(12</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,445</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(279</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,425</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other income (expense)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">176</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(91</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">116</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">689</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total other income and expense
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,563</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,320</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,330</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,757</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income before taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56,312</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">78,203</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">140,403</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">163,056</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income tax expense
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,923</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,369</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">50,418</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">63,912</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Net Income</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36,389</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">47,834</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">89,985</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">99,144</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income per share (basic and diluted)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">.50</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">.67</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.38</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<FONT size="2">The accompanying notes are an integral part of
these consolidated financial statements.
</FONT>

<P align="center"><FONT size="2">2
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>

<DIV>&nbsp;</DIV>

<!-- link1 "CONSOLIDATED BALANCE SHEETS (Unaudited)" -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="center">
<B><FONT size="2">CONSOLIDATED BALANCE SHEETS</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Unaudited)</FONT></B>
</DIV>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="58%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">June&nbsp;30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">(In thousands, except share data)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Assets</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash and cash equivalents
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">309,402</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">176,143</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Investment securities, at fair value:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Available-for-sale
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">481,179</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">451,090</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Trading
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35,790</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">43,153</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounts receivable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">193,331</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">180,510</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Settlement due from MCI members
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">130,854</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">189,573</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Restricted security deposits held for MCI members
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">45,783</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Prepaid expenses and other current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85,911</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65,994</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Total Current Assets</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,282,250</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,106,463</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Property, plant and equipment, at cost (less
    accumulated depreciation and amortization of $264,690 and
    $256,253)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">213,157</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">159,742</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">51,475</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">66,535</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">141,302</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,641</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other intangible assets (less accumulated
    amortization and impairment of $115,317 and $93,299)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">276,738</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">84,113</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56,342</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">51,311</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Total Assets</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,021,264</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,474,805</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Liabilities and Stockholders&#146;/
    Members&#146; Equity</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Liabilities</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Overdraft
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">67,570</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,531</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounts payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">114,713</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">110,907</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Settlement due to MCI members
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">78,704</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">143,471</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Restricted security deposits held for MCI members
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">45,783</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accrued expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">390,918</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">353,194</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other current liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">41,362</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,368</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Total Current Liabilities</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">739,050</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">638,471</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">224,666</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">149,608</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">80,479</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">80,065</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Total Liabilities</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,044,195</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">868,144</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Minority interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">206</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Commitments and contingencies (Note 10)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="11"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Stockholders&#146; Equity/ Members&#146;
    Equity</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Class&nbsp;A redeemable common stock, $.01 par
    value; authorized 275,000,000 shares, issued 84,000,000 shares
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">840</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Class&nbsp;B convertible common stock, $.01 par
    value; authorized 25,000,000 shares, issued 16,000,000 shares
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">160</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Additional paid-in-capital
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">967,368</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Retained earnings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">602,724</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accumulated other comprehensive income, net of
    tax:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cumulative translation adjustment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(660</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(678</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net unrealized gain on investment securities
    available-for-sale
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,070</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,615</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total accumulated other comprehensive income, net
    of tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,410</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,937</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Total Stockholders&#146; Equity</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">976,863</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Total Members&#146; Equity</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">606,661</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Total Liabilities and Stockholders&#146;/
    Members&#146; Equity</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,021,264</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,474,805</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
<FONT size="2">The accompanying notes are an integral part of
these consolidated financial statements.
</FONT>

<P align="center"><FONT size="2">3
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>

<DIV>&nbsp;</DIV>

<!-- link1 "CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)" -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="center">
<B><FONT size="2">CONSOLIDATED STATEMENTS OF CASH
FLOWS</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Unaudited)</FONT></B>
</DIV>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="65%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Six Months Ended</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">June&nbsp;30,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">(In thousands)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Operating Activities</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">89,985</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">99,144</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Adjustments to reconcile net income to net cash
    provided by operating activities:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Depreciation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,257</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,556</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,090</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,613</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other adjustments to net income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">143</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,952</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Changes in operating assets and liabilities, net
    of effects from the purchase of Europay International SA:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,721</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,832</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Trading securities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,363</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(376</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounts receivable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,748</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,932</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Settlement due from MCI members
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">123,216</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,480</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Prepaid expenses and other current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,348</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(10,141</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounts payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(21,446</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(56,945</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Settlement due to MCI members
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(92,358</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(13,028</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accrued expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(26,788</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,750</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other intangible assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(115</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,791</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net change in other assets and liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(15,983</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash provided by operating activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">131,181</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">87,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Investing Activities</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net purchases of property, plant and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17,459</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(34,683</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capitalized software
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(21,154</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(26,937</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Purchases of investment securities
    available-for-sale
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(125,816</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(70,290</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Proceeds from sales of investment securities
    available-for-sale
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">102,650</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">67,723</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash received from the acquisition of Europay
    International SA, net of expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">67,747</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Investment in affiliates
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,263</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,272</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other investing activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">377</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,652</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash provided by (used in) investing
    activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,608</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(61,807</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Financing Activities</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Repayment of short-term borrowings, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9,530</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,695</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash used in financing activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9,530</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,695</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net increase in cash and cash equivalents
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">133,259</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,207</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash and cash equivalents&nbsp;&#151; beginning
    of year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">176,143</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">193,304</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash and cash equivalents&nbsp;&#151; end of
    period
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">309,402</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">215,511</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Supplemental schedule of noncash investing
    activities:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Acquisition of Europay International SA:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fair value of assets acquired, net of cash
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">522,063</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fair value of liabilities assumed
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">296,818</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Common stock and additional paid-in-capital issued
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">225,245</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<FONT size="2">The accompanying notes are an integral part of
these consolidated financial statements.
</FONT>

<P align="center"><FONT size="2">4
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>

<DIV>&nbsp;</DIV>

<!-- link1 "CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS&#146;/MEMBERS&#146; EQUITY (Unaudited)" -->
<DIV align="left"><A NAME="003"></A></DIV>

<DIV align="center">
<B><FONT size="2">CONSOLIDATED STATEMENTS OF CHANGES IN
STOCKHOLDERS&#146;/ MEMBERS&#146; EQUITY</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Unaudited)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="31%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Additional Paid-</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Accumulated Other</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Common Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">in-Capital</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Retained</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Comprehensive</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Earnings</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Income</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Class A</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Class B</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Class A</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Class B</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">(In thousands)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance at January&nbsp;1, 2002</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">606,661</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">602,724</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,937</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">89,985</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">89,985</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Issuance of common stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">275,744</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(692,624</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">840</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">160</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">812,589</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">154,779</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other comprehensive income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,473</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,473</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance at June&nbsp;30, 2002</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">976,863</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,410</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">840</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">160</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">812,589</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">154,779</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance at January&nbsp;1, 2001</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">462,408</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">460,663</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,745</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">99,144</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">99,144</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other comprehensive income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,161</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,161</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance at June&nbsp;30, 2001</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">563,713</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">559,807</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,906</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>

<DIV>&nbsp;</DIV>

<!-- link1 "CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)" -->
<DIV align="left"><A NAME="004"></A></DIV>

<DIV align="center">
<B><FONT size="2">CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Unaudited)</FONT></B>
</DIV>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="54%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Three Months Ended</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Six Months Ended</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">June&nbsp;30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">June&nbsp;30,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><B><FONT size="1">(In thousands)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Net Income</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36,389</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">47,834</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">89,985</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">99,144</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other comprehensive income (loss), net of tax:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Foreign currency translation adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(26</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(249</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net unrealized gain (loss) on investment
    securities available-for-sale
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,149</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(74</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,455</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,410</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other comprehensive income (loss), net of tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,156</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(100</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,473</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,161</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Comprehensive Income</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">43,545</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">47,734</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">94,458</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">101,305</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The accompanying notes are an integral part of
these consolidated financial statements.
</FONT>

<P align="center"><FONT size="2">5
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>

<DIV>&nbsp;</DIV>

<!-- link1 "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)" -->
<DIV align="left"><A NAME="005"></A></DIV>

<DIV align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(In Thousands, Except Share Data)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">The following notes should be read in
conjunction with the proxy statement-prospectus forming part of
Post-Effective Amendment No. 2 to MasterCard Incorporated&#146;s
Registration Statement on Form S-4 filed May 7, 2002 (No.
333-67544).</FONT></I>

<P align="left">
<B><FONT size="2">Note&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Organization</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MasterCard Incorporated is a stock company
incorporated under the laws of Delaware, United States of
America. MasterCard Incorporated and its consolidated
subsidiaries, including MasterCard International Incorporated
(&#147;MCI&#148;) and MasterCard Europe SA (together,
&#147;MasterCard&#148; or the &#147;Company&#148;), provide
transaction processing and related services to the members of
MCI in support of the members&#146; credit, debit, smart card,
electronic cash and Automated Teller Machine (&#147;ATM&#148;)
payment card programs, and travelers cheque programs. MasterCard
enters into transactions with the members of MCI in the normal
course of business, and operates a system for authorizing,
clearing and settling payment transactions among the members of
MCI. The Company&#146;s stockholders are all principal members
of MCI.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As more fully described in Note 4, MasterCard
converted from a membership to a stock company on June&nbsp;28,
2002 through the creation of MasterCard Incorporated, a new
holding company. Also on June&nbsp;28, 2002, as more fully
described in Note&nbsp;4, MasterCard Incorporated directly and
indirectly acquired all of the outstanding stock of Europay
International SA (&#147;EPI&#148;), a company incorporated under
the laws of Belgium, not previously owned by MCI. On
July&nbsp;16, 2002, EPI was renamed MasterCard Europe SA
(&#147;MasterCard Europe&#148;).
</FONT>

<P align="left">
<B><FONT size="2">Note&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Summary
of Significant Accounting Policies</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Consolidation and basis of
presentation</FONT></I><FONT size="2">&nbsp;&#151; The
consolidated financial statements for the three and six months
ended June&nbsp;30, 2002 and 2001 and as of June&nbsp;30, 2002
are unaudited but in the opinion of management include all
adjustments (consisting of any normal and recurring adjustments)
that are necessary for a fair presentation of the Company&#146;s
results of operations and financial positions for the periods
and dates presented. The results of operations for the three and
six months ended June&nbsp;30, 2002 are not necessarily
indicative of the results to be expected for the full year.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">All intercompany accounts and transactions have
been eliminated in consolidation.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Certain amounts for prior periods have been
reclassified to conform with the current period presentation.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Use of
estimates</FONT></I><FONT size="2">&nbsp;&#151; The preparation
of financial statements in conformity with generally accepted
accounting principles in the United States of America requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, and disclosure of
contingent assets and liabilities, at the date of the financial
statements, and the reported amounts of revenue and expenses
during the reporting periods. Actual results may differ from
these estimates.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Cash and cash
equivalents</FONT></I><FONT size="2">&nbsp;&#151; Cash and cash
equivalents include certain highly liquid investments with a
maturity of three months or less from the date of purchase. Such
investments are recorded at cost, which approximates fair value.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Restricted security deposits held for MCI
members</FONT></I><FONT size="2">&nbsp;&#151; MasterCard Europe
requires and holds security deposits from certain members in
order to ensure proper settlement of their transactions. These
assets are fully offset by corresponding liabilities included in
the Consolidated Balance Sheets.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Capitalized
software</FONT></I><FONT size="2">&nbsp;&#151; Capitalized
software, which includes internal and external costs incurred in
developing or obtaining computer software for internal use, are
capitalized in other intangible assets in the consolidated
balance sheets in accordance with Statement of Position 98-1,
&#147;Accounting for the Costs of Computer Software Developed or
Obtained for Internal Use&#148; and related guidance.
Development costs are
</FONT>

<P align="center"><FONT size="2">6
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In Thousands, Except Share Data)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">expensed during the preliminary project
management phase and until it is probable that the project will
be completed and the software will be used to perform the
function intended. Thereafter, all qualifying direct internal
and external costs related to the design, development and
testing phase are capitalized, and upon the project being
substantially complete and ready for its intended use, are
amortized using the straight-line method over the estimated
useful life of the software, not to exceed three years. Costs
related to post-implementation activities are expensed as
incurred.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Special purpose entity
(&#147;SPE&#148;)</FONT></I><FONT size="2">&nbsp;&#151; MCI is
the lessee in one synthetic lease transaction involving an SPE
that acts as lessor. The SPE was set-up for a single, discrete
purpose. It is not an operating entity, has no employees and has
a limited life. The legal documents that govern
MasterCard&#146;s SPE transaction describe how the cash earned
on the assets held in the SPE must be allocated to the investors
and other parties that have rights to these cash flows.
MasterCard&#146;s synthetic lease is for its Winghaven
transaction processing facility located in O&#146;Fallon,
Missouri that was structured by creating an SPE, which
constructed and owns the facility (see Note&nbsp;10 and the
discussion under the heading &#147;Liquidity and Capital
Resources&#148; in Part&nbsp;1, Item&nbsp;2 of this report). The
decision whether or not to consolidate the SPE, or record the
facility on the balance sheet, depends not only on the
applicable accounting principles for SPEs and the treatment of
the lease as operating or capital, but also on a determination
regarding the nature and amount of the investments made by third
parties in the SPE. Consideration is given, for example, to
whether a third party has made substantive equity investment in
the SPE; which party has voting rights; who makes decisions
about the assets in the SPE; and who is at risk for loss. The
SPE is not consolidated because, under the applicable accounting
principles, MasterCard does not exercise control over the risks
and rewards of the assets in the SPE. The Financial Accounting
Standards Board is currently reviewing the consolidation
requirements of SPEs. Such review may result in more stringent
requirements for the consolidation of SPEs.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Revenue
recognition</FONT></I><FONT size="2">&nbsp;&#151; Revenues are
recognized when services are performed and when products are
sold. The Company&#146;s revenue is comprised of operations fees
and assessments. Certain revenues are estimated based upon
information provided by MCI members. On February&nbsp;3, 2002,
the Emerging Issues Task Force (&#147;EITF&#148;) finalized
Issue No.&nbsp;01-9 &#147;Accounting for Consideration Given by
a Vendor to a Customer (Including a Reseller of the
Vendor&#146;s Products)&#148;. This pronouncement, effective for
fiscal years beginning after December&nbsp;15, 2001, requires
that certain payments from a vendor to a customer be categorized
as a reduction of revenue on the vendor&#146;s income statement.
MasterCard has applied this pronouncement where applicable.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Operations fees represent user fees for
authorization, clearing, settlement and other member products
and services that facilitate transaction and information
management among MCI&#146;s members on a global basis. These
fees are recognized as revenue in the same period as the related
transactions occur or services are rendered. Products sold
include holograms, paper warning bulletins, manuals and
publications. Revenue from product sales is recognized upon
their sale.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Assessments predominantly represent payments made
by members of MCI in respect of their card programs carrying one
or more of the MasterCard family of brands, principally the
MasterCard, Maestro and Cirrus brands (&#147;MasterCard
cards&#148;). Assessments are based principally upon daily,
monthly or quarterly gross dollar volumes (&#147;GDV&#148;),
which represent gross spending on MasterCard cards for goods and
services as well as cash disbursements. Assessments are recorded
as revenue in the month they are earned, which is when the
related GDV is generated on MasterCard cards.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MasterCard has strategic arrangements with
certain MCI members, which provide for fee rebates when the
member meets certain hurdles. Such rebates are generally
calculated on a monthly basis based upon members&#146;
transaction levels and the contracted discount rates for the
services provided, and are recorded as a reduction of revenue in
the same period as the revenue is earned. Rebates are based on
management&#146;s estimate of the MCI members&#146; performance
in a given period and actual results may differ from these
estimates.
</FONT>

<P align="center"><FONT size="2">7
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In Thousands, Except Share Data)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, MasterCard also enters into
volume-based and support incentives that are recorded as a
reduction of revenue in accordance with EITF Issue
No.&nbsp;01-9, &#147;Accounting for Consideration Given by a
Vendor to a Customer (Including a Reseller of the Vendor&#146;s
Products)&#148;. Incentives are generally based on the
members&#146; achievement of predefined GDV, account-issuance,
spending per card and/or account-conversion targets. Incentives
are based on management&#146;s estimate of the MCI members&#146;
performance in a given period and actual results may differ from
these estimates.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Advertising
expense</FONT></I><FONT size="2">&nbsp;&#151; The cost of media
advertising is generally expensed at the time the advertising
takes place. Production costs are expensed as costs are
incurred. Promotional items are expensed at the time the
promotional event occurs.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Legal
fees</FONT></I><FONT size="2">&nbsp;&#151; MasterCard accrues
legal costs that are expected to be incurred to defend
MasterCard in certain litigation discussed in Note&nbsp;12. The
accruals are estimated based on management&#146;s expectations
of foreseeable costs, which are assessed in accordance with
Financial Accounting Standards Board (&#147;FASB&#148;)
Statement No.&nbsp;5, &#147;Accounting for Contingencies&#148;
after consultation with outside counsel. This policy has been
consistently applied since the commencement of certain
litigation discussed in Note 12.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Impairment</FONT></I><FONT size="2">&nbsp;&#151;
Management evaluates the recoverability of all long-lived assets
accounted for under Statement of Financial Accounting Standards
(&#147;SFAS&#148;) No.&nbsp;144, &#147;Accounting for the
Impairment or Disposal of Long-Lived Assets&#148; on an ongoing
basis. If the sum of expected net future cash flows
(undiscounted and without interest charges) is less than the
carrying amount of the asset, an impairment loss is recognized.
The loss is measured as the amount by which the carrying amount
of the asset exceeds its fair value calculated using the present
value of estimated net future cash flows.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Net income per
share</FONT></I><FONT size="2">&nbsp;&#151; MasterCard computes
basic and diluted net income per share by dividing net income
applicable to common stock by the weighted average number of
common shares outstanding for the period.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Recent accounting
pronouncements</FONT></I><FONT size="2">&nbsp;&#151; On
February&nbsp;3, 2002, the EITF finalized Issue No.&nbsp;01-9
&#147;Accounting for Consideration Given by a Vendor to a
Customer (Including a Reseller of the Vendor&#146;s
Products)&#148;. This pronouncement, effective for fiscal years
beginning after December&nbsp;15, 2001, requires that certain
payments from a vendor to a customer be categorized as a
reduction of revenue on the vendor&#146;s income statement. In
order for payments to be treated as expense, the vendor must
receive an identifiable benefit of goods or services that is
sufficiently separable from the recipient&#146;s purchase from
the vendor and the vendor must be able to reasonably estimate
the fair value of that benefit. On January&nbsp;1, 2002,
MasterCard implemented EITF Issue No.&nbsp;01-9 and reclassified
as reductions of revenue certain payments to members of MCI and
merchants that were previously recognized as advertising and
market development expense. The amounts reclassified were
$43,372 and $62,715 for the six months ended June&nbsp;30, 2002
and 2001, respectively and $22,945 and $30,819 for the three
months ended June&nbsp;30, 2002 and 2001, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On June&nbsp;29, 2001, the FASB approved SFAS
No.&nbsp;141, &#147;Business Combinations,&#148; and SFAS
No.&nbsp;142, &#147;Goodwill and Other Intangible Assets.&#148;
The acquisition of EPI was accounted for in accordance with both
of these standards.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">SFAS No.&nbsp;141 supersedes Accounting
Principles Board Opinion (&#147;APB&#148;) No.&nbsp;16,
&#147;Business Combinations.&#148; SFAS No.&nbsp;141 requires
that the purchase method of accounting be used for all business
combinations initiated after June&nbsp;30, 2001 and establishes
specific criteria for the recognition of intangible assets,
other than goodwill, separately from goodwill. The new standard
also requires unallocated negative goodwill to be written off
immediately as an extraordinary gain (instead of being deferred
and amortized). SFAS No.&nbsp;142 supersedes APB No.&nbsp;17,
&#147;Intangible Assets&#148;. SFAS No.&nbsp;142 primarily
addresses the accounting for goodwill and intangible assets
subsequent to their acquisition (i.e., post-acquisition
accounting). The provisions of SFAS No.&nbsp;142 are effective
for fiscal years beginning after December&nbsp;15, 2001. SFAS
No.&nbsp;142 establishes that
</FONT>

<P align="center"><FONT size="2">8
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In Thousands, Except Share Data)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">goodwill and intangible assets with indefinite
lives will no longer be amortized and that goodwill be tested
for impairment at least annually at the reporting unit level.
The new standard also requires that intangible assets deemed to
have an indefinite life be tested for impairment at least
annually, and the amortization period of intangible assets with
finite lives will no longer be limited to forty years. In
addition, goodwill acquired in a business combination for which
the acquisition date is after June&nbsp;30, 2001, will not be
amortized. On January&nbsp;1, 2002, the Company adopted SFAS
No.&nbsp;142. This adoption had no material impact on the
Company&#146;s financial statements. The Statement requires that
transitional goodwill (goodwill recorded before the adoption of
SFAS No.&nbsp;142) be tested for impairment within six months of
adoption of the Statement and that all goodwill be tested at
least annually. Accordingly, MasterCard tested its existing
goodwill of $6,641 at June&nbsp;30, 2002 recorded in connection
with the acquisition of the Cirrus business and no impairment
was required. The Company will evaluate goodwill and other
indefinite-lived intangible assets recorded in connection with
the EPI acquisition in the fourth quarter of 2002, as part of
its impairment analysis.
</FONT>

<P align="left">
<B><FONT size="2">Note&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
Income Per Share</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth the computation of
basic and diluted net income per share:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="56%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Three months ended</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Six months ended</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">June 30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">June 30,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Numerator for net income per share (basic and
    diluted): Net Income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36,389</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">47,834</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">89,985</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">99,144</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Denominator for net income per share (basic and
    diluted) Weighted average basic and diluted shares outstanding
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">72,643</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">71,710</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">72,129</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">71,710</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income per share (basic and diluted)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">.50</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">.67</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.38</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">Note&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conversion
to a Stock Company and Acquisition of EPI</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Conversion</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On June&nbsp;28, 2002, MCI, pursuant to an
Agreement and Plan of Merger dated as of February&nbsp;13, 2002,
merged with a subsidiary of MasterCard Incorporated (the
&#147;Conversion&#148;). In the Conversion, each principal
member of MCI received shares of class&nbsp;A redeemable common
stock and class&nbsp;B convertible common stock of MasterCard
Incorporated, representing that member&#146;s equity interest in
the Company. Additionally, each principal member of MCI received
a class&nbsp;A membership interest in MCI, representing that
member&#146;s continued rights as a licensee to use
MasterCard&#146;s brands, programs, products and services.
MasterCard Incorporated owns the sole class&nbsp;B membership
interest in MCI, entitling MasterCard Incorporated to exercise
all economic rights and substantially all voting rights in MCI.
MCI is the Company&#146;s principal operating subsidiary.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Acquisition of EPI
    (&#147;Integration&#148;)</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On June&nbsp;28, 2002, in connection with the
Conversion, MasterCard Incorporated acquired, directly and
indirectly, 100% of the shares of EPI not previously owned by
MCI pursuant to a Share Exchange and Integration Agreement,
dated as of February&nbsp;13, 2002, entered into by MasterCard
Incorporated, MCI and EPI (the &#147;Integration
Agreement&#148;). On July&nbsp;16, 2002, EPI was renamed
MasterCard Europe. MasterCard Europe is the Company&#146;s
principal operating subsidiary in Europe.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with the Integration Agreement,
each shareholder of EPI (other than MCI and MasterCard Europay
U.K. Limited (&#147;MEPUK&#148;)) was required to enter into a
separate share exchange
</FONT>

<P align="center"><FONT size="2">9
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In Thousands, Except Share Data)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">agreement with MasterCard Incorporated and MCI,
pursuant to which it exchanged its EPI shares for a specified
number of shares of class A redeemable common stock and
class&nbsp;B convertible common stock of MasterCard
Incorporated. In addition, the shareholders of MEPUK were
required to enter into an agreement with MasterCard Incorporated
pursuant to which they exchanged their MEPUK shares for a
specified number of shares of class&nbsp;A redeemable common
stock and class B convertible common stock of MasterCard
Incorporated. As a result of the Integration, EPI and MEPUK
became wholly-owned subsidiaries of MasterCard Incorporated. At
the time of the Integration, MEPUK&#146;s sole asset was certain
shares of EPI. MCI and MEPUK continue to hold shares of EPI.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MasterCard Europe (formerly EPI) is a leading
payment solutions company in Europe, headquartered in Waterloo,
Belgium. MasterCard Europe&#146;s primary business is to license
a full range of payment programs and services to financial
institutions in the European region and to provide a
sophisticated set of information processing and transaction
delivery services to these institutions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The results of EPI&#146;s operations have been
included in the Consolidated Financial Statements of the Company
from June&nbsp;28, 2002. These results did not have a material
impact on the Consolidated Financial Statements.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Purchase Price for EPI</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MasterCard Incorporated issued 23.76&nbsp;million
shares to the shareholders of EPI and MEPUK in the Integration,
in return for directly and indirectly acquiring 100% of the
shares of EPI not previously owned by MCI. However, of the
23.76&nbsp;million shares issued, only 17.61&nbsp;million were
considered to be issued unconditionally. As discussed more fully
below, the purchase price for EPI is based on the estimated
value of the unconditional shares only. The estimated value of
the MasterCard Incorporated shares issued was based on an
independent valuation. Considering this valuation and the number
of unconditional shares issued, the purchase price of EPI was
$267,856, excluding acquisition costs of $10,486 that were
incurred by the Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In calculating the purchase price of EPI, the
Company considered only the unconditional shares issued to the
former shareholders of EPI and MEPUK because the Integration
Agreement provides that the number of shares allocated to these
shareholders will potentially increase or decrease at the end of
a three-year transition period as a result of the application of
a global proxy formula for the third year of the transition
period. Of the 23.76&nbsp;million shares attributable to the
exchange of EPI and MEPUK shares, 6.15&nbsp;million shares are
conditional shares subject to reallocation at the end of the
transition period and allocable to EPI and MEPUK shareholders.
EPI and MEPUK shareholders therefore received 17.61&nbsp;million
unconditional shares at closing.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Since former EPI and MEPUK shareholders would
retain or receive additional shares of MasterCard Incorporated
at the end of the transition period without remitting any
additional consideration, any shares retained or received by
them that are above their minimum allocation at that time would
constitute a part of the purchase price. Any such additional
shares would be valued at that time based upon the fair value of
the stock of MasterCard Incorporated. Any such reallocation of
shares to former EPI and MEPUK shareholders will increase the
purchase price for EPI and, accordingly, the amount of goodwill
and additional paid-in-capital recorded.
</FONT>

<P align="center"><FONT size="2">10
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In Thousands, Except Share Data)</FONT></B>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Fair Value of EPI Assets Acquired and
    Liabilities Assumed</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table summarizes the estimated fair
values of the assets acquired and liabilities assumed at the
date of the acquisition of EPI, as determined based on an
independent appraisal.
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">At June 28, 2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">200,319</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Property, plant, and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">46,376</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">134,661</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other intangible assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">187,152</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,652</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total assets acquired
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">575,160</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">202,475</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74,197</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,146</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total liabilities assumed
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">296,818</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net assets acquired
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">278,342</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other intangible assets (see Note&nbsp;8) include
capitalized software/ technology of $32,664 and trademarks and
tradenames of $10,795. Both of these asset classes have a
weighted average useful life of approximately three years. In
addition, other intangible assets include customer relationships
of $143,693 that have an indefinite useful life. Goodwill (see
Note&nbsp;7) and intangible assets with indefinite lives are not
subject to amortization. Goodwill is not tax deductible.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Included in the liabilities above are preliminary
estimates of exit costs relating to the acquisition of EPI as
follows: the estimated costs of eliminating certain Europay
brands and logos totaling $11,225; estimated costs of
eliminating redundant computer systems/ technology totaling
$7,794; estimated costs of workforce reduction of EPI employees
totaling $2,515; and other acquisition-related liabilities
totaling $7,150. The Company&#146;s total estimates of exit
costs pertaining to the estimated costs of eliminating certain
brands and logos have decreased from the amounts contained in
the proxy statement-prospectus forming part of Post-Effective
Amendment No. 2 to the Company&#146;s Registration Statement on
Form S-4 filed May 7, 2002 (No. 333-67544).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the Integration Agreement, the bylaws
of MCI adopted on June&nbsp;28, 2002 provide that the Company
will assume the first $7,000 of losses or liabilities that
relate to any breach of EPI&#146;s representations or warranties
in the Integration Agreement; any such losses or liabilities in
excess of $7,000 could, under the Company&#146;s bylaws, be
levied against MCI&#146;s European members as an assessment.
MasterCard anticipates that certain former EPI liabilities could
trigger this bylaw provision.
</FONT>

<P align="center"><FONT size="2">11
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In Thousands, Except Share Data)</FONT></B>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Pro Forma Results of
    Operations</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The unaudited pro forma results of operations for
the three and six months ended June&nbsp;30, 2002 and 2001, as
if EPI had been combined as of the beginning of the year, are as
follows.
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="53%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Three months ended</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Six months ended</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">June&nbsp;30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">June&nbsp;30,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenue
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">482,609</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">471,885</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">948,944</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">906,268</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">41,009</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">50,694</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100,186</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">99,760</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">.41</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">.51</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">These results have been prepared for comparative
purposes only, and are not necessarily indicative of the results
that would have occurred had the acquisition of EPI occurred on
the dates indicated.
</FONT>

<P align="left">
<B><FONT size="2">Note
5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Securities</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The amortized cost and fair value of investment
securities available-for-sale are as follows:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="53%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Gross Unrealized</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amortized</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">June 30, 2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Cost</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Gains</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Losses</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fair Value</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Municipal bonds
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">466,286</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,907</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(14</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">481,179</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="54%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Gross Unrealized</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amortized</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">December 31, 2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Cost</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Gains</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Losses</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fair Value</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Municipal bonds
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">443,398</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,029</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,337</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">451,090</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The maturity distribution based on contractual
terms of investment securities available-for-sale at
June&nbsp;30, 2002 is as follows:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="70%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amortized</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Cost</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fair Value</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Due within 1&nbsp;year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,094</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,332</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Due after 1&nbsp;year through 5&nbsp;years
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">400,491</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">413,980</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Due after 5&nbsp;years through 10&nbsp;years
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58,701</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">59,867</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">466,286</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">481,179</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company holds a 5.25&nbsp;percent Missouri
Development Bond due August&nbsp;1, 2009 as an investment
security held-to-maturity. The amortized cost of this security
was $6,949 and $7,326 at June&nbsp;30, 2002 and
December&nbsp;31, 2001, respectively. Principal and interest
payments are received on a semi-annual basis with a final
maturity date of August&nbsp;1, 2009. The fair market value of
this security approximates amortized cost.
</FONT>

<P align="center"><FONT size="2">12
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In Thousands, Except Share Data)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">Note 6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property,
Plant and Equipment</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Property, plant and equipment consist of the
following:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="67%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">June 30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December 31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">286,990</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">263,889</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Building and land
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">117,767</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">80,898</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Furniture and fixtures
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">43,560</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">41,307</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Leasehold improvements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,530</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,901</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">477,847</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">415,995</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Less accumulated depreciation and amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(264,690</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(256,253</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">213,157</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">159,742</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Depreciation and amortization expense for the
above property, plant and equipment was $8,649 and $10,645 for
the three months ended June&nbsp;30, 2002 and 2001,
respectively, and was $17,143 and $21,014 for the six months
ended June&nbsp;30, 2002 and 2001, respectively.
</FONT>

<P align="left">
<B><FONT size="2">Note
7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The changes in the carrying amount of goodwill
for the six months ended June&nbsp;30, 2002, are as follows:
</FONT>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="86%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Balance as of January&nbsp;1, 2002
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,641</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill acquired during the period (see
    Note&nbsp;4)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">134,661</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Balance as of June&nbsp;30, 2002
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">141,302</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth the impact of the
adoption of SFAS No.&nbsp;142 on the Company&#146;s earnings:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="54%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">For the three months</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">For the six months</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">ended June&nbsp;30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">ended June&nbsp;30,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Reported net income:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36,389</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">47,834</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">89,985</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">99,144</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Add back: Goodwill amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">276</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">551</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Adjusted net income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36,389</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48,110</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">89,985</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">99,695</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">.50</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">.67</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.38</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">.01</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Adjusted net income per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">.50</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">.67</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.39</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">13
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In Thousands, Except Share Data)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">Note 8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
Intangible Assets</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth net intangible
assets, other than goodwill:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="32%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">June 30, 2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">December 31, 2001</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Accumulated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Accumulated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amortization</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amortization</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Gross Carrying</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">&#38;</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Gross Carrying</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">&#38;</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Impairment</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Impairment</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortized intangible assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capitalized software
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">188,594</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(66,581</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">128,439</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(44,690</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Shareholder franchise rights
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48,427</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(48,427</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48,427</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(48,427</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Trademarks and tradenames
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,795</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(36</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">546</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(273</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">546</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(182</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">248,362</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(115,317</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">177,412</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(93,299</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unamortized intangible assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Customer relationships
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">143,693</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">392,055</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(115,317</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">177,412</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(93,299</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Amortization and impairment expense amounted to
the following:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="59%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Three months ended</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Six months ended</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">June 30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">June 30,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,280</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,804</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,204</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,155</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Impairment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">182</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">182</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<FONT size="2">The following table sets forth the estimated
future amortization expense on amortized intangible assets:
</FONT>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="87%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">For the six months ending December&nbsp;31, 2002
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35,939</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">For the year ending December&nbsp;31, 2003
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">64,682</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">For the year ending December&nbsp;31, 2004
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27,974</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">For the year ending December&nbsp;31, 2005
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,450</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">For the year ending December&nbsp;31, 2006
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">Note
9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In June 2002, the Company entered into a
committed credit facility of $1,200,000 with certain financial
institutions for a one-year period. This facility will expire on
June&nbsp;3, 2003. Under the facility, interest is charged at
the London Interbank Offered Rate (&#147;LIBOR&#148;) plus
28&nbsp;basis points, and the rate increases depending upon the
amount of the draw down. The commitment fee is 7&nbsp;basis
points plus upfront fees of $434. The purpose of the facility is
to provide liquidity in the event of member settlement failures.
The Company was in compliance with the facility covenants as of
June&nbsp;30, 2002. There were no borrowings under the facility
at June&nbsp;30, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In June 1998, MCI issued ten-year unsecured,
subordinated notes paying a fixed interest rate of 6.67% per
annum. The interest payments on the notes for both of the three
months and six months ended June&nbsp;30, 2002 and 2001 were
$1,334 and $2,668, respectively. The Company was in compliance
with the note covenants as of June&nbsp;30, 2002. The principal
amount of notes outstanding at June&nbsp;30, 2002 was $80,000.
</FONT>

<P align="center"><FONT size="2">14
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In Thousands, Except Share Data)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In October 1993, MasterCard Europe entered into a
revolving credit agreement with a bank to satisfy certain
operational funding requirements. The final amendment of this
agreement, dated October 1999, allows for borrowings of up to
twelve months from the borrowing date for a maximum amount of
35,000 Euros. This agreement requires interest to be paid at the
Euro Interbank Offered Rate (&#147;EURIBOR&#148;) plus .0625%
for borrowings up to six months and EURIBOR plus .125% for
borrowings of six to twelve months. In February 2001, MasterCard
Europe entered into a revolving credit agreement with the same
bank to provide fixed term financing to fund certain settlement
service operations for up to 30,000 Euros. This agreement allows
for borrowings to be outstanding for a period of seven to thirty
days. Amounts borrowed under this agreement are subject to the
same interest rate provisions as those set forth in the 35,000
Euro credit agreement. There were no outstanding loans under
either of these agreements at June&nbsp;30, 2002. Under an
informal arrangement, both the bank and MasterCard Europe allow
borrowings to exist, under certain conditions, without
triggering either agreement. These borrowings incur interest at
the Euro Overnight Index Average plus 50&nbsp;basis points. From
time to time, MasterCard Europe directs the bank to provide
funding under the above mentioned credit agreements in order to
obtain a lower interest rate and to minimize interest costs. At
June&nbsp;30, 2002, MasterCard Europe had an overdraft of less
than $500 under the informal borrowing arrangement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MasterCard Europe has an additional line of
10,000 Euros to cover multi-currency overdrafts with a separate
bank. The interest rate under this facility is LIBOR plus
50&nbsp;basis points per annum, and various rates apply in case
of borrowings in currencies other than the Euro. There were no
borrowings under this agreement at June&nbsp;30, 2002.
MasterCard Europe had an overdraft of approximately $65,000 at
this bank on June&nbsp;30, 2002. The bank has confirmed that
MasterCard Europe is in compliance with the terms of this
agreement because the bank, in its discretion, has netted all of
MasterCard Europe&#146;s cash positions with the bank.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">From time to time the Company has temporary
overdrafts at banks due to timing differences related to
settlement or corporate activity.
</FONT>

<P align="left">
<B><FONT size="2">Note
10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commitments and
Contingencies</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On August&nbsp;31, 1999, MCI entered into a
ten-year operating lease agreement for a global technology and
operations center located in O&#146;Fallon, Missouri, called
Winghaven. In conjunction with the lease agreement, the owner of
the property leased the land to the MCI O&#146;Fallon 1999 Trust
(the &#147;Trust&#148;). The Trust financed the operations
center through a combination of an equity investment and the
issuance of 7.36&nbsp;percent Series&nbsp;A Senior Secured Notes
(the &#147;Secured Notes&#148;) in the amount of $149,380. Rent
is payable in amounts equal to interest payments on the Secured
Notes and any returns to equity-holders. In conjunction with the
lease agreement, MCI executed a guarantee of 85.15&nbsp;percent
of the Secured Notes outstanding totaling $127,197 at
June&nbsp;30, 2002. Additionally, upon the occurrence of
specific events of default, MCI will guarantee repayment of the
total outstanding principal and interest on the Secured Notes
and take ownership of the facility. The lease agreement permits
MCI to purchase the facility upon 180&nbsp;days notice at a
purchase price equal to the aggregate outstanding principal
amount of the Secured Notes, including any accrued and unpaid
interest and investor equity, along with any accrued and unpaid
amounts due to the investor under the lease agreement after
August&nbsp;31, 2006.
</FONT>

<P align="center"><FONT size="2">15
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In Thousands, Except Share Data)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The future minimum payments under non-cancelable
operating leases for office buildings and equipment, as well as
future minimum payments for sponsorship, licensing and other
agreements at June&nbsp;30, 2002 are:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="60%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Sponsorship,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Operating</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Licensing &#38;</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Leases</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Other</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">The remainder of 2002
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">94,308</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,766</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">67,542</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2003
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100,243</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,098</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">67,145</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2004
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">70,088</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,428</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">47,660</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2005
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">47,312</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,588</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27,724</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2006
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,945</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,546</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,399</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Thereafter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37,154</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37,154</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">379,050</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">157,580</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">221,470</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MasterCard has guaranteed the payment of
settlement between MCI principal members should an MCI principal
member financial institution fail to settle its transactions.
See Note&nbsp;14 for a description of settlement credit risk.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MasterCard has also guaranteed the payment of
MasterCard-branded travelers cheques outstanding. MasterCard had
outstanding MasterCard-branded travelers cheques of $1,480,590
and $1,591,940 at June&nbsp;30, 2002 and December&nbsp;31, 2001,
respectively. A significant portion of the Company&#146;s credit
risk is concentrated in one MasterCard travelers cheque issuer.
MasterCard has obtained an unlimited guarantee valued at
$1,257,741 and $1,368,526 at June&nbsp;30, 2002 and
December&nbsp;31, 2001, respectively, from a financial
institution in order to cover all of the exposure of outstanding
travelers cheques with respect to that issuer.
</FONT>

<P align="left">
<B><FONT size="2">Note 11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income
Tax</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The effective tax rate for the three month and
six month periods ended June&nbsp;30, 2002 decreased to 35.4%
and 35.9%, respectively, from 38.8% and 39.2% for the three
month and six month periods ended June&nbsp;30, 2001,
respectively. The decrease in the rate was primarily
attributable to a change in the geographic distribution of
pretax income from jurisdictions with higher state tax rates to
those with lower rates. In addition, in the six month period
ended June&nbsp;30, 2002, the Company realized significant
foreign tax credits relating to prior periods. The benefits from
these credits were offset by a one-time increase in state income
tax expense attributable to the revaluation of deferred state
tax assets as a result of lower state tax rates.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MasterCard&#146;s taxes are subject to challenge
in various jurisdictions, including Belgium in connection with
the operations of EPI (now MasterCard Europe). However,
MasterCard could, under its bylaws, levy an assessment on its
European members for any additional EPI tax liability with
respect to periods before June&nbsp;28, 2002, to the extent that
such liability, together with other losses and liabilities
arising out of the representations and warranties of EPI in the
Integration Agreement, exceeds $7,000 in the aggregate.
</FONT>

<P align="left">
<B><FONT size="2">Note 12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal
Proceedings</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MasterCard is a party to legal proceedings with
respect to a variety of matters in the ordinary course of
business. Except as described below, MasterCard does not believe
that any legal proceedings to which it is a party would have a
material adverse impact on its business or prospects. MasterCard
believes that it is not currently possible to estimate the
impact, if any, that the ultimate resolution of these matters
will have on its results of operations, financial position or
cash flows.
</FONT>

<P align="center"><FONT size="2">16
</FONT>

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<DIV align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In Thousands, Except Share Data)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Department of
Justice Antitrust Litigation</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In October 1998, the United States Department of
Justice (&#147;DOJ&#148;) filed suit against MasterCard
International Incorporated, Visa U.S.A., Inc. and Visa
International Corp. in the U.S. District Court for the Southern
District of New York alleging that both MasterCard&#146;s and
Visa&#146;s governance structure and policies violated U.S.
federal antitrust laws. First, the DOJ claimed that &#147;dual
governance&#148;&nbsp;&#151; the situation where a financial
institution has a representative on the board of directors of
MasterCard or Visa while a portion of its card portfolio is
issued under the brand of the other association&nbsp;&#151; was
anti-competitive and acted to limit innovation within the
payment card industry. At the same time, the DOJ conceded that
&#147;dual issuance&#148;&nbsp;&#151; a term describing the
structure of the bank card industry in the United States in
which a single financial institution can issue both MasterCard
and Visa-branded cards&nbsp;&#151; was pro-competitive. Second,
the DOJ challenged MasterCard&#146;s Competitive Programs Policy
(&#147;CPP&#148;) and a Visa bylaw provision that prohibit
financial institutions participating in the respective
associations from issuing competing proprietary payment cards
(such as American Express or Discover). The DOJ alleged that
MasterCard&#146;s CPP and Visa&#146;s bylaw provision acted to
restrain competition.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MasterCard denied the DOJ&#146;s allegations.
MasterCard believes that both &#147;dual governance&#148; and
the CPP are pro-competitive and fully consistent with U.S.
federal antitrust law.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A bench trial concerning the DOJ&#146;s
allegations was concluded on August&nbsp;22, 2000. On
October&nbsp;9, 2001, the district court judge issued an opinion
upholding the legality and pro-competitive nature of dual
governance. In so doing, the judge specifically found that
MasterCard and Visa have competed vigorously over the years,
that prices to consumers have dropped dramatically, and that
MasterCard has fostered rapid innovations in systems, product
offerings and services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">However, the judge also held that
MasterCard&#146;s CPP and the Visa bylaw constitute unlawful
restraints of trade under the federal antitrust laws. The judge
found that the CPP and Visa bylaw weakened competition and
harmed consumers by preventing competing proprietary payment
card networks such as American Express and Discover from
entering into agreements with banks to issue cards on their
networks. In reaching this decision, the judge found that two
distinct markets&nbsp;&#151; a credit and charge card issuing
market and a network services market&nbsp;&#151; existed in the
United States, and that both MasterCard and Visa had market
power in the network market. MasterCard strongly disputes these
findings and believes that the DOJ failed, among other things,
to demonstrate that U.S. consumers have been harmed by the CPP.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On November&nbsp;26, 2001, the judge issued a
final judgment that orders MasterCard to repeal the CPP insofar
as it applies to issuers and enjoins MasterCard from enacting or
enforcing any bylaw, rule, policy or practice that prohibits its
issuers from issuing general purpose or debit cards in the
United States on any other general purpose card network. The
judge also concluded that during the period in which the CPP was
in effect, MasterCard was able to &#147;lock up&#148; certain
members by entering into long-term agreements with them pursuant
to which the members committed to maintain a certain percentage
of their general purpose card volume, new card issuance or total
number of cards in force in the United States on
MasterCard&#146;s network. Accordingly, the final judgment
provides that there will be a period (commencing on the
effective date of the judgment and ending on the later of two
years from that date or two years from the resolution of any
final appeal) during which MasterCard will be required to permit
any issuer with which it entered into such an agreement prior to
the effective date of the final judgment to terminate that
agreement without penalty, provided that the reason for the
termination is to permit the issuer to enter into an agreement
with American Express or Discover. MasterCard would be free to
apply to the district court to recover funds paid but not yet
earned under any terminated agreement. The final judgment
imposes parallel requirements on Visa. The judge explicitly
provided that MasterCard and Visa would be free to enter into
new partnership or member business agreements in the future.
</FONT>

<P align="center"><FONT size="2">17
</FONT>

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<DIV align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In Thousands, Except Share Data)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MasterCard believes that it has a strong legal
basis to challenge the judge&#146;s ruling with respect to the
CPP, and has appealed the decision on that count. On
February&nbsp;6, 2002, the judge issued an order granting
MasterCard&#146;s and Visa&#146;s motion to stay the final
judgment pending appeal. MasterCard, the DOJ and other parties
to the litigation are presently submitting appellate briefs to
the Second Circuit Court of Appeals.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MasterCard believes that it is not currently
possible to estimate the impact, if any, that the ultimate
resolution of this matter will have on MasterCard&#146;s results
of operations, financial position or cash flows.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Merchant
Antitrust Litigation</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Commencing in October 1996, several putative
class action suits were brought by a number of U.S.
merchants&nbsp;&#151; including Wal-Mart Stores, Inc., Sears
Roebuck &#38; Co., Inc., The Limited Inc. and Safeway,
Inc.&nbsp;&#151; against MasterCard International Incorporated
and Visa U.S.A., Inc. challenging certain aspects of the payment
card industry under U.S. federal antitrust law. Those suits were
later consolidated in the U.S. District Court for the Eastern
District of New York. The plaintiffs challenge MasterCard&#146;s
&#147;Honor All Cards&#148; rule (and a similar Visa rule),
which ensures universal acceptance for consumers by requiring
merchants who accept MasterCard cards to accept for payment
every validly presented MasterCard card. Plaintiffs claim that
MasterCard and Visa unlawfully have tied acceptance of debit
cards to acceptance of credit cards. In essence, the merchants
desire the ability to reject off-line, signature-based debit
transactions (for example, MasterCard card transactions) in
favor of other payment forms, including on-line, PIN-based debit
transactions (for example, Maestro or regional ATM network
transactions) which generally impose lower transaction costs for
merchants. The plaintiffs also claim that MasterCard and Visa
have conspired to monopolize what they characterize as the
point-of-sale debit card market, thereby suppressing the growth
of regional networks such as ATM payment systems. Plaintiffs
allege that the plaintiff class has been forced to pay
unlawfully high prices for debit and credit card transactions as
a result of the alleged tying arrangement and monopolization
practices. There are related consumer class actions pending in
two state courts that have been stayed pending developments in
this matter. In addition, a related case was filed by a merchant
in federal district court in Michigan, alleging antitrust
violations arising from a purported tie of signature-based debit
transactions to credit transactions. MasterCard is presently
evaluating the procedure to have this case consolidated with the
pending action in the U.S. District Court for the Eastern
District of New York, if possible.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MasterCard denies the merchant allegations and
believes that the &#147;Honor All Cards&#148; rule and
MasterCard practices with respect to debit card programs in the
United States are pro-competitive and fully consistent with U.S.
federal antitrust law.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On February&nbsp;22, 2000, the district court
granted the plaintiffs&#146; motion for class certification.
MasterCard and Visa subsequently appealed the decision to the
Second Circuit Court of Appeals. On October&nbsp;17, 2001, a
three-judge panel affirmed the lower court decision by a
two-to-one majority. MasterCard filed a petition for a writ of
certiorari to the U.S. Supreme Court on April&nbsp;3, 2002,
which was denied on June&nbsp;6, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Motions seeking summary judgment have been filed
by both sides and fully briefed in the district court. An
argument date for summary judgment has been set for
December&nbsp;13, 2002 by an order of the court and a trial date
of April&nbsp;28, 2003 has been set.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based upon publicly available information, the
plaintiffs previously have asserted damage claims in this
litigation of approximately $8&nbsp;billion, before any trebling
under U.S. federal antitrust law. More recent public estimates
(including estimates set forth in the dissenting opinion of the
Second Circuit) place the plaintiffs&#146; estimated damage
claims at approximately $50&nbsp;billion to $100&nbsp;billion,
depending on the source. In addition, the plaintiffs&#146;
damage claims could be materially higher than these amounts as a
result of the passage of time and substantive changes in the
theory of damages presented by the plaintiffs. These figures
reflect claims asserted and should not be construed as an
acknowledgement of the reliability of the figures presented.
</FONT>

<P align="center"><FONT size="2">18
</FONT>

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<DIV align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In Thousands, Except Share Data)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">MasterCard believes that it is not currently
possible to estimate the impact, if any, that the ultimate
resolution of this matter will have on MasterCard&#146;s results
of operations, financial position or cash flows. In accordance
with its policy pertaining to legal fees described in
Note&nbsp;2, the Company accrued for its probable estimated
legal fees in connection with its participation in these
proceedings.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Currency
Conversion Litigation</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MasterCard International Incorporated, together
with Visa U.S.A., Inc. and Visa International Corp., are
defendants in a state court lawsuit pending in California. The
lawsuit alleges that MasterCard and Visa wrongfully imposed an
asserted one percent currency conversion &#147;fee&#148; on
every credit card transaction by U.S. MasterCard and Visa
cardholders involving the purchase of goods or services in a
foreign country, and that such alleged &#147;fee&#148; is
unlawful. This action, titled <I>Schwartz v. Visa Int&#146;l
Corp., et al.</I>, was brought in the Superior Court of
California in February 2000, purportedly on behalf of the
general public. Trial of the <I>Schwartz </I>matter commenced on
May&nbsp;20, 2002 but has not been concluded as of the date of
this report. The <I>Schwartz </I>action claims that the alleged
&#147;fee&#148; grossly exceeds any costs the defendants might
incur in connection with currency conversions relating to credit
card purchase transactions made in foreign countries and is not
properly disclosed to cardholders. Plaintiffs seek to prevent
defendants from continuing to engage in, use or employ the
alleged practice of charging and collecting the asserted one
percent currency conversion &#147;fee&#148; and from charging
any type of purported currency conversion &#147;fee&#148;
without providing a clear, obvious and comprehensive notice that
a fee will be charged. Plaintiffs also request an order
(1)&nbsp;requiring defendants to fund a corrective advertising
campaign; and (2)&nbsp;awarding restitution of the monies
allegedly wrongfully acquired by imposing the purported currency
conversion &#147;fee&#148;. The complaints assert that, during
the four-year period that preceded the respective lawsuits,
MasterCard collected approximately $200&nbsp;million as a result
of allegedly imposing the claimed one percent currency
conversion &#147;fee&#148;. MasterCard denies these allegations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MasterCard International Incorporated, Visa
U.S.A., Inc., Visa International Corp., several member banks
including Citibank (South Dakota), N.A., Citibank (Nevada),
N.A., Chase Manhattan Bank USA, N.A., Bank of America, N.A.
(USA), MBNA, and Diners Club are defendants in a number of
federal putative class actions that allege, among other things,
violations of federal antitrust laws based on the asserted one
percent currency conversion &#147;fee&#148;.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to an order of the Judicial Panel on
Multidistrict Litigation, the federal complaints have been
consolidated in MDL No.&nbsp;1409 before Judge William H. Pauley
III in the U.S. District Court for the Southern District of New
York. In January 2002, the federal plaintiffs filed a
Consolidated Amended Complaint (&#147;MDL Complaint&#148;)
adding MBNA Corporation and MBNA America Bank, N.A. as
defendants. This pleading asserts two theories of antitrust
conspiracy under Section&nbsp;1 of the Sherman Act, 15
U.S.C.&nbsp;&#167;1: (i)&nbsp;an alleged
&#147;<I>inter</I>-association&#148; conspiracy among MasterCard
(together with its members), Visa (together with its members)
and Diners Club to fix currency conversion &#147;fees&#148;
allegedly charged to cardholders of &#147;no less than 1% of the
transaction amount and frequently more;&#148; and (ii)&nbsp;two
alleged &#147;<I>intra</I>-association&#148; conspiracies,
whereby each of Visa and MasterCard is claimed separately to
have conspired with its members to fix currency conversion
&#147;fees&#148; allegedly charged to cardholders of &#147;no
less than 1% of the transaction amount&#148; and &#147;to
facilitate and encourage institution&nbsp;&#151; and
collection&nbsp;&#151; of second tier currency conversion
surcharges.&#148; The MDL Complaint also asserts that the
alleged currency conversion &#147;fees&#148; have not been
disclosed as required by the Truth In Lending Act and
Regulation&nbsp;Z.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Defendants have moved to dismiss the MDL
Complaint. Oral argument on that motion was held on
June&nbsp;21, 2002 and Judge Pauley reserved decision. Pending
determination of defendants&#146; motion to dismiss, the parties
may engage in discovery except for non-custodial depositions. No
trial date has been set.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MasterCard believes that it is not currently
possible to estimate the impact, if any, that the ultimate
resolution of these matters will have on its results of
operations, financial position or cash flows.
</FONT>

<P align="center"><FONT size="2">19
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In Thousands, Except Share Data)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Multilateral
Interchange Fee</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">European Commission.
</FONT></I><FONT size="2">In September 2000, the European
Commission issued a &#147;Statement of Objections&#148;
challenging Visa International&#146;s cross-border multilateral
interchange fee (&#147;MIF&#148;) under European Community
competition rules. The MIF is a fee that is paid by the merchant
bank (the &#147;acquirer&#148;) to the cardholder bank (the
&#147;issuer&#148;) when a payment is made to a merchant using a
payment card. The amount of the MIF is set by the payment card
system as a default fee that will only apply where the issuer
and the acquirer have not agreed on a bilateral interchange fee.
Interchange fees represent a sharing of payment system costs
between issuers and acquirers.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although MasterCard Europe is not an addressee of
the Statement of Objections, its rules also contain a MIF.
MasterCard Europe has therefore requested that the European
Commission issue a Statement of Objections in its own case
should the Commission have objections to the MasterCard Europe
MIF. However, the European Commission has to date elected to
treat the Visa International case as the &#147;leading&#148;
payment card case and has not issued a separate Statement of
Objections challenging MasterCard Europe&#146;s MIF.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In its Statement of Objections, the European
Commission took the view that the MIF constitutes a
&#147;price-fixing&#148; agreement between the banks
participating in the payment card system, and is tantamount to a
&#147;tying&#148; arrangement since the MIF covers both the
processing costs of a payment card transaction and the costs of
the payment guarantee delivered by the issuers to the merchants,
and thus &#147;forces&#148; merchants to accept the payment
guarantee. On this basis, the European Commission argued that
the MIF could not be exempted from European Community
competition rules and should be eliminated. MasterCard disagrees
with the European Commission&#146;s characterization of the MIF.
In written submissions and at a February 2001 hearing,
MasterCard sought to demonstrate that (1)&nbsp;the MIF is not a
restrictive price agreement but a necessary and efficient
mechanism for allocating the costs of a four-party card payment
system between issuers and acquirers, and (2)&nbsp;the payment
guarantee is essential to ensuring universal card usage,
benefits merchants, and cannot be unbundled.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On July&nbsp;24, 2002, the European Commission
announced its decision to exempt the Visa MIF from European
Community competition rules, based on certain changes proposed
by Visa to its MIF. Among other things, in connection with the
exemption order Visa agreed to adopt a cost-based methodology
for calculating its MIF similar to the methodology employed by
MasterCard, which considers the costs of certain specified
services provided by issuers, and to reduce its MIF rates for
debit and credit transactions to amounts at or below certain
specified caps. In explaining its decision, the European
Commission expressly cited the benefits that merchants receive
for accepting cards issued through four-party payment systems
such as MasterCard&#146;s. One or more parties may seek to
appeal the Visa MIF decision.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The European Commission&#146;s decision in the
Visa case has been addressed only to Visa and does not cover
MasterCard Europe&#146;s MIF. MasterCard Europe is currently
involved in separate discussions with the European Commission in
order to determine under what conditions the European Commission
would grant a formal exemption or comfort letter for MasterCard
Europe&#146;s MIF. Because the MIF constitutes an essential
element of MasterCard Europe&#146;s payment scheme, changes to
it could significantly impact MCI&#146;s European members. At
this time, it is not possible to determine what actions the
European Commission will take with respect to MasterCard
Europe&#146;s MIF, and therefore the financial impact that any
changes would have on MasterCard and MCI&#146;s European members
cannot be estimated. In addition, even if the European
Commission does not formally challenge MasterCard Europe&#146;s
MIF, private parties could attempt to use the decision in the
Visa case to challenge MasterCard Europe&#146;s MIF before
national courts or national competition authorities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">United Kingdom Office of Fair Trading.
</FONT></I><FONT size="2">On September 25, 2001, the Office of
Fair Trading of the United Kingdom (&#147;OFT&#148;) issued a
notice under the U.K. Competition Act 1998 challenging the MIF
</FONT>

<P align="center"><FONT size="2">20
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In Thousands, Except Share Data)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">established by MEPUK for domestic credit card
transactions in the United Kingdom. (Following the closing of
the Conversion and Integration, in which MEPUK was acquired by
the Company, the U.K. MIF has been administered by a company
owned by certain U.K. financial institutions that are not
affiliated with MasterCard.) The OFT&#146;s notice claimed that
the U.K. MIF may infringe U.K. competition law and is unlikely
to qualify for an exemption. The OFT considers that the U.K. MIF
and multilateral service fee (&#147;MSF&#148;), the fee paid by
issuing banks to acquiring banks when a customer uses a
MasterCard-branded card in the United Kingdom either at an ATM
or over the counter to obtain a cash advance, may be
anti-competitive and may increase retail costs and consumer
prices.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In January and February 2002, MasterCard Europe
and MEPUK made oral and written representations to the OFT in
response to its proposed decision on behalf of MasterCard
members in the U.K., in which they sought to demonstrate that
the MIF and MSF constitute necessary and efficient mechanisms
for allocating the costs of a multi-party card payment system
between issuers and acquirers. Because the MIF and MSF
constitute essential elements of MasterCard&#146;s payment
process in the U.K., changes to these fees could significantly
impact its U.K. members. At this time, it is not possible to
determine what action the OFT will take with respect to the MIF
and MSF (including what action the OFT will take in light of the
European Commission&#146;s decision regarding the Visa MIF), and
therefore the financial impact on MasterCard and its members in
the U.K. cannot be estimated.
</FONT>

<P align="left">
<B><FONT size="2">Note 13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment
Reporting</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In accordance with SFAS No.&nbsp;131,
&#147;Disclosures about Segments of an Enterprise and Related
Information,&#148; MasterCard has one reportable segment,
&#147;Payment Services.&#148; All of the Company&#146;s
activities are interrelated, and each activity is dependent upon
and supportive of the other. Accordingly, all significant
operating decisions are based upon analysis of MasterCard as one
operating segment. The CEO has been identified as the chief
operating decision-maker.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">There is no single customer that accounted for
more than 10&nbsp;percent of the Company&#146;s revenue. Revenue
generated in the United States accounted for approximately 65%
and 66% and 66% and 65% of the Company&#146;s total revenue for
the three and six months ended June&nbsp;30, 2002 and
June&nbsp;30, 2001, respectively. The Company estimates that no
other individual country contributed a significant portion to
the Company&#146;s revenue for the three or six months ended
June&nbsp;30, 2002 or June&nbsp;30, 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MasterCard does not maintain or measure
long-lived assets by geographic location.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Note 14.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Risk Management</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company has formalized global risk management
policies and procedures which include risk standards to provide
an overview of the Company&#146;s settlement exposure. To
minimize its exposure to settlement risk, MCI members that are
not in compliance with established risk standards may be
required, after appropriate management review of the individual
risk circumstances, to provide collateral typically in the form
of cash deposits, escrow accounts, letters of credit or bank
guarantees. MasterCard held collateral for legal settlement risk
of $1,285,084 and $1,342,572 at June&nbsp;30, 2002 and
December&nbsp;31, 2001, respectively. MasterCard monitors its
credit risk portfolio on a regular basis to assess potential
concentration risks and to evaluate the adequacy of collateral
on hand. MasterCard&#146;s estimated settlement exposure at
June&nbsp;30, 2002 and December&nbsp;31, 2001, after
consideration of collateral, amounted to $9,111,364 and
$8,731,948, respectively. MasterCard&#146;s settlement exposure,
net of collateral had concentrations of 64% and 64% in North
America and 21% and 19% in Europe at June&nbsp;30, 2002 and
December&nbsp;31, 2001, respectively. A portion of the
Company&#146;s uncollateralized settlement exposure ($650,386
and $459,831 at June&nbsp;30, 2002 and December&nbsp;31, 2001,
respectively) relates to members who are not deemed to be in
compliance with, or who are under review in
</FONT>

<P align="center"><FONT size="2">21
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In Thousands, Except Share Data)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">connection with, the Company&#146;s risk
management standards. In the event of uncollateralized member
risk losses, the Company also considers the appropriateness of
establishing reserves for non-payment.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition to the settlement risk identified
above, MasterCard subsidiaries provide settlement guarantees
with respect to Cirrus- and Maestro-branded transactions in
Europe and Maestro-branded transactions in Latin America that
are processed outside of the Cirrus and Maestro settlement
systems.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although the Company is not contractually
obligated to do so, it may also elect to pay merchants for
transactions in the event that a principal acquiring member of
MCI defaults on its obligations to the merchants, in order to
maintain the integrity and acceptance of the Company&#146;s
brands.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company also has risk exposure related to
outstanding MasterCard-branded travelers cheques. See Note 10
for a description of this risk exposure.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company enters into foreign exchange
contracts to minimize the risk associated with anticipated
revenues and expenses, and assets and liabilities denominated in
foreign currencies. MasterCard&#146;s forward contracts by
notional amounts and estimated fair values of these contracts
are as follows:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="50%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">June&nbsp;30, 2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">December&nbsp;31, 2001</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Estimated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Estimated</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Forward Contracts</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Notional</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fair Value</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Notional</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fair Value</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Commitments to purchase foreign currency
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74,925</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,742</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,622</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Commitments to sell foreign currency
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">86,281</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,582</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,505</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(12</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s derivative financial
instruments are subject to both credit and market risk. Credit
risk is the risk of loss due to failure of a counterparty to
perform its obligations in accordance with contractual terms.
Market risk is the potential change in an investment&#146;s
value caused by fluctuations in interest and currency exchange
rates, equity and commodity prices, credit spreads or other
risk. Credit and market risk related to derivative instruments
were not material at June&nbsp;30, 2002 and December&nbsp;31,
2001. Foreign exchange forward, option and swap contracts are
used for economic hedges that do not qualify for hedge
accounting.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Generally, the Company does not obtain collateral
related to forward contracts because of the high credit ratings
of the counter-parties involved. The amount of accounting loss
the Company would incur if the counterparties failed to perform
according to the terms of the contracts is not considered
material.
</FONT>

<P align="center"><FONT size="2">22
</FONT>

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<!-- link1 "Item 2. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations" -->
<DIV align="left"><A NAME="006"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Management&#146;s Discussion and Analysis
    of Financial Condition and Results of Operations</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">The following discussion should be read in
conjunction with the consolidated financial statements of MCI
for the year ended December&nbsp;31, 2001 and the related pro
forma financial information and management&#146;s discussion and
analysis of financial condition and results of operation, in
each case contained in the proxy statement-prospectus forming
part of Post-Effective Amendment No.&nbsp;2 to the
Company&#146;s Registration Statement on Form&nbsp;S-4 filed
May&nbsp;7, 2002 (No.&nbsp;333-67544).</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">References to &#147;we,&#148; &#147;our&#148; and
similar terms in the discussion below and in Part&nbsp;1,
Item&nbsp;3 of this report are references to the Company.
</FONT>

<P align="left">
<B><FONT size="2">Forward-Looking Statements</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This report contains forward-looking statements
made based on current management expectations pursuant to the
safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. When used in this report, the words
&#147;believe,&#148; &#147;expect,&#148; &#147;could,&#148;
&#147;may,&#148; &#147;will&#148; and similar words are intended
to identify forward-looking statements. These statements relate
to the Company&#146;s future prospects, developments and
business strategies. Many factors and uncertainties relating to
the Company&#146;s operations and business environment, all of
which are difficult to predict and many of which are outside of
the Company&#146;s control, influence whether any
forward-looking statements can or will be achieved. Any one of
those factors could cause the Company&#146;s actual results to
differ materially from those expressed or implied in writing in
any forward-looking statements made by the Company or on its
behalf.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Below are the principal factors that the Company
believes are important to its business, and that could cause
actual results to differ from expectations. Although these
factors are important, this list should not be considered as
exhaustive or as an admission regarding the adequacy of the
disclosure:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the Company&#146;s relationships with MCI member
    financial institutions;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">substantial and increasingly intense competition
    worldwide in the current or future global payments industry and
    consolidation in the payments industry;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">technological developments in the global payments
    industry;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">potential disruptions of the Company&#146;s
    transaction processing computer systems by natural disaster or
    otherwise;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">potential breach of the security of the
    Company&#146;s systems;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">risk of settlement default by MCI members;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the Company&#146;s ability to attract, retain and
    motivate key personnel;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">general economic conditions, especially interest
    rates and business cycles;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the outcome or impact of antitrust claims by the
    U.S. Department of Justice;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the outcome or impact of a class action lawsuit
    by U.S. merchants;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the outcome of legal proceedings relating to the
    multilateral interchange fee;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">risks related to global political and economic
    conditions;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">regulatory activities in various markets; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">currency fluctuations and foreign exchange
    controls.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This report contains performance statistics
relating to transaction dollar volumes, transaction numbers and
related matters that are provided to the Company by the members
of MCI. These performance statistics are subject to limited
logical and statistical verification by the Company. A portion
of the data underlying these performance statistics is estimated.
</FONT>

<P align="center"><FONT size="2">23
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">
<B><FONT size="2">Results of Operations</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On June 28, 2002, MasterCard Incorporated
acquired all of the outstanding stock of Europay International
SA (&#147;EPI&#148;) not previously owned by MasterCard
International Incorporated (&#147;MCI&#148;). On July&nbsp;16,
2002, EPI, as a wholly owned subsidiary of MasterCard
Incorporated, was renamed MasterCard Europe SA (&#147;MasterCard
Europe&#148;). The results of MasterCard Europe&#146;s
operations have been included in the consolidated statements of
income of the Company from June&nbsp;28, 2002. The results of
MasterCard Europe did not have a material impact on the
Company&#146;s net income.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Six Months Ended June&nbsp;30, 2002
    Compared to the Six Months Ended June&nbsp;30,
    2001</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Revenue was $841&nbsp;million for the six months
ended June&nbsp;30, 2002, compared to $793&nbsp;million for the
six months ended June&nbsp;30, 2001, an increase of
$48&nbsp;million or 6%. Our revenue is comprised of operations
fees and assessments. On January&nbsp;1, 2002, MasterCard
implemented Emerging Issues Task Force (&#147;EITF&#148;) Issue
No.&nbsp;01-9 and reclassified as a reduction of revenue certain
payments to members and merchants that were previously
recognized as advertising and market development expense.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Operations fees represent user fees for
authorization, clearing, settlement and other member products
and services that facilitate transaction and information
management among MCI members on a global basis. Operations fees
increased to $543&nbsp;million for the six months ended
June&nbsp;30, 2002 compared to $517&nbsp;million for the six
months ended June&nbsp;30, 2001, an increase of $26 million or
5%. Included in prior period operations fees is $7&nbsp;million
of incremental revenue associated with a one-time charge for a
member&#146;s breach of contract. Excluding this incremental
revenue, the increase in operations fees over the prior period
was primarily attributable to an increase in the number of
transactions processed by MasterCard. The number of processed
transactions increased to approximately 3.93&nbsp;billion for
the six months ended June&nbsp;30, 2002, compared to
approximately 3.41&nbsp;billion for the six months ended
June&nbsp;30, 2001, an increase of approximately 15%. During the
same period, MasterCard branded-transactions increased to
approximately 6.33&nbsp;billion from approximately
5.47&nbsp;billion, an increase of approximately 16%. Increases
in operations fees were partially offset by lower average
pricing based on our pricing structure, which rewards customers
with lower prices for incremental volume. Increases in
operations fees were further reduced by lower bulletin listings
which contributed to a $5&nbsp;million reduction in operations
fees during the six months ended June&nbsp;30, 2002 compared to
the six months ended June 30, 2001. Operations fees were also
offset by rebates provided to our customers in the six months
ended June&nbsp;30, 2002, which increased by $7&nbsp;million
over the same period in 2001. In addition, operations fees were
reduced by $7&nbsp;million in the six months ended June 30,
2002, as a result of billing adjustments primarily due to debit
transactions occurring in this period and in prior years.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Assessments predominantly represent payments made
by members of MCI in respect of their card programs carrying one
or more of the MasterCard family of brands, principally the
MasterCard, Maestro and Cirrus brands (&#147;MasterCard
cards&#148;). Assessments were $298&nbsp;million for the six
months ended June&nbsp;30, 2002, compared to $276&nbsp;million
for the six months ended June&nbsp;30, 2001, an increase of
$22&nbsp;million or 8%. Included in prior period assessments was
$5&nbsp;million of incremental revenue associated with Mondex
International Ltd. (&#147;Mondex&#148;) that was not included in
2002 as a result of our acquisition of the remaining interest of
Mondex in 2001. Excluding this incremental revenue, the increase
in assessments was primarily attributable to a 15% increase in
gross dollar volume (&#147;GDV&#148;) between the periods, which
represents gross spending on MasterCard cards for goods and
services, as well as cash disbursements. GDV was
$535&nbsp;billion for the six months ended June&nbsp;30, 2002,
compared to $467&nbsp;billion for the six months ended
June&nbsp;30, 2001. Offsetting the increase in assessments were
rebates and incentives provided to our customers, which
increased by $13&nbsp;million from 2001 to 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Operating expenses were $710&nbsp;million for the
six months ended June&nbsp;30, 2002 compared to
$639&nbsp;million for the six months ended June&nbsp;30, 2001,
an increase of $71&nbsp;million or 11%. Operating expenses are
comprised of general and administrative, advertising and market
development, depreciation and amortization expenses.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">General and administrative expenses consist
primarily of personnel, telecommunications, data processing,
travel and professional fees. General and administrative
expenses were $415&nbsp;million for the six months ended
June&nbsp;30, 2002, compared to $395&nbsp;million for the six
months ended June&nbsp;30, 2001, an increase of $20&nbsp;million
or
</FONT>

<P align="center"><FONT size="2">24
</FONT>

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<DIV align="left">
<FONT size="2">5%. This increase was primarily attributable to
increases in personnel costs of $33&nbsp;million resulting from
additional personnel and merit increases in 2002 compared to
2001. These increases were partially offset by lower
professional fees of $6&nbsp;million primarily attributable to
reduced expenses associated with the merchant antitrust
litigation in the second quarter of 2002 as compared to 2001.
These costs were also offset by a reduction in travel expenses
of $4&nbsp;million between the periods and a reduction in other
operating costs due to $5&nbsp;million of expenses incurred in
2001 that was not included in 2002 as a result of our
acquisition of the remaining interest of Mondex in 2001. General
and administrative expenses include foreign exchange losses of
$1 million and $6 million for the six months ended June&nbsp;30,
2002 and 2001, respectively. For the six months ended
June&nbsp;30, 2001, foreign exchange gains were $1 million.
These gains and losses primarily result from the remeasurement
of foreign currency balances.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For the six months ended June&nbsp;30, 2002, we
made significant expenditures in advertising and market
development to support and build value in the MasterCard family
of brands, and to develop new and distinct programs to
differentiate ourselves from our competition. MasterCard expects
to invest significantly, primarily in advertising and market
support, over the next few years to accelerate business growth.
These investments could slow down MasterCard&#146;s
profitability growth or reduce profitability below its current
levels. Advertising and market development expenses were
$259&nbsp;million for the six months ended June&nbsp;30, 2002,
compared to $212&nbsp;million for the six months ended
June&nbsp;30, 2001, an increase of $47&nbsp;million or 22%,
primarily consisting of a $15&nbsp;million increase in
advertising and a $31&nbsp;million increase in promotions and
sponsorships expense. We incurred increased advertising spending
for special programming primarily associated with the World Cup
events as well as the Grammy and the Academy awards. Our
promotions and sponsorship fees increased primarily as a result
of incremental promotions and increased contractual sponsorship
fees associated with the World Cup and Major League Baseball
organizations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Depreciation expense was $16&nbsp;million for the
six months ended June&nbsp;30, 2002, compared to
$18&nbsp;million for the six months ended June&nbsp;30, 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Amortization expense was $19&nbsp;million for the
six months ended June&nbsp;30, 2002, compared to
$15&nbsp;million for the six months ended June&nbsp;30, 2001, an
increase of $4&nbsp;million. This increase was primarily due to
amortization of additional capitalized software.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other income and expense was approximately
$9&nbsp;million for each of the six months ended June&nbsp;30,
2002 and June&nbsp;30, 2001. Other income and expense comprised
primarily of interest, dividend and other investment income
related to the portfolio of investments held, as well as
interest expense, and other income.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The effective tax rate for the six months ended
June&nbsp;30, 2002 decreased to 35.9% from 39.2% for the six
months ended June&nbsp;30, 2001. The decrease in the rate was
primarily attributable to a change in the geographic
distribution of pretax income from jurisdictions with higher
state tax rates to those with lower rates. In addition, the
Company realized significant foreign tax credits relating to
prior periods during the six months ended June&nbsp;30, 2002
period. The benefits from these credits were offset by a
one-time increase in state income tax expense attributable to
the revaluation of deferred state tax assets as a result of
lower state tax rates.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of the foregoing, our net income was
$90&nbsp;million for the six months ended June&nbsp;30, 2002
compared to $99&nbsp;million for the six months June&nbsp;30,
2001, a decrease of $9&nbsp;million or 9%. In addition, EBITDA,
which we define as operating income before depreciation and
amortization, was $166&nbsp;million for the six months ended
June&nbsp;30, 2002 compared to $186&nbsp;million for the six
months ended June&nbsp;30, 2001, a decrease of approximately
$20&nbsp;million or 11%.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe that EBITDA, as defined, does not
replace generally accepted accounting principles, and that used
in conjunction with the generally accepted accounting principles
metrics, such as net income, operating income and cash flow,
enhances management&#146;s ability to understand and direct its
business.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Three Months
Ended June&nbsp;30, 2002 Compared to the Three Months Ended
June&nbsp;30, 2001</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Revenue was $449&nbsp;million for the three
months ended June&nbsp;30, 2002, compared to $417&nbsp;million
for the three months ended June&nbsp;30, 2001, an increase of
$31&nbsp;million or&nbsp;8%. Our revenue is comprised of
operations fees and assessments. On January&nbsp;1, 2002,
MasterCard implemented EITF Issue No.&nbsp;01-9 and reclassified
as
</FONT>

<P align="center"><FONT size="2">25
</FONT>
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<DIV align="left">
<FONT size="2">a reduction of revenue certain payments to
members and merchants that were previously recognized as
advertising and market development expense.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Operations fees increased to $288&nbsp;million
for the three months ended June&nbsp;30, 2002 compared to
$265&nbsp;million for the three months ended June&nbsp;30, 2001,
an increase of $22&nbsp;million or 8%. The increase in
operations fees over the prior period was primarily attributable
to an increase in the number of transactions processed by
MasterCard. The number of processed transactions increased to
approximately 2.08&nbsp;billion in the three months ended
June&nbsp;30, 2002, compared to approximately 1.81&nbsp;billion
in the three months ended June&nbsp;30, 2001, an increase of
approximately 15%. During the same period total
MasterCard-branded transactions increased to approximately
3.32&nbsp;billion compared to approximately 2.88&nbsp;billion,
an increase of approximately 15%. Increases in operations fees
were partially offset by lower average pricing based on our
pricing structure, which rewards customers with lower prices for
incremental volume. In addition, operations fees were reduced by
$6&nbsp;million in the three months ended June 30, 2002 over the
same period in 2001 as a result of billing adjustments primarily
due to debit transactions, occurring in this period and in prior
years.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Assessments were $161&nbsp;million for the three
months ended June&nbsp;30, 2002, compared to $152&nbsp;million
for the three months ended June&nbsp;30, 2001, an increase of
$9&nbsp;million or 6%. Included in prior period assessments was
$2&nbsp;million of incremental revenue associated with Mondex
that was not included in 2002 as a result of our acquisition of
the remaining interest in Mondex in 2001. Excluding this
incremental revenue, the increase in assessments was primarily
attributable to a 16% increase in GDV between the periods. GDV
was $280&nbsp;billion for the three months ended June&nbsp;30,
2002, compared to $242&nbsp;billion for the three months ended
June&nbsp;30, 2001. Offsetting the increase in assessments were
rebates and incentives provided to our customers, which
increased by $7&nbsp;million from 2001 to 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Operating expenses were $396&nbsp;million for the
three months ended June&nbsp;30, 2002 compared to
$349&nbsp;million for the three months ended June&nbsp;30, 2001,
an increase of $47&nbsp;million or 14%. Our operating expenses
are comprised of general and administrative, advertising and
market development, depreciation and amortization expenses.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">General and administrative expenses consist
primarily of personnel, telecommunications, data processing,
travel and professional fees. General and administrative
expenses were $218&nbsp;million for the three months ended
June&nbsp;30, 2002, compared to $206&nbsp;million for the three
months ended June&nbsp;30, 2001, an increase of $12&nbsp;million
or 6%. This increase was primarily attributable to increases in
personnel costs of $12&nbsp;million resulting from additional
headcount and merit increases in 2002 compared to 2001. General
and administrative expenses include foreign exchange losses of
$1&nbsp;million and $5&nbsp;million for the three months ended
June&nbsp;30, 2002 and 2001, respectively. For the three months
ended June&nbsp;30, 2001, foreign exchange gains were
$4&nbsp;million. These gains and losses primarily result from
remeasurement of foreign currency balances.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For the three months ended June&nbsp;30, 2002, we
made significant expenditures in advertising and market
development to support and build value in the MasterCard family
of brands, and to develop new and distinct programs to
differentiate ourselves from our competition. MasterCard expects
to invest significantly, primarily in advertising and market
support, over the next few years to accelerate business growth.
These investments could slow down MasterCard&#146;s
profitability growth or reduce profitability below its current
levels. Advertising and market development expenses were
$159&nbsp;million for the three months ended June&nbsp;30, 2002,
compared to $126&nbsp;million for the three months ended
June&nbsp;30, 2001, an increase of $33&nbsp;million or 26%,
primarily consisting of a $27&nbsp;million increase in
promotions and sponsorships and a $6&nbsp;million increase in
advertising expense. Our promotions and sponsorship fees
increased primarily as a result of incremental promotions and
contractual sponsorship fees associated with the World Cup and
Major League Baseball organizations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Depreciation expense was $8&nbsp;million for the
three months ended June&nbsp;30, 2002, compared to
$9&nbsp;million for the three months ended June&nbsp;30, 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Amortization expense was $11&nbsp;million for the
three months ended June&nbsp;30, 2002, compared to
$7&nbsp;million for the three months ended June&nbsp;30, 2001,
an increase of approximately $3&nbsp;million. This increase was
primarily due to amortization of additional capitalized software.
</FONT>

<P align="center"><FONT size="2">26
</FONT>
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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other income and expense was approximately
$4&nbsp;million for the three months ended June&nbsp;30, 2002,
compared to approximately $9&nbsp;million for the three months
ended June&nbsp;30, 2001. Other income and expense is comprised
of primarily interest, dividend and other investment income
related to the portfolio of investments held, as well as
interest expense, minority interest in earnings of subsidiaries
and other income (expense). The $6 million decrease in other
income and expense consisted primarily of a $2 million decrease
in minority interest as a result of our acquisition of the
remaining interest in Mondex in 2001 and a $4&nbsp;million
decrease in the market value of the trading securities
portfolio, which is fully offset in personnel expenses above.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The effective tax rate for the three months ended
June&nbsp;30, 2002 decreased to 35.4% from 38.8% for the three
months ended June&nbsp;30, 2001. The decrease in the rate was
primarily attributable to a change in the geographic
distribution of pretax income from jurisdictions with higher
state tax rates to those with lower rates.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of the foregoing, our net income was
$36&nbsp;million for the three months ended June&nbsp;30, 2002
compared to $48&nbsp;million for the three months June&nbsp;30,
2001, a decrease of $11&nbsp;million or 24%. In addition,
EBITDA, which we define as operating income before depreciation
and amortization, was $72&nbsp;million for the three months
ended June&nbsp;30, 2002 compared to $85&nbsp;million for the
three months ended June&nbsp;30, 2001, a decrease of
approximately $14&nbsp;million or 16%. We believe that EBITDA,
as defined, does not replace generally accepted accounting
principles, and that used in conjunction with the generally
accepted accounting principles metrics, such as net income,
operating income and cash flow, enhances management&#146;s
ability to understand and direct its business.
</FONT>

<P align="left">
<B><FONT size="2">Liquidity and Capital Resources</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We need substantial capital resources and
liquidity to fund our global development, to finance our capital
expenditures and any future acquisitions and to service the
payments of principal and interest on our outstanding debt. At
June&nbsp;30, 2002, we had $791&nbsp;million of liquid
investments to manage operations. In addition, we expect that
the cash generated from operations, working capital and our
borrowing capacity will be sufficient to meet our operating
needs, including advertising and marketing support, and capital
needs in 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Net cash provided by operating activities was
$131&nbsp;million for the six months ended June&nbsp;30, 2002
and $88&nbsp;million for the six months ended June&nbsp;30,
2001. The increase in operating cash between the periods of
$43&nbsp;million primarily reflects additional cash provided by
a decrease in the change in net settlement receivables of
$28&nbsp;million, by a decrease in the change in pre-acquisition
accounts receivable of $11&nbsp;million, by a decrease in
trading securities of $8&nbsp;million and by a decrease in the
change in accounts payable and accrued expenses of
$4&nbsp;million.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Net cash provided by/(used in) investing
activities was $12&nbsp;million and ($62)&nbsp;million for the
six months ended June&nbsp;30, 2002 and 2001, respectively. The
increase in cash provided between the periods was primarily the
result of $68&nbsp;million of cash received, net of expenses,
from the acquisition of EPI during the second quarter of 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Net cash used in financing activities was
$10&nbsp;million and $4&nbsp;million for the six months ended
June&nbsp;30, 2002 and 2001, respectively. In each period, the
cash used was for repayments of short-term borrowings connected
with MasterCard&#146;s net settlement overdraft positions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our financial position continues to reflect
strong liquidity. Working capital, consisting of current assets
less current liabilities, was $543&nbsp;million at June&nbsp;30,
2002 and $468&nbsp;million at December&nbsp;31, 2001, in each
case representing a working capital ratio of 1.7&nbsp;to&nbsp;1.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To facilitate liquidity management, the Company
maintains a committed credit facility of $1.2&nbsp;billion from
certain financial institutions, which we renew annually.
Pursuant to this facility, we have the right to borrow funds to
provide liquidity for member settlement failures. Facility
adequacy is regularly reviewed and increases are obtained as
necessary. In addition to the committed credit facility, we can
draw upon other sources of liquidity such as emergency
borrowings from MCI members, special assessments, and member
</FONT>

<P align="center"><FONT size="2">27
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<DIV align="left">
<FONT size="2">letters of credit or guarantees. MCI maintained
its minimum net worth requirements of $456&nbsp;million under
the facility at June&nbsp;30, 2002. MCI has no outstanding
borrowings on this facility as of June 30, 2002.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MasterCard Europe has three euro-denominated
credit lines totaling 75&nbsp;million euros ($74&nbsp;million)
available at June&nbsp;30, 2002. Pursuant to these facilities,
MCE has the right to borrow up to 35&nbsp;million euros
($34&nbsp;million) on one line for operational funding
requirements and up to 30&nbsp;million euros ($30&nbsp;million)
on the second line for Euro settlement operations. In addition,
MasterCard Europe has a 10&nbsp;million euro ($10&nbsp;million)
line. MasterCard Europe was not a borrower on these facilities
at June 30, 2002, but does borrow from time to time under these
facilities. At June 30, 2002, MasterCard Europe has overdrafts
in several accounts totaling 69&nbsp;million euros ($68 million).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On June&nbsp;30, 1998, MCI issued
$80&nbsp;million in subordinated debt (&#147;the Notes&#148;)
fixed at 6.67&nbsp;percent per annum. The terms of the Notes
require MCI to repay the principal amount on June&nbsp;30, 2008.
MCI has the ability to prepay the Notes with a
&#147;make-whole&#148; payment to the investors, if market
interest rates are lower at the time of prepayment. MCI
maintained its minimum net worth requirements under the terms of
the Notes of $391&nbsp;million at June&nbsp;30, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MCI is the lessee in one synthetic lease
transaction for its Winghaven facility that was structured by
creating a Special Purpose Entity (&#147;SPE&#148;) which
constructed and owns the facility. See Note&nbsp;10 of the Notes
to the Consolidated Financial Statements herein. The decision
whether or not to consolidate the SPE, or record the facility,
depends not only on the applicable accounting principles for
SPEs and the treatment of the lease as operating or capital, but
also on a determination regarding the nature and amount of the
equity investments made by third parties to the SPE. The SPE is
not consolidated because, under the applicable accounting
principles, MCI does not exercise the requisite control over the
risks and rewards of the assets in the SPE. In conjunction with
the lease agreement, MCI executed a guarantee of
85.15&nbsp;percent of the SPE&#146;s secured notes outstanding,
totaling $127&nbsp;million as of June&nbsp;30, 2002. The events
of default under the guarantee include MCI failing to meet
minimum net worth requirements of $379&nbsp;million at
June&nbsp;30, 2002 and the failure to make rent payments. Upon
the occurrence of an event of default, MCI will guarantee
repayment of the total outstanding principal and interest on the
secured notes and take ownership of the building.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The FASB is currently reviewing the consolidation
requirements of SPEs. Such review may result in more stringent
requirements for the consolidation of SPEs. At June&nbsp;30,
2002, the impact of consolidating the SPE and recording the
assets on MasterCard&#146;s balance sheet would result in $154
million in debt for the Company and $8&nbsp;million of minority
interest relating to the equity in the SPE held by a third
party. For the period ended June&nbsp;30, 2002, net income would
have been reduced by depreciation in the amount of
$2&nbsp;million after tax. Furthermore, instead of the rent
expense of $6&nbsp;million to the SPE for the six month period
ended June&nbsp;30, 2002, MasterCard would have recorded
interest expense and minority interest in the same amount.
Consequently, EBITDA would have increased by approximately
$6&nbsp;million while cash flow would have been unaffected.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the normal course of business, MasterCard
operates systems for clearing and settling payment transactions
among the members of MCI. Net settlements are generally cleared
daily among members by wire transfer or other bank clearing
means, via settlement cash accounts. However, some transactions
may not settle until subsequent business days due to varying
local currency settlement value date intervals and other timing
differences. These timing differences result in amounts due to
MasterCard by MCI members or amounts due to MCI members from
MasterCard for a duration normally ranging from one to four
calendar days. These amounts are included in the consolidated
balance sheets of MasterCard as settlement due to/due from MCI
members. The net impact of the settled transactions was the main
contributor to the cash account overdraft positions of
$68&nbsp;million at June&nbsp;30, 2002 as a result of the
acquisition of EPI and $10&nbsp;million at December&nbsp;31,
2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Primarily due to uncertainty surrounding
lawsuits, in particular the merchant antitrust litigation
described in Note&nbsp;12 of the Notes to the Consolidated
Financial Statements included herein, on June 17, 2002
Standard&nbsp;&#38; Poor&#146;s placed MasterCard on negative
outlook, but has not changed MasterCard&#146;s credit rating.
</FONT>

<P align="center"><FONT size="2">28
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The adverse outcome of certain of the legal
proceedings, described in Note&nbsp;12 to the Consolidated
Financial Statements could have a detrimental impact on
liquidity and capital resources if they result in adverse awards
of damages to the relevant plaintiffs.
</FONT>

<P align="left">
<B><FONT size="2">Economic Fluctuations</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although we cannot precisely determine the impact
of inflation on our operations, we do not believe our operations
have been significantly affected by inflation. For the most
part, we have utilized technology and operating efficiencies to
offset increased operating expenses. In addition, a portion of
our revenues is based upon a percentage of GDV, which partially
insulates operating margins on these revenues from the effects
of inflation.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Portions of our business are seasonal. Our
revenue is favorably affected by progressively increased card
purchasing volume throughout the year, particularly in the
fourth quarter during the holiday shopping period.
</FONT>

<P align="left">
<B><FONT size="2">Critical Accounting Policies &#38;
Estimates</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The preparation of financial statements in
conformity with generally accepted accounting principles in the
United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities, and disclosure of contingent assets and
liabilities, at the date of the financial statements, and the
reported amounts of revenue and expenses during the reporting
periods. Management believes that the most critical accounting
policies, which require significant estimates and assumptions in
the preparation of MasterCard&#146;s consolidated financial
statements, are set forth below.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MasterCard enters into volume-based and support
incentives that are recorded as a reduction of revenue in
accordance with EITF Issue&nbsp;No. 01-9, &#147;Accounting for
Consideration Given by a Vendor to a Customer (Including a
Reseller of the Vendor&#146;s Products)&#148;. Incentives are
generally based on the MCI members&#146; achievement of
predefined GDV, account-issuance, spending per card and/or
account-conversion targets. Incentives are based on
management&#146;s estimate of the members&#146; performance in a
given period and actual results may differ from these estimates.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Capitalized software, which includes internal and
external costs incurred in developing or obtaining computer
software for internal use, is capitalized in other intangible
assets in accordance with Statement of Position 98-1,
&#147;Accounting for the Costs of Computer Software Developed or
Obtained for Internal Use&#148; and related guidance.
Development costs are expensed during the preliminary project
management phase until it is probable that the project will be
completed and the software will be used to perform the function
intended. Thereafter, all qualifying direct internal and
external costs related to the design, development and testing
phase are capitalized, and upon the project being substantially
complete and ready for its intended use, are amortized using the
straight-line method over the estimated useful life of the
software, not to exceed three years. Costs related to
post-implementation activities are expensed as incurred.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MasterCard accrues legal costs that are expected
to be incurred to defend MasterCard in certain litigation
discussed in Note&nbsp;12 to the Consolidated Financial
Statements herein. The accruals are estimated based on
management&#146;s expectations of foreseeable costs, which we
have assessed in accordance with FASB Statement No.&nbsp;5,
&#147;Accounting for Contingencies&#148; after consultation with
outside counsel. Our policy has been consistently applied since
the commencement of certain litigation discussed in Note 12 to
the Consolidated Financial Statements herein.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Management evaluates the recoverability of all
long-lived assets accounted for under SFAS No.&nbsp;144,
&#147;Accounting for the Impairment or Disposal of Long-Lived
Assets&#148; on an ongoing basis. If the sum of expected net
future cash flows (undiscounted and without interest charges) is
less than the carrying amount of the asset, an impairment loss
is recognized. The loss is measured as the amount by which the
carrying amount of the asset exceeds its fair value calculated
using the present value of estimated net future cash flows.
</FONT>

<P align="left">
<B><FONT size="2">Recent Accounting Pronouncements</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Recent Accounting Pronouncements&nbsp;&#151;
</FONT></I><FONT size="2">On February&nbsp;3, 2002, the Emerging
Issues Task Force finalized Issue No.&nbsp;01-9 &#147;Accounting
for Consideration Given by a Vendor to a Customer (Including a
Reseller of the
</FONT>

<P align="center"><FONT size="2">29
</FONT>

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<DIV align="left">
<FONT size="2">Vendor&#146;s Products)&#148;. This
pronouncement, effective for fiscal years beginning after
December&nbsp;15, 2001, requires that certain payments from a
vendor to a customer be categorized as a reduction of revenue on
the vendor&#146;s income statement. In order for payments to be
treated as expense, the vendor must receive an identifiable
benefit of goods or services that is sufficiently separable from
the recipient&#146;s purchase from the vendor and the vendor
must be able to reasonably estimate the fair value of that
benefit. On January&nbsp;1, 2002, MasterCard implemented Issue
No.&nbsp;01-9 and reclassified as a reduction of revenue certain
payments to MCI members and merchants that were previously
recognized as advertising and market development expense. The
amounts reclassified were $43&nbsp;million and $63&nbsp;million
for the six months ended June&nbsp;30, 2002 and 2001,
respectively, and $23&nbsp;million and $31&nbsp;million for the
three months ended June&nbsp;30, 2002 and 2001, respectively.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On June&nbsp;29, 2001, the FASB approved SFAS
No.&nbsp;141, &#147;Business Combinations,&#148; and SFAS
No.&nbsp;142, &#147;Goodwill and Other Intangible Assets.&#148;
The acquisition of EPI was accounted for in accordance with both
of these standards.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">SFAS No.&nbsp;141 supersedes APB No.&nbsp;16,
&#147;Business Combinations.&#148; SFAS No.&nbsp;141 requires
that the purchase method of accounting be used for all business
combinations initiated after June&nbsp;30, 2001 and establishes
specific criteria for the recognition of intangible assets,
other than goodwill, separately from goodwill. The new standard
also requires unallocated negative goodwill to be written off
immediately as an extraordinary gain (instead of being deferred
and amortized).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">SFAS No.&nbsp;142 supersedes APB No.&nbsp;17,
&#147;Intangible Assets&#148;. SFAS No.&nbsp;142 primarily
addresses the accounting for goodwill and intangible assets
subsequent to their acquisition (i.e., post-acquisition
accounting). The provisions of SFAS No.&nbsp;142 are effective
for fiscal years beginning after December&nbsp;15, 2001. SFAS
No.&nbsp;142 establishes that goodwill and indefinite-lived
intangible assets will no longer be amortized and that goodwill
be tested for impairment at least annually at the reporting unit
level. The new standard also requires that intangible assets
deemed to have an indefinite life be tested for impairment at
least annually, and the amortization period of intangible assets
with finite lives will no longer be limited to forty years. In
addition, goodwill acquired in a business combination for which
the acquisition date is after June&nbsp;30, 2001, will not be
amortized. On January&nbsp;1, 2002 the Company adopted SFAS
No.&nbsp;142 and this adoption had no material impact on the
Company&#146;s financial statements. The Statement requires that
transitional goodwill (goodwill recorded before the adoption of
SFAS No.&nbsp;142) be tested for impairment within six months of
adoption of the Statement and that all goodwill be tested at
least annually. Accordingly, MasterCard tested its existing
goodwill recorded in connection with the acquisition of the
Cirrus business of $6.6&nbsp;million at June&nbsp;30, 2002 and
no impairment was required. The Company will evaluate goodwill
recorded in connection with the EPI acquisition in the fourth
quarter of 2002, as part of its impairment analysis.
</FONT>

<!-- link1 "Item 3. Quantitative and Qualitative Disclosures About Market Risk" -->
<DIV align="left"><A NAME="007"></A></DIV>

<P align="left">
<B><FONT size="2">Item&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Quantitative
and Qualitative Disclosures About Market Risk</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Market risk is the potential for economic losses
to be incurred on market risk sensitive instruments arising from
adverse changes in market indices such as interest rates and
foreign currency exchange rates. We have limited exposure to
market risk from changes in both interest rates and foreign
exchange rates. Management establishes and oversees the
implementation of board of director approved policies governing
our funding, investments, and use of derivative financial
instruments and monitors aggregate risk exposures on an ongoing
basis. There have been no material changes in our market risk
exposures at June 30, 2002 as compared to December&nbsp;31, 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We enter into foreign exchange forward contracts
to minimize risk associated with anticipated revenues and
expenses and assets and liabilities denominated in foreign
currencies. This activity minimizes our exposure to transaction
gains and losses resulting from fluctuations of foreign
currencies against the U.S. dollar. The terms of the contracts
are generally less than 18&nbsp;months. At June&nbsp;30, 2002
and December&nbsp;31, 2001, foreign currency forward contracts
were both committed to be sold (with notional amounts of
$86&nbsp;million and $3&nbsp;million, respectively) and
committed to be purchased (with notional amounts of
$75&nbsp;million and $11&nbsp;million, respectively) to manage
anticipated cash flows in major overseas markets for fiscal year
2002.
</FONT>

<P align="center"><FONT size="2">30
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">[LETTERHEAD OF
PRICEWATERHOUSECOOPERS]</FONT></B>

<P align="center">
<B>Report of Independent Accountants</B>

<P align="left">
<FONT size="2">To the Board of Directors and Shareholders
</FONT>

<DIV align="left">
<FONT size="2">of MasterCard Incorporated:
</FONT>
</DIV>

<P align="left">
<FONT size="2">We have reviewed the accompanying consolidated
balance sheet of MasterCard Incorporated and its subsidiaries as
of June&nbsp;30, 2002 and the related consolidated statements of
income and comprehensive income for each of the three-month and
six-month periods ended June&nbsp;30, 2002 and June&nbsp;30,
2001 and the consolidated statement of cash flows and of changes
in stockholders&#146;/members&#146; equity for the six-month
periods ended June&nbsp;30, 2002 and June&nbsp;30, 2001. These
financial statements are the responsibility of the
Company&#146;s management.
</FONT>

<P align="left">
<FONT size="2">We conducted our review in accordance with
standards established by the American Institute of Certified
Public Accountants. A review of interim financial information
consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for
financial and accounting matters. It is substantially less in
scope than an audit conducted in accordance with generally
accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements
taken as a whole. Accordingly, we do not express such an opinion.
</FONT>

<P align="left">
<FONT size="2">Based on our review, we are not aware of any
material modifications that should be made to the accompanying
consolidated interim financial statements for them to be in
conformity with accounting principles generally accepted in the
United States of America.
</FONT>

<P align="left">
<FONT size="2">We previously audited in accordance with auditing
standards generally accepted in the United States of America,
the consolidated balance sheet as of December&nbsp;31, 2001, and
the related consolidated statements of income, comprehensive
income, cash flows, and changes in members&#146; equity for the
year then ended (not presented herein), and in our report dated
March&nbsp;6, 2002 we expressed an unqualified opinion on those
consolidated financial statements. In our opinion, the
information set forth in the accompanying consolidated balance
sheet as of December&nbsp;31, 2001, is fairly stated in all
material respects in relation to the consolidated balance sheet
from which it has been derived.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="62%"></TD>
    <TD width="38%"></TD>
</TR>

<TR valign="top">
    <TD align="left">
    <FONT size="2">/s/ PRICEWATERHOUSECOOPERS LLP
    </FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD align="left">
    <HR size="1" align="left" noshade></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD align="left">
    <FONT size="2">PricewaterhouseCoopers LLP
    </FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD align="left">
    <FONT size="2">New York, NY
    </FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD align="left">
    <FONT size="2">August&nbsp;14, 2002
    </FONT></TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">31
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">MASTERCARD INCORPORATED</FONT></B>

<P align="center">
<B><FONT size="2">FORM 10-Q</FONT></B>

<P align="center">
<B><FONT size="2">PART II&nbsp;&#151; OTHER
INFORMATION</FONT></B>

<!-- link1 "Item 1. Legal Proceedings" -->
<DIV align="left"><A NAME="008"></A></DIV>

<P align="left">
<B><FONT size="2">Item&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Legal
Proceedings</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Refer to Note&nbsp;12 to the Consolidated
Financial Statements herein.
</FONT>

<P align="left">
<B><FONT size="2">Item&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Submission
of Matters to a Vote of Security Holders</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A special meeting of MasterCard International
Incorporated&#146;s principal members was held on June&nbsp;14,
2002 to consider and approve a plan of conversion pursuant to
which MasterCard International Incorporated was converted into a
non-stock corporation that is a subsidiary of a stock holding
company, MasterCard Incorporated. For a description of the
Conversion, see Note&nbsp;4 to the Consolidated Financial
Statements herein. At the special meeting, 1,203,902,629 votes
were cast for the plan of conversion, 13,545,285 votes were cast
against the plan of conversion, and 3,256,122 votes were cast to
abstain with respect to the plan of conversion. A total of
316,068,449 votes were not cast in connection with the plan of
conversion.
</FONT>

<!-- link1 "Item 6. Exhibits and Reports on Form 8-K" -->
<DIV align="left"><A NAME="009"></A></DIV>

<P align="left">
<B><FONT size="2">Item&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Exhibits
and Reports on Form&nbsp;8-K</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(a)&nbsp;Exhibits</FONT></B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Refer to the Exhibit&nbsp;Index on Page E-I herein
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(b)&nbsp;Reports on Form&nbsp;8-K</FONT></B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">There were no Current Reports on Form&nbsp;8-K
    filed during the quarter ended June&nbsp;30, 2002. However, on
    July&nbsp;12, 2002 the Company filed a Current Report on
    Form&nbsp;8-K dated June&nbsp;28, 2002 relating to the closing
    of the Conversion and Integration described in Note&nbsp;4 to
    the Consolidated Financial Statements herein.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">32
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">


<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="010"></A></DIV>

<DIV align="center">
<B><FONT size="2">SIGNATURES</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned thereunto duly
authorized.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="40%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="57%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">Date: August&nbsp;14, 2002
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">MasterCard Incorporated<BR>
    <HR size="1" noshade> <I>(Registrant)</I>
    </FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">Date: August&nbsp;14, 2002
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">/s/&nbsp;Robert W. Selander<BR>
    <HR size="1" noshade>Robert W. Selander<BR>
     <I>President and Chief Executive Officer<BR>
    (Principal Executive Officer)</I>
    </FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">Date: August&nbsp;14, 2002
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">/s/&nbsp;Denise K. Fletcher<BR>
    <HR size="1" noshade>Denise K. Fletcher<BR>
     <I>Executive Vice President, Chief Financial Officer and
    Treasurer (Principal Financial Officer)</I>
    </FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">Date: August&nbsp;14, 2002
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">/s/&nbsp;Spencer Schwartz<BR>
    <HR size="1" noshade>Spencer Schwartz<BR>
     <I>Senior Vice President and Controller<BR>
    (Principal Accounting Officer)</I>
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">33
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">EXHIBIT INDEX</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following exhibits are filed as part of this
Quarterly Report on Form&nbsp;10-Q:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="88%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Item</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Share Exchange and Integration Agreement, dated
    as of February&nbsp;13, 2002, by and among MasterCard
    Incorporated, MasterCard International Incorporated and Europay
    International S.A. (incorporated by reference to
    Exhibit&nbsp;2.1 to Post-Effective Amendment No.&nbsp;2 to the
    Company&#146;s Registration Statement on Form&nbsp;S-4 filed
    May&nbsp;7, 2002 (No.&nbsp;333-67544)).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Share Exchange Agreement to be entered
    among MasterCard Incorporated, MasterCard International
    Incorporated and each shareholder of Europay International S.A.
    other than MEPUK and MasterCard International Incorporated
    (incorporated by reference to Exhibit&nbsp;2.2 to Post-Effective
    Amendment No.&nbsp;2 to the Company&#146;s Registration
    Statement on Form&nbsp;S-4 filed May&nbsp;7, 2002
    (No.&nbsp;333-67544)).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Agreement and Plan of Merger, dated as of
    February&nbsp;13, 2002, by and among MasterCard International
    Incorporated, MasterCard Incorporated and MasterCard Merger Sub,
    Inc. (incorporated by reference to Exhibit&nbsp;2.3 to
    Post-Effective Amendment No.&nbsp;1 to the Company&#146;s
    Registration Statement on Form&nbsp;S-4 filed April&nbsp;17,
    2002 (No.&nbsp;333-67544)).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Share Exchange Agreement to be entered
    among MasterCard Incorporated and each shareholder of
    MasterCard/ Europay U.K. Limited (incorporated by reference to
    Exhibit&nbsp;2.4 to Post-Effective Amendment No.&nbsp;2 to the
    Company&#146;s Registration Statement on Form&nbsp;S-4 filed
    May&nbsp;7, 2002 (No.&nbsp;333-67544)).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.1</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(a)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Certificate of
    Incorporation of MasterCard Incorporated (incorporated by
    reference to Exhibit&nbsp;4.1 to the Company&#146;s Current
    Report on Form&nbsp;8-K dated June&nbsp;28, 2002 and filed
    July&nbsp;12, 2002 (No.&nbsp;333-67544)).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.1</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(b)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Bylaws of MasterCard
    Incorporated (incorporated by reference to Exhibit&nbsp;4.2 to
    the Company&#146;s Current Report on Form&nbsp;8-K dated
    June&nbsp;28, 2002 and filed July&nbsp;12, 2002
    (No.&nbsp;333-67544)).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.2</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(a)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Certificate of
    Incorporation of MasterCard International Incorporated.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.2</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(b)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Bylaws of MasterCard
    International Incorporated.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Specimen Certificate for Class&nbsp;A
    Redeemable Common Stock of MasterCard Incorporated (incorporated
    by reference to Exhibit&nbsp;4.1 to Pre-Effective Amendment
    No.&nbsp;4 to the Company&#146;s Registration Statement on
    Form&nbsp;S-4 filed February&nbsp;11, 2002 (No.&nbsp;333-67544)).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Specimen Certificate for Class&nbsp;B
    Convertible Common Stock of MasterCard Incorporated
    (incorporated by reference to Exhibit&nbsp;4.2 to Pre-Effective
    Amendment No.&nbsp;4 to the Company&#146;s Registration
    Statement on Form&nbsp;S-4 filed February&nbsp;11, 2002
    (No.&nbsp;333-67544)).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">$1,200,000,000 Credit Agreement, dated as of
    June&nbsp;4, 2002, among MasterCard International Incorporated,
    MasterCard Incorporated, the several lenders, Salomon Smith
    Barney Inc., as sole lead arranger, Citibank, N.A., as
    co-administrative agent, JPMorgan Chase Bank, as
    co-administrative agent, and J.P. Morgan Securities, Inc., as
    co-arranger.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">99.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certification of Robert W. Selander, President
    and Chief Executive Officer, pursuant to 18 U.S.C.
    Section&nbsp;1350, as adopted pursuant to Section&nbsp;906 of
    the Sarbanes-Oxley Act of 2002.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">99.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certification of Denise K. Fletcher, Executive
    Vice President, Chief Financial Officer and Treasurer, pursuant
    to 18 U.S.C. Section&nbsp;1350, as adopted pursuant to
    Section&nbsp;906 of the Sarbanes-Oxley Act of 2002.
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">E-1
</FONT>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-3.2.A
<SEQUENCE>3
<FILENAME>y62583exv3w2wa.txt
<DESCRIPTION>AMENDED AND RESTATED CERTIFICATE OF INCORPORATION
<TEXT>
<PAGE>
                                                                  Exhibit 3.2(a)

                              AMENDED AND RESTATED
                          CERTIFICATE OF INCORPORATION
                                       OF
                      MASTERCARD INTERNATIONAL INCORPORATED

      Pursuant to Title 8, Section 255 of the Delaware General Corporation Law
(the "DGCL"), the undersigned corporation executed the following Certificate of
Merger:

      FIRST: The name of the corporation is MasterCard International
Incorporated (the "Corporation").

      SECOND: The address of the registered office of the Corporation in the
State of Delaware is 1209 Orange Street, City of Wilmington, County of New
Castle, and the name of the registered agent of the Corporation in the State of
Delaware at that address is The Corporation Trust Company.

      THIRD: The purpose of the Corporation is to engage in any lawful act or
activity for which corporations may be organized under the DGCL.

      FOURTH: In furtherance, and not in limitation, of the general powers
conferred by the law of the State of Delaware and the objects and purposes
herein set forth, it is expressly provided that the Corporation shall, subject
to the provisions contained in the law of the State of Delaware, this
Certificate of Incorporation and the Bylaws of the Corporation (the "Bylaws"),
have the power to do all such acts as are necessary or convenient to the
attainment of the objects and purposes herein set forth and to engage in any
lawful act or activity for which corporations may be organized under the DGCL;
provided, however, that nothing contained in this Certificate of Incorporation
shall authorize or empower the Corporation to perform or engage in any acts or
practices which (a) are prohibited by Section 340 of the General Business Law of
the State of New York or any anti-monopoly statute of any state of the United
States or the District of Columbia, or (b) are defined as banking powers under
Section 126(a) of the DGCL.

      FIFTH: The Corporation shall not have any authority to issue capital
stock.

      SIXTH: The Corporation initially shall have authority to issue membership
interests in the following classes: Class A or "Principal" Memberships, which
shall include Principal Memberships, Association Memberships and Travelers
Cheque Memberships; Class B Memberships; and Affiliate Memberships. The
Corporation is authorized to issue an unlimited number of Class A Memberships.
The Corporation is authorized to issue a maximum of one Class B Membership. The
Class B Membership shall not be assessable. The board of directors of the
Corporation (the "Board"), upon the affirmative vote of at least 66 2/3% of the
directors present at a meeting at which a quorum is present, shall have the
authority to create additional classes of membership interests. Such additional
classes of membership shall have such rights, preferences and privileges as are
set out, from time to time, in the Bylaws, provided, however, that they shall
not have any right, preference or privilege greater than those of the Class A
Memberships.

            a. Class A Memberships. The rights and obligations of the Class A
Memberships are as set forth in this Certificate of Incorporation and the Bylaws
of the Corporation. Holders of the Class A Memberships (such holders, the "Class
A Members") shall not be entitled to vote
<PAGE>
on account of such holdings, except as otherwise provided herein or in the
Bylaws, or as required by law. Class A Members shall not be entitled on account
of such membership, to receive any portion of any dividends or other
distributions or profits of the Corporation and shall not be entitled to
participate in any assets available for distribution to the members of the
Corporation upon any dissolution of the Corporation.

            b. Class B Membership. The rights and obligations of the Class B
Membership are as set forth in this Certificate of Incorporation and the Bylaws
of the Corporation. The Class B Membership shall be issued to MasterCard
Incorporated, a Delaware stock corporation. The holder of the Class B Membership
(the "Class B Member") shall have exclusive voting rights on all matters with
respect to which members may vote, except as provided otherwise herein or in the
Bylaws, or as otherwise required by law. The Class B Member, on account of such
status, shall be entitled to all legally permitted dividends and other
distributions approved by the Board, and shall be entitled to receive all assets
legally available for distribution to the members of the Corporation on any
dissolution, liquidation or winding-up of the Corporation.

            c. Other Classes of Membership. The rights and obligations of
Affiliate Memberships are set forth in the Bylaws of the Corporation. Other
classes of membership interests in the Corporation shall have such rights,
preferences and privileges as are determined by the affirmative vote of at least
66 2/3% of the directors present at a meeting at which a quorum is present upon
creation of each class, provided that in no event shall any additional classes
of membership be entitled to rights, preferences or privileges that are greater
than those of the Class A Memberships.

      SEVENTH: The private property of the members of the Corporation shall not
be subject to the payment of debts of the Corporation nor be subject to any
liability for any other obligations of the Corporation.

      EIGHTH: Except to the extent set forth in this Certificate of
Incorporation, the conditions of membership in the Corporation shall be set
forth in the Bylaws.

      NINTH:

            a. The Board may impose upon the members (other than the Class B
Member), whether before, on, or after termination of their membership, dues,
assessments, fees, and other charges for any purpose or purposes as may be
authorized in this Certificate of Incorporation or in the Bylaws, including
without limitation assessments to pay for or reserve against any accumulated,
current, or future expenses or liabilities of the Corporation.

            b. If the Board shall determine to satisfy any liability for damages
based upon violation of United States antitrust laws arising out of the actions
known as U.S. v. Visa International, Visa USA and MasterCard International and
In re Visa Check, et al. (together, the "Antitrust Actions"), or any other
action based upon the same factual allegations as advanced in the Antitrust
Actions, by assessment of the Class A Members pursuant to Article VI Section 4
of the Bylaws, no such assessment shall be made directly or indirectly against
members based upon card issuing or acquiring programs operated outside of the
United States.

                                        2
<PAGE>
      TENTH: No director will have any personal liability to the Corporation or
its members for monetary damages for any breach of fiduciary duty as a director,
except (i) for any breach of the director's duty of loyalty to the Corporation,
(ii) for acts or omissions not in good faith or that involve intentional
misconduct or a knowing violation of the law, (iii) under Section 174 of the
DGCL or (iv) for any transaction from which the director obtained an improper
personal benefit.

      ELEVENTH: It shall be a qualification for each director of the Corporation
that such director is also a director of the Class B Member. The Class B Member
shall elect any person who becomes a director of the Class B Member as a
director of the Corporation. Any director of the Corporation who ceases to be a
director of the Class B Member shall immediately cease to be a director of the
Corporation.

      TWELFTH: In furtherance and not in limitation of the powers conferred by
statute, the Board is expressly authorized to make, alter or repeal the bylaws
of the Corporation.

      THIRTEENTH: In the event of any voluntary or involuntary liquidation,
dissolution, or winding-up (collectively, "liquidation") of the Corporation, the
Class B Member shall be entitled to receive out of the net remaining assets of
the Corporation (including any termination fees and assessments levied on
members pursuant to the Bylaws) the amounts and rights, if any, then existing or
received by the Corporation in such liquidation in respect to the sale or other
disposition of the trademarks, goodwill, and other assets relating to the
activities of the Corporation. Neither the consolidation nor merger of the
Corporation, nor the sale, lease, or transfer by the Corporation of all or any
part of its assets shall be deemed to be a liquidation of the Corporation for
the purposes of this Article THIRTEENTH.

      FOURTEENTH: The Corporation reserves the right to amend, alter, change or
repeal any provision contained in this Certificate of Incorporation in the
manner now or hereafter prescribed by the law of the State of Delaware, and all
rights herein conferred upon members are granted subject to this reservation.
The consent of the Class B Member and the affirmative vote or written consent of
the holders of at least a majority of the outstanding shares of Class A Stock
and, prior to and including the Transition Date, Class B Stock, of the Class B
Member, voting together as a single class, shall be required to amend Article
FIFTH, SIXTH, SEVENTH, NINTH(b), ELEVENTH, THIRTEENTH or FOURTEENTH of this
Certificate of Incorporation.

                                        3
<PAGE>
      IN WITNESS WHEREOF, MasterCard International Incorporated has caused this
Amended and Restated Certificate of Incorporation to be signed by its President,
and its corporate seal to be hereunto affixed and attested by its Secretary,
this 28th day of June, 2002.

                                MASTERCARD INTERNATIONAL INCORPORATED

                                By:        /s/ Robert W. Selander
                                   ---------------------------------------------
                                    Name:  Robert W. Selander
                                    Title: President and Chief Executive Officer

                                        4

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-3.2.B
<SEQUENCE>4
<FILENAME>y62583exv3w2wb.txt
<DESCRIPTION>AMENDED AND RESTATED BYLAWS
<TEXT>
<PAGE>
                                                                  Exhibit 3.2(b)

                                                                          BYLAWS
                                                                        PREAMBLE

  AMENDED AND RESTATED BYLAWS OF MASTERCARD INTERNATIONAL INCORPORATED (THE
                                 "CORPORATION")

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

PREAMBLE

The purposes for which this Corporation is formed shall include the following:

1.    To facilitate the interchange of card privileges on an international
      basis.

2.    To facilitate the entry into the card businesses by members and
      prospective members without regard to size and at minimum risk and cost.

3.    To promote the development of sound practices in the operation of the card
      programs of its members by establishing high standards.
<PAGE>
                                                                          BYLAWS
                                                           ARTICLE I--MEMBERSHIP

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


ARTICLE I -- MEMBERSHIP

SEC. 1 ELIGIBILITY. The following are eligible to become Class A Members or
       Affiliate Members of this Corporation:

      (a)   Effective for entities applying for membership on or after 15 July
            1993, any corporation or other organization that is a financial
            institution that is authorized to engage in financial transactions
            under the laws and/or government regulations of the country, or any
            subdivision thereof, in which it is (i) organized or (ii)
            principally engaged in business. "Financial transactions" for
            purposes of this section shall mean the making of commercial or
            consumer loans, the extension of credit, the effecting of
            transactions with payment services cards, the issuance of travelers
            cheques, or the taking of consumer or commercial deposits. Any such
            financial institution must have the requisite right, power, and
            authority, corporate and otherwise, to function as a member of this
            Corporation and to engage in any activities contemplated by that
            financial institution that would utilize one or more of this
            Corporation's marks (each, a "Mark") and services. Any such
            financial institution also must be regulated and supervised by one
            or more governmental authorities and/or agencies authorized and
            empowered to establish and/or enforce rules regarding financial
            transactions and the financial condition, activities, and practices
            of entities engaging in such financial transactions. With respect to
            any financial institution that does not take deposits, it shall be a
            further requirement that financial transactions constitute
            substantially all of the business conducted by such institution. In
            the event any of the foregoing eligibility criteria would violate
            the laws or regulations of any country, then the Board of Directors
            may adopt, consistent with the safety and soundness objectives
            reflected above, by a two-thirds vote, eligibility criteria that
            comply with the laws and regulations of such country. The Board of
            Directors, by a two-thirds vote, shall have the right, but not the
            obligation, to modify the above membership eligibility criteria on a
            regional or country-by-country basis for any reason. Notwithstanding
            the foregoing, a Regional Board of MasterCard Incorporated or any
            other entity responsible for licensing within a region (hereinafter
            "Membership Entity") shall have the right to propose different
            membership eligibility criteria on a regional or country-by-country
            basis, which eligibility criteria shall not become effective until
            approved by a two-thirds vote of the Board of Directors. Any region
            or country specific membership eligibility criteria that are so
            adopted shall be set forth as an exhibit to these bylaws. A
            subsequent amendment of such eligibility criteria shall require a
            two-thirds vote of the Board of Directors. Furthermore, any such
            membership eligibility criteria so adopted may be withdrawn by the
            Board of Directors by a majority vote; provided that, as part of
            such vote, at least two-thirds of the directors who are not from the
            region with the eligibility criteria at issue have voted to withdraw
            such criteria.


                                        2
<PAGE>
                                                                          BYLAWS
                                                           ARTICLE I--MEMBERSHIP

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


      (b)   Any entity that is directly or indirectly controlled by one or more
            members described in Article I, Section 1 (a) and that is engaged,
            or proposes to engage, on behalf of or through one or more of those
            members in operating programs utilizing one or more of this
            Corporation's Marks or its services and related activities.

SEC. 2 APPLICATION FOR CLASS A MEMBERSHIP OR AFFILIATE MEMBERSHIP.

      (a)   Any financial institution or other entity eligible for membership as
            provided in Article I, Section 1, may apply to become a Class A
            Member or Affiliate Member of this Corporation in the class or
            classes that it may elect and for which it is eligible under Article
            I, Section 3. Applications for Class A Membership or Affiliate
            Membership must be made in the form and include all of the
            information that the Board of Directors may from time to time
            require. An application must be accompanied by the correct licensing
            and initiation fee or fees.

      (b)   An applicant for Class A Membership or Affiliate Membership in any
            class must agree, and by execution and submission of an application
            for Class A Membership or Affiliate Membership it shall have agreed,
            that it will comply with all applicable provisions of the
            Certificate of Incorporation, bylaws, rules and regulations, and
            published policies of this Corporation as in effect from time to
            time.

      (c)   A completed application for Class A Membership or Affiliate
            Membership must, if practical, be considered at the next regularly
            scheduled meeting of the Board of Directors, or, if applicable, of
            the Regional Board or board of a Membership Entity, after receipt of
            the application.

      (d)   A majority vote of the directors present at a meeting of the Board
            of Directors is required to elect an applicant to Class A Membership
            or Affiliate Membership. The foregoing notwithstanding, if election
            to Class A Membership or Affiliate Membership in this Corporation in
            a region has been delegated to a Regional Board of the Class B
            member (a "Regional Board"), a majority vote of the directors
            present at a meeting of the Regional Board is required to elect an
            applicant to Class A Membership or Affiliate Membership. The action
            taken on all applications must be recorded in the minutes of the
            meeting of the Board of Directors that acted upon it and, if any
            application is disapproved, the reasons therefor must be stated in
            those minutes.


                                        3
<PAGE>
                                                                          BYLAWS
                                                           ARTICLE I--MEMBERSHIP

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


      (e)   Prior to consideration of a Class A Membership or Affiliate
            Membership application by the Board of Directors, or, if applicable,
            a Regional Board, the President of this Corporation or his designee
            may permit, in the absolute discretion of that person, any eligible
            applicant that has submitted a properly completed Class A Membership
            or Affiliate Membership application, including the appropriate
            license agreement or agreements, to utilize this Corporation's
            Marks, and to participate in this Corporation's activities as if it
            were a Class A Member or Affiliate Member, but with no right to vote
            during that interim period. Any such interim authorization is
            subject to the subsequent approval or disapproval of the application
            by the Board of Directors or, if applicable, the Regional Board.
            Prior to being granted such authorization, the applicant must agree,
            and by commencement of MasterCard activities it shall have agreed,
            to comply during this interim period (and thereafter as necessary)
            with the applicable bylaws, rules and regulations, and published
            policies of this Corporation and to discontinue immediately any such
            utilization and participation if its application is not approved.
            All damages, losses, and liability arising directly or indirectly,
            or consequentially, from any interim utilization and participation
            and from the disapproval will be solely at the applicant's risk and
            expense, and neither this Corporation nor its Board of Directors nor
            any Regional Board shall have any responsibility for those damages,
            losses, or liabilities.

SEC. 3 MEMBERSHIP; CLASSES; OBLIGATION TO BECOME MEMBER.

      (a)   OBLIGATION TO PARTICIPATE. Each member of this Corporation must
            participate in one or more classes of membership. The classes of
            membership are card membership and travelers cheque membership.

      (b)   The following are the classes of membership in this Corporation:

      CARD MEMBERSHIP. Each card member shall participate in the card activities
      of this Corporation using the MasterCard Mark and other such Marks that
      the card member is authorized to use (each, an "Authorized Mark"). There
      are the following categories of card membership:

            (i)   ASSOCIATION MEMBER -- an entity that is eligible for, and is
                  elected by the Board of Directors to, membership pursuant to
                  Sections 1 (b) and 2 (d), respectively, of this Article I and
                  that participates or proposes to participate directly in the
                  card activities of this Corporation. An Association Member
                  shall be a Class A Member of this Corporation.

            (ii)  PRINCIPAL MEMBER -- a financial institution that is eligible
                  for, and is elected by the Board of Directors to, membership
                  pursuant to Sections 1 (a) and 2 (d), respectively, of this
                  Article I and that participates or

                                        4
<PAGE>
                                                                          BYLAWS
                                                           ARTICLE I--MEMBERSHIP

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

                  proposes to participate directly in the card activities of
                  this Corporation. A Principal Member shall be a Class A Member
                  of this Corporation.

            (iii) AFFILIATE MEMBER -- financial institution or other entity that
                  is eligible for, and is elected by the Board of Directors to,
                  membership pursuant to Article I, Sections 1 and 2 (d), and
                  that participates or proposes to participate indirectly
                  through an association member or a principal member, in the
                  card activities of this Corporation.

      TRAVELERS CHEQUE MEMBERSHIP. Travelers Cheque Member -- a financial
      institution or other entity that is eligible for, and is elected by the
      Board of Directors to, membership pursuant to Article I, Sections 1 and 2
      (d), respectively, and that participates or proposes to participate
      directly in the travelers cheque program of this Corporation. A Travelers
      Cheque Member shall be a Class A Member of this Corporation.

      Each travelers cheque member may have one or more entities, financial or
      otherwise, affiliated with it for the purpose of the travelers cheque
      program. These affiliated entities will not be travelers cheque members.

      (c)   OBLIGATION TO BECOME MEMBER. Subject to Article I, Section 2(e), a
            financial institution or other entity that is eligible for
            membership as provided in Section 1 of this Article I shall not
            participate in any of the card activities of this Corporation nor
            use any of the Marks unless and until it becomes a card member of
            this Corporation in accordance with Section 7.03 of Chapter 7 of the
            Bylaws and Rules manual.

            Subject to Article I, Section 2(e), a financial institution or other
            entity that is eligible for membership as provided in Section 1 of
            this Article I shall not participate in any of the travelers cheque
            activities of this Corporation nor use any of the travelers cheque
            trademarks of this Corporation unless and until it becomes a
            travelers cheque member of this Corporation, except those entities
            affiliated with a travelers cheque member's program, as provided in
            Article I, Section 3 (b).

SEC. 4 GENERAL OBLIGATIONS OF MEMBERSHIP. Each member must comply with the
       following obligations of membership:

      (a)   Each member shall provide, upon request, to this Corporation, or its
            designee, information with respect to any of the member's programs
            utilizing the Marks, except that compliance with the foregoing shall
            not require any member to furnish any information, the disclosure of
            which, in the opinion of this Corporation's independent outside
            legal counsel, is likely to create a significant potential legal
            risk to this Corporation and/or its member(s). Each travelers
            cheques member shall also be required to disclose such information
            as to entities affiliated with it for the purpose of its travelers
            cheques program. To the extent that such information is the member's
            proprietary information, it shall be treated


                                        5
<PAGE>
                                                                          BYLAWS
                                                           ARTICLE I--MEMBERSHIP

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

            with the degree of care deemed (i) appropriate based upon the
            sensitivity of the information and (ii) necessary to maintain its
            confidentiality. Such degree of care shall under no circumstances be
            less than that which this Corporation accords its own proprietary
            information.

      (b)   Each member shall promptly pay to this Corporation all fees, dues,
            assessments, and other obligations when due.

      (c)   Each member shall comply in all respects with all bylaws, rules and
            regulations, and published policies of this Corporation in effect
            from time to time.

SEC. 5 SPECIFIC OBLIGATIONS OF CARD MEMBERSHIP.

      (a)   Within one year of becoming a member and at all times thereafter,
            each association member and principal member must itself, taken
            together with its affiliate members as if they were a single card
            member, have satisfied the minimum obligations of its category of
            card membership as established from time to time by the Board of
            Directors and as set forth in Chapter 7 of the MasterCard Bylaws and
            Rules manual.

      (b)   Each card member shall at all times meet the minimum financial
            requirements established by the Board of Directors for all members.
            The Board of Directors, in its discretion, may establish different
            or additional financial requirements for (i) a category of financial
            institutions, organizations, or corporations that are described in
            Article I, Section 1, or (ii) an individual member or prospective
            member of this Corporation in the manner set forth in Section 7.07
            of Chapter 7 of the Bylaws and Rules manual, so long as the Board of
            Directors determines that different or additional requirements are
            reasonably required to evidence the financial integrity of that
            category of financial institutions, corporations, or other
            organizations or of an individual member or prospective member of
            this Corporation.

      (c)   Each card member shall, in accordance with this Corporation's rules
            and regulations and published policies:

            (i)   Accept records of transactions arising from the use of
                  MasterCard cards issued by other members from any of its
                  merchants that it has authorized to honor MasterCard cards,
                  and require all such merchants to honor all properly presented
                  MasterCard cards without discrimination;

            (ii)  Accept and pay for records of transactions received from other
                  members arising from the use of any MasterCard cards issued by
                  it;

            (iii) Give cash disbursements without discrimination to all holders
                  of properly presented MasterCard cards; and


                                        6
<PAGE>
                                                                          BYLAWS
                                                           ARTICLE I--MEMBERSHIP

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

            (iv)  Provide authorization service respecting its own cards for
                  other members, and provide authorization service for any
                  merchants that it has authorized to honor MasterCard cards
                  (each such merchant must not have at any given time more than
                  one telephone number to call for authorizations for MasterCard
                  cards unless the President or his designee has authorized the
                  use of more than one such number after a determination that
                  the multiplicity of numbers will not cause merchant
                  confusion).

      (d)   Each card member must actively promote this Corporation's card
            program.

      (e)   Each card member must comply in all respects with (i) the rules,
            regulations, and other directives associated with the MasterCard
            Marks as may be amended from time to time, including, but not
            limited to, the MasterCard Bylaws and Rules manual, the
            MasterCard/Cirrus ATM Participation Rules and the Cirrus Worldwide
            Operating Rules and (ii) the rules and regulations adopted in
            connection with the Authorized Marks as such term is defined in
            Article I, Section 3(b).

      (f)   Notwithstanding the foregoing requirements, no provision of these
            bylaws or of the rules and regulations or published policies of this
            Corporation requires any card member to undertake any activity that
            is prohibited by applicable law or regulation. However, the Board of
            Directors may require a member to undertake a reasonable and not
            prohibited activity in the place of any prohibited activity.

      (g)   Each association and principal member that has members affiliated
            with it must cause each of its affiliate members to comply with the
            obligations of card membership of this Corporation that are
            applicable to that affiliate, and the association and principal
            member will be liable to this Corporation and to all other members
            for all activities of its affiliate members with respect to card
            programs operated and activities engaged in by such affiliate
            members through the association or principal member including,
            without limitation, any failure by the affiliate member to comply
            with the obligations of card membership. If any member affiliated
            with an association or principal member ceases that affiliation, the
            association or principal member will nonetheless be obligated
            pursuant to the rules and regulations and published policies of this
            Corporation to acquire from other members records of transactions
            arising, whether before or after the cessation, from the use of
            MasterCard cards issued by that former affiliate member.

      (h)   Except to the extent any such liability or obligation has been
            previously satisfied by its principal member, each affiliate member
            shall be responsible for the liabilities and obligations arising out
            of, or in connection with, its card programs, irrespective of any
            (i) action taken by it to satisfy such liability or

                                        7
<PAGE>
                                                                          BYLAWS
                                                           ARTICLE I--MEMBERSHIP

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


            obligation with the principal member or (ii) agreements between the
            principal and affiliate member.

SEC. 6 SPECIFIC OBLIGATIONS OF TRAVELERS CHEQUE PROGRAM MEMBERSHIP.

      (a)   Each travelers cheque member must commit to sell MasterCard(R)
            Travelers Cheques.

      (b)   Each travelers cheque member is responsible for the payment of all
            MasterCard Travelers Cheques that it issues unless otherwise
            provided herein or in the MasterCard Travelers Cheques Operating
            Rules and shall maintain sufficient financial equity to ensure that
            its travelers cheques will be paid and shall comply with all
            applicable banking and other laws and regulations and the Travelers
            Cheques Operating Rules. With respect to such travelers cheques
            members, the Board of Directors may establish different or
            additional financial requirements (i) for a category of financial
            institutions, corporations, or other organizations that are
            described in Section 1 of this Article I or (ii) an individual
            member or prospective member of this Corporation, so long as the
            Board of Directors determines that different or additional
            requirements are reasonably required to evidence the financial
            integrity of that category of financial institutions, corporations
            or other organizations, or of an individual member or prospective
            member of this Corporation.

      (c)   Each travelers cheque member must invest the proceeds of sales of
            travelers cheques in accordance with good banking practice and in
            compliance with all applicable banking and other laws and
            regulations and the Travelers Cheque Operating Rules.

      (d)   Each travelers cheque member must in accordance with the Travelers
            Cheque Operating Rules:

            1.    issue and sell MasterCard Travelers Cheques;

            2.    issue MasterCard Travelers Cheque refunds;

            3.    accept and cash MasterCard Travelers Cheques;

            4.    provide authorization and investigation services regarding
                  MasterCard Travelers Cheques.

      (e)   Each travelers cheque member must actively promote the MasterCard
            Travelers Cheque program.

SEC. 7 TRANSFERABILITY OF MEMBERSHIP. Membership in this Corporation is not
       transferable or assignable, whether by sale, consolidation, merger,
       operation of law, or otherwise.



                                        8
<PAGE>
                                                                          BYLAWS
                                                           ARTICLE I--MEMBERSHIP

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


SEC. 8 OTHER PROGRAMS.

      (a)   No card member that is also involved in another card program may
            discriminate against this Corporation or its card members in favor
            of the other program. A card member is not required to participate
            in any other program of any type offered by this Corporation or by
            any other organization.

      (b)   A travelers cheque member is not required to participate in any
            other program of any type offered by this Corporation or by any
            other organization.

SEC. 9 VOLUNTARY TERMINATION OF MEMBERSHIP.

      (a)   A member may withdraw as a card member or as a travelers cheque
            member or as both; a member that is a member of more than one class
            of membership may withdraw from one or more class or classes of
            membership and remain a member in another class of membership.

      (b)   In order to withdraw from one or more classes of membership, the
            member must give written notice addressed to the President or the
            Secretary of this Corporation, preferably by registered or certified
            mail, return receipt requested, but any other manner of delivery may
            be used. The notice must, with reasonable clarity, state that it is
            a notice of termination and must be received by the President or the
            Secretary. The notice must:

            (i)   specify the class or classes of membership from which the
                  member is withdrawing;

            (ii)  fix a date on which a withdrawal from a class of membership
                  will be effective, and this date must be at least 30 days
                  after the notice was received by this Corporation; and

            (iii) be otherwise in the form as may be required from time to time
                  by the Board of Directors.

SEC. 10 INVOLUNTARY TERMINATION OF MEMBERSHIP. A member may be expelled from
        card membership or from travelers cheque membership, or from any or all
        classes of membership, by the affirmative vote of two-thirds of the
        entire Board of Directors. The expulsion will be effective upon
        delivery, or an inability to deliver after a reasonable attempt to do
        so, of written or actual notice, and the written notice must be provided
        expeditiously and promptly after the Board of Directors has voted the
        expulsion. The reasons for the expulsion must be stated with reasonable
        specificity in the notice and in the minutes of the meeting at which the
        action was taken.

                                        9
<PAGE>
                                                                          BYLAWS
                                                           ARTICLE I--MEMBERSHIP

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


SEC. 11 AUTOMATIC TERMINATION OF MEMBERSHIP. A member's membership in all
        classes of membership in this Corporation shall automatically terminate
        forthwith if:

      (a)   the member suspends payments within the meaning of Article IV of the
            Uniform Commercial Code as in effect at the time in the State of
            Delaware, regardless of whether, in fact, the member is subject to
            the provisions thereof;

      (b)   the member takes the required action by vote of its directors,
            stockholders, members, or other persons with the legal power to do
            so, or otherwise acts, to cease operations and to wind up the
            business of the member, such membership termination to be effective
            upon the date of the vote or other action; or

      (c)   the member fails or refuses to make payments in the ordinary course
            of business or becomes insolvent, makes an assignment for the
            benefit of creditors, or seeks the protection, by the filing of a
            petition or otherwise, of any bankruptcy or similar statute
            governing creditors' rights generally; or

      (d)   the government or the governmental regulatory authority having
            jurisdiction over the member serves a notice of intention to suspend
            or revoke, or suspends or revokes, the operations or the charter of
            the member; or

      (e)   a liquidating agent, conservator, or receiver is appointed for the
            member, or the member is placed in liquidation by any appropriate
            governmental, regulatory, or judicial authority.

      A card member's license authorizing it to use one or more Authorized Marks
      shall terminate in the event the member fails to actively participate in
      card activities using such Authorized Mark. If all of a member's licenses
      are terminated, card membership is automatically terminated on the
      effective date of termination of the last remaining license.

      The travelers cheques membership of an entity shall automatically
      terminate in the event of termination of its license authorizing it to use
      the MasterCard trademark in its travelers cheques program.

SEC. 12 LIABILITIES OF TERMINATED MEMBERS.

      (a)   A member whose membership in any class is terminated:

            (i)   shall have no further rights after the effective date of that
                  termination as a member in that class, except as may be
                  provided in the rules and regulations and published policies
                  of this Corporation applicable to that class in order to
                  permit the orderly winding up of its business as a member of
                  that class;

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            (ii)  shall not be entitled to any refund of dues, fees,
                  assessments, or other payments and will remain liable for, and
                  must promptly pay to this Corporation (a) any and all
                  applicable dues, fees, assessments, or other charges as
                  provided in these bylaws or as may be specified in the
                  applicable rules and regulations and published policies of
                  this Corporation and (b) all other charges, debts,
                  liabilities, and other amounts arising or owed in connection
                  with the member's program(s), whether arising, due, accrued,
                  or owing before or after termination of such membership;

            (iii) shall continue to remain liable for the period that may be
                  specified in, and in accordance with, the applicable rules and
                  regulations and published policies of this Corporation to
                  other members for all obligations arising, whether before or
                  after the membership termination, from the use of any cards
                  bearing any of the Marks issued by it, or any travelers
                  cheques issued or sold by it;

            (iv)  must promptly take appropriate action, in accordance with the
                  applicable rules and regulations and published policies of
                  this Corporation to give notice of the termination to the
                  holders of cards bearing any of the Marks issued by it as a
                  member of the class in which its membership is terminated and
                  to its merchants that it has authorized to honor cards bearing
                  any of the Marks or, in the case of a terminated travelers
                  cheque member, to give notice of the termination to those
                  organizations and institutions affiliated with it;

            (v)   must forthwith cancel such cards; and,

            (vi)  take such further action as may be required of a terminated
                  member hereunder and under the applicable rules and
                  regulations and published policies of this Corporation, or as
                  may be required of the terminated member by the Board of
                  Directors of this Corporation.

      (b)   If an association or principal member that has affiliate members
            terminates its membership in one or more classes of membership, the
            terminated member must cause each of the affiliate members (that are
            of the same class or classes with respect to which the membership of
            the association or principal member has terminated) to take the
            actions required of a terminated member under this Article I,
            Section 12 unless that affiliate member promptly becomes an
            affiliate of another association or principal member of the same
            class or itself becomes an association or principal member of the
            same class.


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      (c)   An applicant that has been authorized to use an Authorized Mark and
            to participate in the activities associated with such an Authorized
            Mark on an interim basis pursuant to this Article I, Section 2(e),
            but whose application is not approved, is subject to the provisions
            of this Article I, Section 12, except that all initiation and
            membership fees paid in connection with the denied application must
            be promptly returned to the applicant.

SEC. 13 EXAMINATION AND AUDITS OF MEMBERS. The Board of Directors, in its sole
        discretion, and without having any duty to do so, may from time to time
        order an audit or other examination of any member. Any financial audit
        will be conducted by independent accountants selected by the Board of
        Directors, and the standards and scope of that audit will be established
        by the Board of Directors. All fees and expenses incurred in connection
        with any examination or audit will be paid by the member that was
        examined or audited. Neither persons on the Board of Directors nor this
        Corporation nor its employees will be liable or responsible in any
        manner to any or all of the members of this Corporation or to others for
        any failure to cause any examination or audit to be conducted or for any
        action or failure to take action following such examination or audit.

SEC. 14 LICENSES. Each successful applicant for membership shall, as a condition
        of such membership, execute the then-effective license applicable to the
        class of membership to which it has been elected and assist MasterCard
        in recording such license if required in the country of license. With
        respect to individual applicants for membership, the Board of Directors
        or Regional Board, as the case may be, may add additional requirements
        or limitations to the standard member license as it reasonably deems
        appropriate. Any entity using any of the Marks must have a license or
        other written authorization from this Corporation to do so or must be
        using such Mark pursuant to authorization from an entity having the
        power to authorize it to do so.

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ARTICLE II -- BOARD OF DIRECTORS

SEC. 1 POWERS. The business of this Corporation will be managed by the Board of
       Directors, which may exercise all of the powers of this Corporation and
       do all lawful acts and things as are not (i) by statute, the Certificate
       of Incorporation, or these bylaws directed or required to be exercised or
       done by the members or (ii) specifically delegated as provided in the
       Bylaws of this Corporation.

SEC. 2 ELECTION; VACANCIES; TERM OF OFFICE. Subject to this Corporation's
       Certificate of Incorporation, the directors will be elected by the
       Class B Member at the annual meeting of members.

SEC. 3 NUMBER. The authorized number of directors constituting the entire Board
       of Directors shall be equal to such number of directors as are authorized
       to constitute the entire Board of Directors of MasterCard Incorporated.

SEC. 4 COMPENSATION OF DIRECTORS. Directors shall receive such compensation from
       this Corporation as the Board of Directors may from time to time
       establish.

SEC. 5 QUORUM. The presence of not less than a majority of the total number of
       directors entitled to vote at any meeting shall be necessary and
       sufficient to constitute a quorum for the transaction of business at such
       meeting. Except as otherwise provided by law or these bylaws, the vote of
       a majority of the voting directors present shall decide any question that
       may come before the meeting. A majority of the voting directors present
       at any meeting, although less than a quorum, may adjourn the meeting from
       time to time without notice other than announcement at the meeting.

SEC. 6 PROCEDURE. The order of business and all other matters of procedure at
       every meeting of the Board of Directors may be determined by the
       presiding officer.

SEC. 7 MEETINGS OF THE BOARD OF DIRECTORS.

      (a)   The first meeting of each newly-elected Board of Directors shall be
            held immediately following the annual meeting of members. If the
            meeting is held at the place of the meeting of members, then no
            notice of the meeting need be given to the newly-elected directors.
            If the first meeting is not held at that time and place, then it
            shall be held at a time and place specified in a notice given in the
            manner provided for notice of special meetings of the Board of
            Directors as set forth in Section 7(c) of this ARTICLE II.

      (b)   Regular meetings of the Board of Directors may be held upon such
            notice, or without notice, at such times and at such places within
            or outside of the State of Delaware as shall from time to time be
            determined by the Board of Directors.

      (c)   Special meetings of the Board of Directors, whether to be held in
            person or by telephone or similar communications equipment, may be
            called by the Chairman


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                                                  ARTICLE II--BOARD OF DIRECTORS

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            of the Board of Directors or the President and Chief Executive
            Officer on at least five days' notice to each Director and shall be
            called by the Chairman or the President and Chief Executive Officer
            upon the written request of not less than 33 1/3% of the entire
            Board of Directors; provided, however, that any meeting called to
            consider a matter that requires the immediate action of the Board of
            Directors and that does not require the approval of greater than a
            simple majority of the Directors may be called on at least 24 hours'
            notice.

      (d)   Whenever notice of a meeting of the Board of Directors is required,
            the notice shall be given in the manner set forth in Section 7(e) of
            this ARTICLE II and shall state the purpose or purposes, place, date
            and hour of the meeting.

      (e)   Any notice to a director may be given personally, by telephone, by
            mail, facsimile transmission, telex, telegraph, cable or similar
            instrumentality or electronic transmission to such director's
            residence or usual place of business. A notice will be deemed given
            when actually given in person or by telephone; when transmitted by a
            legible transmission, if given by facsimile transmission; when
            transmitted, answerback received, if given by telex; on the day when
            delivered to a cable or similar communications company; three
            business days after delivery to a courier service; or on the fifth
            business day after the day when deposited with the United States
            mail, postage prepaid, directed to the director at his business
            address, facsimile number, electronic mail address or telex number
            or at such other address, facsimile number, electronic mail address
            or telex number as the director may have designated to the Secretary
            in writing as the address or number to which notices should be sent.
            Notice given by any form of electronic transmission shall be deemed
            given when directed to the director.

      (f)   Any director may waive notice of any meeting by signing a written
            waiver or by electronic transmission, whether before or after the
            meeting. In addition, attendance at a meeting will be deemed a
            waiver of notice unless the director attends for the purpose,
            expressed to the meeting at its commencement, of objecting to the
            transaction of any business because the meeting is not lawfully
            called or convened.

SEC. 8 ENFORCEMENT OF PAYMENT OF FEES, ASSESSMENTS, AND OTHER OBLIGATIONS. The
       Board of Directors may apply any sums due to a member from this
       Corporation toward payment of any fees, assessments, and other
       obligations owed to this Corporation by that member or its affiliates.

SEC. 9 ADOPTION OR AMENDMENT OF RULES AND REGULATIONS. Except as otherwise
       provided herein or as specifically delegated by the Board of Directors or
       except as provided in a rule or in rules approved by the Board of
       Directors, only the Board of Directors may adopt or amend the rules and
       regulations.

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SEC. 10 APPROVAL OF INDEBTEDNESS. In addition to the authority of the Board of
        Directors, the Executive Committee, if formed, shall have the authority
        to approve the guarantee of indebtedness for money borrowed by this
        Corporation. This Corporation shall not incur or guarantee any
        indebtedness for money borrowed except with the prior approval of either
        the Executive Committee or Board of Directors in any specific case,
        unless pursuant to a written policy approved by the Executive Committee
        or Board of Directors. In the event of approval by the Executive
        Committee of indebtedness by this Corporation as contemplated above, the
        Board of Directors shall be informed of such action at its next Board
        meeting; however, the provision of, or failure to provide, such
        information to the Board of Directors shall not affect the validity of
        such indebtedness.

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SEC. 11 MEETINGS BY CONFERENCE TELEPHONE. Directors, and directors serving on
        committees of the Board of Directors, may participate in a meeting of
        the Board, or the committee, by means of conference telephone or similar
        communications equipment by means of which all persons participating in
        the meeting can hear each other. Such participation will constitute
        presence in person at that meeting for the purpose of constituting a
        quorum and for all other purposes. The place of any meeting held
        pursuant to this Section 12 will be deemed to be the place stated in the
        notice thereof so long as at least one director or, as the case may be,
        one committee person, is present at that place at the time of that
        meeting.

SEC. 12 ACTION WITHOUT A MEETING. Any action required or permitted to be taken
        at any meeting of the Board of Directors, or of any committee thereof,
        may be taken without a meeting if all members of the Board or the
        committee, as the case may be, who are entitled to vote, consent thereto
        in writing, and the writing or writings are filed with the minutes of
        proceedings of the Board or of that committee.

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                                                           ARTICLE III--OFFICERS

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ARTICLE III -- OFFICERS

SEC. 1 ELECTION AND APPOINTMENT. Subject to the provisions of Section 1(a) below
       regarding the election and term of the Chairman of the Board of
       Directors, the Board of Directors shall, annually at its first meeting
       following the annual meeting of stockholders, elect a Chairman of the
       Board of Directors, a President and Chief Executive Officer and a
       Secretary; and the Board of Directors may at that meeting, and
       thereafter, elect a Chairman Emeritus, Chief Operating Officer, up to two
       vice-chairmen of the Board of Directors, a Treasurer and such other
       officers as it may from time to time deem advisable. Except as prohibited
       by law, any two or more offices may be held by the same person. No
       officer except the Chairman of the Board of Directors, the Vice-Chairmen,
       if any, and the President and Chief Executive Officer need be a Director
       of the Corporation.

       (a)  THE CHAIRMAN OF THE BOARD OF DIRECTORS. The Chairman of the Board of
            Directors shall be elected to an initial term of two years and shall
            be eligible to be reelected annually thereafter. The Chairman of the
            Board of Directors shall preside at all meetings of the members of
            the Board of Directors and shall perform such other duties as are
            properly assigned to him by the Board of Directors.

       (b)  THE VICE CHAIRMAN OF THE BOARD OF DIRECTORS. The Board of Directors
            may elect up to two Vice Chairmen of the Board of Directors. The
            Vice Chairmen shall have such powers assigned to them by the
            Chairman or by the Board of Directors. In the absence of the
            Chairman, the Chairman shall designate one of the Vice Chairmen to
            preside at meetings of the Board of Directors.

       (c)  THE CHAIRMAN EMERITUS. The Corporation may have a Chairman Emeritus
            who shall be elected by the Board of Directors and shall be entitled
            to receive notice of all meetings of the Board of Directors and
            shall be permitted to attend and participate in all meetings of the
            Board of Directors, but shall not be entitled to vote. The Chairman
            Emeritus must have retired as an officer of a member of the
            Corporation while serving as a member of the Board of Directors of
            the Corporation and must have served as Chairman of the Board of
            Directors of the Corporation for at least two years.

       (d)  THE PRESIDENT AND CHIEF EXECUTIVE OFFICER. The Corporation shall
            have a President who also shall be the Chief Executive Officer of
            the Corporation. The President shall have general overall
            supervision of all business of the Corporation and shall have such
            powers and duties as usually pertain to such office or as may be
            assigned to him by the Board of Directors. In the absence of the
            Chairman and the Vice-Chairmen, the President shall perform the
            duties and exercise the powers of the Chairman of the Board of
            Directors.

       (e)  THE CHIEF OPERATING OFFICER. The Corporation may have a Chief
            Operating Officer who shall be elected by the Board of Directors.
            The Chief Operating Officer shall report directly to the President
            and Chief Executive Officer and shall have such


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            responsibilities as shall be assigned from time to time by the
            President and Chief Executive Officer.

      (f)   THE TREASURER. The Corporation may have a Treasurer who shall be
            elected by the Board of Directors. The Treasurer shall have the care
            and custody of all moneys and securities of the Corporation. S/he
            shall cause to be entered in records to be kept for that purpose
            full and accurate accounts of all moneys received by her/him and
            paid by her/him on account of the Corporation. S/he shall make and
            sign such reports, statements and documents as may be required by
            her/him of the Board of Directors or by the laws of the United
            States, the State of Delaware or any other state or country, and
            shall perform such other duties as usually pertain to such office or
            as may be assigned to him/her by the Board of Directors. The
            Treasurer shall be bonded in the manner and amount prescribed by the
            Board of Directors. The reports and records of the Treasurer shall
            be audited as of the end of each fiscal year and at such other times
            as the Board of Directors may direct by independent certified public
            accountants selected by the Board of Directors or by a committee of
            members designated by the Chairman of the Board of Directors with
            the approval of the Board of Directors.

      (g)   THE SECRETARY. The Corporation shall have a Secretary who shall be
            elected by the Board of Directors. The Secretary shall issue notices
            of meetings of members and of the Board of Directors when such
            notices are required by law or these Bylaws. The Secretary shall
            attend all meetings of the members and of the Board of Directors and
            keep the minutes thereof. S/he shall affix the Corporation's seal to
            such instruments as require the seal and shall perform such other
            duties as usually pertain to such office or as may be assigned to
            her/him by the Board of Directors or as may otherwise be provided
            for in these Bylaws.

SEC. 2 TERM OF OFFICE. Subject to the provisions of Section 1(a) above regarding
       the election and term of the Chairman of the Board of Directors, each
       officer shall be elected by the Board of Directors and shall hold office
       until the earliest of such individual's death, resignation, removal or
       the first meeting of the Board of Directors following the next annual
       meeting of stockholders. Any officer may be removed at any time, either
       with or without cause, by the Board of Directors. If any office becomes
       vacant for any reason, the vacancy may be filled by the Board of
       Directors.

SEC. 3 RESIGNATIONS. Any officer may resign at any time by giving written notice
       to the Board of Directors or to the President and Chief Executive
       Officer. Such resignation shall take effect at the time specified in the
       notice or, if no time is specified, at the time of receipt of the notice,
       and the acceptance of such resignation shall not be necessary to make it
       effective.

SEC. 4 SECURITY. The Corporation may secure the fidelity of any or all of its
       officers or agents by bond or otherwise. In addition, the Board of
       Directors may require any officer, agent or employee to give security for
       the faithful performance of his duties.

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SEC. 5 TEMPORARY TRANSFER OF POWERS AND DUTIES. In the event of an absence or
       illness of any officer, or for any other reason that the Board of
       Directors or the President and Chief Executive Officer may deem
       sufficient, the Board of Directors or the President and Chief Executive
       Officer may temporarily assign the powers and duties of that officer to
       any other officer or to any Director.

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SEC. 6 COMPENSATION. The compensation of the elected officers shall be fixed by
       the Board of Directors or a committee thereof. The compensation of other
       employees of the Corporation shall be fixed by the President and Chief
       Executive Officer (subject to the oversight of the Board of Directors).
       All employee incentive programs shall be approved by the Board of
       Directors or a committee thereof.

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                                                          ARTICLE IV--COMMITTEES

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ARTICLE IV -- COMMITTEES

SEC. 1 DIRECTORS' COMMITTEES. The Board of Directors may designate from among
       its members an Executive Committee, Audit Committee, Compensation
       Committee and other committees to serve at the pleasure of the Board of
       Directors. If the Board of Directors designates an Executive Committee,
       Audit Committee or Compensation Committee, and there exists a
       corresponding committee of the Class B Member, such committee shall have
       the same members as, and authorities similar to, the corresponding
       committee of the Class B Member. Any other committees, to the extent
       formed, shall have such authority as the Board of Directors grants them.
       The Board of Directors shall have power at any time to change the
       membership of any committees, to fill vacancies in their membership and
       to discharge any committees.

SEC. 2 CARD STANDING COMMITTEES. The President of this Corporation may appoint
       as many representatives of the members as he determines to the standing
       committees described below to consider card matters, and all persons
       appointed to these standing committees serve on them at the pleasure of
       the President. In selecting representatives for these committees, the
       President shall seek to include persons with experience and levels of
       expertise appropriate for the subject matter of the particular committee
       and shall also seek to include representatives of members from various
       regions in order to reflect the Corporation's global nature.

       (a)  INTERNATIONAL OPERATIONS COMMITTEE. The International Operations
            Committee will analyze procedural and operational problems involved
            in the worldwide interchange of card privileges among card members
            and report its conclusions and recommendations to the President.

       (b)  INTERNATIONAL SECURITY COMMITTEE. The International Security
            Committee will investigate security problems involved in the
            worldwide interchange of card privileges among card members and
            report its conclusions and recommendations to the President.

SEC. 3 PROCEDURES. Each committee shall keep regular minutes of its proceedings
       and report to the Board of Directors as and when the Board of Directors
       shall require. Unless the Board of Directors otherwise provides, notice
       requirements for meetings of committees shall be the same as notice
       requirements for meetings of the Board of Directors. Unless the Board of
       Directors otherwise provides, a majority of the members of any committee
       may determine its actions and the procedures to be followed at its
       meetings (which may include a procedure for participating in meetings by
       conference telephone or similar communications equipment by which all
       persons participating in the meeting can hear each other).

SEC. 4 NOTICE OF DIRECTORS' COMMITTEES MEETINGS. Unless the Board of Directors
       directs otherwise, notice requirements for meetings of directors'
       committees shall be the same


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                                                          ARTICLE IV--COMMITTEES

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      as notice requirements for meetings of the Board of Directors as set forth
      in Article II, Sections 6 and 8.

                                       22
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                                                                          BYLAWS
                                                             ARTICLE V--MEETINGS

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ARTICLE V -- MEETINGS

SEC. 1 ANNUAL MEETING OF MEMBERS. The annual meeting of members, for the
       election of directors and for the transaction of such other business as
       may properly come before the meeting, shall be held at such date and time
       as may be fixed by the Board of Directors, at the principal business
       office of this Corporation, or at such other place as the Board of
       Directors shall determine.

SEC. 2 SPECIAL MEETINGS OF MEMBERS. Special meetings of members, except as
       otherwise provided by law, may be held at the principal business office
       of this Corporation or elsewhere, and may be called at any time by a
       written request of one-third of the Board of Directors, or by the
       Chairman of the Board or the President. A special meeting may also be
       called at the request in writing of members having 25% or more of the
       total number of votes eligible to be cast as of the date of such request.
       Such requests from the Board of Directors or members shall state the
       person or persons calling the meeting and the purpose or purposes of the
       proposed meeting. Business transacted at a special meeting shall be
       confined to the topics stated in the call and matters germane thereto.

SEC. 3 PROCEDURES. The order of business and all other matters of procedure at
       every meeting of members may be determined by the presiding officer.

SEC. 4 QUORUM. At every meeting of members, except as otherwise provided by law
       or these bylaws, the presence in person or by proxy of members having a
       majority of the votes entitled to be cast at the meeting shall constitute
       a quorum for the transaction of business. Once a quorum is noted as
       present, it is not broken by the subsequent withdrawal of members. Except
       as otherwise provided by law, the Certificate of Incorporation, or these
       bylaws, a majority of the votes cast decides any question that may come
       before a meeting, assuming a quorum is present.

SEC. 5 ADJOURNMENTS. The members entitled to vote who are present by
       representative or by proxy at any meeting of members, whether or not they
       constitute a quorum, have the power by a majority of the votes present to
       adjourn the meeting to another time or place, and notice of the adjourned
       meeting need not be given if the time and place thereof are announced at
       the meeting at which the adjournment is taken. At the adjourned meeting,
       members may transact any business that might have been transacted at the
       original meeting. If the adjournment is for more than 30 days, a notice
       of the adjourned meeting must be given to each member entitled to vote at
       the meeting.

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                                                             ARTICLE V--MEETINGS

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SEC. 6 VOTING. Except as otherwise provided in this Corporation's Certificate of
       Incorporation or as otherwise provided by law, no member other than the
       Class B Member shall be entitled to vote on any matter for which the
       members are entitled to vote. To the extent members other than the Class
       B Member are entitled to vote, all association members and principal
       members and travelers cheque members (as those members are defined in
       these bylaws) shall be eligible to vote by representative (i.e., the
       senior officer of the member present at the meeting) or by proxy. On the
       date of such meeting, each member eligible to vote will have the right to
       cast the number of votes equal to the number of shares of Voting Stock,
       as such term is defined in the Class B Member's certificate of
       incorporation, such member holds in the Class B Member.

SEC. 7 NOTICE OF MEETINGS OF MEMBERS.

      (a)   Any notice to a member shall be given personally, by mail, facsimile
            transmission, telex, telegraph, cable or similar instrumentality or
            by electronic transmission. A notice will be deemed given when
            actually given in person; when transmitted by a legible
            transmission, if given by facsimile transmission; when transmitted,
            answerback received, if given by telex; on the day when delivered to
            a cable or similar communications company; three business days after
            delivery to a courier service; or on the fifth business day after
            the day when deposited with the United States mail, postage prepaid,
            directed to the member at such member's address, facsimile number,
            electronic mail address or telex number as it appears on the records
            of members or at such other address, facsimile number, electronic
            mail address or telex number as the member may have designated to
            the Secretary in writing as the address or number to which notices
            should be sent. Notice given by a posting on electronic network
            together with separate notice to the member of such specific
            posting, shall be deemed given upon the later of (A) such posting
            and (B) the giving of such separate notice. Notice given by any
            other form of electronic transmission shall be deemed given when
            directed to the member.

      (b)   Any person may waive notice of any meeting by signing a written
            waiver or by electronic transmission, whether before or after the
            meeting. In addition, attendance at a meeting will be deemed a
            waiver of notice unless the person attends for the purpose,
            expressed to the meeting at its commencement, of objecting to the
            transaction of any business because the meeting is not lawfully
            called or convened.

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                                                             ARTICLE V--MEETINGS

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SEC. 8 CONSENT OF MEMBERS IN LIEU OF MEETING. Any action that is required to, or
       may, be taken at any meeting of members may be taken without a meeting,
       without prior notice and without a vote, if a consent in writing, setting
       forth the action so taken, is signed by members eligible to vote on that
       action having not less than the minimum number of votes that would be
       necessary to authorize or take that action at a meeting at which all
       members eligible to vote thereat were present and voted. Prompt notice of
       the taking of action by less than a unanimous written consent of all of
       the members entitled to vote on an action must be given to those members
       entitled to vote that did not so consent in writing.

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                                                                          BYLAWS
                                       ARTICLE VI--REGIONS, FEES AND ASSESSMENTS

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ARTICLE VI -- REGIONS, FEES AND ASSESSMENTS

SEC. 1 REGIONS. In connection with the administration of its worldwide business,
       this Corporation has divided the world into six geographic regions,
       namely, Asia/Pacific, Canada, Europe, Latin America, Middle East/Africa,
       and the United States. Each region has assigned corporate staff
       responsible for all activities within the region, including, without
       limitation, coordination and support of member programs within the
       region.

SEC. 2 MASTERCARD MEMBERSHIP FEES. Each card member of this Corporation must pay
       the joining fee and other fees as may be established from time to time by
       the Board of Directors, including, by way of example and not limitation,
       those fees described in Section 7.09 of Chapter 7 of the MasterCard
       Bylaws and Rules manual. Each new travelers cheque member must pay the
       then-effective travelers cheque joining fee and other fees as established
       from time to time by the Board of Directors of this Corporation.

SEC. 3 ANNUAL BUDGET, FEES, ASSESSMENTS AND EXPENSES RELATING TO CERTAIN LOSSES.

      (a)   Utilizing the RGO (Regional, Global, and Operations) planning,
            budgeting, and reporting methodology approved by the Board of
            Directors of the Class B Member, the individual regions will prepare
            annual expense budgets with revenue programs and strategic pricing
            initiatives sufficient to meet the funding requirements. The
            proposed regional budgets will be supportive of Regional
            Board-directed marketing programs and will include sufficient
            resources to fund the assignments of global and operations expenses.
            Operations expenses are generally assigned on a user-pay basis.
            Except as contemplated by Section 3(b), global expenses are
            generally assigned by use of an equitable distribution mechanism
            that incorporates the value of worldwide brand awareness programs
            and card utility support.

      (b)   Global expenses of the Corporation or the Class B Member that relate
            to losses suffered by, or liabilities of, the Corporation or the
            Class B Member arising out of or related to a breach by the
            Corporation, the Class B Member or Europay International SA of any
            of their respective representations, warranties, covenants and
            agreements contained in the Share Exchange and Integration
            Agreement, dated as of February 13, 2002, as amended, modified,
            supplemented or restated from time to time, among the Corporation,
            the Class B Member and Europay International SA (the "Integration
            Agreement") shall be assigned by an equitable distribution mechanism
            similar to the mechanism used for assigning other global expenses;
            provided, however, that:


                                       26
<PAGE>
                                                                          BYLAWS
                                       ARTICLE VI--REGIONS, FEES AND ASSESSMENTS

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


            (i)   if the losses and liabilities arise out of or are related to a
                  breach by the Corporation or the Class B member and exceed, in
                  the aggregate, $21 million, then the global expenses in the
                  amount of the excess shall be allocated solely to regions
                  other than the Europe region; and

            (ii)  if the losses and liabilities arise out of or are related to a
                  breach by Europay International SA and exceed, in the
                  aggregate, $7 million, then the global expenses in the amount
                  of the excess shall be allocated solely to the Europe region.

      (c)   Annually, each Regional Board shall establish a regional budget for
            the following year, which budget shall provide sufficient funds to
            (i) vigorously promote the brand and fund the other regional
            programs, initiatives, and activities and (ii) fund the region's
            assignment of centrally managed expenses. The method of funding the
            regional budget will be by assessment and other fees (including,
            without limitation, transaction and operations fees) paid to this
            Corporation or the Class B member by the members in the region. Each
            member within a region shall pay not less than the amount
            established as the minimum assessments and fees payable by each
            member within the region. If budgeting authority has not been
            delegated to a Regional Board in a region, the annual budget for the
            region shall be reviewed and approved by the Board of Directors of
            the Corporation.

      This Corporation's entire Annual Budget incorporating all regional budgets
      shall be submitted to the Board of Directors for its approval at least 30
      days prior to the fiscal year to which it applies. In its review of such
      Annual Budget, the Board of Directors shall, among other things, ensure
      that each final regional budget provides for the appropriate level of
      expenses assigned to the region and the level of expenditures necessary to
      appropriately support this Corporation's brands and programs in that
      region and an appropriate method of funding such expenses.

SEC. 4 ASSESSMENTS.

      (a)   In addition to establishing the Annual Budget of this Corporation as
            described in Section 3 above, the Board of Directors at any time,
            and from time to time, may fix and impose assessments on all or some
            lesser number of the members (other than the Class B member) of this
            Corporation for expenses and liabilities that relate to the ordinary
            activities of the Corporation, including, without limitation,
            expenses and liabilities related to counterfeit insurance premiums,
            advertising and penalties for violation of the bylaws, rules and
            regulations or other published policies of the Corporation. Subject
            to Section 4(c) and (e), the Board of Directors may fix a separate
            rate or basis of assessment for members of different regions, as
            well as for members within a region.


                                       27
<PAGE>
                                                                          BYLAWS
                                       ARTICLE VI--REGIONS, FEES AND ASSESSMENTS

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


      (b)   The Board of Directors at any time, and from time to time, may fix
            and impose special assessments for all or any portion of the
            Corporation's and the Class B Member's expenses and liabilities
            arising out of extraordinary events, such as settlements or
            judgments in major litigations and catastrophic occurrences that may
            cause significant risk or damage to the Corporation and the Class B
            Member ("Special Assessments"). In no event shall the aggregate
            cumulative liability of all members (including terminated members as
            described in Article I, Section 12) for Special Assessments imposed
            on all members from and after June 28, 2002, exceed two times the
            Class B Member's consolidated Worldwide Annual Revenue; provided,
            however, that the foregoing limitation shall not apply to (i)
            assessments contemplated by Article VI, Section 3(b) and Article VI,
            Section 4(d) of these Bylaws, (ii) assessments contemplated by
            ARTICLE NINTH(b) of the Corporation's Certificate of Incorporation
            and (iii) assessments for expenses and liabilities relating to
            conduct engaged or alleged to have been engaged in by the
            Corporation prior to June 28, 2002 (whether or not such conduct
            continues after June 28, 2002). "Worldwide Annual Revenue" means the
            highest amount of revenue paid to the Class B Member and its
            subsidiaries in any of the three 12-month periods covered by the
            three most recent Global Proxy Calculations less any Special
            Assessments previously paid by the members.

      (c)   With respect to any Special Assessment imposed on less than all of
            the members, in no event shall a member be required to contribute to
            a Special Assessment, in an amount greater than eight times revenue
            paid to the Class B Member and its subsidiaries by that member
            during the 12-month period covered by the most recent Global Proxy
            Calculation; provided, however, that the foregoing limitation shall
            not apply to (i) assessments contemplated by Article VI, Section
            3(b) and Article VI, Section 4(d) of these Bylaws, (ii) assessments
            contemplated by ARTICLE NINTH(b) of the Corporation's Certificate of
            Incorporation and (iii) assessments for expenses and liabilities
            relating to conduct engaged or alleged to have been engaged in by
            the Corporation prior to June 28, 2002 (whether or not such conduct
            continues after June 28, 2002).

      (d)   An "Integration Assessment" is an assessment of the members of the
            Corporation's Europe region or its regions other than Europe, as the
            case may be, to compensate the Corporation and/or the Class B Member
            for losses suffered by, or liabilities of, the Corporation and/or
            the Class B Member, in excess of the amounts contemplated by Article
            VI, Section 3(b), arising out of or related to a breach of the
            representations, warranties, covenants and agreements contained in
            the Integration Agreement, but only to the extent such losses and
            liabilities have not been satisfied by an allocation of expenses in
            accordance with Article VI, Section 3(b).


                                       28
<PAGE>
                                                                          BYLAWS
                                       ARTICLE VI--REGIONS, FEES AND ASSESSMENTS

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


      (e)   In determining whether to impose a Special Assessment on this
            Corporation's members for obligations that are associated with a
            particular region(s) or member(s), the Board of Directors must first
            consider whether it is appropriate and consistent with the interests
            of this Corporation and its members to allocate the obligations for
            such assessment first to the region(s) and/or member(s) concerned
            before extending the assessment to this Corporation's other regions
            and/or members.

      (f)   In the event a member violates a rule for which an assessment is
            expressly provided, the President or his designee shall warn the
            member of the violation. If, subsequent to this warning, the member
            shall continue to violate the rule, this Corporation shall draft on
            the member in the amount of the assessment unless the member can
            demonstrate that it could not reasonably avoid the violation. Any
            member wishing to dispute the finding of violation or the resulting
            assessment shall have a right to have such finding or assessment
            reviewed by the Board of Directors at its next regularly scheduled
            meeting following the date of the assessment. In the event a member
            wishes to exercise its right of review, it must so advise the
            Secretary, by registered or certified mail, at least 30 days prior
            to the Board meeting. The findings of the Board of Directors shall
            be final.

      (g)   Any Special Assessments of the members will require authorization of
            the Board of Directors as follows:

            (i)   when the Special Assessment is less than or equal to one times
                  the "Worldwide Annual Revenue," by a simple majority of the
                  Board of Directors; and

            (ii)  when the Special Assessment is greater than one times the
                  "Worldwide Annual Revenue" but less than or equal to two times
                  annual revenue, by a two-thirds majority of the entire Board
                  of Directors.

SEC. 5 PRORATING ASSESSMENTS AND OTHER FEES.

      (a)   An association or principal member must pay all assessments,
            operating fees, and other fees applicable to its MasterCard programs
            for the calendar year in which it becomes such a member.

      (b)   If an association or principal member transfers to affiliate status
            with another member, any remaining assessments, operating fees, and
            other fees that the transferring member would have been obligated to
            pay had it remained an association or principal member to the end of
            the year will, but without duplication, become additional
            assessments, operating fees, and other fees to be paid by the member
            with which the transferring member has become affiliated. If an
            affiliate of a member transfers and becomes a new association member
            or


                                       29
<PAGE>
                                                                          BYLAWS
                                       ARTICLE VI--REGIONS, FEES AND ASSESSMENTS

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


            principal member, the assessments, operating fees, and other fees of
            the transferring member will, when paid, be credited or refunded, as
            the case may be, to the member with which it had been affiliated to
            avoid duplicate payment of assessments and fees on the same volume.
            However, no such credit or refund will reduce the assessments,
            operating fees, and other fees of an association or principal member
            below the minimum assessments, operating fees, and other fees
            established pursuant to Article VI, Section 3.

      (c)   In imposing any additional assessment, the Board of Directors may in
            its discretion make a provision for prorating the assessment to
            reflect periods of membership.

SEC. 6 PAYMENT DATES. Fees and assessments must be paid on the date or dates and
       in the installments (if any) as the Board of Directors or staff may
       prescribe.

SEC. 7 CERTIFICATION OF ACCOUNTS AND VOLUMES. Each association member and
       principal member must file with this Corporation a certified statement of
       (i) the aggregate number of its active MasterCard card accounts (as
       defined in Section 8 of this Article VI) and the active MasterCard card
       accounts of the card members affiliated with it, (ii) its Gross Acquiring
       Volumes, as defined in the Bylaws of the Class B Member, and (iii) its
       Gross Dollar Volumes, as defined in the Bylaws of the Class B Member, as
       of such date or dates or for such period or periods as the Board of
       Directors may require from time to time. Each travelers cheque member
       must file with this Corporation a certified statement of the aggregate
       sales of MasterCard Travelers Cheques as of such date or dates or for
       such period or periods as the Board of Directors may require from time to
       time.

SEC. 8 ACTIVE MASTERCARD CARD ACCOUNTS. Active MasterCard card accounts as of a
       given date are those accounts accessed by cards bearing one or more
       trademarks of this Corporation on which accounts (i) one or more
       transactions have been completed and/or (ii) a fee has been paid by the
       cardholder to the issuer of the card during the 12 full months prior to
       the date of the request to the members for this information.

SEC. 9 MASTERCARD TRAVELERS CHEQUE SALES. MasterCard Travelers Cheques sales are
       the total sales of a travelers cheque member of its MasterCard Travelers
       Cheque sales directly by itself and through its sales agents for any
       given period of time as determined by the Board of Directors.

SEC. 10 TERMINATION FEE.

        (a) CARD MEMBERSHIP. Any card member that ceases to be a member of this
            Corporation, whether voluntarily or involuntarily, must:

            (i)   pay any amounts otherwise payable as provided in these bylaws
                  or the rules and regulations of this Corporation;


                                       30
<PAGE>
                                                                          BYLAWS
                                       ARTICLE VI--REGIONS, FEES AND ASSESSMENTS

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


            (ii)  pay any charges incurred and assessments approved but not yet
                  billed to that member (or attributable to that member if it is
                  affiliated with an association or principal member);

            (iii) reimburse this Corporation for any disbursements made on its
                  behalf; and

            (iv)  pay the greater of US $500 or the sum of:

                  (1)   the highest total amount the member was billed and/or
                        paid (or would have been billed or paid, in the case of
                        an affiliated member, had it been a principal member) as

                        (a)   assessments (other than Special Assessments for
                              which such terminated member shall remain liable
                              in accordance with Article VI, Section 4); and

                        (b)   fees and charges for services provided directly or
                              indirectly by this Corporation respecting the
                              member's MasterCard (charge card, debit services,
                              and otherwise) activities and other fees included
                              within the region's annual budget, in a single
                              year during the four calendar years preceding the
                              year in which the termination is effective, or in
                              that year itself; if the member has not been a
                              MasterCard member for one or more calendar years,
                              as of the date on which the termination is
                              effective, this amount will be equal to the total
                              billed or paid, or that would have been billed or
                              paid in the case of an affiliate member had it
                              been a principal member, in the 12 calendar months
                              preceding the month in which the termination is
                              effective; and

                  (2)   a pro rata share (defined as the percentage derived by
                        dividing the highest number of the terminating member's
                        MasterCard votes in a single year during the four
                        calendar years preceding the year in which the
                        termination is effective, or in that year itself, by the
                        total number of MasterCard votes for the year in which
                        the termination is effective) of any long-term
                        obligations, including leases and loans of all types
                        (excepting contracts and leases covered in subsection
                        (4) below), but not giving any effect to present values
                        of future payments or to any escalation provision, of
                        this Corporation and its subsidiaries as of the end of
                        the month preceding the date on which the termination is
                        effective; and

                                       31
<PAGE>
                                                                          BYLAWS
                                       ARTICLE VI--REGIONS, FEES AND ASSESSMENTS

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


                  (3)   any federal, state, local, or other government taxes or
                        charges that are attributable to the above amounts; and

                  (4)   termination charges and penalties arising from the
                        cancellation of contracts and leases for equipment and
                        supplies arranged for or entered into in order to
                        accommodate, or on behalf of, the terminating member.

      (b)   MINIMUM TERMINATION FEES. The minimum termination fee established in
            the preceding section applies to each card member, including each
            affiliate member, except that if an association or principal member
            terminates simultaneously with some or all of the members affiliated
            with it, or if a group of members affiliated with an association or
            principal member simultaneously and jointly terminate, the minimum
            termination fee will apply to the group, as if the terminating
            members were but a single member.

      (c)   TRAVELERS CHEQUE MEMBERSHIP. With respect to any travelers cheque
            member that ceases to be a travelers cheque member of MasterCard,
            such member must pay any direct charges resulting from the
            termination from the program and must pay for the costs to be
            incurred in the spin-down payments of its outstanding travelers
            cheques and any assessments or fees applicable to it as a result of
            it having been a travelers cheque member of this Corporation.

      (d)   UNBILLED ASSESSMENTS. The Board may in its sole discretion excuse a
            withdrawing member from paying an assessment approved after the date
            of the member's notice of termination and on or before the date on
            which the termination is effective.

      (e)   NOTICE OF TERMINATION. A notice of termination must be in writing,
            addressed to the President or the Secretary of this Corporation, and
            be provided this Corporation so as to have been received at least 30
            days before the effective date of termination set forth in the
            notice letter as provided in Section 9 of Article I.

      (f)   INTERIM PARTICIPATION. An applicant that receives permission to
            participate in the activities of this Corporation will not be
            subject to the provisions of this Section 10 until its application
            is approved by the Board of Directors.

      (g)   TERMINATION OF CORPORATION. Subject to the Board of Directors'
            right, but not obligation, to establish members' obligations on
            termination of this Corporation, the provisions of this Section 10
            shall not apply, except with respect to those members whose notice
            of termination has previously become effective in accordance with
            Section 10(e) above in the event of any voluntary or involuntary
            liquidation, dissolution, or winding up of this Corporation or the
            voluntary or involuntary cessation of all or substantially all of
            the activities of this Corporation.


                                       32
<PAGE>
                                                                          BYLAWS
                                           ARTICLE VII--MISCELLANEOUS PROVISIONS

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

ARTICLE VII -- MISCELLANEOUS PROVISIONS

SEC. 1 FISCAL YEAR. The fiscal year of this Corporation is the calendar year.

SEC. 2 INDEMNIFICATION. This Corporation will, to the full extent permitted by
       the General Corporation Law of the State of Delaware, indemnify all
       persons whom this Corporation may indemnify pursuant thereto.
       Notwithstanding the foregoing, the indemnification provided by this
       Section 2 will not be deemed exclusive of any other rights to which those
       seeking indemnification may be entitled under any agreement, or under any
       vote of members or of disinterested directors of this Corporation or
       otherwise.

SEC. 3 CORPORATE SEAL. The seal of this Corporation will be circular in form
       with the words "MasterCard International Incorporated" around the outer
       margin and the words and figures "Corporate Seal 1966 Delaware" in the
       center.

SEC. 4 CORPORATE SYMBOL. The symbol of this Corporation will be the word
       "MasterCard" superimposed across a red circle overlapping a yellow circle
       in the form adopted by the Board of Directors as the corporate symbol of
       this Corporation.

SEC. 5 DEFINITIONS. The term "card" when used herein means a device, complying
       with the specifications set forth in the rules and regulations, which may
       be used to pay for goods and/or services and to obtain cash through
       access of the cardholder's credit, charge, or depository account with the
       issuer of the card.

      The term "entire Board of Directors" when used herein in connection with
      voting requirements shall refer to the number of directors authorized to
      serve as directors by the Board of Directors less any vacancies and any
      directors not entitled to vote on such issue. In the event a vote is
      specified to be taken by the Board of Directors without reference to the
      "entire Board of Directors," then the number of votes required shall be
      calculated based upon the number of directors voting at the meeting which
      a quorum is present.

      The term "rules and regulations" when used herein means the rules part,
      which is separate from the bylaws part, of the Corporation's Bylaws and
      Rules manual, the provisions set forth in the Operations Manual and the
      provisions set forth in any other manual prepared in connection with any
      program or service or activity of this Corporation and published to the
      membership from time to time, for example, and not by way of limitation,
      the Security Procedures and Systems manual and the Authorization System
      Manual.

      A "published policy" is one that has been disseminated by bulletin,
      letter, or other form of written communication to, at least, the principal
      members that, along with their affiliate members, are affected by such
      policy.


                                       33
<PAGE>
                                                                          BYLAWS
                                           ARTICLE VII--MISCELLANEOUS PROVISIONS

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

SEC. 6 AMENDMENT OF BYLAWS. The Board of Directors or the Class B Member may
       adopt, amend or repeal these bylaws, provided, however, that in order to
       (i) adopt, amend, or repeal the maximum aggregate cumulative liability
       for all members for Special Assessments as described in Article VI,
       Section 4(b) or this provision of these bylaws the approval of at least
       75% of the members of the Board of Directors present at a meeting at
       which a quorum is present and the approval of a majority of the
       outstanding shares of MC Global Class A Stock and, prior to and including
       the Transition Date, share of MC Global Class B Stock (as each such term
       is defined in the Integration Agreement), voting together as a single
       class, shall be required and (ii) adopt, amend or repeal the cumulative
       maximum liability for each member for Special Assessments as described in
       Article VI, Section 4(c) or this provision of these bylaws the
       affirmative vote of at least two-thirds of the Board of Directors present
       at a meeting at which a quorum is present shall be required. In addition,
       and not by way of limitation of the foregoing, the Class A Members, by
       the affirmative vote of at least two-thirds of the voting power held by
       the Class A Members, as determined in accordance with Section 6 of
       Article V, present at a meeting at which a quorum is present, may amend
       Article I of the bylaws or this sentence.

SEC. 7 INCONSISTENT PROVISIONS; LICENSES. In the event of an inconsistency
       between a provision of these bylaws and a provision in any member
       MasterCard license, the provisions of these bylaws shall prevail and the
       member license shall be deemed to have been amended so as to be
       consistent with the bylaws provision. In the event of an inconsistency
       between a provision of the rules, regulations, or other directives
       associated with Marks other than the MasterCard Mark and the license for
       such Mark granted to a Member, the provision of such rules, regulations,
       and other directives shall prevail and the license shall be deemed to
       have been amended so as to be consistent with the rules provision.


                                       34

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>5
<FILENAME>y62583exv10w1.txt
<DESCRIPTION>CREDIT AGREEMENT
<TEXT>
<PAGE>
                                                                    Exhibit 10.1

                                                           EXECUTION COUNTERPART


                                 $1,200,000,000

                                CREDIT AGREEMENT

                                      AMONG

                      MASTERCARD INTERNATIONAL INCORPORATED

                             MASTERCARD INCORPORATED

                               THE SEVERAL LENDERS
                        FROM TIME TO TIME PARTIES HERETO

                           SALOMON SMITH BARNEY INC.,
                              AS SOLE LEAD ARRANGER

                                       AND


                                 CITIBANK, N.A.,
                           AS CO-ADMINISTRATIVE AGENT


                              JPMORGAN CHASE BANK,
                           AS CO-ADMINISTRATIVE AGENT


                          J.P. MORGAN SECURITIES, INC.,
                                 AS CO-ARRANGER



                          J.P. MORGAN SECURITIES, INC.,
                               FLEET NATIONAL BANK
                                  HSBC BANK USA

                            AS CO-SYNDICATION AGENTS

                            DATED AS OF JUNE 4, 2002
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                              PAGE
                                                                                              ----
<S>                                                                                           <C>
SECTION 1.  DEFINITIONS.....................................................................     1
         1.1      Defined Terms.............................................................     1
         1.2      Other Definitional Provisions.............................................    14

SECTION 2.  AMOUNT AND TERMS OF LOANS.......................................................    14
         2.1      Revolving Credit Commitments..............................................    14
         2.2      Procedure for Revolving Credit Borrowing..................................    15
         2.3      Term Loans................................................................    15
         2.4      Procedure for Term Loan Borrowing.........................................    15
         2.5      Facility Fee..............................................................    16
         2.6      Termination or Reduction of Commitments...................................    16
         2.7      Repayment of Revolving Credit Loans and Term Loans;  Evidence of Debt.....    16
         2.8      Optional Prepayments......................................................    17
         2.9      Conversion and Continuation Options.......................................    17
         2.10     CAF Advances..............................................................    18
         2.11     Procedure for CAF Advance Borrowing.......................................    18
         2.12     CAF Advance Payments......................................................    21
         2.13     Evidence of Debt..........................................................    21
         2.14     Certain Restrictions......................................................    21
         2.15     Minimum Amounts of Tranches...............................................    21
         2.16     Interest Rates and Payment Dates..........................................    22
         2.17     Computation of Interest and Fees..........................................    22
         2.18     Inability to Determine Interest Rate......................................    22
         2.19     Pro Rata Treatment and Payments...........................................    23
         2.20     Swing Line Commitment.....................................................    24
         2.21     Illegality................................................................    26
         2.22     Requirements of Law.......................................................    26
         2.23     Taxes.....................................................................    27
         2.24     Indemnity.................................................................    28
         2.25     Commitment Increases......................................................    29

SECTION 3.  REPRESENTATIONS AND WARRANTIES BY INTERNATIONAL.................................    30
         3.1      Financial Condition.......................................................    30
         3.2      No Change.................................................................    30
         3.3      Corporate Existence; Compliance with Law..................................    30
         3.4      Corporate Power; Authorization; Enforceable Obligations...................    31
         3.5      No Legal Bar..............................................................    31
         3.6      No Material Litigation....................................................    31
         3.7      No Default................................................................    31
         3.8      Ownership of Property; Liens..............................................    31
         3.9      Intellectual Property.....................................................    31
         3.10     No Burdensome Restrictions................................................    32
         3.11     Taxes.....................................................................    32
</TABLE>


                                       i
<PAGE>
<TABLE>
<CAPTION>
                                                                                              PAGE
                                                                                              ----
<S>                                                                                           <C>
         3.12     Federal Regulations.......................................................    32
         3.13     ERISA.....................................................................    32
         3.14     Investment Company Act; Other Regulations.................................    33
         3.15     Subsidiaries..............................................................    33
         3.16     Purpose of Loans..........................................................    33
         3.17     Environmental Matters.....................................................    33

SECTION 4.  CONDITIONS PRECEDENT............................................................    34
         4.1      Conditions to Initial Loans...............................................    34
         4.2      Conditions to Each Loan...................................................    35

SECTION 5.  AFFIRMATIVE COVENANTS...........................................................    36
         5.1      Financial Statements......................................................    36
         5.2      Certificates; Other Information...........................................    36
         5.3      Payment of Obligations....................................................    37
         5.4      Conduct of Business and Maintenance of Existence..........................    37
         5.5      Maintenance of Property; Insurance........................................    37
         5.6      Inspection of Property; Books and Records; Discussions....................    37
         5.7      Notices...................................................................    38
         5.8      Environment Laws..........................................................    38

SECTION 6.  NEGATIVE COVENANTS..............................................................    39
         6.1      Maintenance of Net Worth..................................................    39
         6.2      Limitation on Liens.......................................................    39
         6.3      Limitation on Fundamental Changes.........................................    40
         6.4      Limitation on Sale of Assets..............................................    41
         6.5      Limitation on Dividends...................................................    41
         6.6      Limitation on Investments, Loans and Advances.............................    42
         6.7      Limitation on Transactions with Affiliates................................    42
         6.8      Limitation on Changes in Fiscal Year......................................    42
         6.9      Limitation on Lines of Business...........................................    42

SECTION 7.  EVENTS OF DEFAULT...............................................................    42

SECTION 8.  THE ADMINISTRATIVE AGENT........................................................    45
         8.1      Appointment...............................................................    45
         8.2      Delegation of Duties......................................................    45
         8.3      Exculpatory Provisions....................................................    45
         8.4      Reliance by Administrative Agent..........................................    45
         8.5      Notice of Default.........................................................    46
         8.6      Non-Reliance on Administrative Agent and Other Lenders....................    46
         8.7      Indemnification...........................................................    47
         8.8      Administrative Agent in Its Individual Capacity...........................    47
         8.9      Successor Administrative Agent............................................    47
         8.10     Substitute Administrative Agent...........................................    47
</TABLE>


                                       ii
<PAGE>
<TABLE>
<CAPTION>
                                                                                              PAGE
                                                                                              ----
<S>                                                                                           <C>
SECTION 9.  CONVERSION PROVISIONS...........................................................    48
         9.1      Guarantee and Assumption of Obligations...................................    48
         9.2      Representations and Warranties............................................    52
         9.3      Additional Covenant.......................................................    56

SECTION 10.  MISCELLANEOUS..................................................................    56
         10.1     Amendments and Waivers....................................................    56
         10.2     Notices...................................................................    57
         10.3     No Waiver; Cumulative Remedies............................................    57
         10.4     Survival of Representations and Warranties................................    58
         10.5     Payment of Expenses and Taxes.............................................    58
         10.6     Successors and Assigns; Participations and Assignments....................    59
         10.7     Adjustments; Set-off......................................................    62
         10.8     Counterparts..............................................................    63
         10.9     Severability..............................................................    63
         10.10    Integration...............................................................    63
         10.11    Termination of Commitments and Swing Line Commitments.....................    63
         10.12    GOVERNING LAW.............................................................    63
         10.13    Submission To Jurisdiction; Waivers.......................................    63
         10.14    Acknowledgements..........................................................    64
         10.15    WAIVERS OF JURY TRIAL.....................................................    64
</TABLE>

<TABLE>
<CAPTION>
SCHEDULES
<S>      <C>      <C>
1.1(a)   -        Cash Equivalents
1.1(b)   -        Permitted Investments
1.2      -        Commitments
3.1      -        Interest Rate and Currency Protection
3.6      -        Material Litigation
3.15     -        Subsidiaries
6.2(f)   -        Liens
9.2(o)   -        Inc. Subsidiaries
9.3      -        Dividend Blocks
10.7(b)  -        Fiduciary Accounts
</TABLE>

<TABLE>
<CAPTION>
EXHIBITS
<S>      <C>
A        Form of Revolving Credit Note
B        Form of Term Note
C        Form of Swing Line Note
D-1      Form of CAF Advance Request
D-2      Form of CAF Advance Offer
D-3      Form of CAF Advance Confirmation
D-4      Form of CAF Advance Assignment
E        Form of Swing Line Loan Participation Certificate
F-1      Form of Opinion of General Counsel of Borrower
</TABLE>


                                      iii
<PAGE>
                                                                         PAGE

<TABLE>
<S>      <C>
F-2      Form of Opinion of General Counsel of Inc.
G        Form of Borrowing Notice
H        Form of Assignment and Acceptance
I        Form of Closing Certificate
J        Form of Compliance Certificate
K-1      Form of New Lender Supplement
K-2      Form of Commitment Increase Supplement
L        Form of Conversion Date Certificate
M        Conversion Date Closing Items
</TABLE>


                                       iv
<PAGE>
                  CREDIT AGREEMENT, dated as of June 4, 2002 among MASTERCARD
INTERNATIONAL INCORPORATED, a Delaware corporation ("International"), MASTERCARD
INCORPORATED, a Delaware corporation ("Inc."), the several banks and other
financial institutions from time to time parties to this Agreement (the
"Lenders"), and CITIBANK, N.A. ("Citibank"), as administrative agent for the
Lenders hereunder (Citibank, in its capacity as administrative agent, the
"Administrative Agent"), and JPMORGAN CHASE BANK, as back-up administrative
agent for the Lenders hereunder (JPMorgan Chase Bank, in its capacity as back-up
agent, the "Backup Agent").

                  The parties hereto hereby agree as follows:


                             SECTION 1. DEFINITIONS

                  1.1 Defined Terms. As used in this Agreement, the following
terms shall have the following meanings:

                  "ABR": a fluctuating interest rate per annum in effect from
         time to time, which rate per annum shall at all times be equal to the
         highest of:

                                    (i) the rate of interest announced publicly
                  by Citibank in New York City from time to time as Citibank's
                  base rate; and

                                    (ii) 1.00% per annum above the latest
                  three-week moving average of secondary market morning offering
                  rates in the United States for three-month certificates of
                  deposit of major United States money market banks, such
                  three-week moving average being determined weekly on each
                  Monday (or, if any such day is not a Business Day, on the next
                  succeeding Business Day) for the three-week period ending on
                  the previous Friday by Citibank on the basis of such rates
                  reported by certificate of deposit dealers to and published by
                  the Federal Reserve Bank of New York or, if such publications
                  shall be suspended or terminated, on the basis of quotations
                  for such rates received by Citibank from three New York
                  certificate of deposit dealers of recognized standing selected
                  by Citibank, in either case adjusted to the nearest 0.25%, or
                  if there is no nearest 0.25%, to the next higher 0.25%; and

                                    (iii) for any day, 0.50% per annum above the
                  Federal Funds Rate in effect on such day;

                  plus for each Term Loan, 0.25%.

                  Each change in any interest rate provided for herein based
         upon the ABR resulting from a change in the ABR shall take effect at
         the time of such change in the ABR.

                  "ABR Loans": Revolving Credit Loans and Term Loans hereunder
         the rate of interest applicable to which is based upon the ABR.

                  "Administrative Agent":  as defined in the preamble hereof.


                                CREDIT AGREEMENT
<PAGE>
                                                                               2


                  "Administrative Questionnaire": an Administrative
         Questionnaire in a form supplied by the Administrative Agent.

                  "Affiliate": as to any Person, any other Person (other than a
         Subsidiary) which, directly or indirectly, is in control of, is
         controlled by, or is under common control with, such Person. For
         purposes of this definition, "control" of a Person means the power,
         directly or indirectly, either to (a) vote 25% or more of the
         securities having ordinary voting power for the election of directors
         of such Person or (b) direct or cause the direction of the management
         and policies of such Person, whether by contract or otherwise.

                  "Agreement": this Credit Agreement, as amended, supplemented
         or otherwise modified from time to time.

                  "Applicable Margin": for each LIBOR Loan 0.28% per annum,
         plus, (i) on each day on which the drawn portion of the aggregate
         amount of the Commitments (including Swing Line Loans, CAF Advances and
         Term Loans) exceeds 33% of the aggregate amount of the Commitments as
         in effect on the Closing Date, 0.10% per annum and (ii) for each Term
         Loan, 0.25%.

                  "Assignee":  as defined in subsection 10.6(c).

                  "Available Commitment": as to any Lender on any day, an amount
         equal to the excess, if any, of (a) the amount of such Lender's
         Commitment over (b) the aggregate of (i) the aggregate principal amount
         of all Revolving Credit Loans and Term Loans made by such Lender then
         outstanding and (ii) an amount equal to such Lender's Commitment
         Percentage of the aggregate principal amount of all Swing Line Loans
         then outstanding (after giving effect to any repayment of Swing Line
         Loans on such day).

                  "Backup Agent": as defined in the preamble hereof.

                  "Board": the Board of Governors of the Federal Reserve System
         of the United States (or any successor).

                  "Borrower": until the Conversion Date, International, and from
         and after the Conversion Date, Inc.

                  "Borrowing Date": any Business Day specified in a notice
         pursuant to subsections 2.2, 2.4, 2.11 or 2.20 as a date on which the
         Borrower requests the Lenders or the Swing Line Lender, as the case may
         be, to make Loans hereunder.

                  "Business":  as defined in subsection 3.17.

                  "Business Day": a day other than a Saturday, Sunday or other
         day on which commercial banks in New York City are authorized or
         required by law to close; provided that when such term is used to
         describe a day on which a borrowing, payment or interest rate
         determination is to be made in respect of a LIBOR Loan or a LIBOR CAF
         Advance, such day shall also be a day on which dealings in foreign
         currencies and exchange between banks may be carried on in London,
         England.


                                CREDIT AGREEMENT
<PAGE>
                                                                               3


                  "CAF Advance": each CAF Advance made pursuant to subsection
         2.10.

                  "CAF Advance Availability Period": the period from and
         including the Closing Date to and including the date which is 7 days
         prior to the Revolving Credit Termination Date.

                  "CAF Advance Confirmation": each confirmation by the Borrower
         of its acceptance of CAF Advance Offers, which confirmation shall be
         substantially in the form of Exhibit D-3 and shall be delivered to the
         Administrative Agent by facsimile transmission.

                  "CAF Advance Interest Payment Date": as to each CAF Advance,
         each interest payment date specified by the Borrower for such CAF
         Advance in the related CAF Advance Request.

                  "CAF Advance Maturity Date": as to any CAF Advance, the date
         specified by the Borrower pursuant to subsection 2.11(a) in its
         acceptance of the related CAF Advance Offer.

                  "CAF Advance Offer": each offer by a Lender to make CAF
         Advances pursuant to a CAF Advance Request, which offer shall contain
         the information specified in Exhibit D-2 and shall be delivered to the
         Administrative Agent by telephone, immediately confirmed by facsimile
         transmission.

                  "CAF Advance Request": each request by the Borrower for
         Lenders to submit bids to make CAF Advances, which request shall
         contain the information in respect of such requested CAF Advances
         specified in Exhibit D-1 and shall be delivered to the Administrative
         Agent in writing, by facsimile transmission, or by telephone,
         immediately confirmed by facsimile transmission.

                  "Capital Lease": as applied to any Person, any lease of any
         property (whether real, personal or mixed) by that Person as lessee
         which, in conformity with GAAP, is, or is required to be, accounted for
         as a capital lease on the balance sheet of that Person.

                  "Capitalized Lease Obligations": all obligations under Capital
         Leases of any Person, in each case taken at the amount thereof
         accounted for as liabilities in accordance with GAAP.

                  "Capital Stock": any and all shares, interests, participations
         or other equivalents (however designated) of capital stock of a
         corporation, any and all equivalent ownership interests in a Person
         (other than a corporation) and any and all warrants or options to
         purchase any of the foregoing.

                  "Cash Equivalents": (i) cash equivalents in existence on March
         31, 2002 as set forth on Schedule 1.1(a) (and, in the case of any such
         cash equivalents described on Schedule 1.1(a), any replacement of any
         such cash equivalents with substantially the same investment), (ii)
         securities issued or directly and fully guaranteed or insured by the
         United States or any agency or instrumentality thereof (provided that
         the full faith and credit of the United States is pledged in support
         thereof) having maturities of not more


                                CREDIT AGREEMENT
<PAGE>
                                                                               4


         than one year from the date of acquisition, (iii) Dollar denominated
         time deposits, certificates of deposit and bankers acceptances of any
         Lender or any bank whose short-term commercial paper rating from
         Standard & Poor's Corporation ("S&P") is at least A-1 or the
         equivalent thereof or from Moody's Investors Service, Inc. ("Moody's")
         is at least P-1 or the equivalent thereof (any such bank, an
         "Approved Bank"), with maturities of not more than one year from the
         date of acquisition, (iv) repurchase obligations with a term of not
         more than seven days for underlying securities of the type described in
         clause (ii) entered into with an Approved Bank, (v) commercial paper
         issued by, or guaranteed by, any Approved Bank or by the parent company
         of any Approved Bank or commercial paper issued by, or guaranteed by,
         any industrial or financial company with a short-term commercial paper
         rating of at least A-1 or the equivalent thereof by S&P or at least P-1
         or the equivalent thereof by Moody's, or issued by, or guaranteed by,
         any industrial or financial company with a long term unsecured debt
         rating of at least A or A2, or the equivalent of each thereof, from S&P
         or Moody's, respectively, and in each case maturing within one year
         after the date of acquisition and (vi) any fund or funds making
         substantially all of their investments in investments of the type
         described in clauses (i) through (v) above.

                  "C/D Assessment Rate": for any day as applied to any loan the
         interest rate applicable to which is based upon the ABR, the annual
         assessment rate in effect on such day which is payable by a member of
         the Bank Insurance Fund maintained by the Federal Deposit Insurance
         Corporation (the "FDIC") classified as well-capitalized and within
         supervisory subgroup "B" (or a comparable successor assessment risk
         classification) within the meaning of 12 C.F.R. Section 327.4 (or any
         successor provision) to the FDIC (or any successor) for the FDIC's (or
         such successor's) insuring time deposits at offices of such institution
         in the United States.

                  "C/D Reserve Percentage": for any day as applied to any loan
         the interest rate applicable to which is based upon the ABR, that
         percentage (expressed as a decimal) which is in effect on such day, as
         prescribed by the Board, for determining the maximum reserve
         requirement for a Depositary Institution (as defined in Regulation D of
         the Board) in respect of new non-personal time deposits in Dollars
         having a maturity of 30 days or more.

                  "Citibank": as defined in the preamble hereof.

                  "Closing Date": the date on which the conditions precedent set
         forth in subsection 4.1 shall be satisfied.

                  "Code": the Internal Revenue Code of 1986, as amended from
         time to time.

                  "Commitment": as to any Lender, the obligation of such Lender
         to make Revolving Credit Loans and Term Loans to the Borrower hereunder
         in an aggregate principal amount at any one time outstanding not to
         exceed the amount set forth opposite such Lenders name on Schedule 1.2,
         as such amount may be reduced or increased from time to time in
         accordance with the provisions of this Agreement.

                  "Commitment Increase Offer": as defined in subsection 2.25(a).


                                CREDIT AGREEMENT
<PAGE>
                                                                               5


                  "Commitment Increase Supplement": as defined in subsection
         2.25(c).

                  "Commitment Percentage": as to any Lender at any time, the
         percentage which such Lender's Commitment then constitutes of the
         aggregate Commitments (or, at any time after the Commitments shall have
         expired or terminated, the percentage which the aggregate principal
         amount of such Lender's Revolving Credit Loans and Term Loans then
         outstanding constitutes of the aggregate principal amount of the
         Revolving Credit Loans and Term Loans then outstanding).

                  "Commitment Period": the period from and including the date
         hereof to but not including the Revolving Credit Termination Date or
         such earlier date on which the Commitments shall terminate as provided
         herein.

                  "Commonly Controlled Entity": an entity, whether or not
         incorporated, which is under common control with the Borrower within
         the meaning of Section 4001 of ERISA or is part of a group which
         includes the Borrower and which is treated as a single employer under
         Section 414 of the Code.

                  "Consolidated Net Income": shall mean, as at date for
         determination thereof, consolidated net income of the Borrower and its
         Subsidiaries, determined in accordance with GAAP.

                  "Consolidated Net Worth": for any Person and as at any date of
         determination, the members' or stockholders' equity of such Person, as
         the case may be, as determined in accordance with GAAP and as would be
         reflected on a consolidated balance sheet of such Person prepared as of
         such date.

                  "Contractual Obligation": as to any Person, any provision of
         any security issued by such Person or of any agreement, instrument or
         other undertaking to which such Person is a party or by which it or any
         of its property is legally bound.

                  "Conversion": collectively, the transactions pursuant to which
         the Borrower will merge with MasterCard Merger Sub, Inc., a
         wholly-owned subsidiary of Inc., with the Borrower being the surviving
         entity in such merger, and the transactions directly relating thereto,
         all substantially as described in the Form S-4.

                  "Conversion Date": the date on which the Administrative Agent
         shall notify the Borrower that it has received each of the documents
         specified in Exhibit M.

                  "Conversion Date Certificate": a certificate of Inc. and
         International, substantially in the form of Exhibit L.

                  "Declined Amount":  as defined in subsection 2.25(a).

                  "Declining Lender":  as defined in subsection 2.25(a).

                  "Default": any of the events specified in Section 7, whether
         or not any requirement for the giving of notice, the lapse of time, or
         both, or any other condition, has been satisfied.


                                CREDIT AGREEMENT
<PAGE>
                                                                               6


                  "Dollars" and "$": dollars in lawful currency of the United
         States.

                  "Domestic Subsidiary": any Subsidiary organized under the laws
         of any jurisdiction within the United States of America.

                  "Environmental Laws": any and all foreign, Federal, state,
         local or municipal laws, rules, orders, regulations, statutes,
         ordinances, codes, decrees, requirements of any Governmental Authority
         or other Requirements of Law (including common law) regulating,
         relating to or imposing liability or standards of conduct concerning
         protection of human health or the environment, as now or may at any
         time hereafter be in effect.

                  "ERISA": the Employee Retirement Income Security Act of 1974,
         as amended from time to time.

                  "Eurocurrency Reserve Requirements": for any day as applied to
         a LIBOR Loan or a LIBOR CAF Advance, the aggregate (without
         duplication) of the rates (expressed as a decimal fraction) of reserve
         requirements in effect on such day (including, without limitation,
         basic, supplemental, marginal and emergency reserves under any
         regulations of the Board or other Governmental Authority having
         jurisdiction with respect thereto) dealing with reserve requirements
         prescribed for eurocurrency funding (currently referred to as
         "Eurocurrency Liabilities" in Regulation D of the Board) maintained by
         a member bank of such system.

                  "Event of Default": any of the events specified in Section 7,
         provided that any requirement for the giving of notice, the lapse of
         time, or both, or any other condition, has been satisfied.

                  "Executive Incentive Compensation Plan": as described in the
         annual report of the Borrower.

                  "Federal Funds Rate": for any day, the rate per annum (rounded
         upward, if necessary, to the nearest 1/100 of 1%) equal to the weighted
         average of the rates on overnight Federal funds transactions with
         members of the Federal Reserve System arranged by Federal funds brokers
         on such day, as published by the Federal Reserve Bank of New York on
         the Business Day next succeeding such day, provided that (i) if such
         day is not a Business Day, the Federal Funds Rate for such day shall be
         such rate on such transactions on the next preceding Business Day as so
         published on the next succeeding Business Day, and (ii) if no such rate
         is so published on such next succeeding Business Day, the Federal Funds
         Rate for such day shall be the average of the quotations received by
         the Administrative Agent from three federal funds brokers of recognized
         standing selected by the Administrative Agent.

                  "Fixed Rate CAF Advance Request": any CAF Advance made
         pursuant to a Fixed Rate CAF Advance Request.

                  "Fixed Rate CAF Advance": any CAF Advance Request requesting
         the Lenders to offer to make CAF Advances at a fixed rate of interest
         (as opposed to a rate composed of the London Interbank Offered Rate
         plus (or minus) a margin).


                                CREDIT AGREEMENT
<PAGE>
                                                                               7


                  "Foreign Subsidiary": as to any Person, any Subsidiary of such
         Person organized under the laws of any jurisdiction outside the United
         States.

                  "Form S-4": Post-Effective Amendment No. 2 to the Form S-4
         registration statement of Inc. as filed with the Securities and
         Exchange Commission on May 7, 2002 in connection with the transactions
         described in the definitions of "Conversion" and "Integration".

                  "GAAP": generally accepted accounting principles in the United
         States in effect from time to time.

                  "Governmental Authority": any nation or government, any state
         or other political subdivision thereof and any entity exercising
         executive, legislative, judicial, regulatory or administrative
         functions of or pertaining to government.

                  "Guarantee": as to any Person (the "guaranteeing person"), any
         obligation of (a) the guaranteeing person or (b) another Person
         (including, without limitation, any bank under any letter of credit) to
         induce the creation of which the guaranteeing person has issued a
         reimbursement, counterindemnity or similar obligation, in either case
         guaranteeing or in effect guaranteeing any Indebtedness, leases,
         dividends or other obligations (the "primary obligations") of any other
         third Person (the "primary obligor") in any manner, whether directly or
         indirectly, including, without limitation, any obligation of the
         guaranteeing person, whether or not contingent, (i) to purchase any
         such primary obligation or any property constituting direct or indirect
         security therefor, (ii) to advance or supply funds (1) for the purchase
         or payment of any such primary obligation or (2) to maintain working
         capital or equity capital of the primary obligor or otherwise to
         maintain the net worth or solvency of the primary obligor, (iii) to
         purchase property, securities or services primarily for the purpose of
         assuring the owner of any such primary obligation of the ability of the
         primary obligor to make payment of such primary obligation or (iv)
         otherwise to assure or hold harmless the owner of any such primary
         obligation against loss in respect thereof; provided, however, that the
         term Guarantee shall not include endorsements of instruments for
         deposit or collection in the ordinary course of business. The amount of
         any Guarantee of any guaranteeing person shall be deemed to be the
         lower of (a) an amount equal to the stated or determinable amount of
         the primary obligation in respect of which such Guarantee is made and
         (b) the maximum amount for which such guaranteeing person may be liable
         pursuant to the terms of the instrument embodying such Guarantee,
         unless such primary obligation and the maximum amount for which such
         guaranteeing person may be liable are not stated or determinable, in
         which case the amount of such Guarantee shall be such guaranteeing
         person's maximum reasonably anticipated liability in respect thereof as
         determined by the Borrower in good faith.

                  "Guaranteed Obligations":  as defined in Section 9.

                  "Guarantor": from and after the Conversion Date,
         International.

                  "Indebtedness": as to any Person, (a) all indebtedness of such
         Person for borrowed money, (b) the deferred purchase price of assets or
         services which in


                                CREDIT AGREEMENT
<PAGE>
                                                                               8


         accordance with GAAP would be shown on the liability side of the
         balance sheet of such Person, (c) the face amount of all letters of
         credit issued for the account of such Person and, without duplication,
         all drafts drawn thereunder, (d) all Indebtedness of a second Person
         secured by any Lien on any property owned by such first Person, whether
         or not such Indebtedness has been assumed, (e) all Capitalized Lease
         Obligations of such Person, (f) all obligations of such Person to pay a
         specified purchase price for goods or services whether or not delivered
         or accepted, e.g., take-or-pay and similar obligations, (g) all
         obligations of such Person under Interest Rate Agreements, and (h)
         without duplication, all Guarantees of such Person, provided that
         Indebtedness shall not include trade payables and accrued expenses
         relating to employees, in each case arising in the ordinary course of
         business.

                  "Insolvency": with respect to any Multiemployer Plan, the
         condition that such Plan is insolvent within the meaning of Section
         4245 of ERISA.

                  "Insolvent": pertaining to a condition of Insolvency.

                  "Integration": collectively, the transactions pursuant to
         which Inc. shall acquire Europay International S.A., a Belgian
         corporation, and the transactions directly relating thereto, all
         substantially as described in the Form S-4.

                  "Interest Payment Date": (a) as to any Loan the rate of
         interest applicable to which is based upon the ABR, the last day of
         each March, June, September and December, on the Revolving Credit
         Termination Date and on the Termination Date, (b) as to any LIBOR Loan
         or LIBOR CAF Advance having an Interest Period of three months or less,
         or any Fixed Rate CAF Advance having an Interest Period of 90 days or
         less, the last day of such Interest Period and (c) as to any LIBOR Loan
         or any Fixed Rate CAF Advance having an Interest Period longer than
         three months or 90 days, respectively, each day which is three months
         or 90 days, respectively, or a whole multiple thereof, after the first
         day of such Interest Period and the last day of such Interest Period.

                  "Interest Period":  (a) with respect to any LIBOR Loan:

                                    (i) initially, the period commencing on the
                  borrowing or conversion date, as the case may be, with respect
                  to such LIBOR Loan and ending one, two, three or six months
                  thereafter, as selected by the Borrower in its notice of
                  borrowing or notice of conversion, as the case may be, given
                  with respect thereto; and

                                    (ii) thereafter, each period commencing on
                  the last day of the next preceding Interest Period applicable
                  to such LIBOR Loan and ending one, two, three or six months
                  thereafter, as selected by the Borrower by irrevocable notice
                  to the Administrative Agent not less than three Business Days
                  prior to the last day of the then current Interest Period with
                  respect thereto;

                  (b) with respect to any CAF Advance, the period specified in
         the CAF Advance Confirmation with respect to such CAF Advance;


                                CREDIT AGREEMENT
<PAGE>
                                                                               9


         provided that all of the foregoing provisions relating to Interest
         Periods are subject to the following:

                           (A) if any Interest Period would otherwise end on a
                  day that is not a Business Day, such Interest Period shall be
                  extended to the next succeeding Business Day unless, in the
                  case of LIBOR Loans or LIBOR CAF Advances, the result of such
                  extension would be to carry such Interest Period into another
                  calendar month in which event such Interest Period shall end
                  on the immediately preceding Business Day;

                           (B) any Interest Period that would otherwise extend
                  beyond the Revolving Credit Termination Date or beyond the
                  date final payment is due on the Term Loans shall end on the
                  Revolving Credit Termination Date or such date of final
                  payment, as the case may be; and

                           (C) any Interest Period pertaining to a LIBOR Loan or
                  a LIBOR CAF Advance that begins on the last Business Day of a
                  calendar month (or on a day for which there is no numerically
                  corresponding day in the calendar month at the end of such
                  Interest Period) shall end on the last Business Day of a
                  calendar month.

                  "Interest Rate Agreement": any interest rate swap agreement,
         interest rate cap agreement, interest rate collar agreement, interest
         rate futures contract, interest rate option contract or other similar
         agreement or arrangement designed to protect any Person against
         fluctuations in interest rates.

                  "International": MasterCard International Incorporated, a
         Delaware corporation and, until the Conversion Date, the Borrower.

                  "LIBOR CAF Advance": any CAF Advance made pursuant to a LIBOR
         CAF Advance Request.

                  "LIBOR CAF Advance Request": any CAF Advance Request
         requesting the Lenders to offer to make CAF Advances at an interest
         rate equal to the London Interbank Offered Rate plus (or minus) a
         margin.

                  "LIBOR Loans": Revolving Credit Loans and Term Loans hereunder
         the rate of interest applicable to which is based upon the London
         Interbank Offered Rate.

                  "Lien": any mortgage, pledge, hypothecation, assignment,
         deposit arrangement, encumbrance, lien (statutory or other), charge or
         other security interest or any preference, priority or other security
         agreement or preferential arrangement of any kind or nature whatsoever
         (including, without limitation, any conditional sale or other title
         retention agreement and any Capital Lease having substantially the same
         economic effect as any of the foregoing).

                  "Loan": any Revolving Credit Loan, Term Loan, CAF Advance or
         Swing Line Loan made by any Lender pursuant to this Agreement.

                  "Loan Documents": this Agreement and any Notes issued
         hereunder.


                                CREDIT AGREEMENT
<PAGE>
                                                                              10


                  "London Interbank Offered Base Rate": with respect to each day
         during each Interest Period pertaining to a LIBOR Loan or a LIBOR CAF
         Advance, the rate appearing on Page 3750 of the Telerate Service (or on
         any successor or substitute page of such service, or any successor to
         or substitute for such service, providing rate quotations comparable to
         those currently provided on such page of such Service, as determined by
         the Administrative Agent from time to time for purposes of providing
         quotations of interest rates applicable to dollar deposits in the
         London interbank market) at approximately 11:00 A.M., London time, two
         Business Days prior to the commencement of such Interest Period, as the
         rate for dollar deposits with a maturity comparable to such Interest
         Period. In the event that such rate is not available at such time for
         any reason, then the "London Interbank Offered Base Rate" with respect
         to such LIBOR Loan or LIBOR CAF Advance for such Interest Period shall
         be the rate at which dollar deposits of $5,000,000 and for a maturity
         comparable to such Interest Period are offered by the principal London
         office of Citibank in immediately available funds in the London
         interbank market at approximately 11:00 A.M., London time, two Business
         Days prior to the commencement of such Interest Period.

                  "London Interbank Offered Rate": with respect to each day
         during each Interest Period pertaining to a LIBOR Loan or a LIBOR CAF
         Advance, a rate per annum determined for such day in accordance with
         the following formula (rounded upward to the nearest 1/100th of 1%):

                       London Interbank Offered Base Rate
                    ----------------------------------------
                    1.00 - Eurocurrency Reserve Requirements

                  "Margin Stock": margin stock within the meaning of Regulation
         U.

                  "Material Adverse Effect": a material adverse effect on (a)
         the business, assets, operations, property or condition (financial or
         otherwise) of the Borrower and its Subsidiaries taken as a whole (it
         being understood that a settlement failure by one or more members of
         International, in and of itself, shall not be deemed an event,
         development or circumstance that has a "Material Adverse Effect") or
         (b) the validity or enforceability of this or any of the other Loan
         Documents or the rights or remedies of the Administrative Agent or the
         Lenders hereunder or thereunder.

                  "Materials of Environmental Concern": any gasoline or
         petroleum (including crude oil or any fraction thereof) or petroleum
         products or any hazardous or toxic substances, materials or wastes,
         defined or regulated as such in or under any Environmental Law,
         including, without limitation, asbestos, polychlorinated biphenyls and
         urea-formaldehyde insulation.

                  "Multiemployer Plan": a Plan which is a multiemployer plan as
         defined in Section 4001 (a)(3) of ERISA.

                  "New Lender": as defined in subsection 2.25(b).

                  "New Lender Supplement": as defined in subsection 2.25(b).

                  "Non-Excluded Taxes": as defined in subsection 2.23.


                                CREDIT AGREEMENT
<PAGE>
                                                                              11


                  "Notes": the collective reference to the Revolving Credit
         Notes, the Term Notes and the Swing Line Note.

                  "Participant": as defined in subsection 10.6(b).

                  "PRGC": the Pension Benefit Guaranty Corporation established
         pursuant to Subtitle A of Title IV of ERISA.

                  "Permitted Investments": (a) investments in Cash Equivalents;
         (b) investments in existence on the date of this Agreement and
         disclosed in the financial statements previously delivered to the
         Administrative Agent and the Lenders and as set forth on Schedule 1.1
         (b) (and, in the case of any investments described on Schedule 1.1 (b),
         any replacement of any such investment with substantially the same
         investment in no greater amounts); (c) investments in, or extensions of
         credit to, any Subsidiary by the Borrower or by any Subsidiary, subject
         to the limitations set forth in subsection (m) below, including any
         investment made to acquire such Subsidiary; (d) investments in, or
         extensions of credit to, the Borrower by any existing or future
         Subsidiary of the Borrower; (e) sales of goods or services on trade
         credit terms in the ordinary course of business; (f) loans and advances
         to employees in the ordinary course of business; (g) loans or advances
         to vendors or contractors of the Borrower in the ordinary course of
         business; (h) lease, utility and other similar deposits in the ordinary
         course of business; (i) stock, obligations or securities received in
         the ordinary course of business in settlement of debts owing to the
         Borrower or a Subsidiary as a result of foreclosure, perfection or
         enforcement of any Lien, or in connection with good faith settlement of
         delinquent obligations owing to the Borrower or a Subsidiary; (j)
         investments in partnerships or joint ventures engaged in a business
         related to that engaged in by the Borrower on the date of this
         Agreement and investments in other entities engaged in the development
         or production of new technologies directly related to the businesses
         engaged in by the Borrower and its Subsidiaries on the date of this
         Agreement, which investments do not exceed an aggregate amount at any
         time outstanding of 25% of the total assets of the Borrower and its
         consolidated Subsidiaries; (k) investments in securities of member
         banks by the Borrower pursuant to the Executive Incentive Compensation
         Plan in an aggregate amount not to exceed at any time outstanding not
         more than 15% of the total assets of the Borrower and its consolidated
         Subsidiaries; (l) investments or assumed Indebtedness under Interest
         Rate Agreements and currency exchange and protection agreements entered
         into in the ordinary course of business; and (m) in addition to
         Permitted Investments described in the foregoing clauses (a) through
         (l), investments in an aggregate amount not to exceed an amount equal
         to 20% of the total assets of the Borrower and its consolidated
         Subsidiaries at any one time outstanding, provided that after the
         Conversion Date the aggregate amount of investments by International
         and its Subsidiaries in Subsidiaries of Inc. that are not also
         Subsidiaries of International and investments in other third parties
         shall not exceed an amount equal to 20% of the total assets of
         International and its consolidated Subsidiaries at any one time
         outstanding.

                  "Person": an individual, partnership, corporation, business
         trust, joint stock company, trust, unincorporated association, joint
         venture, Governmental Authority or other entity of whatever nature.


                                CREDIT AGREEMENT
<PAGE>
                                                                              12


                  "Plan": at a particular time, any employee benefit plan which
         is covered by ERISA and in respect of which the Borrower or a Commonly
         Controlled Entity is (or, if such plan were terminated at such time,
         would under Section 4069 of ERISA be deemed to be) an "employer" as
         defined in Section 3(5) of ERISA.

                  "Project": collectively, one or more transactions pursuant to
         which International or, from and after the Conversion Date, Inc. (i)
         contributes certain of its assets, employees and business operations
         (which are expected to relate principally, but not exclusively, to its
         Global Technology Operations group) to, from and after the Conversion
         Date in the case of Inc., one or more direct or indirect wholly-owned
         Subsidiaries of Inc. and, in the case of International, one or more
         direct or indirect wholly-owned Subsidiaries of International, which
         Subsidiaries may be organized as corporations or limited liability
         companies under the laws of any state of the United States, and
         thereafter enters into arrangements for the provision of certain
         services by such Subsidiary or Subsidiaries; and/or (ii) from and after
         the Conversion Date in the case of Inc., forms one or more direct or
         indirect wholly-owned Subsidiaries of Inc. and, in the case of
         International, forms one or more direct or indirect wholly-owned
         Subsidiaries of International that are engaged in the business of
         providing captive insurance services, to which Inc. or International,
         as the case may be, contributes certain assets (which are expected to
         relate initially to the Cirrus brand and business) and Indebtedness,
         among other things, and from which the Inc. or International, as the
         case may be, obtains certain insurance services, together with one or
         more direct or indirect wholly-owned Subsidiaries that will act as
         holding companies for the Subsidiary or Subsidiaries engaged in the
         provision of captive insurance services; provided, however, that
         neither International or, from and after the Conversion Date, Inc., nor
         any of their Subsidiaries shall incur any Indebtedness (other than
         Indebtedness owed exclusively to International or, from and after the
         Conversion Date, Inc., or another direct or indirect wholly-owned
         Subsidiary of the International or Inc., as the case may be) as a
         result of, or in connection with, the Project.

                  "Properties":  as defined in subsection 3.17.

                  "Register":  as defined in subsection 10.6(e).

                  "Regulation U": Regulation U of the Board as in effect from
         time to time.

                  "Reorganization": with respect to any Multiemployer Plan, the
         condition that such plan is in reorganization within the meaning of
         Section 4241 of ERISA.

                  "Reportable Event": any of the events set forth in Section
         4043(c) of ERISA, other than those events as to which the thirty day
         notice period is waived under subsections .22, .23, .25, .27 or .28 of
         PBGC Reg. Section 4043.

                  "Required Lenders": at any time, Lenders the Commitment
         Percentages of which aggregate more than 50%.

                  "Requirement of Law": as to any Person, the certificate of
         incorporation and by-laws or other organizational or governing
         documents of such Person, and any law, treaty, rule or regulation or
         determination of an arbitrator or a court or other Governmental


                                CREDIT AGREEMENT
<PAGE>
                                                                              13


         Authority, in each case applicable to or binding upon such Person or
         any of its property or to which such Person or any of its property is
         subject.

                  "Responsible Officer": the chief executive officer and
         president or the executive vice president, global resources of the
         Borrower or, with respect to financial matters, the chief financial
         officer or the treasurer of the Borrower.

                  "Revolving Credit Loans":  as defined in subsection 2.1.

                  "Revolving Credit Note":  as defined in subsection 2.7(e).

                  "Revolving Credit Termination Date": June 3, 2003 or such
         earlier date as the Commitments shall terminate pursuant to the terms
         hereof; provided that if said date is not a Business Day, the Revolving
         Credit Termination Date shall be the immediately preceding Business
         Day.

                  "Single Employer Plan": any Plan which is covered by Title IV
         of ERISA, but which is not a Multiemployer Plan.

                  "Subsidiary": as to any Person, a corporation, partnership or
         other entity of which shares of stock or other ownership interests
         having ordinary voting power (other than stock or such other ownership
         interests having such power only by reason of the happening of a
         contingency) to elect a majority of the board of directors or other
         managers of such corporation, partnership or other entity are at the
         time owned, or the management of which is otherwise controlled,
         directly or indirectly through one or more intermediaries, or both, by
         such Person. Unless otherwise qualified, all references to a
         "Subsidiary" or to "Subsidiaries" in this Agreement shall refer to a
         Subsidiary or Subsidiaries of the Borrower. Upon the occurrence of the
         Conversion Date, International shall be a Subsidiary of Inc.

                  "Swing Line Commitment": the Swing Line Lender's obligation to
         make Swing Line Loans pursuant to subsection 2.20.

                  "Swing Line Lender": Citibank in its capacity as provider of
         the Swing Line Loans.

                  "Swing Line Loan Participation Certificate": a certificate in
         substantially the form of Exhibit E.

                  "Swing Line Loans": as defined in subsection 2.20(a).

                  "Swing Line Note": as defined in subsection 2.20(b).

                  "Term Loans": as defined in subsection 2.3.

                  "Term Note": as defined in subsection 2.7(e).

                  "Termination Date": the date that is the first anniversary of
         the Revolving Credit Termination Date.


                                CREDIT AGREEMENT
<PAGE>
                                                                              14


                  "Tranche": the collective reference to LIBOR Loans the then
         current Interest Periods with respect to all of which begin on the same
         date and end on the same later date (whether or not such loans shall
         originally have been made on the same day); Tranches may be identified
         as "LIBOR Tranches".

                  "Transferee":  as defined in subsection 10.6(g).

                  "Type": as to any Revolving Credit Loan or Term Loan, its
         nature as an ABR Loan or a LIBOR Loan.

                  "United States":  the United States of America.

                  1.2 Other Definitional Provisions. (a) Unless otherwise
specified therein, all terms defined in this Agreement shall have the defined
meanings when used in any Notes or any certificate or other document made or
delivered pursuant hereto.

                  (b) As used herein and in any Notes, and any certificate or
other document made or delivered pursuant hereto, accounting terms relating to
the Borrower and its Subsidiaries not defined in subsection 1.1 and accounting
terms partly defined in subsection 1.1, to the extent not defined, shall have
the respective meanings given to them under GAAP.

                  (c) The words "hereof", "herein" and "hereunder" and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement, and Section,
subsection, Schedule and Exhibit references are to this Agreement unless
otherwise specified.

                  (d) The meanings given to terms defined herein shall be
equally applicable to both the singular and plural forms of such terms.

                  (e) The words "asset" and "property" shall be construed to
have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, securities, accounts and
contract rights.


                      SECTION 2. AMOUNT AND TERMS OF LOANS

                  2.1 Revolving Credit Commitments. (a) Subject to the
terms and conditions hereof, each Lender severally agrees to make revolving
credit loans ("Revolving Credit Loans") to the Borrower from time to time during
the Commitment Period in an aggregate principal amount at any one time
outstanding, when added to such Lender's Commitment Percentage of all
outstanding Swing Line Loans, not to exceed the amount of such Lender's
Commitment, provided that the aggregate principal amount of all Loans
outstanding at any time shall not exceed the aggregate amount of the Commitments
at such time. During the Commitment Period the Borrower may use the Commitments
by borrowing, prepaying the Revolving Credit Loans in whole or in part, and
reborrowing, all in accordance with the terms and conditions hereof.

                  (b) The Revolving Credit Loans may from time to time be LIBOR
Loans, ABR Loans, or a combination thereof, as determined by the Borrower and
notified to the Administrative Agent in accordance with subsections 2.2 and 2.9.


                                CREDIT AGREEMENT
<PAGE>
                                                                              15


                  2.2 Procedure for Revolving Credit Borrowing. The Borrower may
borrow under the Commitments during the Commitment Period on any Business Day,
provided that the Borrower shall give the Administrative Agent irrevocable
notice (which notice must be received by the Administrative Agent prior to 12:00
Noon, New York City time, (a) three Business Days prior to the requested
Borrowing Date, if all or any part of the requested Revolving Credit Loans are
to be initially LIBOR Loans, or (b) on the same Business Day of the requested
Borrowing Date, otherwise), specifying (i) the amount to be borrowed, (ii) the
requested Borrowing Date, (iii) whether the borrowing is to be of LIBOR Loans,
ABR Loans, or a combination thereof and (iv) if the borrowing is to be entirely
or partly of LIBOR Loans, the respective amounts of each such Type of Revolving
Credit Loan and the respective lengths of the initial Interest Periods therefor.
Each borrowing under the Commitments shall be in an amount equal to at least
$10,000,000 or a whole multiple of $1,000,000 in excess thereof (or, if the then
aggregate Available Commitments are less than $10,000,000, such lesser amount).
Upon receipt of any such notice from the Borrower, the Administrative Agent
shall promptly notify each Lender thereof. Each Lender will make the amount of
its pro rata share of each borrowing available to the Administrative Agent for
the account of the Borrower at the office of the Administrative Agent specified
in subsection 10.2 prior to 2:00 P.M., New York City time, on the Borrowing Date
requested by the Borrower in funds immediately available to the Administrative
Agent. Such borrowing will then be made available to the Borrower by the
Administrative Agent crediting the account of the Borrower on the books of such
office with the aggregate of the amounts made available to the Administrative
Agent by the Lenders and in like funds as received by the Administrative Agent.

                  2.3 Term Loans. The Revolving Credit Loans outstanding at the
close of business New York City time on the Revolving Credit Termination Date
shall, at the option of the Borrower, subject to Section 4.2, be converted on
such date into term loans (the "Term Loans") to the Borrower. The Term Loans may
from time to time be (a) LIBOR Loans, (b) ABR Loans or (c) a combination
thereof, as determined by the Borrower and notified to the Administrative Agent
in accordance with subsections 2.4 and 2.9.

                  2.4 Procedure for Term Loan Borrowing. The Borrower shall give
the Administrative Agent irrevocable notice (which notice must be received by
the Administrative Agent prior to 10:00 A.M., New York City time, (a) three
Business Days prior to the Revolving Credit Termination Date, if all or any part
of the Term Loans are to be initially LIBOR Loans or (b) one Business Day prior
to the Revolving Credit Termination Date, otherwise) requesting that the Lenders
make the Term Loans on the Revolving Credit Termination Date and specifying (i)
the amount to be borrowed, (ii) whether the Term Loans are to be initially LIBOR
Loans, ABR Loans or a combination thereof, and (iii) if the Term Loans are to be
entirely or partly LIBOR Loans the respective lengths of the initial Interest
Periods therefor. Upon receipt of such notice the Administrative Agent shall
promptly notify each Lender thereof. The aggregate principal amount of the Term
Loans shall be equal to the aggregate principal amount of the Revolving Credit
Loans outstanding at the close of business New York City time on the Revolving
Credit Termination Date and the Term Loans shall be deemed to have been made at
such time without any payments being made by the Lenders. Promptly after the
making of its Term Loan each Lender shall mark any Revolving Credit Note held by
it "cancelled" and deliver the same to the Borrower.


                                CREDIT AGREEMENT
<PAGE>
                                                                              16


                  2.5 Facility Fee. The Borrower agrees to pay to the
Administrative Agent for the account of each Lender a facility fee for the
period from and including the first day of the Commitment Period to the
Termination Date, computed at the rate of .07% per annum on (i) the average
daily Commitment of such Lender, whether or not utilized, from and including the
first day of the Commitment Period until the Revolving Credit Termination Date,
and on (ii) the outstanding principal amount of the Term Loans of such Lender,
if any, thereafter. Such facility fee shall be payable quarterly in arrears on
the last day of each March, June, September and December, on the Revolving
Credit Termination Date or such earlier date as the Commitments shall terminate
as provided herein and on the Termination Date, commencing on the first of such
dates to occur after the date hereof.

                  2.6 Termination or Reduction of Commitments. The Borrower
shall have the right, upon not less than five Business Days' notice to the
Administrative Agent, to terminate the Commitments or, from time to time, to
reduce the amount of the Commitments, provided that after giving effect to such
termination or reduction, the aggregate outstanding principal amount of the
Loans shall not exceed the aggregate Commitments. Any such reduction shall be in
an amount equal to $10,000,000 or a whole multiple of $1,000,000 in excess
thereof and shall reduce permanently the Commitments then in effect. Termination
of the Commitments shall also terminate the obligation of the Lenders to make
the Term Loans.

                  2.7 Repayment of Revolving Credit Loans and Term Loans;
Evidence of Debt. (a) The Borrower hereby unconditionally promises to pay to the
Administrative Agent for the account of each Lender (i) the then unpaid
principal amount of each Revolving Credit Loan of such Lender on the Revolving
Credit Termination Date (or such earlier date on which the Revolving Credit
Loans become due and payable pursuant to Section 7), and (ii) the principal
amount of the Term Loan of such Lender on the Termination Date (or the then
unpaid principal amount of such Term Loan, on the date that the Term Loans
become due and payable pursuant to Section 7). The Borrower hereby further
agrees to pay interest on the unpaid principal amount of the Revolving Credit
Loans and Term Loans from time to time outstanding from the date hereof until
payment in full thereof at the rates per annum, and on the dates, set forth in
subsection 2.16.

                  (b) Each Lender shall maintain in accordance with its usual
practice appropriate records evidencing indebtedness of the Borrower to such
Lender resulting from each Revolving Credit Loan and Term Loan of such Lender
from time to time, including the amounts of principal and interest payable and
paid to such Lender from time to time under this Agreement.

                  (c) The Administrative Agent shall maintain the Register
pursuant to subsection 10.6(e), and a record therein for each Lender, in which
shall be recorded (i) the amount of each Revolving Credit Loan and Term Loan
made hereunder, the Type thereof and each Interest Period applicable thereto,
(ii) the amount of any principal or interest due and payable or to become due
and payable from the Borrower to each Lender hereunder and (iii) both the amount
of any sum received by the Administrative Agent hereunder from the Borrower and
each Lender's share thereof.

                  (d) The entries made in the Register and the records of each
Lender maintained pursuant to subsection 2.7(b) shall, to the extent permitted
by applicable law, be prima facie evidence of the existence and amounts of the
obligations of the Borrower therein recorded; provided, however, that the
failure of any Lender or the Administrative Agent to maintain the


                                CREDIT AGREEMENT
<PAGE>
                                                                              17


Register or any such record, or any error therein, shall not in any manner
affect the obligation of the Borrower to repay (with applicable interest) the
Revolving Credit Loans and Term Loans made to such Borrower by such Lender in
accordance with the terms of this Agreement.

                  (e) The Borrower agrees that, upon the request to the
Administrative Agent by any Lender, the Borrower will execute and deliver to
such Lender (i) a promissory note of the Borrower evidencing the Revolving
Credit Loans of such Lender, substantially in the form of Exhibit A attached
hereto with appropriate insertions as to date and principal amount (a "Revolving
Credit Note"), and/or (ii) a promissory note of the Borrower evidencing the Term
Loan of such Lender, substantially in the form of Exhibit B with appropriate
insertions as to date and principal amount (a "Term Note").

                  2.8 Optional Prepayments. The Borrower may at any time and
from time to time prepay the Revolving Credit Loans or the Term Loans, in whole
or in part, without premium or penalty (subject to Section 2.24), upon at least
two Business Days' irrevocable notice to the Administrative Agent, if such
prepayment is to be applied in whole or in part to LIBOR Loans, and upon same
day notice otherwise (which notices shall be made on the relevant day not later
than 10:00 A.M., New York City time), specifying the date and amount of
prepayment and whether the prepayment is of LIBOR Loans, or a combination of
LIBOR and ABR Loans, and, if of a combination thereof, the amount allocable to
each; in the case of ABR Loans, notice shall be same day. Upon receipt of any
such notice the Administrative Agent shall promptly notify each Lender thereof.
If any such notice is given, the amount specified in such notice shall be due
and payable on the date specified therein, together with any accrued interest to
such date on the amount prepaid and any other amounts payable pursuant to
subsection 2.24. Amounts prepaid on account of the Term Loans may not be
reborrowed. Partial prepayments shall be in an aggregate principal amount of
$10,000,000 or a whole multiple of $1,000,000 in excess thereof. The Borrower
shall not have the right to prepay any principal amount of any CAF Advance
except as provided in subsection 2.12(a). Prepayments of any Swing Line Loan
shall be as provided in subsection 2.20(a).

                  2.9 Conversion and Continuation Options. (a) The Borrower may
elect from time to time to convert LIBOR Loans to ABR Loans, by giving the
Administrative Agent at least three Business Days' prior irrevocable notice of
such election, provided that any such conversion of LIBOR Loans may only be made
on the last day of an Interest Period with respect thereto. The Borrower may
elect from time to time to convert ABR Loans to LIBOR Loans by giving the
Administrative Agent at least three Business Days' prior irrevocable notice of
such election. Any such notice of conversion to LIBOR Loans shall specify the
length of the initial Interest Period or Interest Periods therefor. Upon receipt
of any such notice the Administrative Agent shall promptly notify each Lender
thereof. All or any part of outstanding LIBOR Loans and ABR Loans may be
converted as provided herein, provided that (i) no Revolving Credit Loan or Term
Loan may be converted into a LIBOR Loan when any Event of Default has occurred
and is continuing and the Administrative Agent has or the Required Lenders have
determined that such a conversion is not appropriate, and (ii) no Swing Line
Loan may be converted into a loan that bears interest at any rate other than the
ABR.

                  (b) Any LIBOR Loans may be continued as such upon the
expiration of the then current Interest Period with respect thereto by the
Borrower giving notice to the Administrative Agent, in accordance with the
applicable provisions of the term "Interest Period" set forth in


                                CREDIT AGREEMENT
<PAGE>
                                                                              18


subsection 1.1, of the length of the next Interest Period to be applicable to
such Revolving Credit Loans, provided that no LIBOR Loan may be continued as
such when any Event of Default has occurred and is continuing and the
Administrative Agent has or the Required Lenders have determined that such a
continuation is not appropriate; and provided, further, that if the Borrower
shall fail to give such notice or if such continuation is not permitted such
Revolving Credit Loans shall be automatically converted to ABR Loans on the last
day of such then expiring Interest Period.

                  2.10 CAF Advances. Subject to the terms and conditions of this
Agreement, the Borrower may borrow CAF Advances from time to time on any
Business Day during the CAF Advance Availability Period. CAF Advances may be
borrowed in amounts such that the aggregate principal amount of all Loans
outstanding at any time shall not exceed the aggregate amount of the Commitments
at such time. Within the limits and on the conditions hereinafter set forth with
respect to CAF Advances, the Borrower from time to time may borrow, repay and
reborrow CAF Advances.

                  2.11 Procedure for CAF Advance Borrowing. (a) The Borrower
shall request CAF Advances by delivering a CAF Advance Request to the
Administrative Agent, not later than 12:00 Noon (New York City time) four
Business Days prior to the proposed Borrowing Date (in the case of a LIBOR CAF
Advance Request), and not later than 10:00 A.M., New York City time, one
Business Day prior to the proposed Borrowing Date (in the case of a Fixed Rate
CAF Advance Request). Each CAF Advance Request in respect of any Borrowing Date
may solicit bids for CAF Advances on such Borrowing Date in an aggregate
principal amount of $10,000,000 or an integral multiple of $1,000,000 in excess
thereof and having not more than three alternative CAF Advance Maturity Dates.
The CAF Advance Maturity Date for each CAF Advance shall be the date set forth
therefor in the relevant CAF Advance Request, which date shall be (i) not less
than 7 days nor more than 60 days after the Borrowing Date therefor, in the case
of a Fixed Rate CAF Advance, (ii) one or two months after the Borrowing Date
therefor, in the case of a LIBOR CAF Advance and (iii) not later than the
Revolving Credit Termination Date, in the case of any CAF Advance. The
Administrative Agent shall notify each Lender promptly by facsimile transmission
of the contents of each CAF Advance Request received by the Administrative
Agent.

                  (b) In the case of a LIBOR CAF Advance Request, upon receipt
of notice from the Administrative Agent of the contents of such CAF Advance
Request, each Lender may elect, in its sole discretion, to offer irrevocably to
make one or more CAF Advances at the applicable London Interbank Offered Rate
plus (or minus) a margin determined by such Lender in its sole discretion for
each such CAF Advance. Any such irrevocable offer shall be made by delivering a
CAF Advance Offer to the Administrative Agent, before 10:30 A.M., New York City
time, on the day that is three Business Days before the proposed Borrowing Date,
setting forth:

                           (i) the maximum amount of CAF Advances for each CAF
         Advance Maturity Date and the aggregate maximum amount of CAF Advances
         for all CAF Advance Maturity Dates which such Lender would be willing
         to make (which amounts may, subject to subsection 2.10, exceed such
         Lender's Commitment); and

                           (ii) the margin above or below the applicable London
         Interbank Offered Rate at which such Lender is willing to make each
         such CAF Advance.


                                CREDIT AGREEMENT
<PAGE>
                                                                              19


The Administrative Agent shall advise the Borrower before 11:00 A.M., New York
City time, on the date which is three Business Days before the proposed
Borrowing Date of the contents of each such CAF Advance Offer received by it. If
the Administrative Agent, in its capacity as a Lender, shall elect, in its sole
discretion, to make any such CAF Advance Offer, it shall advise the Borrower of
the contents of its CAF Advance Offer before 10:15 A.M., New York City time, on
the date which is three Business Days before the proposed Borrowing Date.

                  (c) In the case of a Fixed Rate CAF Advance Request, upon
receipt of notice from the Administrative Agent of the contents of such CAF
Advance Request, each Lender may elect, in its sole discretion, to offer
irrevocably to make one or more CAF Advances at a rate of interest determined by
such Lender in its sole discretion for each such CAF Advance. Any such
irrevocable offer shall be made by delivering a CAF Advance Offer to the
Administrative Agent before 9:30 A.M., New York City time, on the proposed
Borrowing Date, setting forth:

                           (i) the maximum amount of CAF Advances for each CAF
         Advance Maturity Date, and the aggregate maximum amount for all CAF
         Advance Maturity Dates, which such Lender would be willing to make
         (which amounts may, subject to subsection 2.10, exceed such Lender's
         Commitment); and

                           (ii) the rate of interest at which such Leader is
         willing to make each such CAF Advance.

The Administrative Agent shall advise the Borrower before 10:00 A.M., New York
City time, on the proposed Borrowing Date of the contents of each such CAF
Advance Offer received by it. If the Administrative Agent, in its capacity as a
Lender, shall elect, in its sole discretion, to make any such CAF Advance Offer,
it shall advise the Borrower of the contents of its CAF Advance Offer before
9:15 A.M., New York City time, on the proposed Borrowing Date.

                  (d) Before 11:30 A.M., New York City time, three Business Days
before the proposed Borrowing Date (in the case of CAF Advances requested by a
LIBOR CAF Advance Request) and before 10:30 A.M., New York City time, on the
proposed Borrowing Date (in the case of CAF Advances requested by a Fixed Rate
CAF Advance Request), the Borrower, in its absolute discretion, shall:

                           (i) cancel such CAF Advance Request by giving the
         Administrative Agent telephone notice to that effect, or

                           (ii) by giving telephone notice to the Administrative
         Agent (immediately confirmed by delivery to the Administrative Agent of
         a CAF Advance Confirmation by facsimile transmission) (A) subject to
         the provisions of subsection 2.11(e), accept one or more of the offers
         made by any Lender or Lenders pursuant to subsection 2.11(b) or
         subsection 2.11(c), as the case may be, and (B) reject any remaining
         offers made by Lenders pursuant to subsection 2.11(b) or subsection
         2.11(c), as the case may be.

                  (e) The Borrower's acceptance of CAF Advances in response to
any CAF Advance Offers shall be subject to the following limitations:

                           (i) the amount of CAF Advances accepted for each CAF
         Advance Maturity Date specified by any Lender in its CAF Advance Offer
         shall not exceed the


                                CREDIT AGREEMENT
<PAGE>
                                                                              20


         maximum amount for such CAF Advance Maturity Date specified in such CAF
         Advance Offer;

                           (ii) the aggregate amount of CAF Advances accepted
         for all CAF Advance Maturity Dates specified by any Lender in its CAF
         Advance Offer shall not exceed the aggregate maximum amount specified
         in such CAF Advance Offer for all such CAF Advance Maturity Dates;

                           (iii) the Borrower may not accept offers for CAF
         Advances for any CAF Advance Maturity Date in an aggregate principal
         amount in excess of the maximum principal amount requested in the
         related CAF Advance Request; and

                           (iv) if the Borrower accepts any of such offers, it
         must accept offers based solely upon pricing for each relevant CAF
         Advance Maturity Date and upon no other criteria whatsoever, and if two
         or more Lenders submit offers for any CAF Advance Maturity Date at
         identical pricing and the Borrower accepts any of such offers but does
         not wish to (or, by reason of the limitations set forth in subsection
         2.10, cannot) borrow the total amount offered by such Lenders with such
         identical pricing, the Borrower shall accept offers from all of such
         Lenders in amounts allocated among them pro rata according to the
         amounts offered by such Lenders (with appropriate rounding, in the sole
         discretion of the Borrower, to assure that each accepted CAF Advance is
         an integral multiple of $1,000,000); provided that if the number of
         Lenders that submit offers for any CAF Advance Maturity Date at
         identical pricing is such that, after the Borrower accepts such offers
         pro rata in accordance with the foregoing provisions of this paragraph,
         the CAF Advance to be made by any such Lender would be less than
         $5,000,000 principal amount, the number of such Lenders shall be
         reduced by the Administrative Agent by lot until the CAF Advances to be
         made by each such remaining Lender would be in a principal amount of
         $5,000,000 or an integral multiple of $1,000,000 in excess thereof.

                  (f) If the Borrower notifies the Administrative Agent that a
CAF Advance Request is cancelled pursuant to subsection 2.11(d)(i), the
Administrative Agent shall give prompt telephone notice thereof to the Lenders.

                  (g) If the Borrower accepts pursuant to subsection 2.11(d)(ii)
one or more of the offers made by any Lender or Lenders, the Administrative
Agent promptly shall notify each Lender which has made such an offer of (i) the
aggregate amount of such CAF Advances to be made on such Borrowing Date for each
CAF Advance Maturity Date and (ii) the acceptance or rejection of any offers to
make such CAF Advances made by such Lender. Before 12:00 Noon (New York City
time) on the Borrowing Date specified in the applicable CAF Advance Request,
each Lender whose CAF Advance Offer has been accepted shall make available to
the Administrative Agent at its office set forth in subsection 10.2 the amount
of CAF Advances to be made by such Lender, in immediately available funds. The
Administrative Agent will make such funds available to the Borrower as soon as
practicable on such date at such office of the Administrative Agent. As soon as
practicable after each Borrowing Date, the Administrative Agent shall notify
each Lender of the aggregate amount of CAF Advances advanced on such Borrowing
Date and the respective CAF Advance Maturity Dates thereof.


                                CREDIT AGREEMENT
<PAGE>
                                                                              21


                  2.12 CAF Advance Payments. (a) The Borrower hereby
unconditionally promises to pay to the Administrative Agent, for the account of
each Lender which has made a CAF Advance, on the applicable CAF Advance Maturity
Date, the then unpaid principal amount of such CAF Advance. The Borrower shall
not have the right to prepay any principal amount of any CAF Advance without the
consent of the Lender to which such CAF Advance is owed.

                  (b) The Borrower hereby further agrees to pay interest on the
unpaid principal amount of each CAF Advance from the Borrowing Date of such CAF
Advance to the applicable CAF Advance Maturity Date at the rate of interest
specified in the CAF Advance Offer accepted by the Borrower in connection with
such CAF Advance (calculated on the basis of a 360-day year for actual days
elapsed), payable on each applicable CAF Advance Interest Payment Date.

                  (c) If any principal of, or interest on, any CAF Advance shall
not be paid when due (whether at the stated maturity, by acceleration or
otherwise), such CAF Advance shall, without limiting any rights of any Lender
under this Agreement, bear interest from the date on which such payment was due
at a rate per annum which is 2% per annum above the rate which would otherwise
be applicable to such CAF Advance until the stated CAF Advance Maturity Date of
such CAF Advance, and for each day thereafter at a rate per annum which is 2%
per annum above the ABR, in each case until paid in full (as well after as
before judgment). Interest accruing pursuant to this paragraph (c) shall be
payable from time to time on demand.

                  2.13 Evidence of Debt. Each Lender shall maintain in
accordance with its usual practice appropriate records evidencing indebtedness
of the Borrower to such Lender resulting from each CAF Advance of such Lender
from time to time, including the amounts of principal and interest payable and
paid to such Lender from time to time in respect of such CAF Advance. The
Administrative Agent shall maintain the Register pursuant to subsection 10.6(e),
and a record therein for each Lender, in which shall be recorded (i) the amount
of each CAF Advance made by such Lender, the CAF Advance Maturity Date thereof,
the interest rate applicable thereto and each CAF Advance Interest Payment Date
applicable thereto, and (ii) the amount of any sum received by the
Administrative Agent hereunder from the Borrower on account of such CAF Advance.
The entries made in the Register and the records of each Lender maintained
pursuant to this subsection shall, to the extent permitted by applicable law, be
prima facie evidence of the existence and amounts of the obligations of the
Borrower therein recorded; provided, however, that the failure of any Lender or
the Administrative Agent to maintain the Register or any such record, or any
error therein, shall not in any manner affect the obligation of the Borrower to
repay (with applicable interest) the CAF Advances made by such Lender in
accordance with the terms of this Agreement.

                  2.14 Certain Restrictions. A CAF Advance Request may request
offers for CAF Advances to be made on not more than one Borrowing Date and to
mature on not more than three CAF Advance Maturity Dates. No CAF Advance Request
may be submitted earlier than five Business Days after submission of any other
CAF Advance Request.

                  2.15 Minimum Amounts of Tranches. All borrowings, conversions
and continuations of Revolving Credit Loans and Term Loans hereunder and all
selections of Interest Periods hereunder shall be in such amounts and be made
pursuant to such elections so that, after giving effect thereto, the aggregate
principal amount of the Revolving Credit Loans and Term Loans comprising each
LIBOR Tranche shall be equal to $10,000,000 or a whole multiple of


                                CREDIT AGREEMENT
<PAGE>
                                                                              22


$1,000,000 in excess thereof. In no event shall there be more than five LIBOR
Tranches outstanding at any time.

                  2.16 Interest Rates and Payment Dates. (a) Each LIBOR Loan
shall bear interest for each day during each Interest Period with respect
thereto at a rate per annum equal to the London Interbank Offered Rate
determined for such day plus the Applicable Margin.

                  (b) Each ABR Loan and Swing Line Loan shall bear interest at a
rate per annum equal to the ABR. Each CAF Advance shall bear interest as
provided in subsection 2.10.

                  (c) If all or a portion of (i) any principal of any Revolving
Credit Loan, Term Loan or Swing Line Loan, (ii) any interest payable thereon,
(iii) any facility fee or (iv) any other amount payable hereunder (other than
overdue CAF payments provided for in subsection 2.12(c)) shall not be paid when
due (whether at the stated maturity, by acceleration or otherwise), the
principal of the Revolving Credit Loans, Term-Loans and the Swing Line Loans and
any such overdue interest, facility fee or other amount shall bear interest at a
rate per annum which is (x) in the case of principal, the rate that would
otherwise be applicable thereto pursuant to the foregoing provisions of this
subsection plus 2% per annum or (y) in the case of any such overdue interest,
facility fee or other amount, the rate applicable to ABR Loans pursuant to
subsection 2.16(b) plus 2% per annum, in each case from the date of such
non-payment until such overdue principal, interest, facility fee or other amount
is paid in full (as well after as before judgment).

                  (d) Interest on Revolving Credit Loans, Term Loans and Swing
Line Loans shall be payable in arrears on each Interest Payment Date, provided
that interest accruing pursuant to paragraph (c) of this subsection shall be
payable from time to time on demand.

                  2.17 Computation of Interest and Fees. (a) Whenever it is
calculated on the basis of the ABR, interest shall be calculated on the basis of
a 365- (or 366-, as the case may be) day year for the actual days elapsed; and,
otherwise, interest and the facility fee shall be calculated on the basis of a
360-day year for the actual days elapsed. The Administrative Agent shall as soon
as practicable notify the Borrower and the Lenders of each determination of a
London Interbank Offered Rate. Any change in the interest rate on a Loan
resulting from a change in the ABR, the Eurocurrency Reserve Requirements, the
C/D Assessment Rate or the C/D Reserve Percentage shall become effective as of
the opening of business on the day on which such change becomes effective. The
Administrative Agent shall as soon as practicable notify the Borrower and the
Lenders of the effective date and the amount of each such change in interest
rate.

                  (b) Each determination of an interest rate by the
Administrative Agent pursuant to any provision of this Agreement shall be
conclusive and binding on the Borrower and the Lenders in the absence of
manifest error. The Administrative Agent shall, at the request of the Borrower,
deliver to the Borrower a statement showing the quotations used by the
Administrative Agent in determining any interest rate pursuant to subsection
2.16(a) or 2.9(b).

                  2.18 Inability to Determine Interest Rate. If prior to the
first day of any Interest Period:

                  (a) the Administrative Agent shall have determined (which
determination shall be conclusive and binding upon the Borrower) that, by reason
of circumstances affecting the


                                CREDIT AGREEMENT
<PAGE>
                                                                              23


relevant market, adequate and reasonable means do not exist for ascertaining the
London Interbank Offered Rate for such Interest Period, or

                  (b) the Administrative Agent shall have received notice from
the Required Lenders that the London Interbank Offered Rate determined or to be
determined for such Interest Period will not adequately and fairly reflect the
cost to such Lenders (as conclusively certified by such Lenders) of making or
maintaining their affected Loans during such Interest Period,

the Administrative Agent shall give telecopy or telephonic notice thereof to the
Borrower and the Lenders as soon as practicable thereafter. If such notice is
given (x) any LIBOR Loans requested to be made on the first day of such Interest
Period shall be made as ABR Loans, (y) any Loans that were to have been
converted on the first day of such Interest Period to LIBOR Loans, shall be
converted to or continued as ABR Loans and (z) any outstanding LIBOR Loans shall
be converted, on the first day of such Interest Period, to ABR Loans. Until such
notice has been withdrawn by the Administrative Agent, no further LIBOR Loans
shall be made or continued as such, nor shall the Borrower have the right to
convert Loans to LIBOR Loans, as the case may be.

                  2.19 Pro Rata Treatment and Payments. (a) Each borrowing of
Revolving Credit Loans and Term Loans by the Borrower from the Lenders
hereunder, each payment by the Borrower on account of any facility fee hereunder
and any reduction of the Commitments of the Lenders shall be made pro rata
according to the respective Commitment Percentages of the Lenders. Each payment
(including each prepayment) by the Borrower on account of principal of and
interest on any Loans shall be made pro rata according to the respective
outstanding principal amounts of such Loans then held by the Lenders. All
payments (including prepayments) to be made by the Borrower hereunder, whether
on account of principal, interest, fees or otherwise, shall be made without
set-off or counterclaim and shall be made prior to 12:00 Noon, New York City
time, on the due date thereof to the Administrative Agent, for the account of
the Lenders, at the Administrative Agent's office specified in subsection 10.2,
in Dollars and in immediately available funds. The Administrative Agent shall
distribute such payments to the Lenders promptly upon receipt in like funds as
received. If any payment hereunder becomes due and payable on a day other than a
Business Day, such payment shall be extended to the next succeeding Business
Day, and, with respect to payments of principal, interest thereon shall be
payable at the then applicable rate during such extension.

                  (b) Unless the Administrative Agent shall have been notified
in writing by any Lender prior to a borrowing that such Lender will not make the
amount that would constitute its allocable share of such borrowing available to
the Administrative Agent, the Administrative Agent may assume that such Lender
is making such amount available to the Administrative Agent, and the
Administrative Agent may, in reliance upon such assumption, make available to
the Borrower a corresponding amount. If such amount is not made available to the
Administrative Agent by the required time on the Borrowing Date therefor, such
Lender shall pay to the Administrative Agent, on demand, such amount with
interest thereon at a rate equal to the daily average Federal Funds Rate for the
period until such Lender makes such amount immediately available to the
Administrative Agent. A certificate of the Administrative Agent submitted to any
Lender with respect to any amounts owing under this subsection shall be
conclusive in the absence of manifest error. If such Lender's Commitment
Percentage of such


                                CREDIT AGREEMENT
<PAGE>
                                                                              24


borrowing is not made available to the Administrative Agent by such Lender
within three Business Days of such Borrowing Date, the Administrative Agent
shall also be entitled to recover such amount with interest thereon at the rate
per annum applicable to ABR Loans hereunder, on demand, from the Borrower.

                  2.20 Swing Line Commitment. (a) Subject to the terms and
conditions hereof, the Swing Line Lender agrees to make swing line loans ("Swing
Line Loans") to the Borrower from time to time during the Commitment Period in
an aggregate principal amount at any one time outstanding not to exceed
$100,000,000, provided that the aggregate principal amount of all Loans
outstanding at any one time shall not exceed the aggregate amount of the
Commitments at such time. During the Commitment Period, the Borrower may use the
Swing Line Commitment by borrowing, prepaying the Swing Line Loans in whole or
in part, and reborrowing, all in accordance with the terms and conditions
hereof. All Swing Line Loans shall bear interest based upon the ABR and shall
not be entitled to be converted into loans that bear interest at any other rate.
The Borrower shall give the Swing Line Lender irrevocable notice (which notice
must be received by the Swing Line Lender prior to 11:00 A.M., New York City
time, on the requested Borrowing Date specifying the amount of the requested
Swing Line Loan which shall be in a minimum amount of $100,000 or a whole
multiple of $50,000 in excess thereof. The proceeds of the Swing Line Loan will
be made available by the Swing Line Lender to the Borrower at the office of the
Swing Line Lender by 3:00 P.M., New York City time, on the Borrowing Date by
crediting the account of the Borrower at such office with such proceeds. The
Borrower may, at any time and from time to time, prepay the Swing Line Loans, in
whole or in part, without premium or penalty, by notifying the Swing Line Lender
prior to 11:00 A.M., New York City time, on any Business Day of the date and
amount of prepayment. If any such notice is given, the amount specified in such
notice shall be due and payable on the date specified therein. Partial
prepayments shall be in an aggregate principal amount of $100,000 or a whole
multiple of $50,000 in excess thereof.

                  (b) The Swing Line Loans shall be evidenced by a promissory
note of the Borrower substantially in the form of Exhibit C to this Agreement,
with appropriate insertions (the "Swing Line Note"), payable to the order of the
Swing Line Lender and representing the obligation of the Borrower to pay the
amount of the Swing Line Commitment or, if less, the unpaid principal amount of
the Swing Line Loans, with interest thereon as prescribed in subsection 2.16.
The Swing Line Lender is hereby authorized to record the Borrowing Date, the
amount of each Swing Line Loan and the date and amount of each payment or
prepayment of principal thereof, on the schedule annexed to and constituting a
part of the Swing Line Note and any such recordation shall constitute prima
facie evidence of the accuracy of the information so recorded, provided that the
failure by the Swing Line Lender to make any such recordation shall not affect
any of the obligations of the Borrower under such Swing Line Note or this
Agreement. The Swing Line Note shall (a) be dated the Closing Date, (b) be
stated to mature on the Revolving Credit Termination Date and (c) bear interest
for the period from the date thereof until paid in full on the unpaid principal
amount thereof from time to time outstanding at the applicable interest rate per
annum determined as provided in, and payable as specified in, subsection 2.16.

                  (c) The Swing Line Lender, at any time in its sole and
absolute discretion may, on behalf of the Borrower (which hereby irrevocably
directs the Swing Line Lender to act on its behalf) request each Lender
including the Swing Line Lender, to make a Revolving Credit Loan


                                CREDIT AGREEMENT
<PAGE>
                                                                              25

in an amount equal to such Lender's Commitment Percentage of the amount of the
Swing Line Loans outstanding on the date such notice is given (the "Outstanding
Swing Line Loans"). Unless any of the events described in paragraph (f) of
Section 7 shall have occurred with respect to the Borrower (in which event the
procedures of paragraph (e) of this subsection shall apply) each Lender shall
make the proceeds of its Revolving Credit Loan available to the Administrative
Agent for the account of the Swing Line Lender at the office of the
Administrative Agent specified in subsection 10.2 prior to 12:00 Noon (New York
City time) in funds immediately available on the Business Day next succeeding
the date such notice is given. The proceeds of such Revolving Credit Loans shall
be immediately applied to repay the Outstanding Swing Line Loans. Effective on
the day such Revolving Credit Loans are made, the portion of the Swing Line
Loans so paid shall no longer be outstanding as Swing Line Loans, shall no
longer be due under the Swing Line Note and shall be evidenced as provided in
subsection 2.7(b). The Borrower authorizes the Swing Line Lender to charge the
Borrower's accounts with the Administrative Agent (up to the amount available in
each such account) in order to immediately pay the amount of such Outstanding
Swing Line Loans to the extent amounts received from the Lenders are not
sufficient to repay in full such Outstanding Swing Line Loans.

                  (d) Notwithstanding anything herein to the contrary, the Swing
Line Lender shall not be obligated to make any Swing Line Loans if the
conditions set forth in subsection 4.2 have not been satisfied.

                  (e) If prior to the making of a Revolving Credit Loan pursuant
to paragraph (c) of subsection 2.20 one of the events described in paragraph (f)
of Section 7 shall have occurred and be continuing with respect to the Borrower,
each Lender will, on the date such Revolving Credit Loan was to have been made
pursuant to the notice in subsection 2.20(c), purchase an undivided
participating interest in the Outstanding Swing Line Loan in an amount equal to
(i) its Commitment Percentage times (ii) the aggregate principal amount of Swing
Line Loans then outstanding. Each Lender will immediately transfer to the Swing
Line Lender, in immediately available funds, the amount of its participation,
and upon receipt thereof the Swing Line Lender will deliver to such Lender a
Swing Line Loan Participation Certificate dated the date of receipt of such
funds and in such amount.

                  (f) Whenever, at any time after any Lender has purchased a
participating interest in a Swing Line Loan, the Swing Line Lender receives any
payment on account thereof, the Swing Line Lender will distribute to such Lender
its participating interest in such amount (appropriately adjusted, in the case
of interest payments, to reflect the period of time during which such Lender's
participating interest was outstanding and funded); provided, however, that in
the event that such payment received by the Swing Line Lender is required to be
returned, such Lender will return to the Swing Line Lender any portion thereof
previously distributed by the Swing Line Lender to it.

                  (g) Each Lender's obligation to make the Revolving Credit
Loans referred to in subsection 2.20(c) and to purchase participating interests
pursuant to subsection 2.20(e) shall be absolute and unconditional and shall not
be affected by any circumstance, including, without limitation, (i) any set-off,
counterclaim, recoupment, defense or other right which such Lender or the
Borrower may have against the Swing Line Lender, the Borrower or any other
Person for any reason whatsoever, (ii) the occurrence or continuance of a
Default or an Event of Default; (iii)


                                CREDIT AGREEMENT
<PAGE>
                                                                              26


any adverse change in the condition (financial or otherwise) of the Borrower;
(iv) any breach of this Agreement or any other Loan Document by the Borrower,
any Subsidiary or any other Lender; or (v) any other circumstance, happening or
event whatsoever, whether or not similar to any of the foregoing.

                  2.21 Illegality. Notwithstanding any other provision herein,
if the adoption of or any change in any Requirement of Law or in the
interpretation or application thereof shall make it unlawful for any Lender to
make or maintain LIBOR Loans as contemplated by this Agreement, (a) the
commitment of such Lender hereunder to make LIBOR Loans, continue LIBOR Loans as
such and convert ABR Loans to LIBOR Loans shall forthwith be cancelled and (b)
such Lender's Loans then outstanding as LIBOR Loans, if any, shall be converted
automatically to ABR Loans on the respective last days of the then current
Interest Periods with respect to such Loans or within such earlier period as
required by law. If any such conversion of a LIBOR Loan occurs on a day which is
not the last day of the then current Interest Period with respect thereto, the
Borrower shall pay to such Lender such amounts, if any, as may be required
pursuant to subsection 2.22.

                  2.22 Requirements of Law. (a) If the adoption of or any change
in any Requirement of Law or in the interpretation or application thereof or
compliance by any Lender with any request or directive (whether or not having
the force of law) from any central bank or other Governmental Authority made
subsequent to the date hereof:

                           (i) shall subject any Lender to any tax of any kind
         whatsoever with respect to this Agreement, any Note or any LIBOR Loan
         made by it, or change the basis of taxation of payments to such Lender
         in respect thereof (except for Non-Excluded Taxes covered by subsection
         2.23 and changes in the rate of tax on the overall net income of such
         Lender);

                           (ii) shall impose, modify or hold applicable any
         reserve, special deposit, compulsory loan or similar requirement
         against assets held by, deposits or other liabilities in or for the
         account of, advances, loans or other extensions of credit by, or any
         other acquisition of funds by, any office of such Lender which is not
         otherwise included in the determination of the London Interbank Offered
         Rate hereunder; or

                           (iii) shall impose on such Lender any other
         condition;

and the result of any of the foregoing is to increase the cost to such Lender,
by an amount which such Lender deems to be material, of making, converting into,
continuing or maintaining LIBOR Loans or to reduce any amount receivable
hereunder in respect thereof, then, in any such case, the Borrower shall
promptly pay such Lender such additional amount or amounts as will compensate
such Lender for such increased cost or reduced amount receivable.

                  (b) If any Lender shall have determined that the adoption of
or any change in any Requirement of Law regarding capital adequacy or in the
interpretation or application thereof or compliance by such Lender or any
corporation controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any Governmental
Authority made subsequent to the date hereof shall have the effect of reducing
the rate of return on such Lender's or such corporation's capital as a
consequence of its obligations


                                CREDIT AGREEMENT
<PAGE>
                                                                              27


hereunder to a level below that which such Lender or such corporation could have
achieved but for such adoption, change or compliance (taking into consideration
such Lender's or such corporation's policies with respect to capital adequacy)
by an amount deemed by such Lender to be material, then from time to time, the
Borrower shall promptly pay to such Lender such additional amount or amounts as
will compensate such Lender for such reduction.

                  (c) If any Lender becomes entitled to claim any additional
amounts pursuant to this subsection, it shall promptly notify the Borrower (with
a copy to the Administrative Agent) of the event by reason of which it has
become so entitled and of the basis for the calculation of such additional
amounts. A certificate as to any additional amounts payable pursuant to this
subsection submitted by such Lender to the Borrower (with a copy to the
Administrative Agent) shall be conclusive in the absence of manifest error. The
agreements in this subsection shall survive the termination of this Agreement
and the payment of the Loans and all other amounts payable hereunder.

                  2.23 Taxes. (a) All payments made by the Borrower under this
Agreement and any Notes shall be made free and clear of, and without deduction
or withholding for or on account of, any present or future income, stamp or
other taxes, levies, imposts, duties, charges, fees, deductions or withholdings,
now or hereafter imposed, levied, collected, withheld or assessed by any
Governmental Authority, excluding net income taxes and franchise taxes (imposed
in lieu of net income taxes) imposed on the Administrative Agent or any Lender
as a result of a present or former connection between the Administrative Agent
or such Lender and the jurisdiction of the Governmental Authority imposing such
tax or any political subdivision or taxing authority thereof or therein (other
than any such connection arising solely from the Administrative Agent or such
Lender having executed, delivered or performed its obligations or received a
payment under, or enforced, this Agreement or any Note). If any such
non-excluded taxes, levies, imposts, duties, charges, fees deductions or
withholdings ("Non-Excluded Taxes" ) are required to be withheld from any
amounts payable to the Administrative Agent or any Lender hereunder or under any
Note, the amounts so payable to the Administrative Agent or such Lender shall be
increased to the extent necessary to yield to the Administrative Agent or such
Lender (after payment of all Non-Excluded Taxes) interest or any such other
amounts payable hereunder at the rates or in the amounts specified in this
Agreement, provided, however, that the Borrower shall not be required to
increase any such amounts payable to any Lender that is not organized under the
laws of the United States or a state thereof if such Lender fails to comply with
the requirements of paragraph (b) of this subsection. Whenever any Non-Excluded
Taxes are payable by the Borrower, as promptly as possible thereafter the
Borrower shall send to the Administrative Agent for its own account or for the
account of such Lender, as the case may be, a certified copy of an original
official receipt received by the Borrower showing payment thereof. If the
Borrower fails to pay any Non-Excluded Taxes when due to the appropriate taxing
authority or fails to remit to the Administrative Agent the required receipts or
other required documentary evidence, the Borrower shall indemnify the
Administrative Agent and the Lenders for any incremental taxes, interest or
penalties that may become payable by the Administrative Agent or any Lender as a
result of any such failure. The agreements in this subsection shall survive the
termination of this Agreement and the payment of the Loans and all other amounts
payable hereunder.

                  (b) Each Lender that is not incorporated under the laws of the
United States or a state thereof shall:


                                CREDIT AGREEMENT

<PAGE>
                                                                              28

                           (i) deliver to the Borrower and the Administrative
         Agent two duly completed copies of United States Internal Revenue
         Service Form W-8 BEN or W-8 ECI, or successor applicable form, as the
         case may be;

                           (ii) deliver to the Borrower and the Administrative
         Agent two further copies of any such form or certification on or before
         the date that any such form or certification expires or becomes
         obsolete and after the occurrence of any event requiring a change in
         the most recent form previously delivered by it to the Borrower; and

                           (iii) obtain such extensions of time for filing and
         complete such forms or certifications as may reasonably be requested by
         the Borrower or the Administrative Agent;

unless in any such case an event (including, without limitation, any change in
treaty, law or regulation) has occurred prior to the date on which any such
delivery would otherwise be required which renders all such forms inapplicable
or which would prevent such Lender from duly completing and delivering any such
form with respect to it and such Lender so advises the Borrower and the
Administrative Agent. Such Lender shall certify that it is entitled to receive
payments under this Agreement without deduction or withholding of any United
States federal income taxes. Each Person that shall become a Lender or a
Participant pursuant to subsection 10.6 shall, upon the effectiveness of the
related transfer, be required to provide all of the forms and statements
required pursuant to this subsection, provided that in the case of a Participant
such Participant shall furnish all such required forms and statements to the
Lender from which the related participation shall have been purchased.

                  2.24 Indemnity. The Borrower agrees to indemnify each Lender
and to hold each Lender harmless from any loss or expense which such Lender may
sustain or incur as a consequence of (a) default by the Borrower in making
either (i) a borrowing of LIBOR Loans (including without limitation Term Loans)
or LIBOR CAF Advances or (ii) a conversion into or continuation of LIBOR Loans,
in each case after the Borrower has given a notice requesting the same in
accordance with the provisions of this Agreement (in the case of a borrowing of
LIBOR CAF Advances, so long as the Borrower shall have accepted a CAF Advance
offered in connection with any such notice), (b) default by the Borrower in
making any prepayment after the Borrower has given a notice thereof in
accordance with the provisions of this Agreement or (c) the making of either (i)
a prepayment of LIBOR Loans, LIBOR CAF Advances or Fixed Rate CAF Advances or
(ii) a conversion of LIBOR Loans, in each case on a day which is not the last
day of an Interest Period with respect thereto. Such indemnification may include
an amount equal to the excess, if any, of (i) the amount of interest which would
have accrued on the amount so prepaid, or not so borrowed, converted or
continued, for the period from the date of such prepayment or of such failure to
borrow, convert or continue to the last day of such Interest Period (or, in the
case of a failure to borrow, convert or continue, the Interest Period that would
have commenced on the date of such failure) in each case at the applicable rate
of interest for such Loans provided for herein (excluding, however, the
Applicable Margin included therein, if any) over (ii) the amount of interest (as
reasonably determined by such Lender) which would have accrued to such Lender on
such amount by placing such amount on deposit for a comparable period with
leading banks in the interbank eurodollar market. This covenant shall survive
the termination of this Agreement and the payment of the Loans and all other
amounts payable hereunder.

                                CREDIT AGREEMENT
<PAGE>
                                                                              29
                  2.25 Commitment Increases. (a) In the event that Borrower
wishes to increase the aggregate Commitments, it shall notify the Lenders
(through the Administrative Agent) of the amount of such proposed increase (such
notice, a "Commitment Increase Offer"). Each Commitment Increase Offer shall
offer the Lenders the opportunity to participate in the increased Commitments
ratably in accordance with their respective Commitment Percentages. In the event
that any Lender (each, a "Declining Lender") shall fail to accept in writing a
Commitment Increase Offer within 10 Business Days after receiving notice
thereof, all or any portion of the proposed increase in the Commitments offered
to the Declining Lenders (the aggregate of such offered amounts, the "Declined
Amount") may instead be allocated to any one or more additional banks, financial
institutions or other entities pursuant to paragraph (b) below and/or to any one
or more existing Lenders pursuant to paragraph (c)(ii) below.

                  (b) Any additional bank, financial institution or other entity
which, with the consent of the Borrower and the Administrative Agent, elects to
become a party to this Agreement and obtain a Commitment in an amount equal to
all or any portion of a Declined Amount shall execute a New Lender Supplement
(each, a "New Lender Supplement") with the Borrower and the Administrative
Agent, substantially in the form of Exhibit K-1, whereupon such bank, financial
institution or other entity (herein called a "New Lender") shall become a Lender
for all purposes and to the same extent as if originally a party hereto and
shall be bound by and entitled to the benefits of this Agreement, and Schedule
1.2 shall be deemed to be amended to add the name and Commitment of such New
Lender.

                  (c) Any Lender which (i) accepts a Commitment Increase Offer
pursuant to subsection 2.25(a) or (ii) with the consent of the Borrower, elects
to increase its Commitment by an amount equal to all or any portion of a
Declined Amount shall, in each case, execute a Commitment Increase Supplement
(each, a "Commitment Increase Supplement") with the Borrower and the
Administrative Agent, substantially in the form of Exhibit K-2, whereupon such
Lender shall be bound by and entitled to the benefits of this Agreement with
respect to the full amount of its Commitment as so increased, and Schedule 1.2
shall be deemed to be amended to so increase the Commitment of such Lender.

                  (d) If on the date upon which a bank, financial institution or
other entity becomes a New Lender pursuant to subsection 2.25(b) or upon which a
Lender's Commitment is increased pursuant to subsection 2.25(a) or (c) there is
an unpaid principal amount of Revolving Credit Loans, the Borrower shall borrow
Revolving Credit Loans from the Lenders and/or (subject to compliance by the
Borrower with subsection 2.24) prepay Revolving Credit Loans of the Lenders such
that, after giving effect thereto, the Revolving Credit Loans (including,
without limitation, the Types thereof and Interest Periods with respect thereto)
shall be held by the Lenders (including for such purposes the New Lenders) pro
rata according to their respective Commitment Percentages.

                  (e) Notwithstanding anything to the contrary in this
subsection, (i) in no event shall any transaction effected pursuant to this
subsection cause (x) the aggregate Commitments to exceed $1,700,000,000 or (y)
an increase in the aggregate Commitments of an amount less than $100,000,000,
(ii) the aggregate amount of any increase in Commitments pursuant to subsection
2.25(b) or (c)(ii) shall be limited to the relevant Declined Amount and (iii) no
Lender shall have any obligation to increase its Commitment unless it agrees to
do so in its sole discretion.

                                CREDIT AGREEMENT
<PAGE>
                                                                              30

           SECTION 3. REPRESENTATIONS AND WARRANTIES BY INTERNATIONAL

                  To induce the Administrative Agent and the Lenders to enter
into this Agreement and to make the Loans, International hereby represents and
warrants to the Administrative Agent and each Lender that:

                  3.1 Financial Condition. The consolidated balance sheet of
International and its consolidated Subsidiaries as at December 31, 2001 and the
related consolidated statements of income and of cash flows for the fiscal year
ended on such date, reported on by PricewaterhouseCoopers LLP, copies of which
have heretofore been furnished to each Lender, are complete and correct in all
material respects and present fairly the consolidated financial condition of
International and its consolidated Subsidiaries as at such date, and the
consolidated results of their operations and their consolidated cash flows for
the fiscal year then ended. The unaudited consolidated balance sheet of
International and its consolidated Subsidiaries as at March 31, 2002 and the
related unaudited consolidated statements of income and of cash flows for the
three-month period ended on such date, certified by a Responsible Officer,
copies of which have heretofore been furnished to each Lender, are complete and
correct in all material respects and present fairly the consolidated financial
condition of International and its consolidated Subsidiaries as at such date,
and the consolidated results of their operations and their consolidated cash
flows for the three-month period then ended (subject to normal year-end audit
adjustments). All such financial statements have been prepared in accordance
with GAAP applied consistently throughout the periods involved (except as
approved by such accountants or Responsible Officer, as the case may be, and as
disclosed therein). Neither International nor any of its consolidated
Subsidiaries had, at the date of the most recent balance sheet referred to
above, any material Guarantee outside the ordinary course of business,
contingent liability or liability for taxes, or any long-term lease or unusual
forward or long-term commitment which in the aggregate may reasonably be
expected to have a Material Adverse Effect, including, without limitation, any
interest rate or foreign currency swap or exchange transaction (except as listed
on Schedule 3.1 attached hereto), which is not reflected in the foregoing
statements or in the notes thereto. Except as heretofore disclosed to the
Lenders, during the period from December 31, 2001 to and including the date
hereof there has been no sale, transfer or other disposition by International or
any of its consolidated Subsidiaries of any material part of its business or
property and no purchase or other acquisition of any business or property
(including any capital stock of any other Person) material in relation to the
consolidated financial condition of International and its consolidated
Subsidiaries at December 31, 2001.

                  3.2 No Change. Since December 31, 2001 there has been no
development or event which has had or could reasonably be expected to have a
Material Adverse Effect.

                  3.3 Corporate Existence; Compliance with Law. Each of
International and its Subsidiaries (a) is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization, (b) has the corporate power and authority, and the legal right, to
own and operate its property, to lease the property it operates as lessee and to
conduct the business in which it is currently engaged, (c) is duly qualified as
a foreign corporation and in good standing under the laws of each jurisdiction
(other than that of its incorporation) where its ownership, lease or operation
of property or the conduct of its business requires such qualification and (d)
is in compliance with all Requirements of Law, except in the case of clause (c)
or (d) above, to the extent that the failure to qualify as a foreign corporation
or

                                CREDIT AGREEMENT
<PAGE>
                                                                              31

to be in good standing or to comply with any Requirement of Law could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

                  3.4 Corporate Power; Authorization; Enforceable Obligations.
International has the corporate power and authority, and the legal right, to
make, deliver, and perform the Loan Documents to which it is a party and to
borrow hereunder and has taken all necessary corporate action to authorize the
borrowings on the terms and conditions of this Agreement and any Notes and to
authorize the execution, delivery and performance of the Loan Documents to which
it is a party. No consent or authorization of, filing with, notice to or other
act by or in respect of, any Governmental Authority or any other Person is
required in connection with the borrowings hereunder or with the execution,
delivery, performance, validity or enforceability of the Loan Documents to which
International is a party. This Agreement has been, and each other Loan Document
to which it is a party will be, duly executed and delivered on behalf of
International. This Agreement constitutes, and each other Loan Document to which
it is a party when executed and delivered will constitute, a legal, valid and
binding obligation of International enforceable against International in
accordance with its terms, subject to the effects of bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and other similar laws
relating to or affecting creditors' rights generally, general equitable
principles (whether considered in a proceeding in equity or at law) and an
implied covenant of good faith and fair dealing.

                  3.5 No Legal Bar. The execution, delivery and performance of
the Loan Documents to which International is a party, the borrowings hereunder
and the use of the proceeds thereof will not violate any Requirement of Law or
Contractual Obligation of International or of any of its Subsidiaries and will
not result in, or require, the creation or imposition of any Lien on any of its
or their respective properties or revenues pursuant to any such Requirement of
Law or Contractual Obligation.

                  3.6 No Material Litigation. Except as listed on Schedule 3.6
or as previously disclosed to the Lenders in connection with the information
provided pursuant to Section 3.1 or in the Form S-4, no litigation,
investigation or proceeding of or before any arbitrator or Governmental
Authority is pending or, to the knowledge of International, threatened by or
against International or any of its Subsidiaries or against any of its or their
respective properties or revenues (a) with respect to any of the Loan Documents
or any of the transactions contemplated hereby or thereby, or (b) which could,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

                  3.7 No Default. Neither International nor any of its
Subsidiaries is in default under or with respect to any of its Contractual
Obligations in any respect which could, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. No Default or Event of
Default has occurred and is continuing.

                  3.8 Ownership of Property; Liens. Each of International and
its Subsidiaries has good record and marketable title in fee simple to, or a
valid leasehold interest in, all its real property, and good title to, or a
valid leasehold interest in, all its other material property, and none of such
property is subject to any Lien except as permitted by subsection 6.2.

                  3.9 Intellectual Property. International and each of its
Subsidiaries owns, or is licensed to use, all trademarks, tradenames,
copyrights, technology, know-how and processes

                                CREDIT AGREEMENT
<PAGE>
                                                                              32

necessary for the conduct of its business as currently conducted except for
those the failure to own or license which could not reasonably be expected to
have a Material Adverse Effect (the "Intellectual Property"). No claim has been
asserted and is pending by any Person challenging or questioning the use of any
such Intellectual Property or the validity or effectiveness of any such
Intellectual Property, nor does International know of any valid basis for any
such claim, except for such claims that, in the aggregate, could not reasonably
be expected to have a Material Adverse Effect. The use of such Intellectual
Property by International and its Subsidiaries does not infringe on the rights
of any Person, except for such claims and infringements that, in the aggregate,
could not reasonably be expected to have a Material Adverse Effect.

                  3.10 No Burdensome Restrictions. No Requirement of Law or
Contractual Obligation of International or any of its Subsidiaries could
reasonably be expected to have a Material Adverse Effect.

                  3.11 Taxes. Each of International and its Subsidiaries has
filed or caused to be filed all tax returns which, to the knowledge of
International, are required to be filed and has paid all taxes shown to be due
and payable on said returns or on any assessments made against it or any of its
property and all other taxes, fees or other charges imposed on it or any of its
property by any Governmental Authority (other than any the amount or validity of
which are currently being contested in good faith by appropriate proceedings and
with respect to which reserves in conformity with GAAP have been provided on the
books of International or its Subsidiaries, as the case may be); no tax Lien has
been filed, and, to the knowledge of International, no claim is being asserted,
with respect to any such tax, fee or other charge.

                  3.12 Federal Regulations. Neither International nor any of its
Subsidiaries is engaged principally, or as one of its important activities, in
the business of extending credit for the purpose (whether immediate, incidental
or ultimate) of buying or carrying Margin Stock. No part of the proceeds of any
Loans will be used directly or indirectly for the purpose (whether immediate,
incidental or ultimate) of buying or carrying Margin Stock or for any purpose
that violates the provisions of the regulations of the Board. If requested by
any Lender or the Administrative Agent, International will furnish to each
Lender and the Administrative Agent a statement in conformity with the
requirements of Federal Reserve Form FR U-1 or FR G-3, as appropriate, referred
to in Regulation U, as to demonstrate the compliance of any borrowing hereunder
with Regulation U.

                  3.13 ERISA. Neither a Reportable Event nor an "accumulated
funding deficiency" (within the meaning of Section 412 of the Code or Section
302 of ERISA) has occurred during the five-year period prior to the date on
which this representation is made or deemed made with respect to any Single
Employer Plan, and each Plan has complied in all material respects with the
applicable provisions of ERISA and the Code. No termination of a Single Employer
Plan has occurred (other than via a "standard termination" as defined in Section
4041(b) of ERISA), and no Lien in favor of the PBGC or a Single Employer Plan
has arisen, during such five-year period. The present value of all accrued
benefits under each Single Employer Plan (based on those assumptions used to
fund such Plans) did not, as of the last annual valuation date prior to the date
on which this representation is made or deemed made, exceed the value of the
assets of such Plan allocable to such accrued benefits by more than $10,000,000.
Neither International nor any Commonly Controlled Entity has had a complete or
partial withdrawal from any Multiemployer Plan, and neither International nor
any Commonly

                                CREDIT AGREEMENT

<PAGE>
                                                                              33

Controlled Entity would become subject to any liability under ERISA if
International or any such Commonly Controlled Entity were to withdraw completely
from all Multiemployer Plans as of the valuation date most closely preceding the
date on which this representation is made or deemed made. To the best knowledge
of International, no such Multiemployer Plan is in Reorganization or Insolvent.
The present value (determined using actuarial and other assumptions which are
reasonable in respect of the benefits provided and the employees participating)
of the liability of International and each Commonly Controlled Entity for post
retirement benefits to be provided to their current and former employees under
Plans which are welfare benefit plans (as defined in Section 3(l) of ERISA) does
not, in the aggregate, exceed the assets under all such Plans allocable to such
benefits by an amount in excess of $20,000,000. The foregoing dollar baskets in
the third and sixth sentences of this Section 3.13 exclude the amount of post
retirement benefit obligation disclosed in the Form S-4, which are reflected as
a $28,568,000 accrued liability in the financial statements therein in
accordance with GAAP.

                  3.14 Investment Company Act; Other Regulations. International
is not an "investment company", or a company "controlled" by an "investment
company", within the meaning of the Investment Company Act of 1940, as amended.
International is not subject to regulation under any Federal or State statute or
regulation (other than Regulation X of the Board) which limits its ability to
incur Indebtedness.

                  3.15 Subsidiaries. Schedule 3.15 lists each Subsidiary of
International (and the direct and indirect ownership interest of International
therein), in each case existing on March 31, 2002. International will at all
times own directly or indirectly the percentage of the outstanding capital
stock, if any, of said Subsidiaries indicated on Schedule 3.15 as owned by
International as of the date hereof except to the extent the disposition thereof
would not violate subsection 6.4.

                  3.16 Purpose of Loans. The proceeds of the Loans shall be used
by International and its Subsidiaries solely to ensure the integrity of the
MasterCard payment system in the event of settlement failure by one or more of
its members, including failure by one or more of its members to meet merchant
payment obligations.

                  3.17 Environmental Matters. (a) To the best knowledge of
International, the facilities and properties owned, leased or operated by
International or any of its Subsidiaries (the "Properties") do not contain, and
have not previously contained, any Materials of Environmental Concern in amounts
or concentrations which (i) constitute or constituted a violation of, or (ii)
could reasonably be expected to give rise to liability under, any Environmental
Law.

                  (b) The Properties and all operations at the Properties are in
compliance in all material respects with all applicable Environmental Laws, and
there is no contamination at, under or about the Properties or violation of any
Environmental Law with respect to the Properties or the business operated by
International or any of its Subsidiaries (the "Business") which could materially
interfere with the continued operation of the Properties or materially impair
the fair saleable value thereof.

                  (c) Neither International nor any of its Subsidiaries has
received any notice of violation, alleged violation, non-compliance, liability
or potential liability regarding environmental matters or compliance with
Environmental Laws with regard to any of the

                                CREDIT AGREEMENT

<PAGE>
                                                                              34

Properties or the Business, nor does International have knowledge or reason to
believe that any such notice will be received or is being threatened.

                  (d) No judicial proceeding or governmental or administrative
action is pending or, to the knowledge of International, threatened, under any
Environmental Law to which International or any Subsidiary is or will be named
as a party with respect to the Properties or the Business, nor are there any
consent decrees or other decrees, consent orders, administrative orders or other
orders, or other administrative or judicial requirements outstanding under any
Environmental Law with respect to the Properties or the Business.

                         SECTION 4. CONDITIONS PRECEDENT

                  4.1 Conditions to Initial Loan. The agreement of each Lender
to make the initial Loan requested to be made by it is subject to the
satisfaction of the following conditions precedent:

                  (a) Loan Documents. The Administrative Agent shall have
         received (i) this Agreement, executed and delivered by a duly
         authorized officer of each of International and Inc., with a
         counterpart for each Lender, and (ii) for the account of the Swing Line
         Lender, the Swing Line Note conforming to the requirements hereof and
         executed by a duly authorized officer of International.

                  (b) Related Agreements. The Administrative Agent shall have
         received, with a copy for each Lender, true and correct copies,
         certified as to authenticity by International of such other documents
         or instruments as may be reasonably requested by the Administrative
         Agent, including, without limitation, a copy of any debt instrument,
         security agreement or other material contract to which International or
         its Subsidiaries may be a party.

                  (c) Closing Certificate. The Administrative Agent shall have
         received, with a copy for each Lender, a closing certificate of
         International, dated the Closing Date, substantially in the form of
         Exhibit I, with appropriate insertions and attachments, satisfactory in
         form and substance to the Administrative Agent, executed by the
         President or any Vice President and the Secretary or any Assistant
         Secretary of International.

                  (d) Corporate Proceedings. The Administrative Agent shall have
         received, with a copy for each Lender, a copy of the resolutions, in
         form and substance satisfactory to the Administrative Agent, of the
         Board of Directors of International authorizing (i) the execution,
         delivery and performance by International of this Agreement and the
         other Loan Documents to which it is a party and (ii) the borrowings
         contemplated hereunder, certified by the Secretary or an Assistant
         Secretary of International as of the Closing Date, which certificate
         shall be in form and substance satisfactory to the Administrative Agent
         and shall state that the resolutions thereby certified have not been
         amended, modified, revoked or rescinded.

                  (e) Incumbency Certificate. The Administrative Agent shall
         have received, with a copy for each Lender, a certificate of
         International, dated the Closing Date, as to the incumbency and
         signature of the officers of International executing any Loan Document,

                                CREDIT AGREEMENT

<PAGE>
                                                                              35

         satisfactory in form and substance to the Administrative Agent,
         executed by the President or any Vice President and the Secretary or
         any Assistant Secretary of International.

                  (f) Corporate Documents. The Administrative Agent shall have
         received, with a copy for each Lender, true and complete copies of the
         certificate of incorporation and by-laws of International, certified as
         of the Closing Date as complete and correct copies thereof by the
         Secretary or an Assistant Secretary of International.

                  (g) Fees. The Administrative Agent shall have received the
         fees to be received on the Closing Date.

                  (h) Legal Opinions. The Administrative Agent shall have
         received, with a counterpart for each Lender, the executed legal
         opinion of Noah J. Hanft, General Counsel and Secretary of
         International (or such other person who then holds the position of
         General Counsel of International), substantially in the form of Exhibit
         F-1. Such legal opinion shall cover such other matters incident to the
         transactions contemplated by this Agreement as the Administrative Agent
         may reasonably require.

                  (i) Existing Agreement. The Administrative Agent shall have
         received evidence satisfactory to it that the commitments under
         International's existing $1,200,000,000 Credit Agreement, dated as of
         June 6, 2000 shall have been canceled and all amounts outstanding
         thereunder shall have been repaid.

                  4.2 Conditions to Each Loan. The agreement of each Lender to
make any Loan requested to be made by it on any date (including, without
limitation, its initial Loan and its Term Loan) is subject to the satisfaction
of the following conditions precedent:

                  (a) Representations and Warranties. Each of the
         representations and warranties made by International and, from and
         after the Conversion Date, by Inc. in or pursuant to the Loan Documents
         shall be true and correct on and as of such date as if made on and as
         of such date.

                  (b) No Default. No Default or Event of Default shall have
         occurred and be continuing on such date or after giving effect to the
         Loans requested to be made on such date.

                  (c) Additional Matters. All corporate and other proceedings,
         and all documents, instruments and other legal matters in connection
         with the transactions contemplated by this Agreement and the other Loan
         Documents shall be satisfactory in form and substance to the
         Administrative Agent, and the Administrative Agent shall have received
         such other documents and legal opinions in respect of any aspect or
         consequence of the transactions contemplated hereby or thereby as it
         shall reasonably request.

Each borrowing by the Borrower hereunder shall constitute a representation and
warranty by the Borrower as of the date thereof that the conditions contained in
this subsection have been satisfied.

                                CREDIT AGREEMENT

<PAGE>
                                                                              36

                        SECTION 5. AFFIRMATIVE COVENANTS

                  The Borrower hereby agrees that, so long as the Commitments
remain in effect or any amount is owing to any Lender or the Administrative
Agent hereunder or under any other Loan Document, the Borrower shall and (except
in the case of delivery of financial information, reports and notices) shall
cause each of its Subsidiaries to:

                  5.1 Financial Statements. Furnish to each Lender:

                  (a) as soon as available, but in any event within 120 days
         after the end of each fiscal year of the Borrower, a copy of the
         consolidated balance sheet of the Borrower and its consolidated
         Subsidiaries as at the end of such year and the related consolidated
         statements of income and retained earnings and of cash flows for such
         year, setting forth in each case in comparative form the figures for
         the previous year, reported on without a "going concern" or like
         qualification or exception, or qualification arising out of the scope
         of the audit, by PricewaterhouseCoopers LLP or other independent
         certified public accountants of nationally recognized standing; and

                  (b) as soon as available, but in any event not later than 60
         days after the end of each of the first three quarterly periods of each
         fiscal year of the Borrower, the unaudited consolidated balance sheet
         of the Borrower and its consolidated Subsidiaries as at the end of such
         quarter and the related unaudited consolidated statements of income and
         retained earnings of such quarter and of cash flows of the Borrower and
         its consolidated Subsidiaries for the portion of the fiscal year
         through the end of such quarter, setting forth in each case in
         comparative form the figures for the previous year or, in the case of
         such consolidated balance sheet, for the last day of the prior fiscal
         year, certified by a Responsible Officer as being fairly stated in all
         material respects (subject to normal year-end audit adjustments);

all such financial statements shall be complete and correct in all material
respects and shall be prepared in reasonable detail and in accordance with GAAP
applied consistently throughout the periods reflected therein and with prior
periods (except as approved by such accountants or officer, as the case may be,
and disclosed therein).

                  5.2 Certificates; Other Information. Furnish to the
         Administrative Agent:

                  (a) concurrently with the delivery of the financial statements
         referred to in subsection 5.1(a), a certificate of the independent
         certified public accountants reporting on such financial statements
         stating that in making the examination necessary therefor no knowledge
         was obtained of any failure by the Borrower to comply with subsections
         6.1, 6.4 or 6.5, except as specified in such certificate;

                  (b) concurrently with the delivery of the financial statements
         referred to in subsections 5.1(a) and (b), a certificate of a
         Responsible Officer, substantially in the form of Exhibit J, stating
         that, to the best of such Officer's knowledge, during such period the
         Borrower has observed or performed all of its covenants and other
         agreements, and satisfied every condition, contained in this Agreement
         and the other Loan Documents to be observed, performed or satisfied by
         it, and that such Officer has obtained no knowledge of any Default or
         Event of Default except as specified in such certificate;

                                CREDIT AGREEMENT

<PAGE>
                                                                              37

                  (c) within five days after the same are sent, copies of all
         financial statements and reports which the Borrower sends to its
         members or (after the Conversion Date) shareholders generally, and
         within five days after the same are filed, copies of all financial
         statements and reports which the Borrower may make to, or file with,
         the Securities and Exchange Commission or any successor or analogous
         Governmental Authority; provided, that any such financial statement or
         report shall be deemed to have been delivered on the date that the
         Borrower notifies the Administrative Agent that such financial
         statement or report is available on "EDGAR", the Electronic Data
         Gathering, Analysis and Retrieval system of the Securities and Exchange
         Commission, or "http://www.sec.gov/edgar.shtml"); and

                  (d) promptly, such additional financial and other information
         (other than any non-public information or materials pertaining to (i)
         International's and, from and after the Conversion Date, Inc.'s
         proprietary new products, systems or services, (ii) International's
         and, from and after the Conversion Date, Inc.'s proprietary marketing
         programs, strategies or plans, or (iii) any member specific billing,
         contractual or other arrangements) as the Administrative Agent or any
         Lender through the Administrative Agent may from time to time
         reasonably request.

                  5.3 Payment of Obligations. Pay, discharge or otherwise
satisfy at or before maturity or before they become delinquent, as the case may
be, all its obligations of whatever nature, except (i) where the amount or
validity thereof is currently being contested in good faith by appropriate
proceedings and reserves in conformity with GAAP with respect thereto have been
provided on the books of the Borrower or its Subsidiaries, as the case may be or
(ii) to the extent that failure to comply therewith could not, in the aggregate,
be reasonably expected to have a Material Adverse Effect.

                  5.4 Conduct of Business and Maintenance of Existence. Continue
to engage in business of the same general type as now conducted by it and
preserve, renew and keep in full force and effect its corporate existence and
take all reasonable action to maintain all rights, privileges and franchises
necessary or desirable in the normal conduct of its business except as otherwise
permitted pursuant to subsection 6.9; and comply with all Contractual
Obligations and Requirements of Law except to the extent that failure to comply
therewith could not, in the aggregate, be reasonably expected to have a Material
Adverse Effect.

                  5.5 Maintenance of Property; Insurance. Keep all property
useful and necessary in its business in good working order and condition;
maintain with financially sound and reputable insurance companies insurance on
all its property in at least such amounts and against at least such risks as are
usually insured against in the same general area by companies engaged in the
same or a similar business; and furnish to each Lender, upon written request,
full information as to the insurance carried.

                  5.6 Inspection of Property; Books and Records; Discussions.
Keep proper books of records and account in which full, true and correct entries
in conformity with GAAP (or such other commonly accepted accounting practice
which has been previously disclosed to the Administrative Agent) and all
Requirements of Law shall be made of all dealings and transactions in relation
to its business and activities; and permit representatives of any Lender to,

                                CREDIT AGREEMENT

<PAGE>
                                                                              38

upon reasonable notice, visit and inspect any of its properties (not more than
one time in any fiscal year) and examine and make abstracts from any of its
books and records (other than any non-public information or materials pertaining
to (i) the Borrower's proprietary new products, systems or services, (ii) the
Borrower's proprietary marketing programs, strategies or plans, or (iii) any
member specific billing, contractual or other arrangements) at any reasonable
time and as often as may reasonably be desired and to discuss the business,
operations, properties and financial and other condition of the Borrower and its
Subsidiaries with officers and employees of the Borrower and its Subsidiaries
and with its independent certified public accountants; provided that if a
Default or Event of Default shall have occurred and be continuing, such visits
and inspections may be conducted at any time upon reasonable notice.

                  5.7 Notices. Promptly give notice to the Administrative Agent
for distribution to the Lenders of:

                  (a) the occurrence of any Default or Event of Default;

                  (b) any (i) default or event of default under any Contractual
         Obligation of the Borrower or any of its Subsidiaries or (ii)
         litigation, investigation or proceeding which may exist at any time
         between the Borrower or any of its Subsidiaries and any Governmental
         Authority, which in either case, if not cured or if adversely
         determined, as the case may be, could reasonably be expected to have a
         Material Adverse Effect;

                  (c) any litigation or proceeding affecting the Borrower or any
         of its Subsidiaries in which the amount involved is $10,000,000 or more
         and not covered by insurance or in which injunctive or similar relief
         is sought;

                  (d) the following events, as soon as possible and in any event
         within 30 days after the Borrower knows or has reason to know thereof:
         (i) the occurrence or expected occurrence of any Reportable Event with
         respect to any Plan, a failure to make any required contribution to any
         "pension plan" (as defined in Section 3(2) of ERISA), the creation of
         any Lien in favor of the PBGC or a Plan or any withdrawal from, or the
         termination, Reorganization or Insolvency of, any Multiemployer Plan or
         (ii) the institution of proceedings or the taking of any other action
         by the PBGC or the Borrower or any Commonly Controlled Entity or any
         Multiemployer Plan with respect to the withdrawal from, or the
         terminating, Reorganization or Insolvency of, any Multiemployer Plan,
         except where the termination, Reorganization or Insolvency of any
         Multiemployer Plan could not reasonably be expected to result in a
         liability in excess of $10,000,000; and

                  (e) any material adverse change in the business, operations,
         property or condition (financial or otherwise) of the Borrower and its
         Subsidiaries taken as a whole.

Each notice pursuant to this subsection shall be accompanied by a statement of a
Responsible Officer setting forth details of the occurrence referred to therein
and stating what action the Borrower proposes to take with respect thereto.

                  5.8 Environment Laws. (a) Comply with, and ensure compliance
by all tenants and subtenants, if any, with, all applicable Environmental Laws
and obtain and

                                CREDIT AGREEMENT

<PAGE>
                                                                              39

comply in all material respects with and maintain, and ensure that all tenants
and subtenants obtain and comply in all material respects with and maintain, any
and all licenses, approvals, notifications, registrations or permits required by
applicable Environmental Laws except to the extent that failure to do so could
not be reasonably expected to have a Material Adverse Effect.

                  (b) Conduct and complete all investigations, studies, sampling
and testing, and all remedial, removal and other actions required under
Environmental Laws and promptly comply in all material respects with all lawful
orders and directives of all Governmental Authorities regarding Environmental
Laws except to the extent that the same are being contested in good faith by
appropriate proceedings and the pendency of such proceedings could not be
reasonably expected to have a Material Adverse Effect.

                          SECTION 6. NEGATIVE COVENANTS

                  The Borrower hereby agrees that, so long as the Commitments
remain in effect or any amount is owing to any Lender or the Administrative
Agent hereunder or under any other Loan Document, the Borrower shall not and
shall not permit any of its Subsidiaries to, directly or indirectly:

                  6.1 Maintenance of Net Worth. (a) Prior to the Conversion
         Date, permit Consolidated Net Worth of International at any time to be
         less than the sum of (i) $410,000,000 plus (ii) 50% of the sum of
         Consolidated Net Income (if positive) of International for each quarter
         ending after December 31, 2001.

                  (b) From and after the Conversion Date, permit Consolidated
         Net Worth of Inc. at any time to be less than the sum of (i)
         $410,000,000 plus (ii) an amount equal to 50% of the sum of
         Consolidated Net Income (if positive) of the Borrower for each fiscal
         quarter ending after December 31, 2001 plus (iii) from and after the
         Conversion Date, an amount equal to 50% of the difference between (x)
         Consolidated Net Worth of Inc. calculated after giving effect to the
         Conversion and Integration and the occurrence of the Conversion Date,
         as of the last day of the fiscal quarter ended most recently after the
         Conversion Date and (y) Consolidated Net Worth of International, as of
         the last day of the fiscal quarter ended most recently prior to the
         Conversion Date.

                  6.2 Limitation on Liens. Create, incur, assume or suffer to
exist any Lien upon any of its property, assets or revenues, whether now owned
or hereafter acquired, except for:

                  (a) Liens for taxes not yet due or which are being contested
         in good faith by appropriate proceedings, provided that adequate
         reserves with respect thereto are maintained on the books of the
         Borrower or its Subsidiaries, as the case may be, in conformity with
         GAAP;

                  (b) carriers', warehousemen's, mechanics', materialmen's,
         repairmen's or other like Liens arising in the ordinary course of
         business which are not overdue for a period of more than 60 days or
         which are being contested in good faith by appropriate proceedings;

                                CREDIT AGREEMENT

<PAGE>
                                                                              40

                  (c) pledges or deposits in connection with workers'
         compensation, unemployment insurance and other social security
         legislation and deposits securing liability to insurance carriers under
         insurance or self-insurance arrangements;

                  (d) deposits to secure the performance of bids, trade
         contracts (other than for borrowed money), leases, statutory
         obligations, surety and appeal bonds, performance bonds and other
         obligations of a like nature incurred in the ordinary course of
         business;

                  (e) easements, rights-of-way, restrictions and other similar
         encumbrances which, in the aggregate, do not in any case materially
         detract from the value of the property subject thereto or materially
         interfere with the ordinary conduct of the business of the Borrower and
         its Subsidiaries taken as a whole;

                  (f) Liens in existence on the date hereof listed on Schedule
         6.2(f), provided that no such Lien is spread to cover any additional
         property after the Closing Date and that the amount of Indebtedness
         secured thereby is not increased;

                  (g) Liens securing Indebtedness of the Borrower and its
         Subsidiaries incurred to finance the acquisition of fixed or capital
         assets, provided that (i) such Liens shall be created substantially
         simultaneously with the acquisition of such fixed or capital assets and
         (ii) such Liens do not at any time encumber any property other than the
         property financed by such Indebtedness;

                  (h) bankers' liens arising by operation of law;

                  (i) Liens on the property or assets of a corporation which
         becomes a Subsidiary on or after the date hereof securing Indebtedness
         of such corporation, provided that (i) such Liens existed at the time
         such corporation became a Subsidiary and were not created in
         anticipation thereof and (ii) any such Lien is not spread to cover any
         property or assets of such corporation after the time such corporation
         becomes a Subsidiary;

                  (j) Liens arising out of judgments or awards (x) which are
         bonded or (y) with respect to which an appeal or a proceeding for
         review is being prosecuted in good faith and adequate reserves have
         been provided for the payment of such judgment or award;

                  (k) Liens in favor of the Borrower which secure the obligation
         of any Subsidiary to the Borrower; and

                  (1) Liens (not otherwise permitted hereunder) which secure
         obligations not exceeding (as to the Borrower and all Subsidiaries)
         $20,000,000 in aggregate amount at any time outstanding.

                  6.3 Limitation on Fundamental Changes. Enter into any merger,
consolidation or amalgamation, or liquidate, wind up or dissolve itself (or
suffer any liquidation or dissolution), or convey, sell, lease, assign, transfer
or otherwise dispose of, all or substantially all of its property, business or
assets, or make any material change in its present method of conducting business
(taking the Borrower and its Subsidiaries as a whole), except:

                                CREDIT AGREEMENT

<PAGE>
                                                                              41

                  (a) any Subsidiary of the Borrower may be merged or
         consolidated with or into the Borrower (provided that the Borrower
         shall be the continuing or surviving corporation) or with or into any
         one or more wholly owned Subsidiaries of the Borrower (provided that
         the wholly owned Subsidiary or Subsidiaries shall be the continuing or
         surviving corporation);

                  (b) any wholly owned Subsidiary may sell, lease, transfer or
         otherwise dispose of any or all of its assets (upon voluntary
         liquidation or otherwise) to the Borrower or any other wholly owned
         Subsidiary of the Borrower, subject, however, to the limitations set
         forth in Sections 6.4 and 6.6 below; and

                  (c) as permitted by subsection 6.4.

                  6.4 Limitation on Sale of Assets. Convey, sell, lease, assign,
transfer or otherwise dispose of any of its property, business or assets
(including, without limitation, receivables and leasehold interests), whether
now owned or hereafter acquired, or, in the case of any Subsidiary, issue or
sell any shares of such Subsidiary's Capital Stock to any Person other than the
Borrower or any wholly owned Subsidiary, except:

                  (a) the sale or other disposition of obsolete or worn out
         property in the ordinary course of business;

                  (b) the sale or other disposition of any property; provided
         that (i) the aggregate book value of all assets so sold or disposed of
         pursuant to this clause (b) in any period of twelve consecutive months
         shall not exceed an amount equal to 20% of consolidated total assets of
         the Borrower and its Subsidiaries as at the beginning of such
         twelve-month period; and (ii) from and after the Conversion Date, the
         aggregate book value of all assets so sold or disposed of pursuant to
         this clause (b) to Subsidiaries of Inc. that are not also Subsidiaries
         of International by Inc. and its Subsidiaries (other than by
         Subsidiaries of Inc. that are not also Subsidiaries of International)
         during any period of twelve consecutive calendar months commencing with
         and including the month in which the Conversion Date occurs shall not
         exceed an amount equal to 20% of consolidated total assets of
         International and its Subsidiaries as at the beginning of such
         twelve-month period;

                  (c) the sale or disposition of the headquarters of the
         Borrower located at 2000 Purchase Street, Purchase, New York
         10577-2509;

                  (d) the sale of inventory in the ordinary course of business;

                  (e) the sale or discount without recourse of accounts
         receivable arising in the ordinary course of business in connection
         with the compromise or collection thereof; and

                  (f) as permitted by subsection 6.3(b).

                  6.5 Limitation on Dividends. Declare or pay any dividend
exceeding 40% of net income in any fiscal year (other than dividends payable
solely in common stock of the Borrower) on, or make any payment on account of,
or set apart assets for a sinking or other analogous fund for, the purchase,
redemption, defeasance, retirement or other acquisition of, any

                                CREDIT AGREEMENT

<PAGE>
                                                                              42

shares of any class of Capital Stock of the Borrower or any warrants or options
to purchase any such Stock, whether now or hereafter outstanding, or make any
other distribution in respect thereof, either directly or indirectly, whether in
cash or property or in obligations of the Borrower or any Subsidiary. The
provisions hereunder shall in no way limit the ability of any Subsidiary to make
dividend payments to the Borrower or any other shareholder of such Subsidiary.

                  6.6 Limitation on Investments, Loans and Advances. Make any
advance, loan, extension of credit or capital contribution to, or purchase any
stock, bonds, notes, debentures or other securities of or any assets
constituting a business unit of, or make any other investment in, any Person,
except Permitted Investments.

                  6.7 Limitation on Transactions with Affiliates. Enter into any
transaction, including, without limitation, any purchase, sale, lease or
exchange of property or the rendering of any service, with any Affiliate (other
than any transaction expressly permitted by Section 6.3(a) or (b)) unless such
transaction is upon fair and reasonable terms.

                  6.8 Limitation on Changes in Fiscal Year. Permit the fiscal
year of the Borrower to end on a day other than December 31; provided that, the
Borrower may change its fiscal year with the consent of the Administrative
Agent, which consent shall not unreasonably be withheld.

                  6.9 Limitation on Lines of Business. Enter into any business,
either directly or through any Subsidiary, except for businesses (a) in which
the Borrower and its Subsidiaries are engaged on the date of this Agreement or
(b) which, after giving effect to such new business, would not result in a
change in the primary business of the Borrower and its Subsidiaries, taken as a
whole, on the date hereof.

                  Notwithstanding anything to the contrary in this Section 6 or
elsewhere in this Agreement, (i) neither the consummation of the Conversion and
the Integration nor the implementation of the Project shall be deemed to violate
this Agreement and (ii) any transfer or issuance of any interest in Europay, or
any Affiliate of Europay currently existing as of the date hereof or created in
connection with such transfer, by International, Inc. or any of their respective
Subsidiaries, shall not constitute a transfer, issuance or investment for
purposes of Sections 6.3, 6.4, 6.5, 6.6 or 6.7 to the extent that Europay or
such Affiliate remains, directly or indirectly, a Subsidiary of Inc.

                          SECTION 7. EVENTS OF DEFAULT

                  If any of the following events shall occur and be continuing:

                  (a) The Borrower shall fail to pay any principal of any Loan
         when due in accordance with the terms thereof or hereof; or the
         Borrower shall fail to pay any interest on any Loan, or any other
         amount payable hereunder, within five days after any such interest or
         other amount becomes due in accordance with the terms thereof or
         hereof; or

                  (b) Any representation or warranty made or deemed made by
         International or Inc. herein or in any other Loan Document or which is
         contained in any certificate, document

                                CREDIT AGREEMENT

<PAGE>
                                                                              43

         or financial or other statement furnished by it at any time under or in
         connection with this Agreement shall prove to have been incorrect in
         any material respect on or as of the date made or deemed made; or

                  (c) The Borrower shall default in the observance or
         performance of any agreement contained in Section 6 or, after the
         Conversion Date, Sections 9.1 or 9.3; or

                  (d) International or Inc. shall default in the observance or
         performance of any other term, covenant or agreement contained in this
         Agreement (other than as provided in paragraphs (a) through (c) of this
         Section), and such default shall continue unremedied for a period of 30
         days after notice to the Borrower by the Administrative Agent or the
         Required Lenders; or

                  (e) The Borrower or any of its Subsidiaries shall (i) default
         in any payment of principal of or interest of any Indebtedness (other
         than the Loans) or in the payment of any Guarantee, in either case in
         excess of $5,000,000 individually or $10,000,000 in the aggregate,
         beyond the period of grace (not to exceed 30 days), if any, provided in
         the instrument or agreement under which such Indebtedness or Guarantee
         was created; or (ii) default in the observance or performance of any
         other agreement or condition relating to any such Indebtedness or
         Guarantee or contained in any instrument or agreement evidencing,
         securing or relating thereto, or any other event shall occur or
         condition exist, the effect of which default or other event or
         condition is to cause, or to permit the holder or holders of such
         Indebtedness or beneficiary or beneficiaries of such Guarantee (or a
         trustee or agent on behalf of such holder or holders or beneficiary or
         beneficiaries) to cause, with the giving of notice if required, such
         Indebtedness to become due prior to its stated maturity or such
         Guarantee to become payable; or

                  (f) (i) The Borrower or any of its Subsidiaries shall commence
         any case, proceeding or other action (A) under any existing or future
         law of any jurisdiction, domestic or foreign, relating to bankruptcy,
         insolvency, reorganization or relief of debtors, seeking to have an
         order for relief entered with respect to it, or seeking to adjudicate
         it a bankrupt or insolvent, or seeking reorganization, arrangement,
         adjustment, winding-up, liquidation, dissolution, composition or other
         relief with respect to it or its debts, or (B) seeking appointment of a
         receiver, trustee, custodian, conservator or other similar official for
         it or for all or any substantial part of its assets, or the Borrower or
         any of its Subsidiaries shall make a general assignment for the benefit
         of its creditors; or (ii) there shall be commenced against the Borrower
         or any of its Subsidiaries any case, proceeding or other action of a
         nature referred to in clause (i) above which (A) results in the entry
         of an order for relief or any such adjudication or appointment or (B)
         remains undismissed, undischarged or unbonded for a period of 90 days;
         or (iii) there shall be commenced against the Borrower or any of its
         Subsidiaries any case, proceeding or other action seeking issuance of a
         warrant of attachment, execution, distraint or similar process against
         all or any substantial part of its assets which results in the entry of
         an order for any such relief which shall not have been vacated,
         discharged, or stayed or bonded pending appeal within 60 days from the
         entry thereof; or (iv) the Borrower or any of its Subsidiaries shall
         take any action in furtherance of, or indicating its consent to,
         approval of, or acquiescence in, any of the acts set forth in clause
         (i), (ii), or (iii) above; or (v) the

                                CREDIT AGREEMENT

<PAGE>
                                                                              44

         Borrower or any of its Subsidiaries shall generally not, or shall be
         unable to, or shall admit in writing its inability to, pay its debts as
         they become due; or

                  (g) (i) Any Person shall engage in any "prohibited
         transaction" (as defined in Section 406 of ERISA or Section 4975 of the
         Code) involving any Plan, (ii) any "accumulated funding deficiency" (as
         defined in Section 302 of ERISA), whether or not waived, shall exist
         with respect to any Plan or any Lien in favor of the PBGC or a Plan
         shall arise on the assets of the Borrower or (after the Conversion
         Date) the Guarantor or any Commonly Controlled Entity, (iii) a
         Reportable Event shall occur with respect to, or proceedings shall
         commence to have a trustee appointed, or a trustee shall be appointed,
         to administer or to terminate, any Single Employer Plan, which
         Reportable Event or commencement of proceedings or appointment of a
         trustee is, in the reasonable opinion of the Required Lenders, likely
         to result in the termination of such Plan for purposes of Title IV of
         ERISA, (iv) any Single Employer Plan shall terminate for purposes of
         Title IV of ERISA, (v) the Borrower or (after the Conversion Date) the
         Guarantor or any Commonly Controlled Entity shall, or in the reasonable
         opinion of the Required Lenders is likely to, incur any liability in
         connection with a withdrawal from, or the Insolvency or Reorganization
         of, a Multiemployer Plan or (vi) any other event or condition shall
         occur or exist with respect to a Plan; and in each case in clauses (i)
         through (vi) above, such event or condition, together with all other
         such events or conditions, if any, could reasonably be expected to have
         a Material Adverse Effect; or

                  (h) One or more judgments or decrees shall be entered against
         the Borrower or any of its Subsidiaries involving a liability (not paid
         or fully covered by insurance) of $5,000,000 or more in the case of any
         one such judgment or $10,000,000 or more in the aggregate for all such
         judgments and decrees, and all such judgments or decrees shall not have
         been vacated, discharged, satisfied, stayed or bonded pending appeal
         within 90 days from the entry thereof; or

                  (i) Any Person or "group" (within the meaning of Section 13(d)
         or 14(d) of the Securities Exchange Act of 1934, as amended) (i) shall
         have acquired beneficial ownership of 20% or more of any outstanding
         class of Capital Stock having ordinary voting power in the election of
         directors of the Borrower or (ii) shall obtain the power (whether or
         not exercised) to elect a majority of the Borrower's directors; or,
         from and after the Conversion Date, Inc. shall cease to own,
         beneficially and of record, the sole Class B membership interest in
         International or shall cease to have power to elect a majority of
         International's directors;

then, and in any such event, (A) if such event is an Event of Default specified
in clause (i) or (ii) of paragraph (f) of this Section with respect to the
Borrower or (after the Conversion Date) the Borrower or the Guarantor,
automatically the Commitments shall immediately terminate and the Loans
hereunder (with accrued interest thereon) and all other amounts owing under this
Agreement shall immediately become due and payable, and (B) if such event is any
other Event of Default, either or both of the following actions may be taken:
(i) with the consent of the Required Lenders, the Administrative Agent may, or
upon the request of the Required Lenders, the Administrative Agent shall, by
notice to the Borrower declare the Commitments to be terminated forthwith,
whereupon the Commitments shall immediately terminate; and (ii) with the
consent of the Required Lenders, the Administrative Agent may, or upon the
request of the

                                CREDIT AGREEMENT

<PAGE>
                                                                              45

Required Lenders, the Administrative Agent shall, by notice to the Borrower,
declare the Loans hereunder (with accrued interest thereon) and all other
amounts owing under this Agreement to be due and payable forthwith, whereupon
the same shall immediately become due and payable. Except as expressly provided
above in this Section, presentment, demand, protest and all other notices of any
kind are hereby expressly waived.

                       SECTION 8. THE ADMINISTRATIVE AGENT

                  8.1 Appointment. Each Lender hereby irrevocably designates and
appoints the Administrative Agent as the agent of such Lender under this
Agreement and the other Loan Documents, and each such Lender irrevocably
authorizes the Administrative Agent, in such capacity, to take such action on
its behalf under the provisions of this Agreement and the other Loan Documents
and to exercise such powers and perform such duties as are expressly delegated
to the Administrative Agent by the terms of this Agreement and the other Loan
Documents, together with such other powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary elsewhere in this Agreement, the
Administrative Agent shall not have any duties or responsibilities, except those
expressly set forth herein, or any fiduciary relationship with any Lender, and
no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or any other Loan Document or
otherwise exist against the Administrative Agent.

                  8.2 Delegation of Duties. The Administrative Agent may execute
any of its duties under this Agreement and the other Loan Documents by or
through agents or attorneys-in-fact and shall be entitled to advice of counsel
concerning all matters pertaining to such duties. The Administrative Agent shall
not be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care.

                  8.3 Exculpatory Provisions. Neither the Administrative Agent
nor any of its officers, directors, employees, agents, attorneys-in-fact or
Affiliates shall be (i) liable for any action lawfully taken or omitted to be
taken by it or such Person under or in connection with this Agreement or any
other Loan Document (except for its or such Person's own gross negligence or
willful misconduct) or (ii) responsible in any manner to any of the Lenders for
any recitals, statements, representations or warranties made by International
or, from and after the Conversion Date, Inc., or any officer thereof contained
in this Agreement or any other Loan Document or in any certificate, report,
statement or other document referred to or provided for in, or received by the
Administrative Agent under or in connection with, this Agreement or any other
Loan Document or for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any other Loan Document or
for any failure of the Borrower or any of its Subsidiaries to perform its
obligations hereunder or thereunder. The Administrative Agent shall not be under
any obligation to any Lender to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this
Agreement or any other Loan Document, or to inspect the properties, books or
records of the Borrower or any of its Subsidiaries.

                  8.4 Reliance by Administrative Agent. The Administrative Agent
shall be entitled to rely, and shall be fully protected in relying, upon any
Note, writing, resolution, notice, consent, certificate, affidavit, letter,
telecopy, or teletype message, statement, order or other

                                CREDIT AGREEMENT

<PAGE>
                                                                              46

document or conversation believed by it to be genuine and correct and to have
been signed, sent or made by the proper Person or Persons and upon advice and
statements of legal counsel (including, without limitation, counsel to the
Borrower or the Guarantor), independent accountants and other experts selected
by the Administrative Agent. The Administrative Agent may deem and treat the
payee of any Note as the owner thereof for all purposes unless a written notice
of assignment, negotiation or transfer thereof shall have been filed with the
Administrative Agent. The Administrative Agent shall be fully justified in
failing or refusing to take any action under this Agreement or any other Loan
Document unless it shall first receive such advice or concurrence of the
Required Lenders as it deems appropriate or it shall first be indemnified to its
satisfaction by the Lenders against any and all liability and expense which may
be incurred by it by reason of taking or continuing to take any such action. The
Administrative Agent shall in all cases be fully protected in acting, or in
refraining from acting, under this Agreement and the other Loan Documents in
accordance with a request of the Required Lenders, and such request and any
action taken or failure to act pursuant thereto shall be binding upon all the
Lenders and all future holders of the Loans.

                  8.5 Notice of Default. The Administrative Agent shall not be
deemed to have knowledge or notice of the occurrence of any Default or Event of
Default hereunder unless the Administrative Agent has received notice from a
Lender or the Borrower referring to this Agreement, describing such Default or
Event of Default and stating that such notice is a "notice of default". In the
event that the Administrative Agent receives such a notice, the Administrative
Agent shall give prompt notice thereof to the Lenders. The Administrative Agent
shall take such action with respect to such Default or Event of Default as shall
be reasonably directed by the Required Lenders; provided that unless and until
the Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default or Event of Default as it shall
deem advisable in the best interests of the Lenders.

                  8.6 Non-Reliance on Administrative Agent and Other Lenders.
Each Lender expressly acknowledges that neither the Administrative Agent nor any
of its officers, directors, employees, agents, attorneys-in-fact or Affiliates
has made any representations or warranties to it and that no act by the
Administrative Agent hereinafter taken, including any review of the affairs of
International or Inc. or any of their Subsidiaries, shall be deemed to
constitute any representation or warranty by the Administrative Agent to any
Lender. Each Lender represents to the Administrative Agent that it has,
independently and without reliance upon the Administrative Agent or any other
Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business,
operations, property, financial and other condition and creditworthiness of
International and Inc. and made its own decision to make its Loans hereunder and
enter into this Agreement. Each Lender also represents that it will,
independently and without reliance upon the Administrative Agent or any other
Lender, and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit analysis, appraisals and decisions
in taking or not taking action under this Agreement and the other Loan
Documents, and to make such investigation as it deems necessary to inform itself
as to the business, operations, property, financial and other condition and
creditworthiness of International or Inc. or any of their Subsidiaries. Except
for notices, reports and other documents expressly required to be furnished to
the Lenders by the Administrative Agent hereunder, the Administrative Agent
shall not have any duty or responsibility to provide any Lender with any credit
or other information concerning

                                CREDIT AGREEMENT

<PAGE>
                                                                              47

the business, operations, property, condition (financial or otherwise),
prospects or creditworthiness of International or Inc. or any of their
Subsidiaries which may come into the possession of the Administrative Agent or
any of its officers, directors, employees, agents, attorneys-in-fact or
Affiliates.

                  8.7 Indemnification. The Lenders agree to indemnify the
Administrative Agent in its capacity as such (to the extent not reimbursed by
the Borrower and without limiting the obligation of the Borrower to do so),
ratably according to their respective Commitment Percentages in effect on the
date on which indemnification is sought, from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind whatsoever which may at any time
(including, without limitation, at any time following the payment of the Loans)
be imposed on, incurred by or asserted against the Administrative Agent in any
way relating to or arising out of, the Commitments, this Agreement, (including,
without limitation, enforcement of the Administrative Agent's rights under this
subsection) any of the other Loan Documents or any documents contemplated by or
referred to herein or therein or the transactions contemplated hereby or thereby
or any action taken or omitted by the Administrative Agent under or in
connection with any of the foregoing; provided that no Lender shall be liable
for the payment of any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from the Administrative Agent's gross negligence or willful
misconduct. The agreements in this subsection shall survive the payment of the
Loans and all other amounts payable hereunder.

                  8.8 Administrative Agent in Its Individual Capacity. The
Administrative Agent and its Affiliates may make loans to, accept deposits from
and generally engage in any kind of business with the Borrower as though the
Administrative Agent were not the Administrative Agent hereunder and under the
other Loan Documents. With respect to the Loans made by it, the Administrative
Agent shall have the same rights and powers under this Agreement and the other
Loan Documents as any Lender and may exercise the same as though it were not the
Administrative Agent, and the terms "Lender" and "Lenders" shall include the
Administrative Agent in its individual capacity.

                  8.9 Successor Administrative Agent. The Administrative Agent
may resign as Administrative Agent upon 10 days' notice to the Lenders, and the
Administrative Agent may be removed at any time with or without cause by the
Required Lenders. Upon any such resignation or removal, the Required Lenders
shall appoint from among the Lenders a successor agent for the Lenders, which
successor agent (provided that it shall have been approved by the Borrower (such
approval not to be unreasonably withheld)), shall succeed to the rights, powers
and duties of the Administrative Agent hereunder. Effective upon such
appointment and approval, the term "Administrative Agent" shall mean such
successor agent, and the former Administrative Agent's rights, powers and duties
as Administrative Agent shall be terminated, without any other or further act or
deed on the part of such former Administrative Agent or any of the parties to
this Agreement or any holders of the Loans. After any retiring Administrative
Agent's resignation or removal as Administrative Agent, the provisions of this
Section 8 shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was Administrative Agent under this Agreement and the other
Loan Documents.

                  8.10 Substitute Administrative Agent. If at any time Citibank
or the Borrower reasonably determines that Citibank is prevented from carrying
out its functions as

                                CREDIT AGREEMENT

<PAGE>
                                                                              48

Administrative Agent hereunder as contemplated hereby, Citibank or the Borrower,
as the case may be, shall forthwith so notify the Borrower or Citibank, as the
case may be, and the Backup Agent (and Citibank shall promptly so notify the
Lenders), and the Backup Agent shall thereupon automatically assume and perform
all of the functions of the Administrative Agent and shall be entitled to all of
the rights and benefits of the Administrative Agent hereunder, until and only
until such time as Citibank and the Borrower determine, and notify the Backup
Agent (which shall promptly notify the Lenders) that Citibank is no longer
prevented from carrying out its functions as Administrative Agent hereunder as
contemplated hereby, whereupon Citibank shall automatically resume and perform
all of the functions of the Administrative Agent hereunder. Each Lender agrees
to the foregoing and authorizes the Backup Agent to assume and perform the
functions of the Administrative Agent under the circumstances set forth above.

                        SECTION 9. CONVERSION PROVISIONS

                  Effective automatically upon, and only upon, the occurrence of
the Conversion Date, each of International and Inc. agrees with the other
parties, to induce them to enter into this Agreement and for other valuable
consideration, receipt of which is hereby acknowledged, the following provisions
shall apply:

                  9.1 Guarantee and Assumption of Obligations. (a) Inc. hereby
         assumes and agrees to pay and perform all of the obligations of the
         Borrower under this Agreement, and shall be deemed to be the Borrower
         for all purposes of this Agreement. The parties acknowledge and agree
         that until the Conversion Date, Inc. shall have no obligations under
         this Agreement (and expressly agree that this Agreement shall
         nevertheless be effective, valid, binding and enforceable against the
         parties from and including the date hereof).

                  (b) Guarantee. The Guarantor hereby guarantees to the Lenders
         and the Administrative Agent the prompt payment in full when due
         (whether at stated maturity, by acceleration or otherwise) of the
         principal of and interest on the Loans and the Notes and all other
         amounts whatsoever now or hereafter payable or becoming payable by the
         Borrower under this Agreement and the Notes, in each case strictly in
         accordance with the terms hereof or thereof (collectively, the
         "Guaranteed Obligations"). The Guarantor hereby further agrees that if
         the Borrower shall fail to pay in full when due (whether at stated
         maturity, by acceleration or otherwise) any of the Guaranteed
         Obligations, the Guarantor will promptly pay the same, without any
         demand or notice whatsoever, and that in the case of any extension of
         time of payment or renewal of any of the Guaranteed Obligations, the
         same will be promptly paid in full when due (whether at extended
         maturity, by acceleration or otherwise) in accordance with the terms of
         such extension or renewal. This Section 9.1 is a continuing guaranty
         and is a guaranty of payment and is not merely a guaranty of collection
         and shall apply to all Guaranteed Obligations whenever arising.

                  (c) Acknowledgments, Waivers and Consents. The Guarantor
         agrees that the obligations of the Guarantor under clause (b) above
         shall, to the fullest extent permitted

                                CREDIT AGREEMENT

<PAGE>
                                                                              49

         by applicable law, be primary, absolute, irrevocable and unconditional
         under any and all circumstances and that the guaranty therein is made
         with respect to any Guaranteed Obligations now existing or in the
         future arising. Without limiting the foregoing, the Guarantor agrees
         that:

                           (i) The occurrence of any one or more of the
                  following shall not affect the enforceability or effectiveness
                  of this Section 9.1 in accordance with its terms or affect,
                  limit, reduce, discharge or terminate the liability of the
                  Guarantor, or the rights, remedies, powers and privileges of
                  the Administrative Agent or any Lender, under this Section
                  9.1:

                                    (A) any modification or amendment (including
                           without limitation by way of amendment, extension,
                           renewal or waiver), or any acceleration or other
                           change in the time for payment or performance of the
                           terms of all or any part of the Guaranteed
                           Obligations or any Loan Document, or any other
                           agreement or instrument whatsoever relating thereto,
                           or any modification of the Commitments;

                                    (B) any release, termination, waiver,
                           abandonment, lapse or expiration, subordination or
                           enforcement of the liability of any other guarantee
                           of all or any part of the Guaranteed Obligations;

                                    (C) any application of the proceeds of any
                           other guarantee (including without limitation the
                           obligations of any other guarantor of all or any part
                           of the Guaranteed Obligations) to all or any part of
                           the Guaranteed Obligations in any such manner and to
                           such extent as the Administrative Agent may
                           determine;

                                    (D) any release of any other Person
                           (including without limitation any other guarantor
                           with respect to all or any part of the Guaranteed
                           Obligations) from any personal liability with respect
                           to all or any part of the Guaranteed Obligations;

                                    (E) any settlement, compromise, release,
                           liquidation or enforcement, upon such terms and in
                           such manner as the Administrative Agent may determine
                           or as applicable law may dictate, of all or any part
                           of the Guaranteed Obligations or any other guarantee
                           of (including without limitation any letter of credit
                           issued with respect to) all or any part of the
                           Guaranteed Obligations;

                                    (F) the giving of any consent to the merger
                           or consolidation of, the sale of substantial assets
                           by, or other restructuring or termination of the
                           corporate existence of the Borrower or any other
                           Person or any disposition of any shares of the
                           Guarantor;

                                    (G) any proceeding against the Borrower or
                           any other guarantor of all or any part of the
                           Guaranteed Obligations or any collateral provided by
                           any other Person or the exercise of any rights,
                           remedies, powers and privileges of the Administrative
                           Agent and the Lenders under the Loan

                                CREDIT AGREEMENT


<PAGE>
                                                                              50

                           Documents or otherwise in such order and such manner
                           as the Administrative Agent may determine, regardless
                           of whether the Administrative Agent or the Lenders
                           shall have proceeded against or exhausted any
                           collateral, right, remedy, power or privilege before
                           proceeding to call upon or otherwise enforce this
                           Section 9.1;

                                    (H) the entering into such other
                           transactions or business dealings with the Borrower,
                           any Subsidiary or Affiliate of the Borrower or any
                           other guarantor of all or any part of the Guaranteed
                           Obligations as the Administrative Agent or any Lender
                           may desire; or

                                    (I) all or any combination of any of the
                           actions set forth in this Section 9.1(c)(i).

                           (ii) The enforceability and effectiveness of this
                  Section 9.1 and the liability of the Guarantor, and the
                  rights, remedies, powers and privileges of the Administrative
                  Agent and the Lenders under this Section 9.1 shall not be
                  affected, limited, reduced, discharged or terminated, and the
                  Guarantor hereby expressly waives to the fullest extent
                  permitted by law any defense now or in the future arising, by
                  reason of:

                                    (A) the illegality, invalidity or
                           unenforceability of all or any part of the Guaranteed
                           Obligations, any Loan Document or any other agreement
                           or instrument whatsoever relating to all or any part
                           of the Guaranteed Obligations;

                                    (B) any disability or other defense with
                           respect to all or any part of the Guaranteed
                           Obligations, including the effect of any statute of
                           limitations that may bar the enforcement of all or
                           any part of the Guaranteed Obligations or the
                           obligations of any such other guarantor;

                                    (C) the illegality, invalidity or
                           unenforceability of any security for or other
                           guarantee (including without limitation any letter of
                           credit) of all or any part of the Guaranteed
                           Obligations or the lack of perfection or continuing
                           perfection or failure of the priority of any Lien on
                           any collateral for all or any part of the Guaranteed
                           Obligations;

                                    (D) the cessation, for any cause whatsoever,
                           of the liability of the Borrower or any other
                           guarantor with respect to all or any part of the
                           Guaranteed Obligations (other than, subject to
                           Section 9.1(d), by reason of the full payment of all
                           Guaranteed Obligations);

                                    (E) any failure of the Administrative Agent
                           or any Lender to marshal assets in favor of the
                           Borrower or any other Person (including any other
                           guarantor of all or any part of the Guaranteed
                           Obligations), to exhaust any collateral for all or
                           any part of the Guaranteed Obligations, to pursue or
                           exhaust any right, remedy, power or privilege it may
                           have against the Borrower or any other guarantor of
                           all or any part of the Guaranteed Obligations or any
                           other Person or to take any action

                                CREDIT AGREEMENT

<PAGE>
                                                                              51

                           whatsoever to mitigate or reduce such or any other
                           Person's liability, the Administrative Agent and the
                           Lenders being under no obligation to take any such
                           action notwithstanding the fact that all or any part
                           of the Guaranteed Obligations may be due and payable
                           and that the Borrower may be in default of its
                           obligations under any Loan Document;

                                    (F) any counterclaim, set-off or other claim
                           which the Borrower or any other guarantor of all or
                           any part of the Guaranteed Obligations has or claims
                           with respect to all or any part of the Guaranteed
                           Obligations;

                                    (G) any failure of the Administrative Agent
                           or any Lender or any other Person to file or enforce
                           a claim in any bankruptcy or other proceeding with
                           respect to any Person;

                                    (H) any bankruptcy, insolvency,
                           reorganization, winding-up or adjustment of debts, or
                           appointment of a custodian, liquidator or the like of
                           it, or similar proceedings commenced by or against
                           any Person, including any discharge of, or bar or
                           stay against collecting, all or any part of the
                           Guaranteed Obligations (or any interest on all or any
                           part of the Guaranteed Obligations) in or as a result
                           of any such proceeding;

                                    (I) any action taken by the Administrative
                           Agent or any Lender that is authorized by this
                           Section 9.1(c) or otherwise in this Section 9.1 or by
                           any other provision of any Loan Document or any
                           omission to take any such action; or

                                    (J) any other circumstance whatsoever that
                           might otherwise constitute a legal or equitable
                           discharge or defense of a surety or guarantor.

                           (iii) To the fullest extent permitted by law, the
                  Guarantor expressly waives, for the benefit of the
                  Administrative Agent and the Lenders, all diligence,
                  presentment, demand for payment or performance, notices of
                  nonpayment or nonperformance, protest, notices of protest,
                  notices of dishonor and all other notices or demands of any
                  kind or nature whatsoever, and any requirement that the
                  Administrative Agent or any Lender exhaust any right, power or
                  remedy or proceed against the Borrower under this Agreement,
                  any Note or any other Loan Document or other agreement or
                  instrument referred to herein or therein, or against any other
                  Person under any other guarantee of, or security for, any of
                  the Guaranteed Obligations, and all notices of acceptance of
                  this Section 9.1 or of the existence, creation, incurring or
                  assumption of new or additional Guaranteed Obligations.

                  (d) Reinstatement. The obligations of the Guarantor under this
         Section 9.1 shall be automatically reinstated if and to the extent that
         for any reason any payment by or on behalf of the Borrower in respect
         of the Guaranteed Obligations is rescinded or must otherwise be
         restored by any holder of any of the Guaranteed Obligations, whether as
         a result of any proceedings in bankruptcy or reorganization or
         otherwise.

                                CREDIT AGREEMENT


<PAGE>
                                                                              52

                  (e) Subrogation. The Guarantor hereby agrees that, until the
         final payment in full of all Guaranteed Obligations and the expiration
         or termination of the Commitments under this Agreement, it shall not
         exercise any right or remedy arising by reason of any performance by it
         of its guarantee in Section 9.1(b), whether by subrogation,
         reimbursement, contribution or otherwise, against the Borrower or any
         other guarantor of any of the Guaranteed Obligations or any security
         for any of the Guaranteed Obligations.

                  (f) Remedies. The Guarantor agrees that, as between the
         Guarantor and the Administrative Agent and the Lenders, the obligations
         of the Borrower under this Agreement, the Notes or any other Loan
         Documents may be declared to be forthwith due and payable as provided
         in Section 7 (and shall be deemed to have become automatically due and
         payable in the circumstances provided in said Section 7) for purposes
         of Section 9.1(b), notwithstanding any stay, injunction or other
         prohibition preventing such declaration (or such obligations from
         becoming automatically due and payable) as against the Borrower and
         that, in the event of such declaration (or such obligations being
         deemed to have become automatically due and payable), such obligations
         (whether or not due and payable by the Borrower) shall forthwith become
         due and payable by the Guarantor for purposes of said Section 9.1(b).

                  (g) Payments. All payments by the Guarantor under this Section
         9.1 shall be made in Dollars, without deduction, set-off or
         counterclaim at the place specified in Section 2.19 and free and clear
         of any and all present and future Non-Excluded Taxes.

                  (h) Use of Proceeds. The Borrower and the Guarantor
         acknowledge and agree that all of the proceeds of the Loans made on or
         after the Conversion Date will be remitted by the Borrower to the
         Guarantor and used by the Guarantor to ensure the integrity of the
         Guarantor's payment system in the event of settlement failure by one or
         more of its members, including failure by one or more of its members to
         meet merchant payment obligations.

                  9.2 Representations and Warranties. Inc. hereby represents and
warrants to the Administrative Agent and each Lender as of the Conversion Date
that:

                  (a) No Change. Since December 31, 2001 there has been no
         development or event which has had or could reasonably be expected to
         have a Material Adverse Effect.

                  (b) Corporate Existence; Compliance with Law. Each of Inc. and
         its Subsidiaries (a) is a corporation duly organized, validly existing
         and in good standing under the laws of the jurisdiction of its
         organization, (b) has the corporate power and authority, and the legal
         right, to own and operate its property, to lease the property it
         operates as lessee and to conduct the business in which it is currently
         engaged, (c) is duly qualified as a foreign corporation and in good
         standing under the laws of each jurisdiction (other than that of its
         incorporation) where its ownership, lease or operation of property or
         the conduct of its business requires such qualification and (d) is in
         compliance with all Requirements of Law, except in the case of clause
         (c) or (d) above, to the extent that the failure to qualify as a
         foreign corporation or to be in good standing or to comply with any
         Requirement of Law could not, individually or in the aggregate,
         reasonably be expected to have a Material Adverse Effect.

                                CREDIT AGREEMENT

<PAGE>
                                                                              53

                  (d) Corporate Power; Authorization; Enforceable Obligations.
         Inc. has the corporate power and authority, and the legal right, to
         make, deliver, and perform the Loan Documents to which it is a party
         and to borrow hereunder and has taken all necessary corporate action to
         authorize the borrowings on the terms and conditions of this Agreement
         and any Notes and to authorize the execution, delivery and performance
         of the Loan Documents to which it is a party. No consent or
         authorization of, filing with, notice to or other act by or in respect
         of, any Governmental Authority or any other Person is required in
         connection with the borrowings hereunder or with the execution,
         delivery, performance, validity or enforceability of the Loan Documents
         to which it is a party. This Agreement has been, and each other Loan
         Document to which it is a party will be, duly executed and delivered on
         behalf of Inc. This Agreement constitutes, and each other Loan Document
         to which it is a party when executed and delivered will constitute, a
         legal, valid and binding obligation of Inc., enforceable against it in
         accordance with its terms, subject to the effects of bankruptcy,
         insolvency, fraudulent conveyance, reorganization, moratorium and other
         similar laws relating to or affecting creditors' rights generally,
         general equitable principles (whether considered in a proceeding in
         equity or at law) and an implied covenant of good faith and fair
         dealing.

                  (e) No Legal Bar. The execution, delivery and performance of
         the Loan Documents to which Inc. is a party, the borrowings hereunder
         and the use of the proceeds thereof will not violate any Requirement of
         Law or Contractual Obligation of Inc. or of any of its Subsidiaries and
         will not result in, or require, the creation or imposition of any Lien
         on any of its or their respective properties or revenues pursuant to
         any such Requirement of Law or Contractual Obligation.

                  (f) No Material Litigation. Except as listed on Schedule 3.6
         or as disclosed to the Administrative Agent in writing prior to the
         Conversion Date, no litigation, investigation or proceeding of or
         before any arbitrator or Governmental Authority is pending or, to the
         knowledge of Inc., threatened by or against Inc. or any of its
         Subsidiaries or against any of its or their respective properties or
         revenues (a) with respect to any of the Loan Documents or any of the
         transactions contemplated hereby or thereby, or (b) which could,
         individually or in the aggregate, reasonably be expected to have a
         Material Adverse Effect.

                  (g) No Default. Neither Inc. nor any of its Subsidiaries is in
         default under or with respect to any of its Contractual Obligations in
         any respect which could, individually or in the aggregate, reasonably
         be expected to have a Material Adverse Effect. No Default or Event of
         Default has occurred and is continuing.

                  (h) Ownership of Property; Liens. Each of Inc. and its
         Subsidiaries has good record and marketable title in fee simple to, or
         a valid leasehold interest in, all its real property, and good title
         to, or a valid leasehold interest in, all its other material property,
         and none of such property is subject to any Lien except as permitted by
         subsection 6.2 or as disclosed to the Administrative Agent in writing
         prior to the Conversion Date.

                  (i) Intellectual Property. Inc. and each of its Subsidiaries
         owns, or is licensed to use, all trademarks, tradenames, copyrights,
         technology, know-how and processes necessary for the conduct of its
         business as currently conducted except for those the

                                CREDIT AGREEMENT

<PAGE>
                                                                              54

         failure to own or license which could not reasonably be expected to
         have a Material Adverse Effect (the "Intellectual Property"). No claim
         has been asserted and is pending by any Person challenging or
         questioning the use of any such Intellectual Property or the validity
         or effectiveness of any such Intellectual Property, nor does Inc. know
         of any valid basis for any such claim. The use of such Intellectual
         Property by Inc. and its Subsidiaries does not infringe on the rights
         of any Person, except for such claims and infringements that, in the
         aggregate, could not reasonably be expected to have a Material Adverse
         Effect.

                  (j) No Burdensome Restrictions. No Requirement of Law or
         Contractual Obligation of Inc. or any of its Subsidiaries could
         reasonably be expected to have a Material Adverse Effect.

                  (k) Taxes. Except as disclosed in Form S-4, each of Inc. and
         its Subsidiaries has filed or caused to be filed all tax returns which,
         to the knowledge of Inc., are required to be filed and has paid all
         taxes shown to be due and payable on said returns or on any assessments
         made against it or any of its property and all other taxes, fees or
         other charges imposed on it or any of its property by any Governmental
         Authority (other than any the amount or validity of which are currently
         being contested in good faith by appropriate proceedings and with
         respect to which reserves in conformity with GAAP have been provided on
         the books of Inc. or its Subsidiaries, as the case may be); no tax Lien
         has been filed, and, to the knowledge of Inc., no claim is being
         asserted, with respect to any such tax, fee or other charge.

                  (l) Federal Regulations. Neither Inc. nor any of its
         Subsidiaries is engaged principally, or as one of its important
         activities, in the business of extending credit for the purpose
         (whether immediate, incidental or ultimate) of buying or carrying
         Margin Stock. No part of the proceeds of any Loans will be used
         directly or indirectly for the purpose (whether immediate, incidental
         or ultimate) of buying or carrying Margin Stock or for any purpose that
         violates the provisions of the regulations of the Board. If requested
         by any Lender or the Administrative Agent, will furnish to each Lender
         and the Administrative Agent a statement in conformity with the
         requirements of Federal Reserve Form FR U-1 or FR G-3, as appropriate,
         referred to in Regulation U, as to demonstrate the compliance of any
         borrowing hereunder with Regulation U.

                  (m) ERISA. Neither a Reportable Event nor an "accumulated
         funding deficiency" (within the meaning of Section 412 of the Code or
         Section 302 of ERISA) has occurred during the five-year period prior to
         the date on which this representation is made or deemed made with
         respect to any Single Employer Plan, and each Plan has complied in all
         material respects with the applicable provisions of ERISA and the Code.
         No termination of a Single Employer Plan has occurred (other than via a
         "standard termination" as defined in Section 4041(b) of ERISA), and no
         Lien in favor of the PBGC or a Single Employer Plan has arisen, during
         such five-year period. The present value of all accrued benefits under
         each Single Employer Plan (based on those assumptions used to fund such
         Plans) did not, as of the last annual valuation date prior to the date
         on which this representation is made or deemed made, exceed the value
         of the assets of such Plan allocable to such accrued benefits by more
         than $10,000,000. Neither Inc. nor any Commonly Controlled Entity has
         had a complete or partial withdrawal from any

                                CREDIT AGREEMENT

<PAGE>
                                                                              55

         Multiemployer Plan, and neither Inc. nor any Commonly Controlled Entity
         would become subject to any liability under ERISA if Inc. or any such
         Commonly Controlled Entity were to withdraw completely from all
         Multiemployer Plans as of the valuation date most closely preceding the
         date on which this representation is made or deemed made. To the best
         knowledge of Inc., no such Multiemployer Plan is in Reorganization or
         Insolvent. The present value (determined using actuarial and other
         assumptions which are reasonable in respect of the benefits provided
         and the employees participating) of the liability of Inc. and each
         Commonly Controlled Entity for post retirement benefits to be provided
         to their current and former employees under Plans which are welfare
         benefit plans (as defined in Section 3(l) of ERISA) does not, in the
         aggregate, exceed the assets under all such Plans allocable to such
         benefits by an amount in excess of $20,000,000.

                  (n) Investment Company Act; Other Regulations. Inc. is not an
         "investment company", or a company "controlled" by an "investment
         company", within the meaning of the Investment Company Act of 1940, as
         amended. Inc. is not subject to regulation under any Federal or State
         statute or regulation (other than Regulation X of the Board) which
         limits its ability to incur Indebtedness.

                  (o) Subsidiaries. Schedule 9.2(o) lists each Subsidiary of
         Inc. (and the direct and indirect ownership interest of Inc. therein),
         in each case existing on the Conversion Date. Inc. will at all times
         own directly or indirectly the percentage of the outstanding capital
         stock, if any, of said Subsidiaries indicated on Schedule 9.2(o) as
         owned by Inc. as of the Conversion Date except to the extent the
         disposition thereof would not violate subsection 6.4.

                  (p) Environmental Matters. (i) To the best knowledge of Inc.,
         the facilities and properties owned, leased or operated by Inc. or any
         of its Subsidiaries (the "Properties") do not contain, and have not
         previously contained, any Materials of Environmental Concern in amounts
         or concentrations which (i) constitute or constituted a violation of,
         or (ii) could reasonably be expected to give rise to liability under,
         any Environmental Law.

                           (ii) The Properties and all operations at the
                  Properties are in compliance in all material respects with all
                  applicable Environmental Laws, and there is no contamination
                  at, under or about the Properties or violation of any
                  Environmental Law with respect to the Properties or the
                  business operated by Inc. or any of its Subsidiaries (the
                  "Business") which could materially interfere with the
                  continued operation of the Properties or materially impair the
                  fair saleable value thereof.

                           (iii) Neither Inc. nor any of its Subsidiaries has
                  received any notice of violation, alleged violation,
                  non-compliance, liability or potential liability regarding
                  environmental matters or compliance with Environmental Laws
                  with regard to any of the Properties or the Business, nor does
                  Inc. have knowledge or reason to believe that any such notice
                  will be received or is being threatened.

                           (iv) No judicial proceeding or governmental or
                  administrative action is pending or, to the knowledge of Inc.,
                  threatened, under any Environmental Law to

                                CREDIT AGREEMENT

<PAGE>
                                                                              56

                  which Inc. or any Subsidiary is or will be named as a party
                  with respect to the Properties or the Business, nor are there
                  any consent decrees or other decrees, consent orders,
                  administrative orders or other orders, or other administrative
                  or judicial requirements outstanding under any Environmental
                  Law with respect to the Properties or the Business.

                  9.3 Additional Covenant. Inc. hereby agrees that, from and
after the Conversion Date, so long as the Commitments remain in effect or any
amount is owing to any Lender or the Administrative Agent hereunder or under any
other Loan Document, Inc. shall not permit any of its Domestic Subsidiaries to
enter into, create or assume or suffer to exist any indenture, agreement or
other contractual arrangement that prohibits any such Subsidiary from declaring
or paying dividends or other distributions on any class of stock or membership
interest of such Subsidiary other than restrictions existing on the date of this
Agreement contained in agreements or arrangements listed on Schedule 9.3 or
otherwise disclosed to the Lenders prior to such date (including restrictions in
any amendment or replacement of any such agreements or arrangements), and
restrictions in future agreements or arrangements substantially similar to such
restrictions, it being agreed that customary financial covenants and other
agreements affecting maintenance or retention of assets or capital by a
Subsidiary shall not be deemed to be restrictions limited by this Section 9.3.

                            SECTION 10. MISCELLANEOUS

                  10.1 Amendments and Waivers. Neither this Agreement nor any
other Loan Document, nor any terms hereof or thereof may be amended,
supplemented or modified except in accordance with the provisions of this
subsection. The Required Lenders may, or, with the written consent of the
Required Lenders, the Administrative Agent may, from time to time, (a) enter
into with the Borrower written amendments, supplements or modifications hereto
and to the other Loan Documents for the purpose of adding any provisions to this
Agreement or the other Loan Documents or changing in any manner the rights of
the Lenders or of the Borrower hereunder or thereunder or (b) waive, on such
terms and conditions as the Required Lenders or the Administrative Agent, as the
case may be, may specify in such instrument, any of the requirements of this
Agreement or the other Loan Documents or any Default or Event of Default and its
consequences; provided, however, that no such waiver and no such amendment,
supplement or modification shall (i) reduce the amount or extend the scheduled
date of maturity of any Loan (provided, that for the purposes of this clause (i)
the making of the Term Loans shall not be considered an extension of the
scheduled date of maturity), or reduce the stated rate of any interest or fee
payable hereunder or extend the scheduled date of any payment thereof or
increase the amount or extend the expiration date of any Lender's Commitment, in
each case without the consent of each Lender affected thereby, or (ii) amend,
modify or waive any provision of this subsection or subsection 10.6(a) or reduce
the percentage specified in the definition of Required Lenders, or consent to
the assignment or transfer by International or (from and after the Conversion
Date) Inc. of any of its rights and obligations under this Agreement and the
other Loan Documents, in each case without the written consent of all the
Lenders, or (iii) release the obligations of International under Section 9.1
without the written consent of all the Lenders, or (iv) amend, modify or waive
any provision of Section 8 without the written consent of the then
Administrative Agent. Any such waiver and any such amendment, supplement or
modification shall apply equally to each of the Lenders and shall be binding
upon the Borrower, the

                                CREDIT AGREEMENT

<PAGE>
                                                                              57

Guarantor, the Lenders, the Administrative Agent and all future holders of the
Loans. In the case of any waiver, the Borrower, the Guarantor, the Lenders and
the Administrative Agent shall be restored to their former positions and rights
hereunder and under the other Loan Documents, and any Default or Event of
Default waived shall be deemed to be cured and not continuing; no such waiver
shall extend to any subsequent or other Default or Event of Default or impair
any right consequent thereon.

                  10.2 Notices. All notices, requests and demands to or upon the
respective parties hereto to be effective shall be in writing (including by
facsimile transmission) and, unless otherwise expressly provided herein, shall
be deemed to have been duly given or made (a) in the case of delivery by hand,
when delivered, (b) in the case of delivery by mail, three Business Days after
being deposited in the mails, certified or registered postage prepaid, or (c) in
the case of delivery by facsimile transmission, when sent and receipt has been
confirmed, addressed as follows in the case of the Borrower and the
Administrative Agent, and as set forth in an Administrative Questionnaire
delivered to the Administrative Agent in the case of the Lenders, or to such
other address as may be hereafter notified by the respective parties hereto:

      International:         MasterCard International Incorporated
                             2000 Purchase Street
                             Purchase, New York 10577-2509
                             Attention: Denise K. Fletcher, EVP and CFO
                             Fax: 914-249-6230
                             Telephone: 914-249-6220

      Inc.:                  MasterCard Incorporated
                             2000 Purchase Street
                             Purchase, New York 10577-2509
                             Attention: Denise K. Fletcher, EVP and CFO
                             Fax: 914-249-6230
                             Telephone: 914-249-6220



      The Administrative
      Agent or the
      Swing Line Lender:     Citibank, N.A.
                             2 Penns Way, Suite 200
                             New Castle, Delaware 19720
                             Attention:  Robert Partee
                             Fax:  302-894-6120
                             Telephone:  302-894-6017

provided that any notice, request or demand to or upon the Administrative Agent
or the Lenders pursuant to subsection 2.2, 2.4, 2.6, 2.8, 2.9, 2.11, 2.19 or
2.20 shall not be effective until received.

                  10.3 No Waiver; Cumulative Remedies. No failure to exercise
and no delay in exercising, on the part of the Administrative Agent or any
Lender, any right, remedy, power or

                                CREDIT AGREEMENT

<PAGE>
                                                                              58

privilege hereunder or under the other Loan Documents shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, remedy, power or
privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege. The rights, remedies,
powers and privileges herein provided are cumulative and not exclusive of any
rights, remedies, powers and privileges provided by law.

                  10.4 Survival of Representations and Warranties. All
representations and warranties made hereunder, in the other Loan Documents and
in any document, certificate or statement delivered pursuant hereto or in
connection herewith shall survive the execution and delivery of this Agreement
and the making of the Loans hereunder.

                  10.5 Payment of Expenses and Taxes. The Borrower agrees (a) to
pay or reimburse the Administrative Agent for all reasonable fees, charges and
disbursements of counsel incurred in connection with this Agreement and the
other Loan Documents or the amendment, modification or waiver thereof and all
reasonable and documented out-of-pocket expenses of the Administrative Agent
incurred in connection with any amendment, modification or waiver with respect
to this Agreement and the other Loan Documents, (b) to pay or reimburse each
Lender and the Administrative Agent for all its costs and expenses incurred in
connection with the enforcement or preservation of any rights under this
Agreement (including, without limitation, this subsection), the other Loan
Documents and any such other documents, including, without limitation, the
reasonable fees and disbursements of counsel (including, without limitation, the
non-duplicative documented allocated cost of in-house counsel) to each Lender
and of counsel to the Administrative Agent, (c) to pay, indemnify, and hold
harmless each Lender, the Administrative Agent, their respective affiliates and
their respective officers, directors, employees, agents and advisors (each, an
"Indemnitee") from, any and all recording and filing fees and any and all
liabilities with respect to, or resulting from any delay in paying, stamp,
excise and other taxes, if any, which may be payable or determined to be payable
in connection with the execution and delivery of, or consummation or
administration of any of the transactions contemplated by, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of,
this Agreement, the other Loan Documents and any such other documents, and (d)
to pay, indemnify, and hold harmless each Indemnitee from and against any and
all other liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever (including, without limitation, reasonable legal fees) with respect
to the execution, delivery, enforcement, performance and administration of this
Agreement (including, without limitation, this subsection), the other Loan
Documents and any such other documents, including, without limitation, any
investigative, administrative or judicial proceeding relating to the foregoing
or any of the foregoing relating to any actual or proposed use of proceeds of
the Loans or the violation of, noncompliance with or liability under, any
Environmental Law applicable to the operations of International or Inc., any of
their Subsidiaries or any of the Properties or arising out of the Commitments
(all the foregoing in this clause (d), collectively, the "indemnified
liabilities"), provided that the Borrower shall have no obligation hereunder to
any Indemnitee with respect to indemnified liabilities arising from the gross
negligence or willful misconduct of such Indemnitee. The Borrower waives, to the
maximum extent not prohibited by law, any right it may have to claim or recover
in any legal action or proceeding referred to in this Section any special,
exemplary, punitive or consequential damages. The agreements in this subsection
shall survive repayment of the Loans and all other amounts payable hereunder.

                                CREDIT AGREEMENT

<PAGE>
                                                                              59


         10.6 Successors and Assigns; Participations and Assignments. (a) This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns, except that neither International
nor Inc. may assign or transfer any of its rights or obligations under this
Agreement without the prior written consent of each Lender.

         (b) Any Lender may, in the ordinary course of its commercial banking
business and in accordance with applicable law, at any time sell to one or more
banks or other entities ("Participants") participating interests in any Loan
owing to such Lender, any Commitment or Swing Line Commitment of such Lender or
any other interest of such Lender hereunder and under the other Loan Documents.
In the event of any such sale by a Lender of a participating interest to a
Participant, such Lender's obligations under this Agreement to the other parties
to this Agreement shall remain unchanged, such Lender shall remain solely
responsible for the performance thereof, such Lender shall remain the holder of
any such Loan for all purposes under this Agreement and the other Loan
Documents, and the Borrower and the Administrative Agent shall continue to deal
solely and directly with such Lender in connection with such Lender's rights and
obligations under this Agreement and the other Loan Documents. No Lender shall
be entitled to create in favor of any Participant, in the participation
agreement pursuant to which such Participants participating interest shall be
created or otherwise, any right to vote on, consent to or approve any matter
relating to this Agreement or any other Loan Document except for those specified
in clauses (i), (ii) and (iii) of the proviso to subsection 10.1. The Borrower
agrees that if amounts outstanding under this Agreement are due or unpaid, or
shall have been declared or shall have become due and payable upon the
occurrence of an Event of Default, each Participant shall, to the maximum extent
permitted by applicable law, be deemed to have the right of setoff in respect of
its participating interest in amounts owing under this Agreement to the same
extent as if the amount of its participating interest were owing directly to it
as a Lender under this Agreement, provided that, in purchasing such
participating interest, such Participant shall be deemed to have agreed to share
with the Lenders the proceeds thereof as provided in subsection 10.7(a) as fully
as if it were a Lender hereunder. The Borrower also agrees that each Participant
shall be entitled to the benefits of subsections 2.19, 2.20, 2.22 and 2.23 with
respect to its participation in the Commitments, Swing Line Commitments and the
Loans outstanding from time to time as if it was a Lender; provided that, in the
case of subsection 2.23, such Participant shall have complied with the
requirements of said subsection and provided, further, that no Participant shall
be entitled to receive any greater amount pursuant to any such subsection than
the transferor Lender would have been entitled to receive in respect of the
amount of the participation transferred by such transferor Lender to such
Participant had no such transfer occurred.

         (c) Subject to the provisions of subsection 10.6(d) relating to the
assignment of CAF Advances, any Lender may, in the ordinary course of its
commercial banking business and in accordance with applicable law, at any time
and from time to time assign to one or more banks or other financial
institutions (an "Assignee") all or any part of its rights and obligations under
this Agreement and the other Loan Documents; provided, however, that

                  (i) except in the case of an assignment (A) to a Lender or
         subject to giving prior written notice thereof to the Borrower and the
         Administrative Agent, an Affiliate of a Lender which is a bank or
         financial institution or (B) of CAF Advances, each of the
         Administrative Agent and (except when a Default or Event of Default
         shall have occurred


                                CREDIT AGREEMENT
<PAGE>
                                                                              60


         and be continuing) the Borrower must give its consent to such
         assignment (which in each case shall not be unreasonably withheld or
         delayed);

                  (ii) the Swing Line Lender may not transfer any portion of the
         Swing Line Commitment without the consent of the Borrower (such consent
         not to be unreasonably withheld or delayed);

                  (iii) in the case of any assignment to an additional bank or
         financial institution that is not a Lender or an Affiliate thereof, the
         sum of the aggregate principal amount of the Loans and the aggregate
         amount of the Commitments and Swing Line Commitments being assigned
         and, if such assignment is of less than all of the rights and
         obligations of the assigning Lender, the sum of the aggregate principal
         amount of the Loans and the aggregate amount of the Commitments and
         Swing Line Commitments remaining with the assigning Lender are each not
         less than $5,000,000 (or such lesser amount as may be agreed to by the
         Borrower and the Administrative Agent); and

                  (iv) such assignment shall be evidenced by an Assignment and
         Acceptance, substantially in the form of Exhibit H, executed by such
         Assignee, such assigning Lender (and, in the case of an Assignee that
         is not then a Lender or an Affiliate thereof, by the Borrower and the
         Administrative Agent) and delivered to the Administrative Agent for its
         acceptance and recording in the Register.

Upon such execution, delivery, acceptance and recording, from and after the
effective date determined pursuant to such Assignment and Acceptance, (x) the
Assignee thereunder shall be a party hereto and, to the extent provided in such
Assignment and Acceptance, have the rights and obligations of a Lender hereunder
with a Commitment or Swing Line Commitment as set forth therein, and (y) the
assigning Lender thereunder shall, to the extent provided in such Assignment and
Acceptance, be released from its obligations under this Agreement (and, in the
case of an Assignment and Acceptance covering all or the remaining portion of an
assigning Lender's rights and obligations under this Agreement such assigning
Lender shall cease to be a party hereto). Notwithstanding any provision of this
paragraph (c) and paragraph (f) of this subsection, the consent of the Borrower
shall not be required, and, unless requested by the Assignee and/or the
assigning Lender, new Notes shall not be required to be executed and delivered
by the Borrower, for any assignment which occurs at any time when any of the
events described in Section 7(f) shall have occurred and be continuing.

         (d) Any Lender may, in the ordinary course of its commercial banking
business and in accordance with applicable law, at any time and from time to
time assign to one or more banks or other entities ("CAF Advance Assignees") any
CAF Advance owing to such Lender, pursuant to a CAF Advance Assignment,
substantially in the form of Exhibit D-4 attached hereto, executed by the
assignor Lender and the CAF Advance Assignee. Upon such execution, from and
after the date of such CAF Advance Assignment, the CAF Advance Assignee shall,
to the extent of the assignment provided for in such CAF Advance Assignment, be
deemed to have the same rights and benefits of payment and enforcement with
respect to such CAF Advance and the same rights of set-off and obligation to
share pursuant to subsection 10.7 as it would have had if it were a Lender
hereunder; provided that unless such CAF Advance Assignment shall otherwise
specify and a copy of such CAF Advance Assignment shall have been delivered to
the Administrative Agent for its acceptance and recording in the Register in
accordance with


                                CREDIT AGREEMENT
<PAGE>
                                                                              61


subsection 10.6(e), the assignor thereunder shall act as collection agent for
the CAF Advance Assignee thereunder, and the Administrative Agent shall pay all
amounts received from the Borrower which are allocable to the assigned CAF
Advance directly to such assignor without any further liability to such CAF
Advance Assignee. A CAF Advance Assignee under a CAF Advance Assignment shall
not, by virtue of such CAF Advance Assignment, become a party to this Agreement
or have any rights to consent to or refrain from consenting to any amendment,
waiver or other modification of any provision of this Agreement or any related
document; provided that (x) the assignor under such CAF Advance Assignment and
such CAF Advance Assignee may, in their discretion, agree between themselves
upon the manner in which such assignor will exercise its rights under this
Agreement and any related document except no Lender shall sell any CAF Advance
pursuant to which the CAF Advance Assignee shall have rights to approve any
amendment or waiver to this Agreement except to the extent such amendment or
waiver would (i) reduce the principal amount of any CAF Advance which has been
assigned to such CAF Advance Assignee, (ii) reduce the rate of interest on any
such CAF Advance or any fees payable in connection with such CAF Advance or
(iii) extend the time of payment of principal or, or interest on, any such CAF
Advance or any other amount owing under this Agreement and in connection with
such CAF Advance, and (y) if a copy of such CAF Advance Assignment shall have
been delivered to the Administrative Agent for its acceptance and recording in
the Register in accordance with subsection 10.6(e), neither the principal amount
of, the interest rate on, nor the maturity date of, any CAF Advance assigned to
such CAF Advance Assignee thereunder will be modified without the written
consent of such CAF Advance Assignee. If a CAF Advance Assignee has caused a CAF
Advance Assignment to be recorded in the Register in accordance with subsection
10.6(e), such CAF Advance Assignee may thereafter, in the ordinary course of its
business and in accordance with applicable law, assign the CAF Advance assigned
to it to any Lender, to any affiliate or subsidiary of such CAF Advance Assignee
or to any other financial institution with the consent of the Borrower (which
shall not be unreasonably withheld), and the foregoing provisions of this
paragraph (c) shall apply, mutatis mutandis, to any such assignment by a CAF
Advance Assignee. Except in accordance with the preceding sentence, CAF Advances
may not be further assigned by a CAF Advance Assignee, subject to any legal or
regulatory requirement that the CAF Advance Assignee's assets must remain under
its control.

         (e) The Administrative Agent, on behalf of the Borrower, shall maintain
at the address of the Administrative Agent referred to in subsection 10.2 a copy
of each Assignment and Acceptance delivered to it and a register (the
"Register") for the recordation of the names and addresses of the Lenders and
the Commitment of, and principal amount of the Loans owing to, each Lender from
time to time. The entries in the Register shall be conclusive, in the absence of
manifest error, and the Borrower, the Administrative Agent and the Lenders may
(and, in the case of any Loan or other obligation hereunder not evidenced by a
Note, shall) treat each Person whose name is recorded in the Register as the
owner of a Loan or other obligation hereunder as the owner thereof for all
purposes of this Agreement and the other Loan Documents, notwithstanding any
notice to the contrary. Any assignment of any Loan or other obligation hereunder
not evidenced by a Note shall be effective only upon appropriate entries with
respect thereto being made in the Register. The Register shall be available for
inspection by the Borrower or any Lender at any reasonable time and from time to
time upon reasonable prior notice.


                                CREDIT AGREEMENT
<PAGE>
                                                                              62


         (f) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an Assignee (and, in the case of an Assignee that is not
then a Lender or an affiliate thereof, by the Borrower and the Administrative
Agent) together with payment to the Administrative Agent of a registration and
processing fee of $3,000 and (if the Assignee is not a Lender) delivery to the
Administrative Agent of such Assignee's Administrative Questionnaire, the
Administrative Agent shall (i) promptly accept such Assignment and Acceptance
and (ii) on the effective date determined pursuant thereto record the
information contained therein in the Register and give notice of such acceptance
and recordation to the Lenders and the Borrower.

         (g) The Borrower authorizes each Lender to disclose to any Participant
or Assignee (each, a "Transferee") and any prospective Transferee any and all
financial information in such Lender's possession concerning the Borrower and
its Subsidiaries and Affiliates which has been delivered to such Lender by or on
behalf of the Borrower or any of its Subsidiaries pursuant to this Agreement or
which has been delivered to such Lender by or on behalf of the Borrower or any
of its Subsidiaries in connection with such Lender's credit evaluation of the
Borrower and its Subsidiaries and Affiliates prior to becoming a party to this
Agreement.

         (h) For avoidance of doubt, the parties to this Agreement acknowledge
that the provisions of this subsection concerning assignments of Loans and Notes
relate only to absolute assignments and that such provisions do not prohibit
assignments creating security interests, including, without limitation, any
pledge or assignment by a Lender of any Loan or Note to any Federal Reserve Bank
in accordance with applicable law.

         10.7 Adjustments; Set-off. (a) If any Lender (a "benefitted Lender")
shall at any time receive any payment of all or part of its Loans, or interest
thereon, or receive any collateral in respect thereof (whether voluntarily or
involuntarily, by set-off, pursuant to events or proceedings of the nature
referred to in Section 7(f), or otherwise), in a greater proportion than any
such payment to or collateral received by any other Lender, if any, in respect
of such other Lender's Loans, or interest thereon, such benefitted Lender shall
purchase for cash from the other Lenders a participating interest in such
portion of each such other Lender's Loan, or shall provide such other Lenders
with the benefits of any such collateral, or the proceeds thereof, as shall be
necessary to cause such benefitted Lender to share the excess payment or
benefits of such collateral or proceeds ratably with each of the Lenders;
provided, however, that if all or any portion of such excess payment or benefits
is thereafter recovered from such benefitted Lender, such purchase shall be
rescinded, and the purchase price and benefits returned, to the extent of such
recovery, but without interest.

         (b) In addition to any rights and remedies of the Lenders provided by
law, each Lender shall have the right, without prior notice to International or
Inc., any such notice being expressly waived by each of them to the extent
permitted by applicable law, upon any amount becoming due and payable by the
Borrower hereunder (whether at the stated maturity, by acceleration or
otherwise) to set off and appropriate and apply against such amount any and all
deposits (general or special, time or demand, provisional or final), in any
currency, and any other credits, indebtedness or claims, in any currency, in
each case whether direct or indirect, absolute or contingent, matured or
unmatured, at any time held or owing by such Lender or any branch or agency
thereof to or for the credit or the account of International or, from and after
the Conversion Date, Inc., provided that no such set-off and application may be
made against deposits in the accounts listed on Schedule 10.7(b) attached
hereto. Each Lender agrees


                                CREDIT AGREEMENT
<PAGE>
                                                                              63


promptly to notify the Borrower and the Administrative Agent after any such
set-off and application made by such Lender, provided that the failure to give
such notice shall not affect the validity of such set-off and application.

         10.8 Counterparts. This Agreement may be executed by one or more of the
parties to this Agreement on any number of separate counterparts (including by
facsimile transmission), and all of said counterparts taken together shall be
deemed to constitute one and the same instrument. A set of the copies of this
Agreement signed by all the parties shall be lodged with International and the
Administrative Agent.

         10.9 Severability. Any provision of this Agreement which is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

         10.10 Integration. This Agreement and the other Loan Documents
represent the entire agreement of International, Inc., the Administrative Agent
and the Lenders with respect to the subject matter hereof, and there are no
promises, undertakings, representations or warranties by the Administrative
Agent or any Lender relative to subject matter hereof not expressly set forth or
referred to herein or in the other Loan Documents.

         10.11 Termination of Commitments and Swing Line Commitments. The
Commitments and Swing Line Commitments shall terminate if the conditions to
closing set forth in subsection 4.1 shall not be satisfied on or before June 30,
2002.

         10.12 GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

         10.13 Submission To Jurisdiction; Waivers. Each of International and,
from and after the Conversion Date, Inc. hereby irrevocably and unconditionally:

                  (a) submits for itself and its property in any legal action or
         proceeding relating to this Agreement and the other Loan Documents to
         which it is a party, or for recognition and enforcement of any
         judgement in respect thereof, to the non-exclusive general jurisdiction
         of the Courts of the State of New York, the courts of the United States
         for the Southern District of New York, and appellate courts from any
         thereof;

                  (b) consents that any such action or proceeding may be brought
         in such courts and waives any objection that it may now or hereafter
         have to the venue of any such action or proceeding in any such court or
         that such action or proceeding was brought in an inconvenient court and
         agrees not to plead or claim the same;

                  (c) agrees that service of process in any such action or
         proceeding may be effected by mailing a copy thereof by registered or
         certified mail (or any substantially similar form of mail), postage
         prepaid, to it at its address set forth in subsection 10.2 or at such


                                CREDIT AGREEMENT
<PAGE>
                                                                              64


         other address of which the Administrative Agent shall have been
         notified pursuant thereto;

                  (d) agrees that nothing herein shall affect the right to
         effect service of process in any other manner permitted by law or shall
         limit the right to sue in any other jurisdiction; and

                  (e) waives, to the maximum extent not prohibited by law, any
         right it may have to claim or recover in any legal action or proceeding
         referred to in this subsection any special, exemplary, punitive or
         consequential damages.

         10.14 Acknowledgements. Each of International and Inc. hereby
acknowledges that:

                  (a) it has been advised by counsel in the negotiation,
         execution and delivery of this Agreement and the other Loan Documents;

                  (b) neither the Administrative Agent nor any Lender has any
         fiduciary relationship with or duty to it arising out of or in
         connection with this Agreement or any of the other Loan Documents, and
         the relationship between Administrative Agent and Lenders, on one hand,
         and International and Inc., on the other hand, in connection herewith
         or therewith is solely that of debtor and creditor; and

                  (c) no joint venture is created hereby or by the other Loan
         Documents or otherwise exists by virtue of the transactions
         contemplated hereby among the Lenders or among International, Inc. and
         the Lenders.

         10.15 WAIVERS OF JURY TRIAL. EACH OF INTERNATIONAL, INC., THE
ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.


                                CREDIT AGREEMENT
<PAGE>
                                                                              65


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

                                     MASTERCARD INTERNATIONAL INCORPORATED



                                     By: /s/ Richard Thevenet
                                         ---------------------------------------
                                          Name:  Richard Thevenet
                                          Title: Senior Vice President and
                                                 Treasurer

                                     MASTERCARD INCORPORATED

                                     By: /s/ Denise K. Fletcher
                                         ---------------------------------------
                                          Name:  Denise K. Fletcher
                                          Title: Executive Vice President, Chief
                                                 Financial
                                                 Officer and Treasurer

                                     CITIBANK, N.A.
                                     as Administrative Agent and as Lender

                                     By: /s/ Christine M. Alcruz
                                         ---------------------------------------
                                          Name:  Christine M. Alcruz
                                          Title: Vice President

                                     JPMORGAN CHASE BANK,
                                     as Backup Agent and as Lender

                                     By: /s/ Roger A. Parker
                                         ---------------------------------------
                                          Name:  Roger A. Parker
                                          Title: Vice President


                                CREDIT AGREEMENT
<PAGE>
                                                                              66


                                     LENDERS

                                     FLEET NATIONAL BANK

                                     By: /s/ Todd Mesick
                                         ---------------------------------------
                                          Name:  Todd Mesick
                                          Title: Vice President


                                CREDIT AGREEMENT
<PAGE>
                                                                              67


                                     HSBC BANK USA

                                     By: /s/ Jeremy Bollington
                                         ---------------------------------------
                                           Name:  Jeremy Bollington
                                           Title: Senior Vice President


                                CREDIT AGREEMENT
<PAGE>
                                                                              68


                                     ROYAL BANK OF SCOTLAND PLC, New York Branch


                                     By: /s/ Clark McGinn
                                         ---------------------------------------
                                           Name:  Clark McGinn
                                           Title: Senior Vice President


                                CREDIT AGREEMENT
<PAGE>
                                                                              69


                                     COMMONWEALTH BANK OF AUSTRALIA --
                                     GRAND CAYMAN BRANCH



                                     By: /s/ K. Murray Regan
                                         ---------------------------------------
                                           Name:   K. Murray Regan
                                           Title:  First Vice President


                                CREDIT AGREEMENT
<PAGE>
                                                                              70


                                     BANK OF MONTREAL

                                     By: /s/ Amy K. Dumser
                                         ---------------------------------------
                                           Name:  Amy K. Dumser
                                           Title: Director


                                CREDIT AGREEMENT
<PAGE>
                                                                              71


                                     BAYERISCHE HYPO - UND VEREINSBANK AG,
                                     NEW YORK BRANCH



                                     By: /s/ David A. Lefkovits
                                         ---------------------------------------
                                           Name:    David A. Lefkovits
                                           Title:   Managing Director

                                     By: /s/ Sessa von Richthofen
                                         ---------------------------------------
                                          Name:    Sessa von Richthofen
                                          Title:   Associate


                                CREDIT AGREEMENT
<PAGE>
                                                                              72




                                     BANK ONE, NA

                                     By: /s/ Eric P. Radzak
                                         ---------------------------------------
                                          Name:    Eric P. Radzak
                                          Title:   Commercial Banking Officer


                                CREDIT AGREEMENT
<PAGE>
                                                                              73


                                     PNC BANK, NATIONAL ASSOCIATION

                                     By: /s/ Donald V. Davis
                                         ---------------------------------------
                                          Name:    Donald V. Davis
                                          Title:   Vice President


                                CREDIT AGREEMENT
<PAGE>
                                                                              74


                                     WESTPAC BANKING CORPORATION

                                     By: /s/ Lisa Porter
                                         ---------------------------------------
                                         Name:     Lisa Porter
                                         Title:    Vice President


                                CREDIT AGREEMENT
<PAGE>
                                                                              75


                                     MELLON BANK

                                     By: /s/ David B. Wirl
                                         ---------------------------------------
                                         Name:  David B. Wirl
                                         Title: Vice President


                                CREDIT AGREEMENT
<PAGE>
                                                                              76


                                     WELLS FARGO BANK

                                     By: /s/ Roy H. Roberts
                                         ---------------------------------------
                                         Name:     Roy H. Roberts
                                         Title:    Vice President







                                CREDIT AGREEMENT


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>6
<FILENAME>y62583exv99w1.txt
<DESCRIPTION>CERTIFICATION
<TEXT>
<PAGE>
                                                                    Exhibit 99.1



                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report of MasterCard Incorporated (the
"Company") on Form 10-Q for the period ending June 30, 2002 as filed with the
Securities and Exchange Commission on the date hereof (the "Report"), I, Robert
W. Selander, Chief Executive Officer of the Company, certify, pursuant to 18
U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley
Act of 2002, that:



      (1)   The Report fully complies with the requirements of section 13 (a) or
15 (d) of the Securities Exchange Act of 1934; and

      (2)   The information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.




/s/ Robert W. Selander
---------------------------------------

Robert W. Selander
President and Chief Executive Officer
August 14, 2002

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>7
<FILENAME>y62583exv99w2.txt
<DESCRIPTION>CERTIFICATION
<TEXT>
<PAGE>
                                                                    Exhibit 99.2



                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report of MasterCard Incorporated (the
"Company") on Form 10-Q for the period ending June 30, 2002 as filed with the
Securities and Exchange Commission on the date hereof (the "Report"), I, Denise
K. Fletcher, Chief Financial Officer of the Company, certify, pursuant to 18
U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley
Act of 2002, that:



      (1)   The Report fully complies with the requirements of section 13 (a) or
15 (d) of the Securities Exchange Act of 1934; and

      (2)   The information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.




/s/ Denise K. Fletcher
---------------------------------

Denise K. Fletcher
Executive Vice President, Chief Financial Officer and Treasurer
August 14, 2002

</TEXT>
</DOCUMENT>
</SUBMISSION>
