Document:

EX-4.1

 Exhibit 4.1 
  

 
 DISCOVER CARD EXECUTION NOTE TRUST

 Issuer 
 and 

U.S. BANK NATIONAL ASSOCIATION 

Indenture Trustee 
 CLASS
B(2015-1) TERMS DOCUMENT 
 Dated as of August 14, 2015 

to 
 AMENDED AND RESTATED
INDENTURE SUPPLEMENT 
 Dated as of June 4, 2010 

for the DiscoverSeries Notes 
 to

 INDENTURE 
 Dated as of
July 26, 2007 
  
  

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 ARTICLE I
	 	Definitions and Other Provisions of General Application	  	 	1	  
	 Section 1.01.
	 	Definitions.	  	 	1	  
	 Section 1.02.
	 	Representations and Warranties of Issuer	  	 	9	  
	 Section 1.03.
	 	Representations and Warranties of Indenture Trustee	  	 	10	  
	 Section 1.04.
	 	Limitations on Liability.	  	 	10	  
	 Section 1.05.
	 	Governing Law	  	 	11	  
	 Section 1.06.
	 	Counterparts.	  	 	11	  
	 Section 1.07.
	 	Ratification of Indenture and Indenture Supplement	  	 	11	  
			
	 ARTICLE II
	 	The Class B(2015-1) Notes	  	 	11	  
	 Section 2.01.
	 	Creation and Designation	  	 	11	  
	 Section 2.02.
	 	Adjustments to Required Subordinated Percentages and Amount.	  	 	11	  
	 Section 2.03.
	 	Interest Payment.	  	 	12	  
	 Section 2.04.
	 	Notification of LIBOR.	  	 	12	  
	 Section 2.05.
	 	Payments of Interest and Principal.	  	 	12	  
	 Section 2.06.
	 	Form of Delivery of Class B(2015-1) Notes; Denominations.	  	 	13	  
	 Section 2.07.
	 	Delivery and Payment for the Class B(2015-1) Notes.	  	 	13	  
	 Section 2.08.
	 	Targeted Deposits to the Accumulation Reserve Account.	  	 	13	  
	 Section 2.09.
	 	Additional Issuances of Notes.	  	 	14	  
	 Section 2.10.
	 	Designation of Additional Amounts to Be Included in the Excess Spread Amount for the DiscoverSeries Notes	  	 	14	  
	 Section 2.11.
	 	No Payments from Interest Funding Subaccount for Accretion of Principal of the Class B(2015-1) Notes	  	 	15	  
	 Section 2.12.
	 	Calculation of Class B(2015-1) Accreted Discount.	  	 	15	  
	 Section 2.13.
	 	Variable Accumulation Period.	  	 	15	  

  

							
		 		 	Exhibit	  	
				
		 	    Exhibit A
	 	Form of Class B Note	  	

 THIS CLASS B(2015-1) 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 August 14, 2015. 

Pursuant to this Terms Document, the Issuer shall create a new Tranche of Class B 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 Note Purchase Agreement, dated as of August 14, 2015,
by and among Discover Card Execution Note Trust, Discover Bank and the Purchaser (as defined therein) (as may be amended, supplemented, restated, amended and restated or otherwise modified from time to time, the “Note Purchase
Agreement”), 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 B(2015-1) Notes; 

 (6) each capitalized term defined herein shall relate only to the Class B(2015-1) 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 $37,500,000; provided,
however, if the commencement of the Accumulation Period is delayed in accordance with Section 2.13 hereof, the Accumulation Amount shall be determined in accordance with the definition of “Accumulation Amount” in the Indenture
Supplement. 
 “Accumulation Commencement Date” means September 1, 2017, or such later date as the Calculation Agent
on behalf of the Issuer determines in accordance with Section 2.13 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 2.13 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 the 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 B(2015-1) Notes and 

(y) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class B(2015-1) Notes is paid in full. 

  
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	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 2.13 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 2.13 hereof) and any following Distribution
Date	  	The three-month rolling average Excess Spread Percentage is less than 4%.
		
	(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 2.13 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 2.13 hereof) and any following Distribution
Date	  	The three-month rolling average Excess Spread Percentage is less than 2%.

 “Class B(2015-1) Accreted Discount” means, for any Distribution Date, the amount of principal
accreted on the Class B(2015-1) Notes in accordance with Section 2.12 hereof through the Monthly Principal Accretion Period ending on such Distribution Date. 

“Class B(2015-1) Adverse Event” means the occurrence of any of the following: (a) an Early Redemption Event with respect
to the Class B(2015-1) Notes or (b) an Event of Default and acceleration of the Class B(2015-1) 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 B(2015-1) Adverse Event shall not be treated as continuing from and after the date of such cure. 

“Class B(2015-1) Note” means any Note, in the form set forth in Exhibit A hereto, designated therein as a Class
B(2015-1) Note and duly executed and authenticated in accordance with the Indenture. 
 “Class B(2015-1) Noteholder” means
a Person in whose name a Class B(2015-1) Note is registered in the Note Register. 

  
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 “Class B(2015-1) Termination Date” means the earliest to occur of (a) the
Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class B(2015-1) 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. 
 “Class B Tranche Interest Allocation” means, notwithstanding anything to the contrary in the Indenture
Supplement, for the Class B(2015-1) Notes, zero; provided that, if the Outstanding Dollar Principal Amount is not paid in full on or prior to the Expected Maturity Date, for any Distribution Date after the Expected Maturity Date, the Class B Tranche
Interest Allocation shall be the Class B Interest for the Class B(2015-1) Notes plus any Interest Allocation Shortfall from the prior Distribution Date. Following a Receivables Sale for the Class B(2015-1) Notes, the Class B Tranche Interest
Allocation shall be zero. 
 “Discount Amount” means initially $9,449,550; provided that following any issuance of
additional Class B(2015-1) Notes in accordance with Section 2.09, the Discount Amount shall mean the amount specified in the Notice of Additional Issuance. 

“Encumbered Amount” means, for the Class B(2015-1) Notes, an amount equal to 

(a) the Nominal Liquidation Amount of the Class B(2015-1) Notes, divided by 

(b) the Nominal Liquidation Amount of all Tranches of Class B Notes in the DiscoverSeries, multiplied by 

(c) the aggregate Required Subordinated Amount of Class B Notes for all Tranches of Class A Notes in the DiscoverSeries with a Required
Subordinated Amount of Class B Notes greater than zero. 
 “Encumbered Required Subordinated Amount of Class C Notes”
means, for the Class B(2015-1) Notes, an amount equal to the product of 
 (a) the Encumbered Amount for the Class B(2015-1) Notes, and 

(b) the Required Subordinated Percentage of Class C Notes (Encumbered) for the Class B(2015-1) Notes. 

“Encumbered Required Subordinated Amount of Class D Notes” means, for the Class B(2015-1) Notes, an amount equal to the
product of 
 (a) the Encumbered Amount for the Class B(2015-1) Notes and 

(b) the Required Subordinated Percentage of Class D Notes (Encumbered) for the Class B(2015-1) Notes. 

“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. 

  
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 “Expected Maturity Date” means September 17, 2018. 

“Indenture” means the Indenture, dated as of July 26, 2007, by and between the Issuer and Indenture Trustee, as amended
by the First Amendment to Indenture, dated as of June 4, 2010, as supplemented by the Indenture Supplement, as such agreement may be further amended, supplemented, restated, amended and restated, replaced or otherwise modified from time to
time. 
 “Indenture Supplement” means the Amended and Restated Indenture Supplement for the DiscoverSeries Notes, dated as
of June 4, 2010, by and 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 $440,550,450, or such higher amount as is specified in any Notice of Additional
Issuance under Section 2.09. 
 “Interest Accrual Period” means, with respect to any Interest Payment Date, the period
from and including the previous Interest Payment Date to but excluding such Interest Payment Date (or, in the case of the first Interest Payment Date occurring after the Expected Maturity Date, from and including the Expected Maturity Date to but
excluding such Interest Payment Date). 
 “Interest Payment Date” means, if the Outstanding Dollar Principal Amount is not
paid in full on or prior to the Expected Maturity Date, the fifteenth day of each month commencing in October 15, 2018, or if such fifteenth day is not a Business Day, the next succeeding Business Day. 

“Issuance Date” means August 14, 2015 with respect to all Class B(2015-1) Notes issued on the date hereof and, with
respect to any additional Class B(2015-1) Notes issued pursuant to Section 2.09, any Issuance Date specified in the Notice of Additional Issuance delivered thereunder. 

“Legal Maturity Date” means March 15, 2021. 

“LIBOR” means, with respect to any LIBOR Determination Date, the rate for deposits in United States dollars with a duration
comparable to the relevant Interest Accrual Period which appears on Reuters Screen LIBOR01 as of 11:00 a.m., London time, on such day. If such rate does not appear on Reuters Screen LIBOR01, the rate will be determined by the Indenture Trustee on
the basis of the rates at which deposits in United States dollars are offered by major banks in the London interbank market, selected by the Indenture Trustee, at approximately 11:00 a.m., London time, on such day to prime banks in the London
interbank market with a duration comparable to the relevant Interest Accrual Period commencing on that day. The Indenture Trustee will request the principal London office of at least four banks to provide a quotation of its rate. If at least two
such quotations are provided, the rate will be the arithmetic mean of the quotations. If fewer than two quotations are provided as requested, the rate for that day will be the arithmetic mean of the rates quoted by four major banks in New York City,
selected by the Trustee, at approximately 11:00 a.m., New York City time, on that day for loans in United States dollars to leading European banks with a duration comparable to the relevant Interest Accrual

  
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Period commencing on that day. If LIBOR with respect to a LIBOR Determination Date is not determined pursuant to the foregoing, LIBOR with respect to such LIBOR Determination Date will be LIBOR
with respect to the immediately prior LIBOR Determination Date. 
 “LIBOR Business Day,” if applicable, shall mean a day
other than a Saturday or a Sunday on which banking institutions in both the City of London, England and in New York, New York are not required or authorized by law to be closed. 

“LIBOR Determination Date” means the second LIBOR Business Day immediately preceding the commencement of an Interest Accrual
Period. 
 “Nominal Liquidation Amount” means, notwithstanding anything to the contrary in the Indenture Supplement, with
respect to the Class B(2015-1) Notes: 
 (a) on the Issuance Date thereof, $450,000,000; 

(b) on any Distribution Date thereafter such amount as increased or decreased pursuant to Section 3.01 of the Indenture
Supplement and Section 2.09 hereof; 
 (c) on any date, other than a Distribution Date, on which Prefunding Excess
Amount are withdrawn from the applicable Principal Funding Subaccount pursuant to Section 4.04 of the Indenture Supplement, the Nominal Liquidation Amount as of the beginning of such date plus the Prefunding Excess Amount so withdrawn;
and 
 (d) on and after the date of a Receivables Sale for the Class B(2015-1) Notes, zero. 

“Note Interest Rate” means zero; provided that if the Outstanding Dollar Principal Amount is not paid in full on or prior to
the Expected Maturity Date, the Note Interest Rate shall be LIBOR + 0.67% per annum, calculated on the basis of the actual number of days elapsed and a 360-day year. 

“Notice of Additional Issuance” has the meaning set forth in Section 2.09. 

“Outstanding Dollar Principal Amount” means, for the Class B(2015-1) Notes, notwithstanding anything to the contrary in the
Indenture Supplement, (a) prior to an issuance of additional Class B(2015-1) Notes, the sum of (i) the Initial Dollar Principal Amount of such Notes and (ii) the Class B(2015-1) Accreted Discount as determined in accordance with
Section 2.12 hereof, minus (i) the aggregate amount of principal paid with respect to the Class B(2015-1) Notes as of the relevant date of determination and (ii) any net losses of principal of funds on deposit in respect of
principal in the Principal Funding Account or the related Principal Funding Subaccount, as applicable, for the Class B(2015-1) Notes and (b) following the issuance of additional Class B(2015-1) Notes, the sum of (i) the Outstanding Dollar
Principal Amount of the Class B(2015-1) Notes determined as of the date of such additional issuance and (ii) the Class B(2015-1) Accreted Discount accreted after the date of such additional issuance, as determined in accordance with
Section 2.12 hereof, minus (i) the aggregate amount, as of the relevant date of determination, of principal paid with respect to the Class B(2015-1) Notes after the date of such additional issuance and (ii) any net losses, as
of the relevant date of determination, of principal of 

  
 6 

 
funds on deposit in respect of principal in the Principal Funding Account or the related Principal Funding Subaccount, as applicable, for the Class B(2015-1) Notes after the date of such
additional issuance. Notwithstanding the foregoing, if a Receivables Sale has occurred with respect to the Class B(2015-1) Notes, the Outstanding Dollar Principal Amount shall be zero. 

“Required Daily Deposit Target Finance Charge Amount” means, for any day in a Due Period, an amount equal to the Class B
Tranche Interest Allocation for the related Distribution Date; provided, however, that for purposes of determining the Required Daily Deposit Target Finance Charge Amount on any day on which the Class B Tranche Interest Allocation
cannot be determined because the LIBOR Determination Date for the applicable Interest Accrual Period has not yet occurred, the Required Daily Deposit Target Finance Charge Amount shall be the Class B Tranche Interest Allocation determined based on a
pro forma calculation made on the assumption that LIBOR will be LIBOR for the applicable period determined on the first day of such calendar month, multiplied by 1.25. 

“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 B(2015-1) Notes, the Accumulation Amount, (ii) if such day is on or after the occurrence and during the continuance of a Class B(2015-1) Adverse Event, the lesser of (x) the Outstanding Dollar Principal
Amount of the Class B(2015-1) Notes and (y) the Nominal Liquidation Amount of the Class B(2015-1) Notes, and (iii) in all other circumstances, zero. 

“Required Subordinated Amount of Class C Notes” means, for the Class B(2015-1) Notes for any date of determination, an amount
equal to the sum of 
 (a) the Unencumbered Required Subordinated Amount of Class C Notes for such Class B(2015-1) Notes and

 (b) the Encumbered Required Subordinated Amount of Class C Notes for such Class B(2015-1) Notes; 

provided, however, that for any date of determination on or after the occurrence and during the continuation of a
Class B(2015-1) Adverse Event, the Required Subordinated Amount of Class C Notes for the Class B(2015-1) 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 B(2015-1) Adverse Event shall
have occurred. 
 “Required Subordinated Amount of Class D Notes” means, for the Class B(2015-1) Notes for any date of
determination, an amount equal to the sum of 
 (a) the Unencumbered Required Subordinated Amount of Class D Notes for such
Class B(2015-1) Notes and 
 (b) the Encumbered Required Subordinated Amount of Class D Notes for such Class B(2015-1) Notes;

  
 7 

 provided, however, that for any date of determination on or after the occurrence and during the
continuation of a Class B(2015-1) Adverse Event, the Required Subordinated Amount of Class D Notes for the Class B(2015-1) 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 B(2015-1) Adverse Event shall
have occurred. 
 “Required Subordinated Percentage of Class C Notes (Encumbered)” means, for the Class B(2015-1) Notes,
127.272727%, subject to adjustment in accordance with Section 2.02. 
 “Required Subordinated Percentage of Class C Notes
(Unencumbered)” means, for the Class B(2015-1) Notes, 8.641975%, subject to adjustment in accordance with Section 2.02. 

“Required Subordinated Percentage of Class D Notes (Encumbered)” means, for the Class B(2015-1) Notes, 218.181818%, subject
to adjustment in accordance with Section 2.02. 
 “Required Subordinated Percentage of Class D Notes (Unencumbered)”
means, for the Class B(2015-1) Notes, 14.814815%, subject to adjustment in accordance with Section 2.02. 
 “Reuters Screen
LIBOR01” means the display page currently so designated on the Reuters Screen (or such other page as may replace that page on that service for the purpose of displaying comparable rates or prices). 

“Stated Principal Amount” means $450,000,000 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 B(2015-1) 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. 
 “Targeted Principal Deposit” means, for the Class
B(2015-1) Notes, notwithstanding anything to the contrary in the Indenture Supplement, 
 (a) During the Accumulation Period,
beginning with the Accumulation Commencement Date for the Class B(2015-1) Notes, (x) (i) the Accumulation Amount for the Class B(2015-1) Notes, plus (ii) any Accumulation Amount that was scheduled to be deposited on any
previous Distribution Date in the Accumulation Period that was not so deposited, minus (y) the amount on deposit in the Principal Funding Subaccount for the Class B(2015-1) Notes that was applied to the amount in clause (x) in
accordance with Section 4.04(a), 
 (b) If the Class B(2015-1) Notes have been accelerated after the occurrence of an
Event of Default, or if an Early Redemption Event with respect to the Class B(2015-1) Notes has occurred (other than an Excess Spread Early Redemption Event for which an 

  
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Excess Spread Early Redemption Cure has occurred), with respect to each Distribution Date following the Due Period in which such Event of Default or Early Redemption Event has occurred, the
lesser of (x) the Outstanding Dollar Principal Amount of such Tranche and (y) the Nominal Liquidation Amount of such Tranche, in each case as of the last day of the preceding Due Period, and 

(c) If a Receivables Sale has occurred for the Class B(2015-1) Notes, zero. 

“Unencumbered Amount” means, for the Class B(2015-1) Notes, an amount equal to the Nominal Liquidation Amount of the Class
B(2015-1) Notes minus the Encumbered Amount for the Class B(2015-1) Notes. 
 “Unencumbered Required Subordinated Amount of
Class C Notes” means, for the Class B(2015-1) Notes, an amount equal to the product of 
 (a) the Unencumbered
Amount for the Class B(2015-1) Notes and 
 (b) the Required Subordinated Percentage of Class C Notes (Unencumbered) for the
Class B(2015-1) Notes. 
 “Unencumbered Required Subordinated Amount of Class D Notes” means, for the Class B(2015-1)
Notes, an amount equal to the product of 
 (a) the Unencumbered Amount for the Class B(2015-1) Notes and 

(b) the Required Subordinated Percentage of Class D Notes (Unencumbered) for the Class B(2015-1) Notes. 

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 corporate and statutory trust proceedings of any 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; 

(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; 

  
 9 

 (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 (A) asserting the invalidity of this Terms Document, (B) seeking to
prevent the consummation of any of the transactions contemplated by this Terms Document or (C) 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 the Indenture and 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. 

  
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 (b) None of the Indenture Trustee, the Owner Trustee, the Calculation Agent, any 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 the Class B(2015-1) 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 B(2015-1)
Notes 
 Section 2.01. Creation and Designation. There is hereby created a Tranche of Class B Notes to be issued pursuant to the
Indenture, the Indenture Supplement, this Terms Document and the Note Purchase Agreement to be known as the “DiscoverSeries Class B(2015-1) 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 C Notes
(Encumbered), the Required Subordinated Percentage of Class C Notes (Unencumbered), the Required Subordinated Percentage of Class D Notes (Encumbered), and the Required Subordinated Percentage of Class D Notes (Unencumbered), in each case for the
Class B(2015-1) 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 C Notes or the Required Subordinated Amount of Class D Notes, in each case for the Class B(2015-1) 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 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, such addition and such other
amendments will not result in a Ratings Effect for any Tranche of Outstanding DiscoverSeries Notes. 

  
 11 

 Section 2.03. Interest Payment. For each Interest Payment Date, the amount of
interest due with respect to the Class B(2015-1) Notes shall be an amount equal to 
  

	 	(i)	(A) a fraction, the numerator of which is the actual number of days in the related Interest Accrual Period 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 B(2015-1) Notes determined as of the first date of such related Interest Accrual Period, plus 

any Class B Tranche Interest Allocation Shortfall for such Class B(2015-1) 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 the actual number of days in the related Interest Accrual Period and a 360-day year. 

Section 2.04. Notification of LIBOR. On each LIBOR Determination Date, the Indenture Trustee shall send to the Issuer, the
Beneficiary, each applicable Master Servicer and any stock exchange on which the Class B(2015-1) Notes are then listed (if the rules of such exchange so require), by facsimile transmission or electronic transmission, notification of LIBOR for the
following Interest Accrual Period. 
 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 B(2015-1) Adverse Event has occurred and is continuing, principal will instead be payable in monthly installments on each Principal Payment Date for the Class B(2015-1) Notes in
accordance with Sections 3.01 and 3.05 of the Indenture Supplement. All payments of interest and principal on the Class B(2015-1) Notes shall be made as set forth in Section 1102 of the Indenture. 

(b) The right of the Class B(2015-1) Noteholders to receive payments from the Issuer will terminate on the Class B(2015-1) Termination Date.

 (c) All payments of principal, interest or other amounts to the Class B(2015-1) Noteholders will be made pro rata based on the
Stated Principal Amount of their Class B(2015-1) Notes. 

  
 12 

 Section 2.06. Form of Delivery of Class B(2015-1) Notes; Denominations. 

(a) The Class B(2015-1) Notes shall be delivered in the form of a definitive Registered Note as provided in Section 201 of the Indenture.
The form of the Class B(2015-1) Notes is attached hereto as Exhibit A. 
 (b) The Class B(2015-1) Notes shall, until such time as the
laws of any jurisdiction in which they are offered or sold no longer restrict the transfer or sale thereof, bear a legend in substantially the following form: 

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF
THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A. THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF DISCOVER CARD EXECUTION NOTE TRUST AND DISCOVER BANK THAT (A) THIS NOTE
MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN COMPLIANCE WITH RULE 144A UNDER THE
SECURITIES ACT OR, IN THE CASE OF THE INITIAL HOLDER HEREOF ONLY, ANOTHER APPLICABLE EXEMPTION UNDER THE SECURITIES ACT, (2) TO DISCOVER CARD EXECUTION NOTE TRUST, DISCOVER BANK OR THEIR AFFILIATES OR (3) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT, IF APPLICABLE, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAW OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
NOTIFY ANY SUBSEQUENT PURCHASER FROM IT OF THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE. 
 No Class B(2015-1) Notes shall be transferred except in
accordance with the transfer restrictions described in the legend set forth above. 
 (c) The Class B(2015-1) Notes will be issued in
minimum denominations of $200,000 and integral multiples of $1,000 in excess of that amount. 
 Section 2.07. Delivery and Payment
for the Class B(2015-1) Notes. The Issuer shall execute and deliver the Class B(2015-1) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class B(2015-1) 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 B(2015-1) Notes for 

  
 13 

 
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 B(2015-1) Notes. 
 Section 2.09. Additional Issuances of Notes. Subject to
clauses (ii), (iii), (iv) and (v) of Sections 2.02 and Section 2.03 of the Indenture Supplement, the Issuer may issue additional Class B(2015-1) 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 B(2015-1) 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 B(2015-1) Notes; 

  

	 	(ii)	the amount of such additional Class B(2015-1) Notes being offered, the purchase price for such additional Class B(2015-1) Notes and the resulting Initial Dollar Principal Amount, Stated Principal Amount and Nominal
Liquidation Amount of Class B(2015-1) Notes; 

  

	 	(iii)	the Outstanding Dollar Principal Amount of the Class B(2015-1) Notes after giving effect to the issuance of the additional Class B(2015-1) Notes and all prior accretions of principal as determined in accordance with
Section 2.12; 

  

	 	(iv)	the Discount Amount after giving effect to such additional Class B(2015-1) Notes; and 

  

	 	(v)	any other terms that the Issuer set forth in such notice of issuance of additional Class B(2015-1) Notes to clarify the rights of Holders of such additional Class B(2015-1) Notes or the effect of such issuance of
additional Class B(2015-1) Notes on any calculations to be made with respect to the Class B(2015-1) Notes, Class B, or the Issuer. 

 All such
terms shall be incorporated into and form a part of this Terms Document on and after the effective date of such Class B(2015-1) Notes; and 

(b) no Class B(2015-1) Adverse Event has occurred and is continuing. 

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 B(2015-1) Notes so long as such conditions were satisfied or waived in connection with the initial issuance of Class B(2015-1) Notes. 

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 

  
 14 

 
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 B(2015-1) 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. No Payments from Interest Funding Subaccount for Accretion of Principal of the Class B(2015-1) Notes.
Section 3.04(4) of the Indenture Supplement shall not apply to the Class B(2015-1) Notes. 
 Section 2.12. Calculation of Class
B(2015-1) Accreted Discount. The amount of Class B(2015-1) Accreted Discount as of the end of any Due Period shall be determined on a straight-line basis and shall be equal to the product of (x) a fraction the numerator of which shall be
the number of Due Periods elapsed since the Note Issuance Date (or if additional Class B(2015-1) Notes have been issued under Section 2.09, since the Issuance Date of such additional Notes) and the denominator of which shall be the number of
Due Periods from the Note Issuance Date (or the Issuance Date of such additional Notes) to and including the Due Period related to the Expected Maturity Date and (y) the Discount Amount. 

Section 2.13. 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 B(2015-1) Notes and determine a new Accumulation Commencement Date, subject
to the conditions set forth in this Section 2.13; 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 B(2015-1) Notes. Any such
delay by the Calculation Agent on behalf of the Issuer shall be made no later than the first day of the scheduled Due Period immediately preceding the first Due Period in the Accumulation Period (after giving effect to any prior delay in the
commencement of the Accumulation Period pursuant to this Section 2.13). 
 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 B(2015-1) Notes will not result in any Tranche of Notes not being paid in full on the relevant Expected Maturity Date; (ii) such delay is permitted under the Series 2007-CC Series 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 

  
 15 

 
for any Tranche of Outstanding DiscoverSeries Notes, unless at the time of such delay there is a Tranche of Outstanding DiscoverSeries Notes, which were issued prior to January 1, 2009 and
for which the commencement of the Accumulation Period for such Tranche of Notes has already been delayed pursuant to Section 4.02 of the Indenture Supplement. If such confirmation from the applicable Note Rating Agency is not required, 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 B(2015-1) Notes is delayed pursuant to this Section 2.13.

 [Remainder of page intentionally blank; signature page follows] 

  
 16 

 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/ Edwin J. Janis

	Name:	 	Edwin J. Janis
	Title:	 	Vice President

 [Signature Page to Class B(2015-1) Terms Document] 

 Exhibit A 

Form of Class B Note 
 See
attached. 

 DISCOVERSERIES CLASS B(2015-1) NOTE 

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF
THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A. THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF DISCOVER CARD EXECUTION NOTE TRUST AND DISCOVER BANK THAT (A) THIS NOTE
MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN COMPLIANCE WITH RULE 144A UNDER THE
SECURITIES ACT OR, IN THE CASE OF THE INITIAL HOLDER HEREOF ONLY, ANOTHER APPLICABLE EXEMPTION UNDER THE SECURITIES ACT, (2) TO DISCOVER CARD EXECUTION NOTE TRUST, DISCOVER BANK OR THEIR AFFILIATES OR (3) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT, IF APPLICABLE, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAW OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
NOTIFY ANY SUBSEQUENT PURCHASER FROM IT OF THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE. 
 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. 

THIS NOTE HAS BEEN ISSUED WITH “ORIGINAL ISSUE DISCOUNT” (WITHIN THE MEANING OF SECTION 1273 OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED). UPON WRITTEN REQUEST TO DISCOVER BANK, 12 READ’S WAY, NEW CASTLE, DELAWARE 19720, ATTENTION: TREASURER, DISCOVER BANK WILL PROMPTLY MAKE AVAILABLE TO ANY HOLDER OF THIS NOTE THE FOLLOWING

 
INFORMATION: (1) THE ISSUE PRICE AND ISSUE DATE OF THE NOTE, (2) THE AMOUNT OF ORIGINAL ISSUE DISCOUNT ON THE NOTE AND (3) THE YIELD TO MATURITY OF THE NOTE. 

DISTRIBUTIONS OF PRINCIPAL AND INTEREST TO THE HOLDER OF THIS CLASS B NOTE ARE SUBORDINATE TO THE PAYMENT ON EACH DISTRIBUTION DATE OF
PRINCIPAL OF AND INTEREST ON THE CLASS A NOTES OF THE DISCOVERSERIES AND THE PAYMENT OF CERTAIN OTHER AMOUNTS, TO THE EXTENT AND AS DESCRIBED IN THE INDENTURE AND INDENTURE SUPPLEMENT REFERRED TO HEREIN. 

			
	REGISTERED	  	$[●]*
	No. [●]	  	

 DISCOVER CARD EXECUTION NOTE TRUST 

Floating Rate 
 DISCOVERSERIES
CLASS B(2015-1) 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 [●], or registered assigns, subject to the following provisions, a principal sum of $[●]
([●] dollars) payable on the September 17, 2018 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 March 15, 2021 Payment Date (the “Legal Maturity Date”). If the Outstanding Dollar Principal Amount is not
paid in full on or prior to the Expected Maturity Date, interest will accrue on this Note at the rate of one-month LIBOR + 0.67% per annum, as more specifically set forth in the Class B(2015-1) Terms Document dated as of August 14, 2015
(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 from and including the previous Interest Payment Date to but excluding such Interest Payment Date (or, in the case of the first Interest Payment Date for the Class B(2015-1) Notes occurring after the
Expected Maturity Date, from and including the Expected Maturity Date to but excluding such Interest Payment Date). Interest will be computed on the basis of the actual number of days elapsed 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 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. The interest is payable monthly on each Interest Payment Date if the Outstanding Dollar Principal Amount is
not paid in full on or prior to the Expected Maturity Date. No principal or interest will be distributed on the Note following the distribution of proceeds of a Receivables Sale. 

Series Principal Amounts allocated to the Class B(2015-1) Notes will be applied first to pay shortfalls in interest on Class A Notes,
then to pay any shortfalls in Series Servicing Fees allocable to the DiscoverSeries, and then to make Targeted Principal Deposits to the Principal Funding Subaccounts for Class A Notes, including Targeted Prefunding Deposits, before being
applied to make Targeted Principal Deposits to the Principal Funding Subaccounts of Subordinate Notes, including the Class B(2015-1) Notes. Principal will not be paid on the Class B(2015-1) Notes prior to their Legal Maturity Date unless the
Class A Usage of Class B Notes is zero for each Tranche of Class A Notes of the DiscoverSeries and the required level of subordination for the Class A Notes of the DiscoverSeries is available after giving effect to such payment. 

 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 this Note is $[●]. 
 The Stated Principal Amount of this Note is $[●]. 

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 $200,000 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 Class B(2015-1) DiscoverSeries Notes
(herein called the “Class B(2015-1) Notes”), all issued under an Indenture, dated as of July 26, 2007, as amended by the First Amendment to Indenture, dated as of June 4, 2010 (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 an Amended and Restated Indenture Supplement for the DiscoverSeries Notes, dated
as of June 4, 2010 (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
B(2015-1) Notes are subject to all terms of the Indenture, the Indenture Supplement and the Terms Document. All terms used in this Class B(2015-1) 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 A Notes, the
Class C Notes and the Class D Notes of the DiscoverSeries and other tranches of Class B Notes of the DiscoverSeries will also be issued under the Indenture and the Indenture Supplement. 

The Class B(2015-1) 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. 
 The Class B(2015-1) Notes are subordinated in right of payment of principal and interest to the
Class A Notes and provide loss protection to the Class A Notes of the DiscoverSeries, to the extent set forth in the Indenture Supplement. Principal Amounts allocable to the Class B(2015-1) Notes may be applied to pay the Class A
Interest Allocation or the Series Servicing Fees of the DiscoverSeries, to the extent set forth in the Indenture Supplement. 
 The Stated
Principal Amount of the Class B(2015-1) Notes will be payable on the Expected Maturity Date in an amount described on the face hereof. 
 As
described above, the entire unpaid Stated Principal Amount of this Class B(2015-1) Note shall be due and payable on the Legal Maturity Date. Notwithstanding the foregoing, the entire unpaid Outstanding Dollar Principal Amount of the Class B(2015-1)
Notes shall be due and payable on the date on which an Event of Default relating to the Class B(2015-1) 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 B(2015-1) 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 Outstanding Dollar
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, if any, 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 B(2015-1) Notes of record on the related Record
Date (except for the final distribution with respect to the Class B(2015-1) Notes) the pro rata share for such Holder of Class B(2015-1) Notes of the amounts held by the Paying Agent that are allocated and available on such Payment Date to pay
interest (only if the Outstanding Dollar Principal Amount is not paid in full on or prior to the Expected Maturity Date) and principal on the Class B Notes. 

Payments of interest on this Class B(2015-1) 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 B(2015-1) Note, shall be made by check mailed to the Person whose name appears as the Registered Holder of this Class B(2015-1) Note on the Note Register as of the close of business on each Record Date,
except that with respect to Class B(2015-1) Notes registered on the Record Date in the name of the nominee of a clearing agency, 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 B(2015-1) Note be submitted for notation of payment. Any
reduction in the principal amount of this Class B(2015-1) 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 B(2015-1) Note and of any Class B(2015-1)
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 B(2015-1) 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 B(2015-1) 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 B(2015-1) Note may be registered on the Note Register upon surrender of this Class B(2015-1) 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 B(2015-1) 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 B(2015-1) 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 B(2015-1) Note or, in the case of a Note Owner, a beneficial interest in a Class B(2015-1) Note, covenants and agrees that by accepting the benefits of the Indenture 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 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. 
 Prior to the
due presentment for registration of transfer of this Class B(2015-1) 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 B(2015-1) 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 B(2015-1) 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 B(2015-1) Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Class B(2015-1) 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 B(2015-1) 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 B(2015-1) 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 B(2015-1) Notes are issuable only in registered form in denominations as provided
in the Indenture, subject to certain limitations therein set forth. 
 THIS CLASS B(2015-1) 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 B(2015-1) 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 B(2015-1) 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 B(2015-1) 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 B(2015-1) 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.Exhibit 4.2

 

THIS WARRANT HAS NOT BEEN REG1STERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT’) OR ANY OTHER SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE,
SOLD, DELIVERED AFTER SALE, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF (1) AN EFFECTIVE REGISTRATION STATEMENT COVERING
THIS WARRANT UNDER THE ACT AND ANY OTHER APPLICABLE SECURITIES LAWS, OR (2) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE
COMPANY THAT SUCH REGISTRATION IS NOT REQU1RED.

 

EDGE THERAPEUTICS, INC.

 

WARRANT TO PURCHASE 16,667 SHARES OF 

CAPITAL STOCK

 

	DATE:	May 3, 2010	Warrant No. 1

FOR VALUE RECEIVED, EDGE
THERAPEUTICS, INC., having an address at 211 Warren Street, Newark, New Jersey 07103, a Delaware corporation (the “Company”),
hereby certifies that THE NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY, or its registered transferees, successors or assigns (each
person or entity holding all or part of this Warrant being referred to as a “Holder”), is the registered holder
of the warrant (the “Warrant”) to subscribe for and purchase 16,667 shares (the “Warrant Shares”)
of the fully paid and nonassessable capital stock, “no” par value, of the Company, at a purchase price per share equal
to $3.00 per share (the “Warrant Price”), on or before, 5:00 P.M., Eastern Time, on 10 years from Warrant Date
(the “Expiration Date”), subject to the provisions and upon the terms and conditions hereinafter set forth;
provided, however, that in the event that any portion of this Warrant is unexercised as of the Expiration Date, the
terms of Section 2.3 below shall apply. As used in this Warrant, the term “Business Day” means any day
other than a Saturday or Sunday on which commercial banks located in New Jersey are open for the general transaction of business.
This Warrant is issued in connection with, and is subject to, that certain Convertible Loan Agreement, of even date herewith, by
and between the Company and the Holder (the “Loan Agreement”), and the terms and conditions of the Loan Agreement
are incorporated herein as though set forth at length. This Warrant may be exercised at any time on or before 5:00 pm eastern standard
time on Expiration Date.

 

    	 

    	 

    

Article 1.                 
Definitions. The following terms shall have the following definitions:

 

1.1.           
“EBIT” means, with respect to any applicable fiscal period, the following for the Company and its subsidiaries,
if any, on a consolidated basic, each calculated for such period: net income before Taxes for such period (excluding pre-Tax gains
or losses on the sale of assets (other than the sales of inventory in the ordinary course of business) and excluding other pre-Tax
extraordinary gains) plus interest expense and other non-cash charges deducted in determining net income for such period,
minus interest income calculated in determining net income for such period.

 

1.2.           
“Tax” means any of the following, and “Taxes” means all of the following, imposed by or payable
to any Governmental Authority: any income, gross receipts, license, payroll, employment, excise, severance, stamp, business, occupation,
premium, windfall profits, environmental (including taxes under Section 59A of the Internal Revenue Code of 1986, as amended or
any successor thereto), capital stock, franchise, profits, withholding, social security (or similar), unemployment, disability,
real property, personal property, sales, use, transfer, registration, or value added tax, any alternative or add-on minimum tax,
any estimated tax, and any levy, impost, duty, assessment, or withholding, in each case including any interest, penalty, or addition
thereto, whether disputed or not.

 

1.3.           
“GAAP” means generally accepted accounting principles as in effect in the United States on the date hereof,
consistently applied.

 

1.4.           
“Governmental Authority” means any national, federal, state, provincial, county, municipal or local government,
foreign or domestic, or the government of any political subdivision of any of the foregoing, any multinational organization or
body, or any entity, authority, agency, ministry or other similar body exercising executive, legislative, judicial, regulatory,
taxing or administrative authority or functions of or pertaining to government, including any authority or other quasi-governmental
entity established to perform any of such functions.

 

Article 2.                 
Exercise.

 

2.1.           
Method of Exercise; Payment; Issuance of New Warrant.

 

(a)               
Subject to the provisions hereof, the Holder may exercise this Warrant, in whole or part and from time to time, by the surrender
of this Warrant (together with the Notice of Exercise attached hereto as Appendix A duly executed, or in the event of a cashless
exercise pursuant to Section 2.4 below, together with the Net Issue Election Notice attached hereto as Appendix B, duly
executed and completed) at the principal office of the Company, or such other office or agency of the Company as it may reasonably
designate by written notice to the Holder, during normal business hours on any Business Day (the date of surrender may hereinafter
be referred to as an “Exercise Date”).

 

    	2

    	 

    

(b)              
Within three (3) Business Days of the Exercise Date the Holder shall deliver to the Company payment by the Holder in cash,
certified check payable to the Company or wire transfer of immediately available funds to an account designated to the Holder by
the Company of an amount equal to the Warrant Price multiplied by the number of Warrant Shares then being purchased, unless the
exercise is subject to Section 2.4. The Holder (or such other person or persons as directed by the Holder) shall be treated
for all purposes as the holder of record of such Warrant Shares as of the close of business on the date on which the Holder shall
have delivered such payment to the Company, unless the exercise is pursuant to Section 2.4.

 

(c)               
In the event of any exercise of the rights represented by this Warrant, certificates for the whole number of shares of capital
stock so purchased shall be delivered to the Holder (or such other person or persons as directed by the Holder) as promptly as
is reasonably practicable, but not later than three (3) Business Days, after the applicable Exercise Date, at the Company’s
expense, and, unless this Warrant has been fully exercised, a new Warrant (in the same form as this Warrant) representing the unexercised
portion of this Warrant, shall also be issued to the Holder as soon as reasonably practicable thereafter, but not later than three
(3) Business Days, after the applicable Exercise Date.

 

2.2.           
Mandatory Exercise. In the event of any consolidation or merger of the Company with another entity in which the Company
is not the survivor, or sale, transfer or other disposition of all or substantially all of the Company’s assets to another
entity shall be effected where the consideration for consolidation or merger is not entirely stock (i.e., it is not a stock for
stock transfer), this Warrant shall be automatically exercised under this Section 2. As promptly as is reasonably practicable on
or after the date of such automatic exercise, but in no event before the date on which this Warrant is surrendered to the Company
at the principal office of the Company, or such other office or agency of the Company as it may reasonably designate by written
notice to the Holder, during normal business hours on any Business Day, the Company at its expense shall issue and deliver to the
Holder (or such other person or persons as directed by the Holder) a certificate or certificates for the number of Warrant Shares
issuable upon such exercise, in accordance with Section 2.4.

 

2.3.           
Automatic Exercise. If any portion of this Warrant remain unexercised as of the Expiration Date and the Fair Market Value
(as defined below) of one share of capital stock as of the Expiration Date is greater titan the applicable Warrant Price as of
the Expiration Date, then this Warrant shall be deemed to have been exercised automatically immediately prior to the close of business
on the Expiration Date (or, in the client that the Expiration Date is not a Business Day, the immediately preceding Business Day)
(the “Automatic Exercise Date”) in the manner provided in Section 2.4 below, and the Holder (or such
other person or persons as directed by the Holder) shall be treated for all purposes as the holder of record of such Warrant Shares
as of the close of business on such Automatic Exercise Date. This Warrant shall be deemed to be surrendered to the Company on the
Automatic Exercise Date by virtue of this Section 2.3 without any action by the Holder. As promptly as is reasonably practicable
on or after the Automatic Exercise Date, but in no event before the date on which this Warrant is surrendered to the Company at
the principal office of the Company, or such other office or agency of the Company as it may reasonably designate by written notice
to the Holder, during normal business hours on any Business Day, the Company at its expense shall issue and deliver to the Holder
(or such other person or persons as directed by the Holder) a certificate or certificates for the number of Warrant Shares issuable
upon such exercise, in accordance with Section 2.4.

 

    	3

    	 

    

2.4.           
Cashless Right to Convert Warrant into Stock. In addition to and without limiting the rights of the Holder hereof under
the terms of this Warrant, the Holder may elect to receive, without the payment by the Holder of the Warrant Price, Warrant Shares
equal to the value of this Warrant or any portion hereof by the surrender of this Warrant (or such portion of this Warrant being
so exercised) together with the Net Issue Election Notice annexed hereto as Appendix B duly executed and completed, at the office
of the Company, or such other office or agency of the Company as it may reasonably designate by written notice to the Holder, during
normal business hours on any Business Day. With respect to shares of capital stock issuable to the Holder upon an exercise pursuant
to this Section 14, the Holder (or such other person or persons as directed by the Holder) shall be treated for all purposes as
the holder of record of such Warrant Shares as of the close of business on the applicable Exercise Date. The Company shall issue
to the Holder such number of fully paid, validly issued and nonassessable Warrant Shares, as is computed using the following formula:

 

X = Y * (A-B)

     A

      where

 

X=the number of shares of capital stock to be issued
to the Holder (or such other person or persons as directed by the Holder) upon such exercise of the rights under this Section
2.4

 

Y=the total number of shares of capital stock covered
by this Warrant which the Holder has surrendered for cashless exercise

 

A=the “Fair Market Value” of one share
of capital stock on the applicable Exercise Date or the Automatic Exercise Date, as the case may be

 

B=the Warrant Price in effect
under this Warrant on the applicable Exercise Date or the Automatic Exercise Date, as the case may be

 

The “Fair Market Value”
of a share of capital stock as of a specified date (the “Valuation Date”) shall mean the greatest of the following,
calculated as of the Valuation Date: (a) quotient of the Book Value (as defined below) divided by the number of issued and
outstanding shares of capital stock; (b) if determined in accordance with this paragraph by the applicable Exercise Date or the
Automatic Exercise Date, as the case may be, the quotient of the Appraised Value (as defined below) divided by the number of issued
and outstanding shares of capital stock; (c) the quotient of the Formula Value (as defined below) divided by the number of issued
and outstanding capital stock; and (d) the Trading Value (as defined below). If the Holder shall request in writing to the Company,
which request may be made at any time, but in no event later than 45 days before the applicable Valuation Date, that the Company
determine its Appraised Value, the Company and the Holder shall, within 5 days after such request, mutually select a nationally
recognized investment banking firm with experience in valuing companies in the same industry as the Company, and if the Company
and Holder are unable to mutually select such a firm, then each of them shall select a nationally recognized investment banking
firm with experience in valuing companies in the same industry as the Company, and each such firm shall select a nationally recognized
investment banking firm with experience in valuing companies in the same industry as the Company (such mutually agreed upon firm
or third firm, as the case may be, the “Appraiser”). The Appraiser shall determine the Appraised Value, as described
below, and deliver its report thereof within 40 days after the Holder’s request to the Company therefor. The costs of the
Appraiser are to be paid by the Company, and the costs of any individually selected investment banking firms are to be paid by
the party that selected such firm.

 

    	4

    	 

    

The “Appraised Value”
means, as of the specified date, the following for the Company and its subsidiaries on a consolidated basis: the value that a willing
buyer and willing seller, with neither acting under compulsion, would agree upon for the purchase and sale of the Company in an
arm’s length transaction, without any discounts (including without limitation, for minority interest, illiquidity, voting
or transfer restrictions).

 

The “Book Value” means,
as of the specified date, the following for the Company and its subsidiaries on a consolidated basis: shareholders’ equity
(including retained earnings), as determined in accordance with GAAP, by the accountants regularly engaged to audit the Company’s
financial statements.

 

The “Formula Value”
means: the product of (x) six (6), multiplied by (y) EBIT plus depreciation, amortization and other non-cash charges deducted
in determining net income, calculated for the Company and its subsidiaries on a consolidated basis for the last four full fiscal
quarters ended immediately preceding the Valuation Date, as determined in accordance with GAAP, by the accountants regularly engaged
to audit the Company’s financial statements.

 

The “Trading Value”
means: (p) if the capital stock is then listed on a national stock exchange, the closing sale price of one share of capital stock
on such exchange on the last trading day prior to the Valuation Date, provided that if such stock has not traded in the prior ten
(10) trading sessions, the Fair Market Value shall be the average closing price of one share of capital stock in the most recent
ten (10) trading sessions during which the capital stock has traded; (q) if the capital stock is then included in The Nasdaq Stock
Market, Inc. (“Nasdaq”), the closing sale price of one share of capital stock on Nasdaq on the last trading
day prior to the Valuation Date or, if no such closing sale price is available, the average of the high bid and the low ask price
quoted on Nasdaq as of the end of the last trading day prior to the Valuation Date, provided that if such stock has not traded
in the prior ten (10) trading sessions, the Fair Market Value shall be the average closing price of one share of capital stock
in the most recent ten (10) trading sessions during which the capital stock has traded; (s) if the capital stock is then included
in the Over-the-Counter Bulletin Board the closing sale price of one share of capital stock on the Over-the-Counter Bulletin Board
on the last trading day prior to the Valuation Date or, if no such closing sale price is available, the average of the high bid
and the low ask price quoted on the Over-the-Counter Bulletin Board as of the end of the last trading day prior to the Valuation
Date, provided that if such stock has not traded in the prior ten (10) trading sessions, the Fair Market Value shall be the average
closing price of one share of capital stock in the most recent ten (10) trading sessions during which the capital stock has traded,
(t) if the capital stock is then included in the “pink sheets”, the closing sale price of one share of capital stock
on the “pink sheets” on the last trading day prior to the Valuation Date or, if no such closing sale price is available,
the average of the high bid and the low ask price quoted on the “pink sheets” as of the end of the last trading day
prior to the Valuation Date, provided that if such stock has not traded in the prior ten (10) trading session; the Fair Market
Value shall be the average closing price of one share of capital stock in the most recent ten (10) trading sessions during which
the capital stock has traded.

 

    	5

    	 

    

Article 3.                 
Reservation of Shares; Stock Fully Paid; Listing. The Company shall keep reserved a sufficient number of shares of the authorized
and unissued shares of capital stock, to provide for the exercise of the rights of purchase represented by this Warrant in compliance
with its terms. All Warrant Shares issued upon exercise of this Warrant shall be, at the time of delivery of the certificates for
such Warrant Shares upon payment in full of the Exercise Price therefor in accordance with the terms of this Warrant (or proper
exercise of the cashless exercise rights contained in Section 2.4 hereof), duly authorized, validly issued, fully paid and
non-assessable shares of capital stock of the Company. The Company shall during all times prior to the Expiration Date when the
shares of capital stock issuable upon the exercise of this Warrant are authorized for quotation on Nasdaq or listing on the New
York Stock Exchange (or authorized for listing or quotation on any other national securities exchange or the Over-the-Counter Bulletin
Board or the “pink sheets”, as the case may be), keep the shares of capital stock issuable upon the exercise of this
Warrant authorized for quotation on Nasdaq or listing on the New York Stock Exchange (or authorized for listing or quotation on
any other national securities exchange or the Over-the-Counter Bulletin Board or the “pink sheets”, as the case may
be).

 

Article 4.                 
Adjustments and Distributions. The number and kind of securities purchasable upon the exercise of this Warrant shall be
subject to adjustment from time to time upon the occurrence of certain events, as follows:

 

4.1.           
Splits, Dividends and Subdivisions. If the Company shall at any time or from time to time while this Warrant is outstanding,
pay a dividend or make a distribution on its capital stock in shares of capital stock, subdivide its outstanding shares of capital
stock into a greater number of shares or combine its outstanding shares of capital stock into a smaller number of shares, then
the number of Warrant Shares purchasable upon exercise of this Warrant in effect immediately prior to the date upon which such
change shall become effective shall be proportionally adjusted by the Company so that the Holder thereafter exercising this Warrant
shall be entitled to receive the number of shares of capital stock or other capital stock which the Holder would have received
if this Warrant had been fully exercised immediately prior to such event. Such adjustments shall be made successively whenever
any event listed above shall occur.

 

4.2.           
Recapitalization, reclassification or reorganization. If any recapitalization, reclassification or reorganization of the
capital stock of the Company (other than a change in par value or a subdivision or combination as provided for in Section 4.1
above) shall be effected in such a manner (including, without limitation, in connection with a consolidation or merger in which
the Company is the continuing corporation), that holders of capital stock shall be entitled to receive stock, securities, or other
assets or property (a “Reorganization”), then, as a condition of such Reorganization, lawful and adequate provisions
shall be made by the Company whereby the Holder hereof shall thereafter have the right to purchase and receive (in lieu of the
shares of the capital stock of the Company immediately theretofore purchasable and receivable upon the exercise of the rights represented
hereby) such shares of stock, securities or other assets or property as may be issued or payable with respect to or in exchange
for a number of outstanding shares of such capital stock equal to the number of shares of such capital stock immediately theretofore
purchasable and receivable upon the exercise of the rights represented hereby. In the event of any Reorganization, appropriate
provision shall be made by the Company with respect to the rights and interests of the Holder of this Warrant to the end that the
provisions hereof (including, without limitation, provisions for adjustments of the Warrant Price and of the number of Warrant
Shares) shall thereafter be applicable, in relation to any shares of stock, securities or assets thereafter deliverable upon the
exercise hereof. The provisions of this Section 4.2 shall similarly apply to successive Reorganizations.

 

    	6

    	 

    

4.3.           
Consolidation or Merger. If any consolidation or merger of the Company with another entity in which the Company is not the
survivor, or sale, transfer or other disposition of all or substantially all of the Company’s assets to another entity shall
be effected where the consideration for such consolidation or merger is entirely stock (i.e., it is a stock for stock transfer),
then, as a condition of such consolidation, merger, sale, transfer or other disposition, lawful and adequate provision shall be
made whereby the Holder shall thereafter have the right to purchase and receive upon the basis and upon the terms and conditions
herein specified and in lieu of the Warrant Shares immediately theretofore issuable upon exercise of this Warrant. such shares
of stock, securities or assets as would have been issuable or payable with respect to or in exchange for a number of Warrant Shares
equal to the number of Warrant Shares immediately theretofore issuable upon exercise of this Warrant, had such consolidation, merger,
sale, transfer or other disposition net taken place, and in any such case appropriate provision shall be made with respect to the
rights and interests of each Holder to the end that the provisions hereof (including, without limitation, provision for adjustment
of the Warrant Price and of the number of Warrant Shares) shall thereafter be applicable, as nearly equivalent as may be practicable
in relation to any shares of stock, securities or properties thereafter deliverable upon the exercise thereof. The Company shall
not effect any such consolidation, merger, sale, transfer or other disposition unless prior to or simultaneously with the consummation
thereof the successor entity, (if other than the Company) resulting from such consolidation or merger, or the entity purchasing
or otherwise acquiring such assets or other appropriate entity shall assume the obligation to deliver to the Holder such shares
of stock, securities or assets as, in accordance with the foregoing provisions, such Holder may be entitled to purchase, and the
other obligations under this Warrant. The provisions of this Section 4.3 shall similarly apply to successive consolidations, mergers,
sales, transfers or other dispositions.

 

4.4.           
Distributions. In case the Company shall fix a payment date for the making of a distribution to all holders of capital stock
of evidences of indebtedness or assets (other than dividends or distributions referred to in Section 4.1 hereof), or subscription
rights or warrants, the Holder shall be entitled to receive, simultaneous with the holders of capital stock, said assets or evidences
of indebtedness so distributed, or of such subscription rights or warrants, that the Holder would have received if this Warrant
had been fully exercised immediately prior to such event. In the event that the Company implements a shareholder rights plan, such
rights plan shall provide that upon exercise of this Warrant the Holder will receive, in addition to the capital stock issuable
upon such exercise, the rights issued under such rights plan (as if the Holder had exercised its Warrant prior to implementing
the rights plan and notwithstanding the occurrence of an event causing such rights to separate from the capital stock at or prior
to the time of exercise). Any distribution of rights or warrants pursuant to e shareholder rights plan complying with the requirements
set forth in the immediately preceding sentence of this paragraph shall not constitute a distribution of rights or warrants for
the purposes of this Section 4.4.

 

4.5.           
Other Securities. In the event that, as a result of an adjustment made pursuant to this Article 4, the Holder shall
become entitled to receive any shares of capital stock of the Company other than shares of capital stock, the number of such other
shares so receivable upon exercise of this Warrant shall be subject thereafter to adjustment from time to time in a manner and
on terms as nearly equivalent as practicable to the provisions with respect to the Warrant Shares contained in this Warrant.

 

    	7

    	 

    

4.6.           
Notice of Adjustments. With each adjustment pursuant to this Article 4, the Company shall deliver a certificate signed
by its chief financial or executive officer setting forth, in reasonable detail, the event requiring the adjustment, the amount
of the adjustment, the method by which such adjustment was calculated, the Warrant Price and the number of Warrant Shares purchasable
hereunder after giving effect to such adjustment, which shall be mailed by first class mail, postage prepaid to the Holder.

 

4.7.           
Parallel Warrants. If any Options or Convertible Securities now existing or hereafter granted or created has or have rights
protecting dilution or impairment that are more favorable than the rights granted in this Warrant, then, at the Holder’s
option and without further action of the Company, this Warrant shall be deemed amended, as practicably as possible, to have such
more favorable rights as such Options or Convertible Securities.

 

Article 5.                 
Transfer Taxes. The Company will pay any documentary stamp taxes attributable to the initial issuance of Warrant Shares
issuable upon the exercise of the Warrant; provided, however, that the Company shall not be required to pay any tax or taxes which
may be payable in respect of any transfer involved in the issuance or delivery of any certificates for Warrant Shares in a name
other titan that of the registered holder of this Warrant in respect of which such shares are issued, and in such case, the Company
shall not be required to issue or deliver any certificate for Warrant Shares or any Warrant until the person requesting the same
has paid to the Company Me amount of such tax or bas established to the Company’s reasonable satisfaction that such tax has
been paid.

 

Article 6.                 
Mutilated or Missing Warrants. In case this Warrant shall be mutilated, lost, stolen, or destroyed, the Company shall issue
in exchange and substitution of and upon cancellation of the mutilated Warrant, or in lieu of and substitution for the Warrant
lost, stolen or destroyed, a new Warrant of like tenor and for the purchase of a like number of Warrant Shares, but only upon receipt
of evidence reasonably satisfactory to the Company of such loss, theft or destruction of the Warrant, and with respect to a lost,
stolen or destroyed Warrant, reasonable assurance or bond with respect thereto, if requested by the Company.

 

Article 7.                 
Fractional Shares, No fractional shares of capital stock shall be issued in connection with any exercise or cashless exercise
hereunder, and in lieu of any such fractional shares the Company shall make a cash payment therefor to the Holder (or such other
person or persons as directed by the Holder) based on the Fair Market Value of a share of capital stock on the date of exercise
or cashless exercise of this Warrant.

 

Article 8.                 
Compliance with Securities Act and Legends. The Holder, by acceptance hereof, agrees that this Warrant and the shares of
capital stock to be issued upon exercise hereof, are being acquired for investment and that such Holder will not offer, sell or
otherwise dispose of this Warrant, or any shares of capital stock to be issued upon exercise hereof except under circumstances
which will not result in a violation of the Securities Act of 1933, as amended, or the rules and regulations promulgated thereunder,
as amended (the “Act”), or any state’s securities laws. Upon exercise of this Warrant, the Holder shall confirm
in writing, by executing the form attached as Schedule I to Appendix A hereto, that the shares of capital stock so purchased are
being acquired for investment and not with a view toward distribution or resale. All shares of capital stock issued upon exercise
of this Warrant (unless registered under the Act) shall be stamped or imprinted with the legends required by applicable state and
federal securities laws in the opinion of counsel to the Company.

 

    	8

    	 

    

Article 9.                 
Rights as Stockholders; Information. Except as expressly provided in this Warrant, the Loan Agreement or the Transaction
Documents, no Holder, as such, shall be entitled us vote or receive dividends or be deemed the holder of capital stock or any other
securities of the Company which may at any time be issuable on the exercise hereof for any purpose, nor shall anything contained
herein be construed to confer upon the Holder, as such, any of the rights of a stockholder of the Company or any right to vote
for the election of the directors or upon any manner submitted to stockholders at any meeting thereof, or to receive notice of
meetings, or to receive dividends or subscription right, or otherwise, until this Warrant shall have been exercised and the Warrant
Shares purchasable upon the exercise hereof shall have become deliverable, as provided herein. The foregoing notwithstanding, the
Company will transmit to the holder of this Warrant such information, documents and reports as are generally distributed to the
holders of any class or series of the securities of the Company concurrently with the distribution thereof to the stockholders,
except for trade secret information, patentable or patent pending information, board of directors information, or other information
or notices that would not be ordinarily available or provided to a stockholder without execution of a confidentiality agreement,
and will continue for so long as this Warrant is outstanding to deliver to Holder the information required under the Loan Agreement
whether or not the loan remains outstanding.

 

Article 10.             
Modification and Waiver. This Warrant and any provision hereof may be changed, waived, discharged or terminated only by
an instrument in writing signed by the Company and the then current Holder, and such change, waiver, discharge or termination shall
be binding on all future Holders.

 

Article 11.             
Notices. All notices, requests, consents and other communications hereunder shall be in writing, shall be addressed to the
receiving party’s address set forth below or to such other address as a party may designate by notice hereunder, and shall
be either (i) delivered by hand, (ii) made by facsimile, (iii) sent by a recognized overnight courier, or (iv) sent by certified
mail, return receipt requested, postage prepaid.

 

	 	If to Lender:	PO Box 990
	 	 	Trenton, New Jersey 08625-0990
	 	 	Telephone: 609-292-0188
	 	 	Facsimile: 609-633-7751
	 	 	Attention: Director-Portfolio Services
	 	 	 
	 	If to Borrower:	211 Warren Street
	 	 	Newark, New Jersey 07103
	 	 	Telephone: 800-208-3343
	 	 	Attention: Brian A. Leuthner, President and CEO

or to such other address as any party hereto
shall notify the other parties hereto (as provided above) from time to time.

 

    	9

    	 

    

Article 12.             
All notices, requests, consents and other communications hereunder shall be deemed to have been given either (i) if by hand,
at the time of the delivery thereof to the receiving party at the address of such party set forth above, (ii) if made by facsimile,
at the time that receipt thereof has been acknowledged by electronic confirmation or otherwise, (iii) if sent by overnight courier,
on the next Business Day following the day such notice is delivered to the courier service, or (iv) if sent by registered or certified
mail, on the fifth (5th) Business Day following the day such mailing is made.

 

Article 13.             
Descriptive Headings. The descriptive headings contained in this Warrant are inserted for convenience only and do not constitute
a part of this Warrant.

 

Article 14.             
Governing Law; Consent to Jurisdiction. This Warrant shall be governed by, and construed in accordance with, the internal
laws of the State of New Jersey, without reference to the choice of law principles thereof. Any legal action. suit or proceeding
arising out of or relating to this Warrant, or the transactions contemplated hereby, shall only be instituted, heard and adjudicated
(excluding appeals) in a state or federal court located in the State of New Jersey, and each party hereto knowingly, voluntarily
and intentionally waives any objection which such party may now or hereafter have to the laying of the venue of any such action,
suit or proceeding, and irrevocably submits to the exclusive personal jurisdiction of any such court in any such action, suit or
proceeding. Service of process in connection with any such action, suit or proceeding may be served on each party hereto anywhere
in the world by the same methods as are specified for the giving of notices under this Warrant except as otherwise required by
law. Notwithstanding the foregoing to the contrary, the Holder may institute and prosecute any action, suit or proceeding in any
court of competent jurisdiction it shall deem advisable in connection the enforcement of its rights hereunder.

 

Article 15.             
Waiver of Jury Trial. Each party acknowledges and agrees that any controversy which may arise under this Warrant is likely
to involve complicated and difficult issues. ACCORD1NGLY, EACH SUCH PARTY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY IRREVOCABLY
AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY
ARISING OUT OF OR RELATING TO THIS WARRANT OR THE TRANSACTIONS CONTEMPLATED HEREBY. Each party certifies and acknowledges that
(i) no other party bas represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to
enforce the foregoing waiver, (ii) each such party understands and has considered the implications of this waiver, and (iii) cash
such party has been induced to enter into this Warrant by, among other things, the waivers and certifications in this Article 15.

 

Article 16.             
Acceptance. Receipt of this Warrant by the Holder hereof shall constitute acceptance of and agreement to the foregoing terms
and conditions.

 

Article 17.             
No Impairment of Rights. The Company shall not, by amendment of its Certificate of Incorporation or through any other means,
avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist
in the carrying out of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect
the rights of the holder of this Warrant against material impairment.

 

    	10

    	 

    

Article 18.             
Assignment. A Holder may transfer its rights hereunder, in whole or in part, to any other Person provided that written notice
is given to the Company of any such transfer and such transfer is in accordance with applicable law. Upon receipt by the Company
of notice by a Holder of a transfer of any portion of this Warrant, the Company shall promptly deliver to a transferee a Warrant
in the form hereof exercisable for the number of Warrant Shares the right of which to purchase has been transferred. In addition
to, and not in limitation of, the foregoing, a Holder that is a corporation, a partnership or a limited liability company, may
distribute any portion of a warrant to its respective shareholders, partners or members.

 

Article 19.             
Severability. In the event that any court of competent jurisdiction shall determine that any provision, or any portion thereof,
contained in this Warrant shall be unenforceable in any respect, then such provision shall be deemed limited to the extent that
such court deems it enforceable, and as so limited shall remain in full force and effect. In the event that such court shall deem
any such provision, or portion thereof, wholly unenforceable, the remaining provisions of this Warrant shall nevertheless remain
in full force and effect.

 

Article 20.             
Shareholders Agreement. If this Warrant is exercised pursuant to Section 2.2 the Holder shall enter into a shareholders
agreement, stock purchase agreement, voting agreement, investors rights agreement or other such agreements if such an agreement
is entered into by all of the holders of at least 1% of the same class or series of the Company’s capital stock (on a fully
diluted basis), subject to receiving e side letter containing the provisions set forth in Appendix C attached hereto.

 

IN WITNESS WHEREOF, the Company has caused
this Warrant to be executed on its behalf by one of its officers thereunto duly authorized.

 

COMPANY:

EDGE THERAPEUTICS, INC.

 

By:/s/ Brian A. Leuthner

Name: Brian A. Leuthner

Title:President and CEO

Dated:May 3, 2010

 

    	11

    	 

    

APPENDIX
A

 

NOTICE OF EXERCISE

 

To:Edge Therapeutics, Inc. (Company”)

 

1.The undersigned hereby elects to
purchase _____ of the outstanding shares of capital stock of COMPANY pursuant to the terms of the attached Warrant.

 

2.Please issue a certificate or certificates
representing said shares in the name of the undersigned or in such other name or names as are specified below

 

New Jersey Economic Development Authority

36 West State Street

PO Box 990

Trenton, New Jersey 08625-0990

	By:	 
	Name:	 
	Title:	 
	Date:	 

3.Please issue a new Warrant of equivalent
form and tenor for the unexercised portion of the attached Warrant in the name of the undersigned or in such other name as is specified
below.

 

New Jersey Economic Development Authority

 

	By:	 
	Name:	 
	Title:	 
	Date:	 

    	12

    	 

    

SCHEDULE
I

 

INVESTMENT REPRESENTATION STATEMENT

 

	Purchaser:	New Jersey Economic Development Authority
	Company:	Edge Therapeutics, Inc.
	Security:	Capital Stock	 
	Amount	 	 
	Date:	 	 

In connection with the purchase of the
above-listed securities (the “Securities”), the undersigned (the “Purchaser”) represents
to the Company as follows:

 

(a)The Purchaser is aware of the Company’s
business affairs and financial condition, and has acquired sufficient information about the Company to reach an informed and knowledgeable
decision to acquire the Securities. The Purchaser is purchasing the Securities for his own account for investment purposes only
and not with a view to, or for the resale in connection with, any “distribution” thereof for purposes of the Securities
Act of 1933, as amended (the “Act’.

 

(b)The Purchaser understands that the
Securities have not been registered under the Act in reliance upon a specific exemption therefrom, which exemption depends upon,
among other things, the bone fide nature of the Purchaser’s investment intent as expressed herein. In this connection, the
Purchaser understands that, in the view of the Securities and Exchange Commission (“SEC”), the statutory basis
for such exemption may be unavailable if the Purchaser’s representation was predicated solely upon a present intention to
hold these Securities for the minimum capital gains period specified under applicable tax laws, for a deferred sale, for or until
an increase or decrease in the market price of the Securities, or for a period of one year or any other fixed period in the future.

 

(e)The Purchaser further understands
that the Securities must he held indefinitely unless subsequently registered under the Act or unless an exemption from registration
is otherwise available. In addition, the Purchaser understands that the certificate evidencing the Securities will be imprinted
with the legend referred to in the Warrant under which the Securities are being purchased.

 

(d)The Purchaser is aware of the provisions
of Rule 144 and 144A, promulgated under the Act, which, in substance, permit limited public resale of “restricted securities”
acquired, directly or indirectly, from the issuer thereof (or from an affiliate of such issuer), in a non-public offering subject
to the satisfaction of certain conditions, if applicable, including, among other things: The availability of certain public information
about the Company, the resale occurring not less than one (1) year after the party has purchased and paid for the securities to
be sold; the sale being made through a broker in an unsolicited “broker’s transaction” or in transactions directly
with a market maker (as said term is defined under the Securities Exchange Act of 1934, as amended) and the amount of securities
being sold during any three-month period not exceeding the specified limitations stated therein.

 

    	13

    	 

    

(e)The Purchaser further understands
that at the time it wishes to sell the Securities there may be no public market upon which to make such a sale, and that, even
if such a public market then exists, the Company may not be satisfying the current public information requirements of Rule 144
and 144A, and that, in such event, the Purchaser may be precluded from selling the Securities under Rule 144 and 144A even if the
one-year minimum holding period had been satisfied.

 

(f)The Purchaser further understands
that in the event all of the requirements of Rule 144 and 144A are not satisfied, registration under the Act, compliance with Regulation
A, or some other registration exemption will be required; and that, notwithstanding the fact that Rule 144 is not exclusive, the
Staff of the SEC has expressed its opinion that persons proposing to self private placement securities other than in a registered
offering and otherwise than pursuant to Rule 144 will have a substantial burden of proof in establishing that an exemption from
registration is available for such offers or sales, and that such persons and their respective brokers who participate in such
transactions do so at their own risk.

 

	 	NEW JERSEY ECONOMIC DEVELOPMENT

 AUTHORITY
	 	By:	 
	 	Name:	 
	 	Title:	 

    	14

    	 

    

APPENDIX
B

 

NET ISSUE ELECTION NOTICE

 

	To:	Edge Therapeutics, Inc.
	Date:	 

The undersigned hereby elects under Section
2.3 of this Warrant to surrender the right to purchase ___________ of the outstanding shares of capital stock pursuant to this
Warrant and hereby requests the issuance of such shares of capital stock. The certificate(s) for the shares issuable upon such
net issue election shall be issued in the name of the undersigned or as otherwise indicated below.

 

	 

Signature

 

New Jersey Economic Development Authority

Name for Registration

 

PO Box 990

Trenton, New Jersey 08625-0990

Attn: Portfolio Services

Mailing Address

 

36 West State Street

Trenton, New Jersey 08625

Attn: Portfolio Services

Delivery Address

 

    	15

    	 

    

APPENDIX
C

 

Immunities. The
Company understands and acknowledges that the NJEDA reserves all immunities, defenses, rights or actions arising out of its status
as a sovereign entity, including those under the Eleventh Amendment to the United States Constitution and applicable New Jersey
law. No provision of this letter agreement or the Shareholders Agreement shall be construed as a waiver or limitation of such immunities,
defenses, rights or actions. Due to the NJEDA’s status as a sovereign entity, notwithstanding anything to the contrary in
this letter agreement or the Shareholders Agreement, any claims asserted against the NJEDA arising out of aforesaid agreements
shall be subject to such immunities, defenses, rights or actions, including, but not limited to the New Jersey Tort Claims Act
(N.J.S.A 59:1-1 et seq.) and the New Jersey Contractual Liability Act (N.J.S.A. 59:13-1 et seq.).

 

Indemnification.
The Company acknowledges that the NJEDA does not have authority to provide indemnification and agrees that the NJEDA shall not
be obligated to provide indemnification to any other party in connection with its investment in the Company and that its allure
to provide such indemnification shall not constitute a breach under this letter agreement or the Shareholders Agreement.

 

Public Disclosure. The
Company acknowledges that the NJEDA is a public agency subject to New Jersey state laws, regulations and policies and applicable
case law which could result in the disclosure of information regarding the Company that is provided to the NJEDA, including without
limitation, the Open Public Records Act, NJSA 47.1A-1 et seq., which provides for government records to be readily accessible for
inspection, copying or examination by citizen. NJEDA shall not be required to maintain the confidentiality of non-public information
furnished to the NJEDA in connection with its investment in the Company to the extent the NJEDA is required to disclose such confidential
information pursuant to the Open Public Records Act, NJSA. 47:1A-1 et seq., as determined by the NJEDA in its reasonable discretion.

 

New Jersey Venue.
By reason of the laws, regulations and public policies of the State of New Jersey applicable to the NJEDA as a governmental entity
in the State of New Jersey, the Company freely agrees that, notwithstanding anything to the contrary in this letter agreement or
the Shareholders Agreement, any legal proceeding involving any claim asserted arising out of or related to this letter agreement
or the Shareholder Agreement that (i) is brought by the Company against the NJEDA may be brought only in, and shall be subject
to the exclusive jurisdiction of, the trial division of the Superior Court of the State of New Jersey, and that such proceeding
shall be governed by the procedural rules and laws of the State of New Jersey, without regard to principles of conflicts of law
and (ii) is brought by the NJEDA against the Company may be brought in, and subject to the jurisdiction of, the Superior Court
of the State of New Jersey, in which case such proceeding shall be governed by the procedural rules and laws of the State of New
Jersey, without regard to principles of conflicts of law. The Company agrees that the NJEDA shall not be deemed to have waived
any objection that it may now or hereafter have to the laying of jurisdiction or venue of any such action or proceeding in the
courts of any state other than the courts of the State of New Jersey, nor deemed to waive any claim that any such action or proceeding
brought in any such court has been brought in a court without jurisdiction or an inconvenient or improper forum.

    	16

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