Document:

Exhibit
10.2

 

GUARANTY

 

This
Guaranty, dated as of January 29, 2019 (this “Guaranty”) is made by FATBURGER NORTH AMERICA, INC., a Delaware
corporation, PONDEROSA FRANCHISING COMPANY LLC, a Delaware limited liability company, BONANZA RESTAURANT COMPANY LLC, a Delaware
limited liability company, PONDEROSA INTERNATIONAL DEVELOPMENT, INC., a Delaware corporation, PUERTO RICO PONDEROSA, INC., a Delaware
corporation, HURRICANE AMT LLC, a Delaware limited liability company, BUFFALO’S FRANCHISE CONCEPTS INC., a Delaware corporation,
FATBURGER CORPORATION, a Delaware corporation and HOMESTYLE DINING LLC, a Delaware limited liability company(together each other
entity that becomes a guarantor hereunder, the “Guarantors”) in favor of THE LION FUND, L.P. and THE LION FUND
II, L.P. (each a “Lender”, and together with their respective successors and assigns, collectively, the “Lenders”).

 

RECITALS:

 

WHEREAS,
FAT Brands Inc., a Delaware corporation (the “Company”) and Guarantors have entered into that certain Loan
and Security Agreement, dated as of the date hereof (as amended, amended and restated, supplemented or otherwise modified from
time to time, the “Loan Agreement”) with the Lenders;

 

WHEREAS,
the Guarantors will derive substantial direct and indirect benefit from the transactions contemplated by the Loan Agreement and
the other Loan Documents; and

 

WHEREAS,
it is a condition to the Lenders making any loans or otherwise extending credit or other financial accommodations under the Loan
Agreement that the Guarantors shall guarantee the due payment and performance of all Guaranteed Obligations (as hereinafter defined)
by entering into this Guaranty.

 

NOW,
THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, each Guarantor
hereby agrees with the Lenders, for the benefit of the Lenders, as follows:

 

Section
1. Definitions. All capitalized terms not otherwise defined in this Guaranty that are defined in the Loan Agreement shall
have the meanings assigned to such terms by the Loan Agreement.

 

Section
2. Guaranty of the Obligations. Each Guarantor hereby irrevocably and unconditionally guarantees to the Lenders
for the benefit of the Lenders the due and punctual payment in full of all Obligations when the same shall become due, whether
at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including amounts that would become
due but for the operation of the automatic stay under Section 362(a) of the United States Bankruptcy Code (the “Bankruptcy
Code”, 11 U.S.C. § 362(a)) (collectively, the “Guaranteed
Obligations”). Without limiting the generality of the foregoing,
each Guarantor’s liability shall extend to all amounts that constitute part of the Guaranteed Obligations and would be owed
by the Borrower to the Lenders under the Loan Documents but for the fact that they are unenforceable or not allowable due to insolvency
or the existence of a bankruptcy, reorganization or similar proceeding involving the Borrower.

 

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Section
3. Payment by Guarantors. Each Guarantor hereby agrees, in furtherance of the foregoing and not in limitation of any other
right which the Lenders may have at law or in equity against such Guarantor by virtue hereof, that upon the failure of the Borrower
to pay any of the Guaranteed Obligations when and as the same shall become due, whether at stated maturity, by required prepayment,
declaration, acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic
stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)), such Guarantor will upon demand pay, or cause to be
paid, in immediately available funds, to the Lenders, an amount equal to the sum of the unpaid principal amount of all Guaranteed
Obligations then due as aforesaid, all accrued and unpaid interest on such Guaranteed Obligations (including interest which, but
for a Borrower becoming the subject of a case under the Bankruptcy Code, would have accrued on such Guaranteed Obligations, whether
or not a claim is allowed against such Borrower for such interest in the related bankruptcy case) and all other Guaranteed Obligations
then owed to the Lenders as aforesaid. Each Guarantor hereby agrees that all payments under this Agreement will be paid to the
Lenders, without setoff, deduction or counterclaim at the office of the Lenders located at the address specified in the Loan Agreement
in U.S. dollars and in immediately available funds.

 

Section
4. Liability of Guarantors Absolute. Each Guarantor agrees that its obligations hereunder are irrevocable, absolute, independent
and unconditional and shall not be affected by any circumstance which constitutes a legal or equitable discharge of a guarantor
or surety other than the indefeasible payment in full in cash of the Obligations (other than contingent indemnification obligations
not yet due and owing) or the termination or expiration of the Loan Agreement (“Payment in Full”). In furtherance
of the foregoing and without limiting the generality thereof, each Guarantor agrees as follows:

 

(a)
This Guaranty is a guaranty of payment and not of collectability. This Guaranty is a primary obligation of each Guarantor and
not merely a contract of surety.

 

(b)
The Lenders may enforce this Guaranty upon the occurrence of an Event of Default notwithstanding the existence of any dispute
between the Borrower and the Lenders with respect to the existence of such Event of Default.

 

(c)
The obligations of each Guarantor hereunder are independent of the obligations of the Borrower and the obligations of any other
Guarantor, and a separate action or actions may be brought and prosecuted against each Guarantor whether or not any action is
brought against the Borrower or any of such other Guarantors and whether or not the Borrower is joined in any such action or actions.

 

(d)
The Lenders, upon such terms as it deems appropriate, without notice or demand and without affecting the validity or enforceability
hereof or giving rise to any reduction, limitation, impairment, discharge or termination of any Guarantor’s liability hereunder,
from time to time may (i) renew, extend, accelerate, increase the rate of interest on, or otherwise change the time, place, manner
or terms of payment of the Guaranteed Obligations in accordance with the Loan Agreement; (ii) settle, compromise, release or discharge,
or accept or refuse any offer of performance with respect to, or substitutions for, the Guaranteed Obligations or any agreement
relating thereto, or subordinate the payment of the same to the payment of any other obligations; (iii) request and accept other
guaranties of the Guaranteed Obligations and take and hold security for the payment hereof or the Guaranteed Obligations; (iv)
release, surrender, exchange, substitute, compromise, settle, rescind, waive, alter, subordinate or modify, with or without consideration,
any security for payment of the Guaranteed Obligations, any other guaranties of the Guaranteed Obligations, or any other obligation
of any other Person with respect to the Guaranteed Obligations; (v) enforce and apply any security now or hereafter held by or
for the benefit of the Lenders in respect hereof or the Guaranteed Obligations and direct the order or manner of sale thereof,
or exercise any other right or remedy that the Lenders may have against any such security, in each case as the Lenders in their
discretion may determine consistent herewith and any applicable security agreement, including foreclosure on any such security
pursuant to one or more judicial or nonjudicial sales, whether or not every aspect of any such sale is commercially reasonable,
and even though such action operates to impair or extinguish any right of reimbursement or subrogation or other right or remedy
of any Guarantor against the Borrower or any security for the Guaranteed Obligations; and (vi) exercise any other rights available
to it under the Loan Documents.

 

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(e)
This Guaranty and the obligations of each Guarantor hereunder shall be valid and enforceable and shall not be subject to any reduction,
limitation, impairment, discharge or termination for any reason (other than Payment in Full), including the occurrence of any
of the following, whether or not such Guarantor shall have had notice or knowledge of any of them: (i) any failure or omission
to assert or enforce, or agreement or election not to assert or enforce, or the stay or enjoining, by order of court, by operation
of law or otherwise, of the exercise or enforcement of, any claim or demand or any right, power or remedy (whether arising under
the Loan Documents, at law, in equity or otherwise) with respect to the Guaranteed Obligations or any agreement relating thereto,
or with respect to any other guaranty of or security for the payment of the Guaranteed Obligations; (ii) any rescission, waiver,
amendment or modification of, or any consent to departure from, any of the terms or provisions (including provisions relating
to events of default) of any of the other Loan Documents or any agreement or instrument executed pursuant thereto, or of any other
guaranty or security for the Guaranteed Obligations; including, without limitation, any increase in the Guaranteed Obligations
resulting from the extension of additional credit to the Borrower or otherwise; (iii) the Guaranteed Obligations, or any agreement
relating thereto other than this Guaranty, at any time being found to be illegal, invalid or unenforceable in any respect; (iv)
the application of payments received from any source (other than payments received pursuant to the other Loan Documents or from
the proceeds of any security for the Guaranteed Obligations, except to the extent such security also serves as collateral for
indebtedness other than the Guaranteed Obligations) to the payment of indebtedness other than the Guaranteed Obligations, even
though the Lenders might have elected to apply such payment to any part or all of the Guaranteed Obligations; (v) any change,
restructuring or termination of the corporate structure or existence of any Loan Party, including without limitation as a result
of the Lenders’ consent to the change, reorganization or termination of the corporate structure or existence of any Loan
Party and to any corresponding restructuring of the Guaranteed Obligations; (vi) any failure to perfect or continue perfection
of a security interest in any collateral which secures any of the Guaranteed Obligations; (vii) any taking, exchange, release
or non-perfection of any collateral for all or any of the Guaranteed Obligations; (viii) any manner of application of collateral,
or proceeds thereof, to all or any of the Guaranteed Obligations, or any manner of sale or other disposition of any collateral
for all or any of the Guaranteed Obligations or any other obligations of any other Person under the Loan Documents or any other
assets of Borrower or any of its Affiliates; (ix) any failure of the Lenders to disclose to any Loan Party any information relating
to the business, condition (financial or otherwise), operations, properties or prospects of any Person now or in the future known
to the Lenders (and each Guarantor hereby irrevocably waives any duty on the part of the Lenders to disclose such information);
(x) any defenses, set-offs or counterclaims which Borrower may allege or assert against the Lenders in respect of the Guaranteed
Obligations, other than Payment in Full, including failure of consideration, breach of warranty, payment, statute of frauds, statute
of limitations, accord and satisfaction and usury; (xi) any other act or thing or omission, or delay to do any other act or thing,
which may or might in any manner or to any extent vary the risk of such Guarantor as an obligor in respect of the Guaranteed Obligations;
and (xii) any other circumstance or any existence of or reliance on any representation by the Lenders that might otherwise constitute
a defense available to, or a discharge of, the Borrower, such Guarantor or any other Guarantor, surety or other Person.

 

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Section
5. Waivers by Guarantors. Each Guarantor hereby waives, for the benefit of the Lenders: (a) any right to require the Lenders,
as a condition of payment or performance by such Guarantor, to (i) proceed against the Borrower, any other Guarantor or any other
Person, (ii) proceed against or exhaust any security held from the Borrower, any such other Guarantor or any other Person, (iii)
proceed against or have resort to any balance of any deposit account or credit on the books of the Lenders in favor of the Borrower
or any other Person, or (iv) pursue any other remedy in the power of the Lenders whatsoever; (b) any defense arising by reason
of the incapacity, lack of authority or any disability or other defense of the Borrower or any other Guarantor, including any
defense based on or arising out of the lack of validity or the unenforceability of the Guaranteed Obligations or any agreement
or instrument relating thereto or by reason of the cessation of the liability of the Borrower or any other Guarantor from any
cause other than Payment in Full; (c) any defense based upon any statute or rule of law which provides that the obligation of
a surety must be neither larger in amount nor in other respects more burdensome than that of the principal; (d) any defense based
upon the Lenders’ errors or omissions in the administration of the Guaranteed Obligations, except behavior which is determined
by a final nonappealable judgment by a court of competent jurisdiction to have resulted from bad faith or gross negligence; (e)
(i) any principles or provisions of law, statutory or otherwise, which are or might be in conflict with the terms hereof and any
legal or equitable discharge of such Guarantor’s obligations hereunder, (ii) the benefit of any statute of limitations affecting
such Guarantor’s liability hereunder or the enforcement hereof, (iii) any rights to set-offs, recoupments and counterclaims,
and (iv) promptness, diligence and any requirement that the Lenders protect, secure, perfect or insure any security interest or
lien or any property subject thereto; (f) notices, demands, presentments, protests, notices of protest, notices of dishonor and
notices of any action or inaction, including acceptance hereof, notices of default hereunder, notices of any renewal, extension
or modification of the Guaranteed Obligations or any agreement related thereto, notices of any extension of credit to the Borrower
and notices of any of the matters referred to in Section 4 and any right to consent to any thereof; and (g) any defenses
or benefits that may be derived from or afforded by law which limit the liability of or exonerate guarantors or sureties, or which
may conflict with the terms hereof.

 

Section
6. Waiver of Subrogation, Contribution, etc. Subject to Section 11, each Guarantor hereby waives any claim, right
or remedy, direct or indirect, that such Guarantor now has or may hereafter have against the Borrower or any other Guarantor or
any of its assets in connection with this Guaranty or the performance by such Guarantor of its obligations hereunder, in each
case whether such claim, right or remedy arises in equity, under contract, by statute, under common law or otherwise and including
without limitation (a) any right of subrogation, reimbursement or indemnification that such Guarantor now has or may hereafter
have against the Borrower with respect to the Guaranteed Obligations, (b) any right to enforce, or to participate in, any claim,
right or remedy that the Lenders now have or may hereafter have against the Borrower, and (c) any benefit of, and any right to
participate in, any collateral or security now or hereafter held by the Lenders or the Collateral Agent, for the benefit of the
Lenders. In addition, until Payment in Full, each Guarantor shall withhold exercise of any right of contribution such Guarantor
may have against any other guarantor of the Guaranteed Obligations. Each Guarantor further agrees that, to the extent the waiver
or agreement to withhold the exercise of its rights of subrogation, reimbursement, indemnification and contribution as set forth
herein is found by a court of competent jurisdiction to be void or voidable for any reason, any rights of subrogation, reimbursement
or indemnification such Guarantor may have against the Borrower or against any collateral or security, and any rights of contribution
such Guarantor may have against any such other guarantor, shall be junior and subordinate to any rights the Lenders may have against
the Borrower, to all right, title and interest the Lenders or the Collateral Agent, for the benefit of the Lenders, may have in
any such collateral or security, and to any right the Lenders or the Collateral Agent, for the benefit of the Lenders, may have
against such other guarantor. If any amount shall be paid to any Guarantor on account of any such subrogation, reimbursement,
indemnification or contribution rights at any time before Payment in Full, such amount shall be held in trust for the Lenders
and shall forthwith be paid over to the Lenders to be credited and applied against the Guaranteed Obligations, whether matured
or unmatured, in accordance with the terms hereof.

 

Section
7. Subordination of Other Obligations. Any Indebtedness of the Borrower or any Guarantor now or hereafter held by any Guarantor
is hereby subordinated in right of payment to the Guaranteed Obligations, and any such Indebtedness collected or received by any
Guarantor after an Event of Default has occurred and is continuing shall be held in trust for the Lenders and shall forthwith
be paid over to the Lenders to be credited and applied against the Guaranteed Obligations but without affecting, impairing or
limiting in any manner the liability of such Guarantor under any other provision hereof.

 

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Section
8. Authority of Guarantors or Borrower. It is not necessary for the Lenders to inquire into the capacity or powers of the
Guarantors or the Borrower or the officers, directors or any agents acting or purporting to act on behalf of any of them.

 

Section
9. Financial Condition of Borrower. The Loan may be made to the Borrower or continued from time to time without notice
to or authorization from any Guarantor, regardless of the financial or other condition of the Borrower at the time of any such
grant or continuation. The Lenders shall have no obligation to disclose or discuss with any Guarantor its assessment, or any Guarantor’s
assessment, of the financial condition of the Borrower. Each Guarantor acknowledges that it has adequate means to obtain information
from the Borrower on a continuing basis concerning the financial condition of the Borrower and its ability to perform its obligations
under the Loan Documents, and each Guarantor assumes the responsibility for being and keeping informed of the financial condition
of the Borrower and of all circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations. Each Guarantor hereby
waives and relinquishes any duty on the part of the Lenders to disclose any matter, fact or thing relating to the business, operations
or conditions of the Borrower now known or hereafter known by the Lenders.

 

Section
10. Bankruptcy, etc.

 

(a)
So long as any Guaranteed Obligations remain outstanding, no Guarantor shall, without the prior written consent of the Lenders,
commence or join with any other Person in commencing any bankruptcy, reorganization or insolvency case or proceeding of or against
the Borrower or any other Guarantor. The obligations of each Guarantor hereunder shall not be reduced, limited, impaired, discharged,
deferred, suspended or terminated by any case or proceeding, voluntary or involuntary, involving the bankruptcy, insolvency, receivership,
reorganization, liquidation or arrangement of the Borrower or any other Guarantor or by any defense which the Borrower or any
other Guarantor may have by reason of the order, decree or decision of any court or administrative body resulting from any such
proceeding.

 

(b)
Each Guarantor acknowledges and agrees that any interest on any portion of the Guaranteed Obligations which accrues after the
commencement of any case or proceeding referred to in clause (a) above (or, if interest on any portion of the Guaranteed Obligations
ceases to accrue by operation of law by reason of the commencement of such case or proceeding, such interest as would have accrued
on such portion of the Guaranteed Obligations if such case or proceeding had not been commenced) shall be included in the Guaranteed
Obligations because it is the intention of such Guarantor and the Lenders that the Guaranteed Obligations which are guaranteed
by each Guarantor pursuant hereto should be determined without regard to any rule of law or order which may relieve the Borrower
of any portion of such Guaranteed Obligations as a result of its bankruptcy, insolvency receivership, reorganization, liquidation
or arrangement. Each Guarantor will permit any trustee in bankruptcy, receiver, debtor in possession, assignee for the benefit
of creditors or similar person to pay the Lenders, or allow the claim of the Lenders in respect of, any such interest accruing
after the date on which such case or proceeding is commenced.

 

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(c)
In the event that all or any portion of the Guaranteed Obligations are paid, the obligations of each Guarantor hereunder shall
continue and remain in full force and effect or be reinstated, as the case may be, in the event that all or any part of such payment(s)
are rescinded or recovered directly or indirectly from the Lenders as a preference, fraudulent transfer or otherwise, and any
such payments which are so rescinded or recovered shall constitute Guaranteed Obligations for all purposes hereunder. EACH
GUARANTOR SHALL DEFEND AND INDEMNIFY THE LENDERS FROM AND AGAINST ANY CLAIM, DAMAGE, LOSS, LIABILITY, COST OR EXPENSE UNDER THIS
SECTION 10(c) (INCLUDING REASONABLE ATTORNEYS’ FEES AND EXPENSES) IN THE DEFENSE OF ANY SUCH ACTION OR SUIT INCLUDING
SUCH CLAIM, DAMAGE, LOSS, LIABILITY, COST, OR EXPENSE ARISING AS A RESULT OF THE INDEMNIFIED LENDERS’ OWN NEGLIGENCE BUT
EXCLUDING SUCH CLAIM, DAMAGE, LOSS, LIABILITY, COST, OR EXPENSE THAT IS FOUND IN A FINAL, NON-APPEALABLE JUDGMENT BY A COURT OF
COMPETENT JURISDICTION TO HAVE RESULTED FROM SUCH INDEMNIFIED LENDERS’ GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

 

Section
11. Contribution and Subrogation. In order to provide for just and equitable contribution among the Guarantors, the Guarantors
agree that in the event a payment shall be made on any date under this Guaranty by any Guarantor (the “Funding Guarantor”),
each other Guarantor (each a “Contributing Guarantor”) shall indemnify the Funding Guarantor in an amount equal
to the amount of such payment, in each case multiplied by a fraction the numerator of which shall be the net worth of the Contributing
Guarantor as of such date and the denominator of which shall be the aggregate net worth of all the Contributing Guarantors together
with the net worth of the Funding Guarantor as of such date. Any Contributing Guarantor making any payment to a Funding Guarantor
pursuant to this Section 11 shall be subrogated to the rights of such Funding Guarantor to the extent of such payment.

 

Section
12. Fraudulent Transfer Laws. Anything contained in this Guaranty to the contrary notwithstanding, the obligations of each
Guarantor under this Guaranty on any date shall be limited to a maximum aggregate amount equal to the largest amount that would
not, on such date, render its obligations hereunder subject to avoidance as a fraudulent transfer or conveyance under Section
548 of the Bankruptcy Code of the United States or any applicable provisions of comparable laws relating to bankruptcy, insolvency,
or reorganization, or relief of debtors (collectively, the “Fraudulent Transfer Laws”), but only to the extent
that any Fraudulent Transfer Law has been found in a final non-appealable judgment of a court of competent jurisdiction to be
applicable to such obligations as of such date, in each case

 

(a)
after giving effect to all liabilities of such Guarantor, contingent or otherwise, that are relevant under the Fraudulent Transfer
Laws, but specifically excluding

 

(i)
any liabilities of such Guarantor in respect of intercompany indebtedness to the Borrower or other affiliates of the Borrower
to the extent that such indebtedness would be discharged in an amount equal to the amount paid by such Guarantor hereunder;

 

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(ii)
any liabilities of such Guarantor under this Guaranty; and

 

(iii)
any liabilities of such Guarantor under other guarantees of and joint and several co-borrowings of Indebtedness, entered into
on the date this Guaranty becomes effective, which contain a limitation as to maximum amount substantially similar to that set
forth in this Section 12 (each such other guarantee and joint and several co-borrowing entered into on the date this Guaranty
becomes effective, a “Competing Guaranty”) to the extent such Guarantor’s liabilities under such Competing
Guaranty exceed an amount equal to (x) the aggregate principal amount of such Guarantor’s obligations under such Competing
Guaranty (notwithstanding the operation of that limitation contained in such Competing Guaranty that is substantially similar
to this Section 12), multiplied by (y) a fraction (I) the numerator of which is the aggregate principal amount of such
Guarantor’s obligations under such Competing Guaranty (notwithstanding the operation of that limitation contained in such
Competing Guaranty that is substantially similar to this Section 12), and (II) the denominator of which is the sum of (A) the
aggregate principal amount of the obligations of such Guarantor under all other Competing Guaranties (notwithstanding the operation
of those limitations contained in such other Competing Guaranties that are substantially similar to this Section 12), (B) the
aggregate principal amount of the obligations of such Guarantor under this Guaranty (notwithstanding the operation of this Section
12, and (C) the aggregate principal amount of the obligations of such Guarantor under such Competing Guaranty (notwithstanding
the operation of that limitation contained in such Competing Guaranty that is substantially similar to this Section 12)); and

 

(b)
after giving effect as assets to the value (as determined under the applicable provisions of the Fraudulent Transfer Laws) of
any rights to subrogation, reimbursement, indemnification or contribution of such Guarantor pursuant to applicable law or pursuant
to the terms of any agreement (including any such right of contribution under Section 11).

 

Section
13. Representations and Warranties. Each Guarantor hereby represents and warrants as follows:

 

(a)
There are no conditions precedent to the effectiveness of this Guaranty. Such Guarantor acknowledges that it will receive substantial
direct and indirect benefits from the financing arrangements involving the Borrower contemplated by the Loan Documents and that
the waivers set forth in this Guaranty are knowingly made in contemplation of such benefits.

 

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(b)
Such Guarantor has, independently and without reliance upon the Lenders and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Guaranty.

 

(c)
The obligations of such Guarantor under this Guaranty are the valid, binding and legally enforceable obligations of such Guarantor,
and this Guaranty has been duly and validly executed and delivered by such Guarantor.

 

Section
14. Right of Set-Off. If an Event of Default shall have occurred and be continuing, the Lenders are hereby authorized at
any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general
or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency)
at any time owing by the Lenders to or for the credit or the account of any Guarantor against any and all of the obligations of
such Guarantor now or hereafter existing under this Guaranty to the Lenders, irrespective of whether or not the Lenders shall
have made any demand under this Guaranty and although such obligations of such Guarantor may be contingent or unmatured or are
owed to a branch or office of the Lenders different from the branch or office holding such deposit or obligated on such indebtedness.
The rights of the Lenders under this Section are in addition to other rights and remedies (including other rights of setoff) that
the Lenders may have. The Lenders agree to notify such Guarantor promptly after any such setoff and application, provided
that the failure to give such notice shall not affect the validity of such setoff and application.

 

Section
15. Amendments, Joinder, Etc. No amendment or waiver of any provision of this Guaranty and no consent to any departure
by any Guarantor therefrom shall in any event be effective unless the same shall be in writing and signed by such Guarantor and
the Lenders, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for
which given. This Guaranty may be supplemented to add additional Guarantors by means of a joinder in the form of Annex I
signed by the entity to be added and the Lenders, upon the execution of which such additional Guarantor shall become a Guarantor
hereunder with the same force and effect as if originally named as a Guarantor herein. The execution and delivery of any instrument
adding an additional Guarantor as a party to this Guaranty shall not require the consent of any other Guarantor hereunder. The
rights and obligations of each Guarantor hereunder shall remain in full force and effect notwithstanding the addition of any new
Guarantor as a party to this Guaranty.

 

Section
16. Notices, Etc. All notices and other communications provided for hereunder shall be sent to the addresses and in the
manner provided for in Section 13.4 of the Loan Agreement. All such notices and communications shall be effective as provided
in Section 13.4 of the Loan Agreement.

 

Section
17. Continuing Guaranty: Assignments under the Loan Agreement. This Guaranty is a continuing guaranty and applies to all
Guaranteed Obligations, whether existing now or in the future and shall (a) remain in full force and effect until Payment in Full,
(b) be binding upon each Guarantor and its successors and assigns, and (c) inure to the benefit of and be enforceable by the Lenders
and its successors and permitted transferees and assigns. Without limiting the generality of the foregoing clause, when the any
Lender assigns or otherwise transfers any interest held by it under the Loan Agreement or other Loan Document to any other Person
pursuant to the terms of the Loan Agreement or such other Loan Document, that other Person shall thereupon become vested with
all the benefits held by the Lenders under this Guaranty.

 

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Section
18. INDEMNITY. EACH GUARANTOR SHALL (AND HEREBY DOES) INDEMNIFY THE LENDERS AND EACH RELATED PARTY OF EACH LENDER (EACH
SUCH PERSON BEING CALLED AN “INDEMNITEE”) AGAINST, AND HOLD EACH INDEMNITEE HARMLESS FROM, ANY AND ALL LIABILITIES,
OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, CLAIMS, DEMANDS, ACTIONS, JUDGMENTS, SUITS, COSTS, EXPENSES, OR DISBURSEMENTS (INCLUDING
ALL REASONABLE FEES, EXPENSES AND DISBURSEMENTS OF ANY LAW FIRM) OF ANY KIND OR NATURE WHATSOEVER WHICH MAY BE IMPOSED ON, INCURRED
BY, OR ASSERTED AGAINST ANY INDEMNITEE IN ANY WAY RELATING TO OR ARISING OUT OF OR IN CONNECTION WITH THE EXECUTION, DELIVERY,
ENFORCEMENT, PERFORMANCE, OR ADMINISTRATION OF THIS GUARANTY; PROVIDED THAT SUCH INDEMNITY SHALL NOT, AS TO ANY INDEMNITEE,
BE AVAILABLE TO THE EXTENT THAT SUCH LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, CLAIMS, DEMANDS, ACTIONS, JUDGMENTS,
SUITS, COSTS, EXPENSES OR DISBURSEMENTS ARE DETERMINED BY A COURT OF COMPETENT JURISDICTION BY FINAL AND NONAPPEALABLE JUDGMENT
TO HAVE RESULTED FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNITEE (ALL THE FOREGOING, COLLECTIVELY, THE “INDEMNIFIED
LIABILITIES”).

 

TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH GUARANTOR SHALL NOT ASSERT, AND HEREBY WAIVES, ANY CLAIM AGAINST ANY INDEMNITEE,
ON ANY THEORY OF LIABILITY, FOR SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES (AS OPPOSED TO DIRECT OR ACTUAL DAMAGES)
ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF, THIS GUARANTY OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY, THE TRANSACTIONS
CONTEMPLATED HEREBY, ANY ADVANCE OR THE USE OF THE PROCEEDS THEREOF. NO INDEMNITEE SHALL BE LIABLE FOR ANY DAMAGES ARISING FROM
THE USE BY UNINTENDED RECIPIENTS OF ANY INFORMATION OR OTHER MATERIALS DISTRIBUTED BY IT THROUGH TELECOMMUNICATIONS, ELECTRONIC
OR OTHER INFORMATION TRANSMISSION SYSTEMS IN CONNECTION WITH THIS GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY UNLESS DUE
TO ITS GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS DETERMINED IN A FINAL, NONAPPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION.

 

ALL
AMOUNTS DUE UNDER THIS SECTION 18 SHALL BE PAYABLE WITHIN TEN (10) BUSINESS DAYS AFTER DEMAND THEREFOR. THE AGREEMENTS
IN THIS SECTION SHALL SURVIVE THE TERMINATION OF THE LOAN DOCUMENTS AND THE REPAYMENT, SATISFACTION OR DISCHARGE OF ALL THE OTHER
OBLIGATIONS.

 

    	9

     

    

 

Section
19. Survival of Representations, Warranties and Agreements; Termination. All representations, warranties and agreements
made hereunder or other documents delivered pursuant hereto or in connection herewith shall survive the execution and delivery
hereof and thereof. Such representations and warranties have been or will be relied upon by the Lenders, regardless of any investigation
made by the Lenders or on their behalf and notwithstanding that the Lenders may have had notice or knowledge of any Default at
the time of any Loan under the Loan Agreement, and shall continue in full force and effect until Payment in Full. Notwithstanding
anything herein or implied by law to the contrary, the agreements of the Guarantors set forth in Section 19 shall survive
Payment in Full.

 

Section
20. No Waiver; Remedies Cumulative. No failure on the part of any Lender to exercise, and no delay by any such Person in
exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise of any such right 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 in this Guaranty are cumulative and not exclusive of any
rights, remedies, powers and privileges provided by law.

 

Section
21. Severability. If any provision of this Guaranty is held to be illegal, invalid or unenforceable, (a) the legality,
validity and enforceability of the remaining provisions of this Guaranty shall not be affected or impaired thereby and (b) the
parties hereto shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid
provisions, the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.
The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

Section
22. Headings. Section headings herein are included herein for convenience of reference only and shall not constitute a
part hereof for any other purpose or be given any substantive effect.

 

Section
23. APPLICABLE LAW. THIS GUARANTY shall be governed by and construed in accordance
with the laws of the State of New York, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

 

Section
24. CONSENT TO JURISDICTION.

 

(a)
ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTY MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN
NEW YORK CITY OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS GUARANTY,
EACH GUARANTOR CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH GUARANTOR
IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE BASED ON THE GROUNDS OF FORUM NON CONVENIENS,
WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS GUARANTY
OR OTHER DOCUMENT RELATED HERETO. EACH GUARANTOR WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY
BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE.

 

    	10

     

    

 

(b)
Nothing in this Section 24 shall affect the right of the Lenders to serve legal process in any other manner permitted by
law or affect the right of the Lenders to bring any action or proceeding against any Guarantor in the courts of any other jurisdiction.

 

Section
25. WAIVER OF JURY TRIAL. EACH PARTY TO THIS GUARANTY HEREBY EXPRESSLY AND IRREVOCABLY WAIVES ANY RIGHT TO TRIAL
BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS GUARANTY OR IN ANY WAY CONNECTED WITH OR RELATED OR
INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THIS GUARANTY, OR THE TRANSACTIONS RELATED HERETO,
WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES
AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY
PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT
OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

 

Section
26. Usury Savings Clause. Notwithstanding any other provision herein, the aggregate interest rate charged with respect
to any of the Guaranteed Obligations, including all charges or fees in connection therewith deemed in the nature of interest under
applicable law, shall not exceed the maximum rate permitted by law (the “Maximum Rate”). If the rate of interest
(determined without regard to the preceding sentence) under the Loan Agreement at any time exceeds the Maximum Rate, the outstanding
amount of the Loan made thereunder shall bear interest at the Maximum Rate until the total amount of interest due hereunder equals
the amount of interest which would have been due hereunder if the stated rates of interest set forth in the Loan Agreement had
at all times been in effect. In addition, if when the Loan made thereunder is repaid in full the total interest due hereunder
(taking into account the increase provided for above) is less than the total amount of interest which would have been due hereunder
if the stated rates of interest set forth in the Loan Agreement had at all times been in effect, then to the extent permitted
by law, the Guarantors shall pay to the Lenders an amount equal to the difference between the amount of interest paid and the
amount of interest which would have been paid if the Maximum Rate had at all times been in effect. Notwithstanding the foregoing,
it is the intention of the Lenders and each Guarantor to conform strictly to any applicable usury laws. Accordingly, if the Lenders
contract for, charge, or receive any consideration which constitutes interest in excess of the Maximum Rate, then any such excess
shall be cancelled automatically and, if previously paid, shall at the Lenders’ option be applied to the outstanding amount
of the Obligations under the Loan Agreement or be refunded to the Borrower.

 

Section
27. Payments Free of Taxes. Any and all payments by or on account of any Guaranteed Obligation hereunder shall be made
free and clear of and without reduction or withholding for any taxes.

 

    	11

     

    

 

Section
28. Counterparts. This Guaranty may be executed in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute
one and the same agreement. Delivery of an executed counterpart signature page by electronic mail or facsimile is as effective
as executing and delivering this Guaranty in the presence of the other parties to this Guaranty.

 

Section
29. USA Patriot Act Notice. The Lenders, subject to the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October
26, 2001)) (the “Act”), hereby notifies each Guarantor that pursuant to the requirements of the Act, it is
required to obtain, verify and record information and documentation that identifies each Guarantor, which information includes
the name and address of such Persons and other information that will allow the Lenders to identify such Persons in accordance
with the Act.

 

Section
30. Entire Agreement.

 

(a)
THIS GUARANTY AND THE OTHER LOAN DOCUMENTS ARE THE FINAL EXPRESSION OF THE AGREEMENT BETWEEN THE PARTIES. THIS GUARANTY MAY
NOT BE CONTRADICTED BY EVIDENCE OF ANY PRIOR ORAL AGREEMENT OR OF ANY CONTEMPORANEOUS ORAL AGREEMENT BETWEEN THE PARTIES. ANY
AND ALL SUCH PRIOR OR CONTEMPORANEOUS ORAL AGREEMENTS ARE EXPRESSLY SUPERSEDED BY THIS GUARANTY.

 

(b)
THE PARTIES TO THIS GUARANTY HEREBY ACKNOWLEDGE AND AFFIRM THAT NO UNWRITTEN ORAL AGREEMENT BETWEEN THE PARTIES EXISTS.

 

[Signature
Page Follows]

 

    	12

     

    

 

Each
Guarantor has caused this Guaranty to be duly executed as of the date first above written.

 

	 	GUARANTORS:
	 	 
	 	Fatburger
    North America, Inc., a Delaware corporation
	 	 	 
	 	By:	/s/
    Andrew A. Wiederhorn
	 	Name:	Andrew
    A. Wiederhorn
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	Ponderosa
    Franchising Company LLC, a Delaware limited liability company
	 	 
	 	By:	/s/
    Andrew A. Wiederhorn
	 	Name:	Andrew
    A. Wiederhorn
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	Bonanza
    Restaurant Company LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/
    Andrew A. Wiederhorn
	 	Name:	Andrew
    A. Wiederhorn
	 	Title:	Manager
	 	 	 
	 	Ponderosa
    International Development, Inc., a Delaware corporation
	 	 	 
	 	By:	/s/
    Andrew A. Wiederhorn
	 	Name:	Andrew
    A. Wiederhorn
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	Puerto
    Rico Ponderosa, Inc., a Delaware corporation
	 	 	 
	 	By:	/s/
    Andrew A. Wiederhorn
	 	Name:	Andrew
    A. Wiederhorn
	 	Title:	Chief
    Executive Officer

 

[Signature
Page to Guaranty]

 

    	 

     

    

 

	 	Buffalo’s
    Franchise Concepts, Inc., a Nevada corporation
	 	 
	 	By:	/s/
    Andrew A. Wiederhorn
	 	Name:	Andrew
    A. Wiederhorn
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	Buffalo’s
    Franchise Concepts Inc., a Delaware corporation
	 	 	 
	 	By:	/s/
    Andrew A. Wiederhorn
	 	Name:	Andrew
    A. Wiederhorn
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	Hurricane
    AMT LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/
    Andrew A. Wiederhorn
	 	Name:	Andrew
    A. Wiederhorn
	 	Title:	Chef
    Executive Officer
	 	 	 
	 	Fatburger
    Corporation, a Delaware corporation
	 	 	 
	 	By:	/s/
    Andrew A. Wiederhorn
	 	Name:	Andrew
    A. Wiederhorn
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	Homestyle
    Dining LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/
    Andrew A. Wiederhorn
	 	Name:	Andrew
    A. Wiederhorn
	 	Title:	ManagerEX-4.1

 Exhibit 4.1 
  

 
 DISCOVER CARD EXECUTION NOTE TRUST

 Issuer 
 and 

U.S. BANK NATIONAL ASSOCIATION 

Indenture Trustee 
 CLASS A(2019-1) TERMS DOCUMENT 
 Dated as of February 1, 2019 

to 
 SECOND AMENDED AND RESTATED
INDENTURE SUPPLEMENT 
 Dated as of December 22, 2015 

for the DiscoverSeries Notes 
 to

 AMENDED AND RESTATED INDENTURE 

Dated as of December 22, 2015 
  

 

 TABLE OF CONTENTS 

 
  
  

							
	 	  	 	  	Page	 
		  	ARTICLE I	  			
		  	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	  			
	Section 1.01	  	 Definitions
	  	 	1	 
	Section 1.02	  	 Representations and Warranties of Issuer
	  	 	6	 
	Section 1.03	  	 Representations and Warranties of Indenture Trustee
	  	 	7	 
	Section 1.04	  	 Limitations on Liability
	  	 	7	 
	Section 1.05	  	 Governing Law
	  	 	8	 
	Section 1.06	  	 Counterparts
	  	 	8	 
	Section 1.07	  	 Ratification of Indenture and Indenture Supplement
	  	 	8	 
	ARTICLE II	  

	THE CLASS A(2019-1) NOTES	  

	 Section 2.01
	  	 Creation and Designation
	  	 	8	 
	 Section 2.02
	  	 Adjustments to Required Subordinated Percentages and Amount
	  	 	8	 
	 Section 2.03
	  	 Interest Payment
	  	 	9	 
	 Section 2.04
	  	 [Reserved]
	  	 	9	 
	 Section 2.05
	  	 Payments of Interest and Principal
	  	 	9	 
	 Section 2.06
	  	 Form of Delivery of Class A(2019-1) Notes;
Depository; Denominations
	  	 	10	 
	 Section 2.07
	  	 Delivery and Payment for the Class A(2019-1)
Notes
	  	 	10	 
	 Section 2.08
	  	 Targeted Deposits to the Accumulation Reserve Account
	  	 	10	 
	 Section 2.09
	  	 Additional Issuances of Notes
	  	 	10	 
	 Section 2.10
	  	 Designation of Additional Amounts to Be Included in the Excess Spread Amount for the
DiscoverSeries Notes
	  	 	11	 
	 Section 2.11
	  	 Variable Accumulation Period
	  	 	11	 
	 Section 2.12
	  	 Seller’s Interest to Be Included in the Monthly Statement
	  	 	12	 
	 Section 2.13
	  	 Duties of the Indenture Trustee
	  	 	12	 
			
	 EXHIBIT A
	  	FORM OF CLASS A(2019-1) NOTE	  			

  
 - i - 

 THIS CLASS A(2019-1) TERMS DOCUMENT (this
“Terms Document”), by and between DISCOVER CARD EXECUTION NOTE TRUST, a statutory trust created under the laws of the State of Delaware (the “Issuer”), and U.S. BANK NATIONAL ASSOCIATION, a national banking
association organized and existing under the laws of the United States of America, as Indenture Trustee (the “Indenture Trustee”), is made and entered into as of February 1, 2019. 

Pursuant to this Terms Document, the Issuer shall create a new Tranche of Class A Notes of the DiscoverSeries and shall specify the
principal terms thereof. 
 ARTICLE I 

Definitions and Other Provisions of General Application 

Section 1.01 Definitions. For all purposes of this Terms Document, except as otherwise expressly provided or unless the context
otherwise requires: 
 (1) the terms defined in this Article have the meanings assigned to them in this Article, and include the plural as
well as the singular; 
 (2) all other terms used herein which are defined in the Indenture Supplement or the Indenture, either directly or
by reference therein, have the meanings assigned to them therein; 
 (3) all accounting terms not otherwise defined herein have the meanings
assigned to them in accordance with generally accepted accounting principles and, except as otherwise herein expressly provided, the term “generally accepted accounting principles” with respect to any computation required or permitted
hereunder means such accounting principles as are generally accepted in the United States of America at the date of such computation; 
 (4)
all references in this Terms Document to designated “Articles,” “Sections” and other subdivisions are to the designated Articles, Sections and other subdivisions of this Terms Document; the words “herein,”
“hereof” and “hereunder” and other words of similar import refer to this Terms Document as a whole and not to any particular Article, Section or other subdivision; 

(5) in the event that any term or provision contained herein shall conflict with or be inconsistent with any term or provision contained in
the Indenture Supplement or the Indenture, the terms and provisions of this Terms Document shall be controlling, but solely with respect to the Class A(2019-1) Notes; 

(6) each capitalized term defined herein shall relate only to the Class A(2019-1) Notes and no
other Tranche of Notes issued by the Issuer; 
 (7) “including” and words of similar import will be deemed to be followed by
“without limitation”; and 

 (8) for purposes of determining any amount or making any calculation hereunder, such amount
or calculation, (x) if specified to be as of the first day of any Due Period, shall (a) include any Notes issued during such Due Period as if such Notes had been outstanding on the first day of such Due Period and (b) give effect to
any payments, deposits or other allocations made on the Distribution Date related to the prior Due Period and (y) if specified to be as of the close of business on the last day of any Due Period shall give effect to any payments, deposits or
other allocations made on the related Distribution Date. 
 “Accumulation Amount” means $104,166,666.67; provided,
however, if the commencement of the Accumulation Period is delayed in accordance with Section 2.11 hereof, the Accumulation Amount shall be determined in accordance with the definition of “Accumulation Amount” in the Indenture
Supplement. 
 “Accumulation Commencement Date” means January 1, 2021, or such later date as the Calculation Agent on
behalf of the Issuer determines in accordance with Section 2.11 hereof. 
 “Accumulation Period” has the meaning set
forth in the Indenture Supplement. 
 “Accumulation Period Length” means 12 months; provided, however, if the
commencement of the Accumulation Period is delayed in accordance with Section 2.11 hereof, the Accumulation Period Length shall be determined in accordance with the definition of “Accumulation Period Length” in the Indenture
Supplement. 
 “Accumulation Reserve Funding Period” shall not apply if the Calculation Agent on behalf of the Issuer
notifies the Indenture Trustee that it expects the Accumulation Period Length to be adjusted to one (1) month, and otherwise shall mean a period commencing on the first Distribution Date on which a condition in the right column of the following
table was in effect on the immediately preceding Distribution Date, if such Distribution Date is a Distribution Date described in the corresponding left column of the following table, and ending on the Distribution Date immediately preceding the
earlier to occur of: 
 (x) the Expected Maturity Date for the Class A(2019-1) Notes and 

(y) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the
Class A(2019-1) Notes is paid in full. 
  

			
	Distribution Date:	  	Condition:
		
	(a) The Distribution Date occurring three (3) calendar months prior to the first scheduled Distribution Date of the Accumulation Period (as adjusted in accordance with Section 2.11 hereof) and any following Distribution
Date	  	No condition.
		
	(b) The Distribution Date occurring four (4) calendar months prior to the first scheduled Distribution Date of the Accumulation Period (as adjusted in accordance with Section 2.11 hereof) and any following Distribution
Date	  	The three-month rolling average Excess Spread Percentage is less than 4%.

  
 2 

			
	(c) The Distribution Date occurring six (6) calendar months prior to the first scheduled Distribution Date of the Accumulation Period (as adjusted in accordance with Section 2.11 hereof) and any following Distribution
Date	  	The three-month rolling average Excess Spread Percentage is less than 3%.
		
	(d) The Distribution Date occurring twelve (12) calendar months prior to the first scheduled Distribution Date of the Accumulation Period (as adjusted in accordance with Section 2.11 hereof) and any following Distribution
Date	  	The three-month rolling average Excess Spread Percentage is less than 2%.

 provided, however, if at any point the Accumulation Reserve Funding Period has not commenced because no
condition requiring funding has occurred or the Calculation Agent has determined that the Accumulation Period Length will be shortened to one (1) month, and subsequently a condition requiring funding occurs and the Calculation Agent determines
that the Accumulation Period Length will not be so shortened, the Accumulation Reserve Funding Period shall commence on the following Distribution Date. 

“Class A(2019-1) Adverse Event” means the occurrence of any of the
following: (a) an Early Redemption Event with respect to the Class A(2019-1) Notes or (b) an Event of Default and acceleration of the Class A(2019-1)
Notes; provided, however, that if the only such event to have occurred is an Excess Spread Early Redemption Event for which an Excess Spread Early Redemption Cure has occurred, a
Class A(2019-1) Adverse Event shall not be treated as continuing from and after the date of such cure. 

“Class A(2019-1) Note” means any Note, in the form set forth in
Exhibit A hereto, designated therein as a Class A(2019-1) Note and duly executed and authenticated in accordance with the Indenture. 

“Class A(2019-1) Noteholder” means a Person in whose name a Class A(2019-1) Note is registered in the Note Register. 
 “Class A(2019-1) Termination Date” means the earliest to occur of (a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the
Class A(2019-1) Notes is paid in full, (b) the Legal Maturity Date and (c) the date on which the Indenture is discharged and satisfied pursuant to Article VI thereof. 

“Excess Spread Percentage” for any Distribution Date means a fraction, the numerator of which is the Excess Spread Amount for
such Distribution Date multiplied by 12 and the denominator of which is the sum of the Nominal Liquidation Amounts of all Tranches of DiscoverSeries Notes as of the first day of the related Due Period. 

  
 3 

 “Expected Maturity Date” means January 18, 2022. 

“Indenture” means the Amended and Restated Indenture, dated as of December 22, 2015, between the Issuer and Indenture
Trustee, as such agreement may be further amended, supplemented, restated, amended and restated, replaced or otherwise modified from time to time. 

“Indenture Supplement” means the Second Amended and Restated Indenture Supplement, dated as of December 22, 2015, for
the DiscoverSeries Notes, between the Issuer and the Indenture Trustee, as the same may be further amended, supplemented, restated, amended and restated, replaced or otherwise modified from time to time. 

“Initial Dollar Principal Amount” means $1,250,000,000, or such higher amount as is specified in any Notice of Additional
Issuance under Section 2.09 hereof. 
 “Interest Accrual Period” means, with respect to any Interest Payment Date, the
period from and including the previous Interest Payment Date (or, in the case of the first Interest Payment Date for any Class A(2019-1) Note, from and including the applicable Issuance Date) to but
excluding such Interest Payment Date. 
 “Interest Payment Date” means the fifteenth day of each month commencing in March
2019, or if such fifteenth day is not a Business Day, the next succeeding Business Day. 
 “Issuance Date” means
February 1, 2019, with respect to all Class A(2019-1) Notes issued on the date hereof and, with respect to any additional Class A(2019-1) Notes issued
pursuant to Section 2.09 hereof, any Issuance Date specified in the Notice of Additional Issuance delivered thereunder. 

“Legal Maturity Date” means July 15, 2024. 

“Note Interest Rate” means 3.04% per annum, calculated on the basis of twelve 30-day
months and a 360-day year. 
 “Notice of Additional Issuance” has the meaning set
forth in Section 2.09 hereof. 
 “Regulation RR” means Regulation RR (Credit Risk Retention) promulgated by the
Securities and Exchange Commission to implement the credit risk retention requirements of Section 15G of the Securities Exchange Act. 

“Required Daily Deposit Target Finance Charge Amount” means, for any day in a Due Period, an amount equal to the
Class A Tranche Interest Allocation for the related Distribution Date. 
 “Required Daily Deposit Target Principal
Amount” means, for any day in a Due Period, (i) if such Due Period is in the Accumulation Period for the Class A(2019-1) Notes, the Accumulation Amount, (ii) if such day is on or
after the occurrence and during the continuance of a Class A(2019-1) Adverse Event, the Nominal Liquidation Amount of the Class A(2019-1) Notes and
(iii) in all other circumstances, zero. 

  
 4 

 “Required Subordinated Amount of Class B Notes” means,
for the Class A(2019-1) Notes for any date of determination, an amount equal to the product of 

(a) the Required Subordinated Percentage of Class B Notes for such Class A(2019-1) Notes on
such date of determination; and 
 (b) the Nominal Liquidation Amount of such Class A(2019-1)
Notes on such date of determination; 
 provided, however, that for any date of determination on or after the occurrence and during the
continuation of a Class A(2019-1) Adverse Event, the Required Subordinated Amount of Class B Notes for the Class A(2019-1) Notes will be the greater of

 (x) the amount determined above for such date of determination; and 

(y) the amount determined above for the date immediately prior to the date on which such
Class A(2019-1) Adverse Event shall have occurred. 
 “Required Subordinated Amount of
Class C Notes” means, for the Class A(2019-1) Notes for any date of determination, an amount equal to the product of 

(a) the Required Subordinated Percentage of Class C Notes for such Class A(2019-1) Notes on
such date of determination; and 
 (b) the Nominal Liquidation Amount of such Class A(2019-1)
Notes on such date of determination; 
 provided, however, that for any date of determination on or after the occurrence and during the
continuation of a Class A(2019-1) Adverse Event, the Required Subordinated Amount of Class C Notes for the Class A(2019-1) Notes will be the greater of

 (x) the amount determined above for such date of determination; and 

(y) the amount determined above for the date immediately prior to the date on which such
Class A(2019-1) Adverse Event shall have occurred. 
 “Required Subordinated Amount of
Class D Notes” means, for the Class A(2019-1) Notes for any date of determination, an amount equal to the product of 

(a) the Required Subordinated Percentage of Class D Notes for such Class A(2019-1) Notes on
such date of determination; and 
 (b) the Nominal Liquidation Amount of such Class A(2019-1)
Notes on such date of determination; 

  
 5 

 provided, however, that for any date of determination on or after the occurrence and
during the continuation of a Class A(2019-1) Adverse Event, the Required Subordinated Amount of Class D Notes for the Class A(2019-1) Notes will be the
greater of 
 (x) the amount determined above for such date of determination; and 

(y) the amount determined above for the date immediately prior to the date on which the
Class A(2019-1) Adverse Event shall have occurred. 
 “Required Subordinated Percentage
of Class B Notes” means, for the Class A(2019-1) Notes, 6.96202532%, subject to adjustment in accordance with Section 2.02. 

“Required Subordinated Percentage of Class C Notes” means, for the
Class A(2019-1) Notes, 8.86075950%, subject to adjustment in accordance with Section 2.02. 

“Required Subordinated Percentage of Class D Notes” means, for the
Class A(2019-1) Notes, 10.75949368%, subject to adjustment in accordance with Section 2.02. 

“Seller’s Interest” means, at any time, a “seller’s interest” as defined in, and calculated in accordance
with, Regulation RR. 
 “Seller’s Interest Measurement Date” means the last day of each calendar month. 

“Specified Rating” means, for the Class A(2019-1) Notes, Aaa(sf) with respect to
Moody’s and AAA(sf) with respect to S&P. 
 “Stated Principal Amount” means $1,250,000,000 or such higher amount
as is specified in any Notice of Additional Issuance under Section 2.09. 
 “Targeted Accumulation Reserve Subaccount
Deposit” means, with respect to any Distribution Date during the Accumulation Reserve Funding Period, an amount equal to (i) 0.5% of the Outstanding Dollar Principal Amount of the Class A(2019-1)
Notes as of the close of business on the last day of the related Due Period or (ii) any other amount designated by the Calculation Agent on behalf of the Issuer. 

Section 1.02 Representations and Warranties of Issuer. The Issuer represents and warrants that: 

(a) the Issuer has been duly formed and is validly existing as a statutory trust in good standing under the laws of the State of Delaware, and
has full power and authority to execute and deliver this Terms Document and to perform the terms and provisions hereof; 
 (b) the
execution, delivery and performance of this Terms Document by the Issuer have been duly authorized by all necessary limited liability company and statutory trust proceedings of the Beneficiary and the Owner Trustee, do not require any approval or
consent of any governmental agency or authority and do not and will not conflict with any material provision of the Certificate of Trust or the Trust Agreement of the Issuer; 

(c) this Terms Document is the valid, binding and enforceable obligation of the Issuer, except as the same may be limited by receivership,
insolvency, reorganization, moratorium or other laws relating to the enforcement of creditors’ rights generally or by general equity principles; 

  
 6 

 (d) to the best of the Issuer’s knowledge, this Terms Document will not conflict with
any law or governmental regulation or court decree applicable to it; 
 (e) the Issuer is not required to be registered under the Investment
Company Act; 
 (f) all information heretofore furnished by the Issuer in writing to the Indenture Trustee for purposes of or in connection
with this Terms Document or any transaction contemplated hereby is, and all such information hereafter furnished by the Issuer in writing to the Indenture Trustee will be, true and accurate in every material respect or based on reasonable estimates
on the date as of which such information is stated or certified; and 
 (g) to the best knowledge of the Issuer, there are no proceedings or
investigations pending against the Issuer before any court, regulatory body, administrative agency or other tribunal or governmental instrumentality having jurisdiction over the Issuer (i) asserting the invalidity of this Terms Document,
(ii) seeking to prevent the consummation of any of the transactions contemplated by this Terms Document or (iii) seeking any determination or ruling which in the Issuer’s judgment would materially and adversely affect the performance
by the Issuer of its obligations under this Terms Document or the validity or enforceability of this Terms Document. 
 Section 1.03
Representations and Warranties of Indenture Trustee. The Indenture Trustee represents and warrants and any successor trustee shall represent and warrant that: 

(a) the Indenture Trustee is organized, existing and in good standing under the laws of the United States of America; 

(b) the Indenture Trustee has full power, authority and right to execute, deliver and perform this Terms Document, and has taken all necessary
action to authorize the execution, delivery and performance by it of this Terms Document; and 
 (c) this Terms Document has been duly
executed and delivered by the Indenture Trustee. 
 Section 1.04 Limitations on Liability. 

(a) It is expressly understood and agreed by the parties hereto that (i) this Terms Document is executed and delivered by the Owner
Trustee not individually or personally but solely as Owner Trustee under the Trust Agreement, in the exercise of the powers and authority conferred and vested in it, (ii) each of the representations, undertakings and agreements herein made on
the part of the Issuer is made and intended not as a personal representation, undertaking or agreement by the Owner Trustee but is made and intended for the purpose of binding only the Issuer, (iii) nothing herein contained will be construed as
creating any liability on the Owner Trustee individually or personally, to perform any covenant of the Issuer either expressed or implied herein, all such liability, if any, being expressly waived by the parties to this Terms Document and by any
Person claiming by, through or under them and (iv) under no circumstances will the Owner Trustee be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Issuer under this Terms Document or any related documents. 

  
 7 

 (b) None of the Indenture Trustee, the Owner Trustee, the Calculation Agent, the
Beneficiary, the Depositor, any Master Servicer or any Servicer or any of their respective officers, directors, employees, incorporators or agents will have any liability with respect to this Terms Document, and recourse may be had solely to the
Collateral pledged to secure these Class A(2019-1) Notes under the Indenture, the Indenture Supplement and this Terms Document. 

Section 1.05 Governing Law. THIS TERMS DOCUMENT WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK, INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATION LAW, WITHOUT REFERENCE TO ANY CONFLICT OF LAW PROVISIONS THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANY OTHER STATE. 

Section 1.06 Counterparts. This Terms Document may be executed in any number of counterparts, each of which when so executed will
be deemed to be an original, but all such counterparts will together constitute but one and the same instrument. 
 Section 1.07
Ratification of Indenture and Indenture Supplement. As supplemented by this Terms Document, each of the Indenture and the Indenture Supplement is in all respects ratified and confirmed and the Indenture as supplemented by the Indenture
Supplement and this Terms Document shall be read, taken and construed as one and the same instrument. 
 ARTICLE II 

The Class A( 2019-1 ) Notes 

Section 2.01 Creation and Designation. There is hereby created a Tranche of Class A Notes to be issued pursuant to this Terms
Document, the Indenture and the Indenture Supplement to be known as the “DiscoverSeries Class A(2019-1) Notes.” 

Section 2.02 Adjustments to Required Subordinated Percentages and Amount. 

(a) On any date, the Issuer may, at the direction of the Beneficiary, change the Required Subordinated Percentage of Class B Notes, the
Required Subordinated Percentage of Class C Notes or the Required Subordinated Percentage of Class D Notes, in each case for the Class A(2019-1) Notes, without the consent of any Noteholders;
provided that the Issuer has received written confirmation from each applicable Note Rating Agency that the change in such percentage will not result in a Ratings Effect for any Tranche of Outstanding DiscoverSeries Notes. 

(b) On any date, the Issuer may, at the direction of the Beneficiary, replace all or a portion of the Required Subordinated Amount of
Class B Notes, the Required Subordinated Amount of Class C Notes or the Required Subordinated Amount of Class D Notes, in each case for the Class A(2019-1) Notes with a different form of
credit enhancement (including, without limitation, a cash collateral account, a letter of credit, a reserve account, a surety bond, an insurance policy or a collateral interest, or any combination thereof) and may add such

  
 8 

 
definitions and other terms and make such additional amendments to this Terms Document as shall be necessary for such replacement without the consent of any Noteholders, provided that the
Issuer has received written confirmation from each applicable Note Rating Agency that such replacement and such other amendments will not result in a Ratings Effect for any Tranche of Outstanding DiscoverSeries Notes. 

Section 2.03 Interest Payment. For the first Interest Payment Date, March 15, 2019, the amount of interest due with respect
to the Class A(2019-1) Notes is $4,644,444.44. For each Interest Payment Date following the first Interest Payment Date for any Class A(2019-1) Note, the
amount of interest due with respect to the Class A(2019-1) Notes shall be an amount equal to 
  

	 	(i)      (A)	 a fraction, the numerator of which is 30 and the denominator of which is 360, times

  

	 	(B)	 the Note Interest Rate in effect with respect to such related Interest Accrual Period, times

  

	 	(ii)	 the Outstanding Dollar Principal Amount of the Class A(2019-1)
Notes determined as of the first date of such related Interest Accrual Period, 

 plus any Class A Tranche Interest Allocation
Shortfall for such Class A(2019-1) Notes for the immediately preceding Distribution Date, together with interest thereon at the Note Interest Rate in effect with respect to such related Interest Accrual
Period, calculated on the basis of twelve 30-day months and a 360-day year. 

Section 2.04 [Reserved]. 

Section 2.05 Payments of Interest and Principal. 

(a) The Issuer will cause interest to be paid on each Interest Payment Date and principal to be paid on the Expected Maturity Date;
provided, however, that it shall not be an Event of Default if principal is not paid in full on such Expected Maturity Date unless funds for such payment have been allocated in accordance with Section 3.01 of the Indenture
Supplement; and provided, further, that if a Class A(2019-1) Adverse Event has occurred and is continuing, principal will instead be payable in monthly installments on each Principal Payment
Date for the Class A(2019-1) Notes in accordance with Sections 3.01 and 3.05 of the Indenture Supplement. All payments of interest and principal on the
Class A(2019-1) Notes shall be made as set forth in Section 1102 of the Indenture. 
 (b)
The right of the Class A(2019-1) Noteholders to receive payments from the Issuer will terminate on the Class A(2019-1) Termination Date. 

(c) All payments of principal, interest or other amounts to the Class A(2019-1) Noteholders will
be made pro rata based on the Stated Principal Amount of their Class A(2019-1) Notes. 

  
 9 

 Section 2.06 Form of Delivery of
Class A(2019-1) Notes; Depository; Denominations. 
 (a) The Class A(2019-1) Notes shall be delivered in the form of a Global Note which shall be a Registered Note as provided in Section 204 of the Indenture. The form of the
Class A(2019-1) Notes is attached hereto as Exhibit A. 
 (b) The Depository for the Class A(2019-1) Notes shall be The Depository Trust Company, and the Class A(2019-1) Notes shall initially be registered in the name of Cede & Co., its
nominee. 
 (c) The Class A(2019-1) Notes will be issued in minimum denominations of $5,000 and
integral multiples of $1,000 in excess of that amount. 
 Section 2.07 Delivery and Payment for the Class A(2019-1) Notes. The Issuer shall execute and deliver the Class A(2019-1) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall
deliver the Class A(2019-1) Notes when authenticated, each in accordance with Sections 203 and 303 of the Indenture. 

Section 2.08 Targeted Deposits to the Accumulation Reserve Account. The deposit targeted to be made to the Accumulation Reserve
Subaccount for the Class A(2019-1) Notes for any Due Period during the Accumulation Reserve Funding Period will be an amount equal to the Targeted Accumulation Reserve Subaccount Deposit minus any
amount on deposit in the Accumulation Reserve Subaccount for the Class A(2019-1) Notes. 

Section 2.09 Additional Issuances of Notes. Subject to clauses (ii), (iii), (iv) and (v) of Section 2.02 and
Section 2.03 of the Indenture Supplement, the Issuer may issue additional Class A(2019-1) Notes, so long as the following conditions precedent are satisfied: 

(a) the Issuer shall have given the Indenture Trustee written notice of such issuance of additional
Class A(2019-1) Notes (the “Notice of Additional Issuance”) at least one (1) Business Day in advance of the Issuance Date thereof, which notice shall include: 

 

	 	(i)	 the Issuance Date of such additional Class A(2019-1) Notes;

  

	 	(ii)	 the amount of such additional Class A(2019-1) Notes being offered
and the resulting Initial Dollar Principal Amount and Stated Principal Amount of Class A(2019-1) Notes; 

  

	 	(iii)	 the date from which interest on such additional Class A(2019-1)
Notes will accrue (which may be a date prior to the date of issuance thereof); 

  

	 	(iv)	 the first Interest Payment Date on which interest will be paid on such additional Class A(2019-1) Notes; and 

  

	 	(v)	 any other terms that the Issuer set forth in such notice of issuance of additional Class A(2019-1) Notes to clarify the rights of Holders of such additional Class A(2019-1) Notes or the effect of such issuance of additional Class A(2019-1) Notes on any calculations to be made with respect to the Class A(2019-1) Notes, the Class A Notes or the Issuer. 

  
 10 

 All such terms shall be incorporated into and form a part of this Terms Document on and after the effective
date of such Class A(2019-1) Notes; 
 (b) no
Class A(2019-1) Adverse Event has occurred and is continuing; and 
 (c) either (i) the
issuance of such additional Class A(2019-1) Notes would be treated as part of the same issue as the outstanding Class A(2019-1) Notes under Treasury Regulation
Sections 1.1275-1(f)(1) or 1.1275-2(k) or (ii) such additional Class A(2019-1) Notes are not issued with “original
issue discount” for purposes of Section 1273 of the Code. 
 The Issuer shall not have to satisfy the conditions set forth in
Section 310 of the Indenture in connection with an issuance of additional Class A(2019-1) Notes so long as such conditions were satisfied or waived in connection with the initial issuance of Class A(2019-1) Notes; provided, however, that the Issuer shall have to deliver to the Indenture Trustee a Master Trust Tax Opinion and an Issuer Tax Opinion with respect to such issuance. 

Section 2.10 Designation of Additional Amounts to Be Included in the Excess Spread Amount for the DiscoverSeries Notes. At any
time that any outstanding Series of certificates issued by the Master Trust provides that the Series Principal Collections allocated to such Series will be deposited into the Group Finance Charge Collections Reallocation Account for the Master Trust
to the extent necessary for application to cover shortfalls for other Series issued by the Master Trust, an amount equal to (x) all Series Principal Collections allocated to such Series, multiplied by (y) a fraction, the numerator
of which is the sum of the Nominal Liquidation Amounts for each outstanding Tranche of the DiscoverSeries Notes (including the Class A(2019-1) Notes) and the denominator of which is (i) the Aggregate
Investor Interest for the Master Trust minus (ii) the sum of the Series Investor Interests for all such Series that provide that the Series Principal Collections allocated to such Series will be so deposited, is hereby designated to be
included in the Excess Spread Amount and shall be treated as Series Finance Charge Amounts for the DiscoverSeries. 
 Section 2.11
Variable Accumulation Period. Notwithstanding anything to the contrary in Section 4.02 of the Indenture Supplement, the Calculation Agent on behalf of the Issuer shall, by written notice to the Indenture Trustee, delay the commencement
of the Accumulation Period for the Class A(2019-1) Notes and determine a new Accumulation Commencement Date, subject to the conditions set forth in this Section 2.11; provided, however,
that the Accumulation Period shall commence no later than the first day of the Due Period related to the Expected Maturity Date for the Class A(2019-1) Notes. Any such delay by the Calculation Agent on
behalf of the Issuer shall be made no later than the last day of the Due Period immediately preceding the first day of the first Due Period in the scheduled Accumulation Period (after giving effect to any prior delay in the commencement of the
Accumulation Period pursuant to this Section 2.11). 
 The Calculation Agent on behalf of the Issuer shall cause such delay if the
Calculation Agent determines in good faith that each of the following conditions will be satisfied: (i) the Calculation Agent on behalf of the Issuer delivers to the Indenture Trustee a certificate to the effect that the Calculation Agent on
behalf of the Issuer reasonably believes that, based on the payment rate and the anticipated availability of Series Principal Amounts and Reallocated Principal Amounts, the delay in the commencement of the Accumulation Period for the Class

  
 11 

 
A(2019-1) Notes will not result in any Tranche of Notes not being paid in full on the relevant Expected Maturity Date (as defined in the applicable Terms
Document); (ii) such delay is permitted under the Series 2007-CC Supplement or any other applicable agreement relating to any Additional Collateral Certificate; and (iii) the Accumulation Amount, the
Accumulation Commencement Date and the Accumulation Period Length shall have been adjusted. The Calculation Agent on behalf of the Issuer shall not be required to obtain confirmation from the applicable Note Rating Agencies that such delay in the
commencement of the Accumulation Period will not result in a Ratings Effect for any Tranche of Outstanding DiscoverSeries Notes. The Calculation Agent on behalf of the Issuer shall provide written notice to each applicable Note Rating Agency in the
event that the commencement of the Accumulation Period for the Class A(2019-1) Notes is delayed pursuant to this Section 2.11. 

Section 2.12 Seller’s Interest to Be Included in the Monthly Statement. The Issuer shall cause the Master
Servicer to include the amount of the Seller’s Interest as of the Seller’s Interest Measurement Date on each investor certificateholder’s monthly statement delivered pursuant to the Series
2007-CC Supplement. 
 Section 2.13 Duties of the Indenture Trustee. For the avoidance
of doubt, the Indenture Trustee undertakes to perform only such duties as are specifically set forth in the Indenture, the Indenture Supplement, the Pooling and Servicing Agreement, any Series Supplement and this Agreement and as such
shall have no obligation or responsibility to monitor or enforce compliance with Regulation RR, nor shall be liable to any Person for any violation of Regulation RR; provided that nothing in this Section 2.13 shall alter the Indenture
Trustee’s duties, obligations or standard of care as set forth in the Indenture or any Indenture Supplement. It is understood and acknowledged that the Indenture Trustee has not provided any advice with respect to the acquisition of the Class A(2019-1) Notes, and has no financial interest in the acquisition of such Class A(2019-1) Notes. 

[Remainder of page intentionally blank; signature page follows] 

  
 12 

 IN WITNESS WHEREOF, the parties hereto have caused this Terms Document to be duly executed,
all as of the day and year first above written. 
  

			
	 DISCOVER CARD EXECUTION NOTE TRUST,

as Issuer

		
	 By:
	 	Wilmington Trust Company,
		 	not in its individual capacity but solely as Owner Trustee
		
	By:	 	/s/ Jennifer A. Luce
		 	Name: Jennifer A. Luce
		 	Title: Vice President
	
	 U.S. BANK NATIONAL ASSOCIATION,
 as
Indenture Trustee

		
	By:	 	/s/ Christopher J. Nuxoll
		 	Name: Christopher J. Nuxoll
		 	Title: Vice President

 [Signature Page to Class A(2019-1) Terms Document] 

 EXHIBIT A 

FORM OF CLASS A(2019-1) NOTE 

 DISCOVERSERIES CLASS A(2019-1) NOTE 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO
THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR TO SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN. 
 THE HOLDER OF THIS NOTE, BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT AT ANY TIME
INSTITUTE AGAINST THE ISSUER, ANY MASTER TRUST OR ANY SPECIAL PURPOSE ENTITY THAT ACTS AS A DEPOSITOR WITH RESPECT TO ANY MASTER TRUST OR THE ISSUER, OR JOIN IN ANY INSTITUTION AGAINST THE ISSUER, ANY MASTER TRUST OR ANY SPECIAL PURPOSE ENTITY THAT
ACTS AS A DEPOSITOR WITH RESPECT TO ANY MASTER TRUST OR THE ISSUER, ANY RECEIVERSHIP, INSOLVENCY, BANKRUPTCY OR SIMILAR PROCEEDINGS, OR OTHER PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY
OBLIGATIONS RELATING TO THE NOTES, THE INDENTURE, ANY DERIVATIVE AGREEMENT, ANY SUPPLEMENTAL CREDIT ENHANCEMENT AGREEMENT AND ANY SUPPLEMENTAL LIQUIDITY AGREEMENT. 

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

THE HOLDER OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, BY THE ACQUISITION OF A BENEFICIAL
INTEREST THEREIN, WILL BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (i) IT IS NOT ACQUIRING THIS NOTE WITH THE ASSETS OF A BENEFIT PLAN INVESTOR (AS DEFINED BELOW) OR PLAN SUBJECT TO SIMILAR LAW (AS DEFINED BELOW) OR (ii) THE ACQUISITION
AND HOLDING OF THIS NOTE WILL NOT GIVE RISE TO A NONEXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE “CODE”) OR A VIOLATION OF SIMILAR LAW. FOR THESE PURPOSES, A “BENEFIT PLAN INVESTOR” INCLUDES AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF ERISA THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF
ERISA, (B) A “PLAN” DESCRIBED IN SECTION 4975(e)(1) OF THE CODE THAT IS SUBJECT TO SECTION 4975 OF THE CODE AND (C) AN 

 
ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” OF THE FOREGOING. ”SIMILAR LAW” MEANS ANY LAW SUBSTANTIALLY SIMILAR TO THE FIDUCIARY RESPONSIBILITY OR PROHIBITED
TRANSACTION SECTIONS OF ERISA OR SECTION 4975 OF THE CODE. 

			
	 REGISTERED
 No. [•]
	  	 $[•]*

CUSIP NO. 254683 CK9

 DISCOVER CARD EXECUTION NOTE TRUST 

3.04% 
 DISCOVERSERIES
CLASS A(2019-1) NOTE 
 DISCOVER CARD EXECUTION NOTE TRUST, a statutory trust created under the
laws of the State of Delaware (herein referred to as the “Issuer” or the “Note Issuance Trust”), for value received, hereby promises to pay to CEDE & CO., or registered assigns, subject to the
following provisions, a principal sum of $[•] ([•] dollars) payable on the January 2022 Payment Date (the “Expected Maturity Date”), except as otherwise provided below or in the Indenture or the Indenture Supplement (as
defined on the reverse hereof); provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the July 2024 Payment Date (the “Legal Maturity Date”). Interest will accrue on this
Note at the rate of 3.04% per annum, as more specifically set forth in the Class A(2019-1) Terms Document dated as of February 1, 2019 (the “Terms Document”), between the Issuer and
U.S. Bank National Association, as Indenture Trustee (the “Indenture Trustee”, which term includes any successor Indenture Trustee under the Indenture), and shall be due and payable on each Interest Payment Date for the period from
and including the previous Interest Payment Date (or, in the case of the first Interest Payment Date for any Class A(2019-1) Notes, from and including the applicable Issuance Date) to but excluding such
Interest Payment Date. Interest will be computed on the basis of twelve 30-day months and a 360-day year (or, in the case of the first Interest Payment Date, based on a 44-day period and a 360-day year). Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof. 

The principal and interest may be payable monthly, and may be payable earlier or later than the Expected Maturity Date, following an Event of
Default or while an Early Redemption Event has occurred and is continuing. No principal or interest will be distributed on the Note following the distribution of proceeds of a Receivables Sale. 

The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts. 
 The Initial Dollar Principal Amount of the
Class A(2019-1) Notes is $1,250,000,000. 
 Reference is made to the further provisions of this
Note set forth on the reverse hereof, which shall have the same effect as though fully set forth on the face of this Note. 
 Unless the
certificate of authentication hereon has been executed by the Indenture Trustee whose name appears below by manual signature, this Note shall not be entitled to any benefit under the Indenture, Indenture Supplement or the Terms Document referred to
on the reverse hereof, or be valid or obligatory for any purpose. 
  

 

	* 	 Denominations of $5,000 and in integral multiples of $1,000 in excess thereof. 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer. 
  

			
	DISCOVER CARD EXECUTION NOTE TRUST,
as Issuer
		
	 By: 
	 	WILMINGTON TRUST COMPANY, not in its individual capacity, but solely as Owner Trustee

  

			
		
	 By:
	 	 
		 	 Name:

		 	 Title:

		
		 	 Date: _________, 20__

 INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Notes designated above and referred to in the within-mentioned Indenture. 

 

			
	US BANK NATIONAL ASSOCIATION, not in its individual capacity, but solely as Indenture Trustee
		
	 By:
	 	  

		 	 Name:

		 	 Title:

		
		 	 Date: _________, 20__

 REVERSE OF NOTE 

This Note is one of the Notes of a duly authorized issue of Notes of the Issuer, designated as its 3.04%
Class A(2019-1) DiscoverSeries Notes (herein called the “Class A(2019-1) Notes”), all issued under an Amended and Restated
Indenture dated as of December 22, 2015 (such Indenture, as may be further amended, restated, amended and restated, supplemented, replaced or otherwise modified from time to time, is herein called the “Indenture”), as
supplemented by a Second Amended and Restated Indenture Supplement for the DiscoverSeries Notes, dated as of December 22, 2015 (such Indenture Supplement, as may be further amended, restated, amended and restated, supplemented, replaced or
otherwise modified from time to time, is herein called the “Indenture Supplement”), between the Issuer and Indenture Trustee, to which Indenture and Indenture Supplement reference is hereby made for a statement of the respective
rights and obligations thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes. The Class A(2019-1) Notes are subject to all terms of the Indenture, the Indenture Supplement and the
Terms Document. All terms used in this Class A(2019-1) Note that are defined in the Indenture, the Indenture Supplement and the Terms Document shall have the meanings assigned to them in or pursuant to
the Indenture, the Indenture Supplement and the Terms Document. 
 The Class B Notes, the Class C Notes and the Class D Notes
of the DiscoverSeries and other tranches of Class A Notes of the DiscoverSeries will also be issued under the Indenture and the Indenture Supplement. 

The Class A(2019-1) Notes are and will be equally and ratably secured by the collateral pledged
as security therefor as provided in the Indenture and the Indenture Supplement. 
 Principal of the
Class A(2019-1) Notes will be payable on the Expected Maturity Date in an amount described on the face hereof except as otherwise provided in the Indenture or the Indenture Supplement. 

As described above, the entire unpaid principal amount of this Class A(2019-1) Note shall be due
and payable on the Legal Maturity Date. Notwithstanding the foregoing, the entire unpaid principal amount of the Class A(2019-1) Notes shall be due and payable on the date on which an Event of Default
relating to the Class A(2019-1) Notes shall have occurred and be continuing and, except in the event of an insolvency related default, the Indenture Trustee or the Majority Holders of the applicable
Series, Class or Tranche of Outstanding Dollar Principal Amount of the Outstanding Notes have declared the Class A(2019-1) Notes to be immediately due and payable in the manner provided in
Section 702 of the Indenture; provided, however, that such acceleration of the entire unpaid principal amount of the Notes may be rescinded by the Majority Holders of such applicable Series, Class or
Tranche of Notes. 
 On any day occurring on or after the date on which the aggregate Nominal Liquidation Amount of any Tranche of Notes is
reduced to less than 5% of its highest Outstanding Dollar Principal Amount, the Depositor or any Affiliate thereof has the right, but not the obligation, to redeem such Tranche of Notes in whole but not in part, pursuant to
Section 1202 of the Indenture. The redemption price will be an amount equal to the Outstanding Dollar Principal Amount of such Tranche, plus accrued, unpaid and additional interest or principal accreted and unpaid on such
Tranche to but excluding the date of redemption. 

 Subject to the terms and conditions of the Indenture, the Beneficiary, on behalf of the Note
Issuance Trust, may from time to time issue, or direct the Owner Trustee, on behalf of the Note Issuance Trust, to issue, one or more Series, Classes or Tranches of Notes. 

On each Payment Date, the Paying Agent shall distribute to each Holder of Class A(2019-1) Notes
of record on the related Record Date (except for the final distribution with respect to this Class A(2019-1) Note) such Holder’s pro rata share of the amounts held by the Paying Agent that are
allocated and available on such Payment Date to pay interest and principal on the Class A Notes. 
 Payments of interest on this Class A(2019-1) Note due and payable on each Payment Date, together with any installment of principal, if any, to the extent not in full payment of this
Class A(2019-1) Note, shall be made by check mailed to the Person whose name appears as the Registered Holder of this Class A(2019-1) Note on the Note Register
as of the close of business on each Record Date, except that with respect to Class A(2019-1) Notes registered on the Record Date in the name of the nominee of the clearing agency (initially, such nominee
to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account designated by such nominee. Such checks shall be mailed to the Person entitled thereto at the address of such Person as it appears on
the Note Register as of the applicable Record Date without requiring that this Class A(2019-1) Note be submitted for notation of payment. Any reduction in the principal amount of this Class A(2019-1) Note (or any one or more Predecessor Notes) effected by any payments made on any Payment Date shall be binding upon all future Holders of this
Class A(2019-1) Note and of any Class A(2019-1) Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not
noted hereon. If funds are expected to be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Class A(2019-1) Note on a Payment Date, then
the Indenture Trustee, in the name of and on behalf of the Issuer, will notify the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date by notice mailed within five days of such Payment Date and the amount
then due and payable shall be payable only upon presentation and surrender of this Class A(2019-1) Note at the Indenture Trustee’s principal Corporate Trust Office or at the office of the Indenture
Trustee’s agent appointed for such purposes located in the City of New York. 
 As provided in the Indenture and subject to certain
limitations set forth therein and as set forth in the first legend on the face hereof, the transfer of this Class A(2019-1) Note may be registered on the Note Register upon surrender of this Class A(2019-1) Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or his attorney duly authorized in writing, with such signature guaranteed by a commercial bank or trust company located, or having a correspondent located, in the City of New
York or the city in which the Corporate Trust Office is located, or a member firm of a national securities exchange, and such other documents as the Indenture Trustee may require, and thereupon one or more new
Class A(2019-1) Notes of authorized denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees. No service charge will be charged for any
registration of transfer or exchange of this Class A(2019-1) Note, but the transferor may be required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in
connection with any such registration of transfer or exchange. 

 To the fullest extent permitted by applicable law, each Noteholder or Note Owner, by
acceptance of a Class A(2019-1) Note or, in the case of a Note Owner, a beneficial interest in a Class A(2019-1) Note, covenants and agrees that by accepting
the benefits of the Indenture it will not at any time institute against the Issuer, any Master Trust or any special purpose entity that acts as a depositor with respect to any Master Trust or the Issuer, or join in any institution against the
Issuer, any Master Trust or any special purpose entity that acts as a depositor with respect to any Master Trust or the Issuer of, any receivership, insolvency, bankruptcy or other similar proceedings, or other proceedings under any United States
federal or state bankruptcy or similar law in connection with any obligations relating to the Notes, the Indenture, any Derivative Agreement, any Supplemental Credit Enhancement Agreement and any Supplemental Liquidity Agreement. 

By acquiring a Class A(2019-1) Note (or interest therein), each Noteholder or Note Owner (and if
each Noteholder or Note Owner is a Plan, its fiduciary) shall be deemed to represent and warrant that either: (a) it is not acquiring the Class A(2019-1) Note (or interest therein) with the assets of
(i) an “employee benefit plan” as defined in Section 3(3) of Employee Retirement Income Security Act of 1974 (“ERISA”) that is subject to Title I of ERISA, (ii) a “plan” as defined in and subject
to Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”) (iii) an entity deemed to hold plan assets of the foregoing (each of (i), (ii) and (iii), a “Benefit Plan Investor”) or (iv) a
plan that is subject to federal, state, local or other law that is similar to the fiduciary or prohibited transaction provisions of ERISA or Section 4975 of the Code (“Similar Law”); or (b) the acquisition and holding of
the Class A(2019-1) Note (or interest therein) will not give rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or a violation of any Similar Law.

 Prior to the due presentment for registration of transfer of this Class A(2019-1) Note, the
Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name this Class A(2019-1) Note (as of the day of determination or as of such other date as
may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Class A(2019-1) Note be overdue, and neither the Issuer, the Indenture Trustee nor any such agent
shall be affected by notice to the contrary. 
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof
and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Notes under the Indenture at any time by the Issuer with the consent of the Holders of Notes representing not less than 66 2/3% of the Outstanding
Dollar Principal Amount of each adversely affected Series, Class or Tranche of Notes. The Indenture also contains provisions permitting the Holders of Notes representing specified percentages of the Outstanding Dollar Principal Amount of the
Notes, on behalf of the Holders of all the Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Class A(2019-1) Note shall be conclusive and binding upon such Holder and upon all future Holders of this Class A(2019-1) Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Class A(2019-1) Note. The Indenture also permits the Indenture
Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued thereunder. 

 The term “Issuer” as used in this
Class A(2019-1) Note includes any successor to the Issuer under the Indenture. 
 The Issuer is
permitted by the Indenture, under certain circumstances, to merge or consolidate, subject to the rights of the Indenture Trustee and the Holders of Notes under the Indenture. 

The Class A(2019-1) Notes are issuable only in registered form in denominations as provided in
the Indenture, subject to certain limitations therein set forth. 
 THIS CLASS A(2019-1) NOTE AND
THE INDENTURE WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATION LAW, WITHOUT REFERENCE TO ANY CONFLICT OF LAW PROVISIONS
THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANY OTHER STATE. 
 No reference herein to the Indenture and no provision of this Class A(2019-1) Note or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this
Class A(2019-1) Note at the times, place, and rate, and in the coin or currency herein prescribed. 

No recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer on the Notes or under the Indenture or any
certificate or other writing delivered in connection therewith, against (i) the Owner Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director or employee of the Owner Trustee in its individual capacity, any holder of a beneficial interest in the Issuer or any successor or assign of the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed
(it being understood that the Owner Trustee has no such obligations in its individual capacity). The Holder of this Class A(2019-1) Note by the acceptance hereof agrees that, except as expressly provided
in the Indenture and the Indenture Supplement in the case of an Event of Default under the Indenture, the Holder shall have no claim against any of the foregoing for any deficiency, loss or claim therefrom; provided, however, that
nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in this
Class A(2019-1) Note. 

 ASSIGNMENT 

Social Security or taxpayer I.D. or other identifying number of assignee 
  

 
 FOR VALUE RECEIVED, the undersigned hereby
sells, assigns and transfers unto 
 (name and address of assignee) 

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints attorney, to transfer said Note on the books kept for registration
thereof, with full power of substitution in the premises. 
  

									
					
	 Dated:
	 	 	 		 		 	____________________________________________________*
		 		 		 		 	Signature Guaranteed:

  

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

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