Document:

exv10w1

 

Exhibit 10.1

PLEXUS CORP.

STOCK APPRECIATION RIGHTS AGREEMENT

	 	 	 
	TO:

	 	«FIRST_NAME» «LAST_NAME»
	DATE:

	 	«FIRST_NAME»

     In order to provide additional incentive through stock ownership for certain officers and key
employees of Plexus Corp. (the “Corporation”) and its subsidiaries, you (the “Grantee”) are hereby
granted a Stock Appreciation Right (“SAR”) effective as of                                          (the “Grant Date”),
with respect to                                         shares of the Corporation’s Common Stock at a grant price per
share of $                                         (the “Grant Price”).

     This SAR is subject to the terms and conditions set forth in this Agreement and in the Plexus
Corp. 2005 Equity Incentive Plan (the “Plan”), the terms of which are incorporated herein by
reference. This SAR shall become exercisable as follows:

	 	 	 
	Years After	 	Percentage of Grant
	Grant Date	 	Which May Be Exercised
	 
	 	 
	Less than 1
	 	0%
	 
	 	 
	1 but less than 2
	 	Fifty percent (50%)
	 
	 	 
	2 or more
	 	One hundred percent (100%)

     This SAR will lapse after seven (7) years from the Grant Date and thus may not be exercised
thereafter. No part of this SAR is transferable or assignable, in whole or in part, unless
otherwise provided for in the Plan.

     You may exercise this SAR provided that it meets all vesting requirements, by logging on to
www.etrade.com/stockplans.com or by calling E*Trade at 800.838.0908 in the U.S. or 1.650.599.0125
outside the U.S. The website provides you with detailed instructions on how to exercise SARs as
well as other relevant information pertaining to your grant. Keep in mind that if you are
considered an “insider” you are subject to blackout restrictions which may prevent exercise during
certain time periods referred to as the ‘blackout period”. If you are considered an “insider” you
have been notified of the restrictions via email.

     Upon exercise, you will receive the number of shares of Common Stock (rounded down to the
nearest whole share) equal to (a) the excess, if any, of the Fair Market Value per share on the
exercise date over the Grant Price per share of the SAR, multiplied by (b) the number of SARs being
exercised pursuant to such notice, divided by (c) the Fair Market Value per share on the exercise
date.

     This SAR shall terminate on the date you cease to be employed by the Corporation or its
subsidiaries, except that (i) during the three-month period following the date of such termination

-1-

 

of employment and if such termination is not for cause, you shall be entitled to exercise the SAR
granted hereunder to the extent such SAR was exercisable on the date of the termination of your
employment, and (ii) during the one-year period following the date of termination of employment due
to disability or death, you or your representative shall be entitled to exercise the SAR granted
hereunder in full (to the extent not previously exercised). Such three-month or one-year period
shall not, however, extend the term of any SAR beyond the date such SAR would otherwise have
lapsed.

     Prior to the exercise of an SAR you should consult your tax advisor regarding the tax
consequences thereof. No shares shall be issued upon exercise of an SAR until withholding taxes,
if any, and any other withholding obligation, if any, have been satisfied (as applicable). The
Committee may provide that, if and to the extent withholding of any federal, state or local tax is
required in connection with the exercise of an SAR, the Grantee may elect, at such time and in such
manner as the Committee may prescribe, to have the Corporation hold back from the shares to be
issued, the number of shares of Common Stock calculated to have a Fair Market Value equal to such
withholding obligation.

     Under applicable securities laws, you may not be able to sell any shares for a period of time
after your purchase, and you must comply with the Company’s Insider Trading Restrictions and
Policies (copy attached). The Corporation’s counsel should be consulted on your ability to sell
your shares under the 1934 Act.

     The Plan provides that no SAR may be exercised unless the Plan is in full compliance with all
laws and regulations applicable thereto.

     No amendment, modification or waiver of this Agreement, in whole or in part, shall be binding
unless consented to in writing by the Corporation and no amendment may cause any Grantee to be
unfavorably affected with respect to any SAR already granted hereunder.

     Neither the establishment of, nor the awarding of SARs under this Plan shall be construed to
create a contract of employment between any Grantee and the Corporation or its subsidiaries; nor
does it give any Grantee the right to continue in the employment of the Corporation or its
subsidiaries or limit in any way the right of the Corporation or its subsidiaries to discharge any
Grantee at any time and without notice, with or without cause, or to any benefits not specifically
provided by this Plan, or in any manner modify the Corporation’s right to establish, modify, amend
or terminate any profit sharing, retirement or other benefit plans.

     To accept this grant, agreement and other linked materials please logon with your user name
and password to www.etrade.com/stockplans.com and select the SARs page. This grant will be listed
at the bottom of all prior grants and will be labeled in the status column as “Requires
Acceptance”. Clicking on this link will take you to the Grant Acceptance page which will allow you to view and print (recommended) all applicable documents
related to this grant. To accept the grant and all applicable documents you will type in your
password and click accept. By accepting this grant online you acknowledge and accept this grant
and the terms and conditions. You also acknowledge receipt of this Stock Appreciation Rights
Agreement, a copy of the 2005 Equity Incentive Plan, and a copy of the Insider Trading Restrictions
and Policies. If this grant is not

-2-

 

accepted online within 30 days from the grant date of this
Agreement, this SAR will be deemed refused and may be withdrawn.

     The terms of the Plan shall have precedence over any terms in this Agreement that are
inconsistent therewith.

	 	 	 	 	 
	 	PLEXUS CORP.

 	 
	 	By:  	/s/
 	 
	 	 	 	 
	 	 	 	 
	 

-3-exv4w1

 

Exhibit 4.1

Execution Version

 

 

DISCOVER CARD EXECUTION NOTE TRUST

Issuer

and

U.S. BANK NATIONAL ASSOCIATION

Indenture Trustee

CLASS C(2007-2) TERMS DOCUMENT

Dated as of August 31, 2007

to

INDENTURE SUPPLEMENT

Dated as of July 26, 2007

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	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.01.

	 	Definitions
	 	 	1	 
	Section 1.02.

	 	Representations and Warranties of Issuer
	 	 	6	 
	Section 1.03.

	 	Representations and Warranties of Indenture Trustee
	 	 	7	 
	Section 1.04.

	 	Limitations on Liability
	 	 	7	 
	Section 1.05.

	 	Governing Law
	 	 	7	 
	Section 1.06.

	 	Counterparts
	 	 	8	 
	Section 1.07.

	 	Ratification of Indenture and Indenture Supplement
	 	 	8	 
	
ARTICLE II	 	 	 	 
	
The Class C(2007-2) Notes	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.01.

	 	Creation and Designation
	 	 	8	 
	Section 2.02.

	 	Adjustments to Required Subordinated Amount
	 	 	8	 
	Section 2.03.

	 	Interest Payment
	 	 	8	 
	Section 2.04.

	 	Notification of LIBOR
	 	 	9	 
	Section 2.05.

	 	Payments of Interest and Principal
	 	 	9	 
	Section 2.06.

	 	Form of Delivery of Class C(2007-2) Notes; Depository;
Denominations
	 	 	10	 
	Section 2.07.

	 	Delivery and Payment for the Class C(2007-2) Notes
	 	 	11	 
	Section 2.08.

	 	Targeted Deposits to the Accumulation Reserve Account
	 	 	11	 
	Section 2.09.

	 	Additional Issuances of Notes
	 	 	11	 

Exhibit

Exhibit A      Form of Class C Note     

 

 

     THIS CLASS C(2007-2) 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 31, 2007.

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

ARTICLE I

Definitions and Other Provisions of General Application

     Section 1.01. Definitions. For all purposes of this Terms Document, except as otherwise
expressly provided or unless the context otherwise requires:

     (1) the terms defined in this Article have the meanings assigned to them in this Article, and
include the plural as well as the singular;

     (2) all other terms used herein which are defined in the Indenture Supplement or the
Indenture, either directly or by reference therein, have the meanings assigned to them therein;

     (3) all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles and, except as otherwise herein expressly
provided, the term “generally accepted accounting principles” with respect to any computation
required or permitted hereunder means such accounting principles as are generally accepted in the
United States of America at the date of such computation;

     (4) all references in this Terms Document to designated “Articles,” “Sections” and other
subdivisions are to the designated Articles, Sections and other subdivisions of this Terms
Document; The words “herein,” “hereof” and “hereunder” and other words of similar import refer to
this Terms Document as a whole and not to any particular Article, Section or other subdivision;

     (5) in the event that any term or provision contained herein shall conflict with or be
inconsistent with any term or provision contained in the Indenture Supplement or the Indenture, the
terms and provisions of this Terms Document shall be controlling, but solely with respect to the
Class C(2007-2) Notes;

     (6) each capitalized term defined herein shall relate only to the Class C(2007-2) 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 $16,666,666.67; provided, however, if the commencement of the
Accumulation Period is delayed in accordance with Section 4.02 of the Indenture Supplement, the
Accumulation Amount shall be determined in accordance with the definition of “Accumulation Amount”
in the Indenture Supplement.

     “Accumulation Commencement Date” means September 15, 2009 (or, if such day is not a Business
Day, the next succeeding Business Day), or such later date as the Calculation Agent on behalf of
the Issuer determines in accordance with Section 4.02 of the Indenture Supplement.

     “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 4.02 of the Indenture Supplement, 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 C(2007-2) Notes and

     (y) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class
C(2007-2) Notes is paid in full.

	 	 	 
	Distribution Date:	 	Condition:
	(a) The Distribution Date occurring
three (3) calendar months prior to
the first scheduled Distribution
Date of the Accumulation Period (as
adjusted in accordance with Section
4.02 of the Indenture Supplement)
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
4.02

	 	The three-month rolling average
Excess Spread Percentage is less than 4%.

2

 

	 	 	 
	Distribution Date:	 	Condition:
	of the Indenture Supplement)
and any following Distribution Date
	 	 
	 
	 	 
	(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 4.02 of
the Indenture Supplement) 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
4.02 of the Indenture Supplement)
and any following Distribution Date

	 	The three-month rolling average
Excess Spread Percentage is less
than 2%.

     “Class C(2007-2) Adverse Event” means the occurrence of any of the following: (a) an Early
Redemption Event with respect to the Class C(2007-2) Notes or (b) an Event of Default and
acceleration of the Class C(2007-2) 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 C(2007-2) Adverse Event shall not be treated as continuing from and
after the date of such cure.

     “Class C(2007-2) Note” means any Note, in the form set forth in Exhibit A hereto, designated
therein as a Class C(2007-2) Note and duly executed and authenticated in accordance with the
Indenture.

     “Class C(2007-2) Noteholder” means a Person in whose name a Class C(2007-2) Note is registered
in the Note Register.

     “Class C(2007-2) Termination Date” means the earliest to occur of (a) the Principal Payment
Date on which the Outstanding Dollar Principal Amount of the Class C(2007-2) 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 C Reserve Account Percentage” means, for any Distribution Date on which a condition in
the left column of the following table was in effect on the immediately preceding Distribution
Date, the percentage in the corresponding right column of the following table (or if more than one
conditions were in effect on the immediately preceding Distribution Date, the largest percentage).

3

 

	 	 	 	 	 
	Condition:

	 	Class C Reserve Account Percentage:

	 
	 	 	 	 
	The three-month rolling average Excess
Spread Percentage is:
	 	 	 	 
	 
	 	 	 	 
	(a) 4.50% or greater

	 	 	0	%
	 
	 	 	 	 
	(b) 4.00% to 4.49%

	 	 	1.25	%
	 
	 	 	 	 
	(c) 3.50% to 3.99%

	 	 	2.00	%
	 
	 	 	 	 
	(d) 3.00% to 3.49%

	 	 	2.75	%
	 
	 	 	 	 
	(e) 2.50% to 2.99%

	 	 	3.50	%
	 
	 	 	 	 
	(f) 2.00% to 2.49%

	 	 	4.50	%
	 
	 	 	 	 
	(g) less than 2.00%, or

	 	 	6.00	%
	an Early Redemption Event or Event of
Default for the Class C(2007-2) Notes
has occurred and is continuing.
	 	 	 	 

     “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.

     “Expected Maturity Date” means August 16, 2010.

     “Indenture” means the Indenture dated as of July 26, 2007 between the Issuer and Indenture
Trustee, as the same may be amended, supplemented, restated, amended and restated, replaced or
otherwise modified from time to time.

     “Indenture Supplement” means the Indenture Supplement dated as of July 26, 2007 for the
DiscoverSeries Notes, by and between the Issuer and the Indenture Trustee, as the same may be
amended, supplemented, restated, amended and restated, replaced or otherwise modified from time to
time.

     “Initial Dollar Principal Amount” means $200,000,000, 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 (or, in the case of the first Interest Payment
Date for any Class C(2007-2) Note, from and including the applicable Issuance Date) to but
excluding such Interest Payment Date.

4

 

     “Interest Payment Date” means the fifteenth day of each month commencing in September 2007, or
if such fifteenth day is not a Business Day, the next succeeding Business Day.

     “Issuance Date” means August 31, 2007 with respect to all Class C(2007-2) Notes issued on the
date hereof and, with respect to any additional Class C(2007-2) Notes issued pursuant to Section
2.09, any Issuance Date specified in the Notice of Additional Issuance delivered thereunder.

     “Legal Maturity Date” means February 15, 2013.

     “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 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 Determination Date” means the second LIBOR Business Day immediately preceding the
commencement of an Interest Accrual Period.

     “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.

     “Note Interest Rate” means LIBOR +1.55% 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.

     “Required Daily Deposit Target Finance Charge Amount” means, for any day in a Due Period, an
amount equal to the Class C 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 C 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 C Tranche
Interest Allocation determined based on a pro forma calculation made on the

5

 

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 C(2007-2) Notes, the Accumulation
Amount, (ii) if such day is on or after the occurrence and during the continuance of a Class
C(2007-2) Adverse Event, the Nominal Liquidation Amount of the Class C(2007-2) Notes, and (iii) in
all other circumstances, zero.

     “Required Subordinated Amount of Class D Notes” means, for the Class C(2007-2) Notes for any
date of determination, zero, 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).

     “Specified Rating” means, for the Class C(2007-2) Notes, BBB with respect to Standard & Poors,
Baa2 with respect to Moody’s and BBB with respect to Fitch.

     “Stated Principal Amount” means $200,000,000 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 C(2007-2) 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; provided, however, that if such designation is of a lesser amount, the applicable Note
Rating Agencies shall have provided prior written confirmation that a Ratings Effect will not occur
with respect to such change.

     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 obligations of the Issuer,
except as the same may be limited by receivership, insolvency, reorganization, moratorium or other
laws relating to the enforcement of creditors’ rights generally or by general equity principles;

6

 

     (d) to the best of the Issuer’s knowledge, this Terms Document will not conflict with any law
or governmental regulation or court decree applicable to it;

     (e) the Issuer is not required to be registered under the Investment Company Act;

     (f) all information heretofore furnished by the Issuer in writing to the Indenture Trustee for
purposes of or in connection with this Terms Document or any transaction contemplated hereby is,
and all such information hereafter furnished by the Issuer in writing to the Indenture Trustee will
be, true and accurate in every material respect or based on reasonable estimates on the date as of
which such information is stated or certified; and

     (g) to the best knowledge of the Issuer, there are no proceedings or investigations pending
against the Issuer before any court, regulatory body, administrative agency, or other tribunal or
governmental instrumentality having jurisdiction over the Issuer (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
this Indenture, 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,

7

 

warranty or covenant made or undertaken by
the Issuer under this Terms Document or any related documents.

     (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 these Class C(2007-2) 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 C(2007-2) Notes

     Section 2.01. Creation and Designation. There is hereby created a Tranche of Class C Notes to
be issued pursuant to the Indenture and the Indenture Supplement to be known as the “DiscoverSeries
Class C(2007-2) Notes.”

     Section 2.02. Adjustments to Required Subordinated Amount.

     (a) On any date, the Issuer may change the Required Subordinated Amount of Class D Notes for
the Class C(2007-2) Notes (though not below zero) and may add such definitions and other terms and
make such additional amendments to this Terms Document as shall be necessary to determine such
Required Subordinated Amount of Class D 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 and such other amendments will not result in a Ratings Effect for any
Tranche of Outstanding DiscoverSeries Notes; provided, however, that at any time the Class D Notes
are or will be held by Discover Bank or any of its affiliates, the Required Subordinated Amount of
Class D Notes for these Class C(2007-2) Notes may not be increased above zero.

     (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 D Notes for the Class C(2007-2) Notes with a
different form of credit enhancement (including, without limitation, a cash collateral

8

 

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 and such other amendments will not result in a Ratings
Effect for any Tranche of Outstanding DiscoverSeries Notes.

     Section 2.03. Interest Payment. For each Interest Payment Date, the amount of interest due
with respect to the Class C(2007-2) 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 C(2007-2)
Notes determined as of the first date of such related Interest Accrual Period,
plus

any Class C Tranche Interest Allocation Shortfall for such Class C(2007-2) 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 C(2007-2) 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 C(2007-2) Adverse Event has
occurred and is continuing, principal will instead be payable in monthly installments on each
Principal Payment Date for the Class C(2007-2) Notes in accordance with Sections 3.01 and 3.05 of
the Indenture Supplement. All payments of interest and principal on the Class C(2007-2) Notes
shall be made as set forth in Section 1101 of the Indenture.

     (b) The right of the Class C(2007-2) Noteholders to receive payments from the Issuer will
terminate on the Class C(2007-2) Termination Date.

9

 

     (c) All payments of principal, interest or other amounts to the Class C(2007-2) Noteholders
will be made pro rata based on the Stated Principal Amount of their Class C(2007-2) Notes.

     Section 2.06. Form of Delivery of Class C(2007-2) Notes; Depository; Denominations.

     (a) The Class C(2007-2) Notes shall be delivered in the form of a Registered Note as provided
in Section 204 of the Indenture. The form of the Class C(2007-2) Notes is attached hereto as
Exhibit A.

     (b) The Class C(2007-2) 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 THE
DISCOVER CARD EXECUTION NOTE TRUST 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 OR ITS 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 C(2007-2) Notes shall be transferred except in accordance with the transfer restrictions
described in the legend set forth above.

     (c) The Class C(2007-2) Notes will be issued in minimum denominations of $100,000 and
integral multiples of $1,000 in excess of that amount.

10

 

     Section 2.07. Delivery and Payment for the Class C(2007-2) Notes. The Issuer shall execute
and deliver the Class C(2007-2) Notes to the Indenture Trustee for authentication, and the
Indenture Trustee shall deliver the Class C(2007-2) 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 C(2007-2) Notes for any Due Period
during the Accumulation Reserve Funding Period will be an amount equal to the Targeted Accumulation
Reserve Subaccount Deposit minus any amount on deposit in the Accumulation Reserve Subaccount for
the Class C(2007-2) 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
C(2007-2) 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 C(2007-2) 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 C(2007-2) Notes;
	 
	 	(ii)	 	the amount of such additional Class C(2007-2) Notes being
offered and the resulting Initial Dollar Principal Amount and Stated Principal
Amount of Class C(2007-2) Notes;
	 
	 	(iii)	 	the date from which interest on such additional Class
C(2007-2) Notes will accrue (which may be a date prior to the date of issuance
thereof);
	 
	 	(iv)	 	the first Interest Payment Date on which interest will be paid
on such additional Class C(2007-2) Notes; and
	 
	 	(v)	 	any other terms that the Issuer set forth in such notice of
issuance of additional Class C(2007-2) Notes to clarify the rights of Holders
of such additional Class C(2007-2) Notes or the effect of such issuance of
additional Class C(2007-2) Notes on any calculations to be made with respect to
the Class C(2007-2) Notes, Class C, 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 C(2007-2) Notes; and

     (b) no Class C(2007-2) 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 C(2007-2) Notes so long as such conditions were
satisfied or waived in connection with the initial issuance of Class C(2007-2) Notes.

[Remainder of page intentionally blank; signature page follows]

11

 

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 Luce
 	 
	 	 	Name:  	Jennifer A. Luce 	 
	 	 	Title:  	Sr. Financial Services Officer 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as Indenture Trustee

 	 
	 	By:  	/s/  Patricia M. Child
 	 
	 	 	Name:  	Patricia M. Child 	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page to Class C(2007-2) Terms Document]

 

 

Exhibit A

DISCOVERSERIES CLASS C(2007-2) 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 THE DISCOVER CARD EXECUTION NOTE
TRUST 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 OR ITS 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.

 

 

     DISTRIBUTIONS OF PRINCIPAL AND INTEREST TO THE HOLDER OF THIS CLASS C NOTE ARE SUBORDINATE TO
THE PAYMENT ON EACH DISTRIBUTION DATE OF PRINCIPAL OF AND INTEREST ON THE CLASS A NOTES AND CLASS B
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.

2

 

			
	REGISTERED
	 	up to $200,000,000 *

DISCOVER CARD EXECUTION NOTE TRUST

Floating Rate

DISCOVERSERIES CLASS C(2007-2) 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 $200,000,000 (two hundred million dollars)
payable on the August 16, 2010 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 February 15, 2013 Payment Date (the “Legal Maturity Date”).
Interest will accrue on this Note at the rate of one-month LIBOR + 1.55% per annum, as more
specifically set forth in the Class C(2007-2) Terms Document dated August 31, 2007 (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 (or, in the case of the first Interest Payment Date for any Class
C(2007-2) Notes, from and including the applicable Issuance 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 and interest may be payable monthly, and may be payable earlier or later than
the Expected Maturity Date, following an Event of Default or while an Early Redemption Event has
occurred and is continuing. No principal or interest will be distributed on the Note following the
distribution of proceeds of a Receivables Sale.

     Series Principal Amounts allocated to these Class C(2007-2) Notes will be applied first to pay
shortfalls in interest on Class A Notes and Class B 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 and Class B Notes, including Targeted Prefunding
Deposits, before being applied to make Targeted Principal Deposits to the Principal Funding
Subaccounts of Subordinate Notes, including these Class C(2007-2) Notes. Principal will not be
paid on these Class C(2007-2) Notes prior to their Legal Maturity Date unless each of the Class A
Usage of Class C Notes and the Class B Usage of Class C Notes is zero for each Tranche of Class A
Notes and Class B Notes and the required level of subordination for the Class A Notes and Class B
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.

3

 

     The Initial Dollar Principal Amount of this Note is $200,000,000.

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note.

     Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Note shall not be entitled to any benefit under
the Indenture, Indenture Supplement or the Terms Document referred to on the reverse hereof, or be
valid or obligatory for any purpose.

 

			
	*	 	Denominations of $100,000 and in integral multiples of $1,000 in excess thereof.

4

 

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: August 31, 2007	 

5

 

	 	 	 	 	 

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: August 31, 2007	 

6

 

	 	 	 	 	 

REVERSE OF NOTE

     This Note is one of the Notes of a duly authorized issue of Notes of the Issuer, designated as
its Class C(2007-2) DiscoverSeries Notes (herein called the “Class C(2007-2) Notes”), all
issued under an Indenture dated as of July 26, 2007 (such Indenture, as amended, restated, amended
and restated, supplemented, replaced or otherwise modified from time to time, is herein called the
“Indenture”), as supplemented by an Indenture Supplement dated as of July 26, 2007 (such
Indenture Supplement, as 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 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 C(2007-2) Notes are subject to all terms of the Indenture,
the Indenture Supplement and the Terms Document. All terms used in this Class C(2007-2) 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 and the Class B Notes of the DiscoverSeries and other tranches of Class C
Notes of the DiscoverSeries will also be issued under the Indenture and the Indenture Supplement.

     The Class C(2007-2) 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 C(2007-2) Notes are subordinated in right of payment of principal and interest to
the Class A Notes and the Class B Notes and provide loss protection to the Class A Notes and the
Class B Notes of the DiscoverSeries, to the extent set forth in the Indenture Supplement.
Principal Amounts allocable to the Class C(2007-2) Notes may be applied to pay the Class A Interest
Allocation and Class B Interest Allocation or the Series Servicing Fees of the DiscoverSeries, to
the extent set forth in the Indenture Supplement.

     Principal of the Class C(2007-2) Notes will be payable on the Expected Maturity Date in an
amount described on the face hereof.

     As described above, the entire unpaid principal amount of this Class C(2007-2) Note shall be
due and payable on the Legal Maturity Date. Notwithstanding the foregoing, the entire unpaid
principal amount of the Class C(2007-2) Notes shall be due and payable on the date on which an
Event of Default relating to the Class C(2007-2) 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 C(2007-2) Notes to be immediately due and payable in the
manner provided in Section 702 of the Indenture; provided, however, that
such acceleration of the entire unpaid principal amount of the Notes may be rescinded by the
Majority Holders of such applicable Series, Class or Tranche of Notes.

     On any day occurring on or after the date on which the aggregate Nominal Liquidation Amount of
any Tranche of Notes is reduced to less than 5% of its highest Outstanding Dollar Principal Amount,
the Depositor or any Affiliate thereof has the right, but not the obligation, to redeem such
Tranche of Notes in whole but not in part, pursuant to Section 1202 of the

7

 

Indenture. The redemption price will be an amount equal to the Outstanding Dollar Principal
Amount of such Tranche, plus accrued, unpaid and additional interest or principal accreted and
unpaid on such Tranche to but excluding the date of redemption.

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

     On each Payment Date, the Paying Agent shall distribute to each Holder of Class C(2007-2)
Notes of record on the related Record Date (except for the final distribution with respect to this
Class C(2007-2) Note) such Holder of Class C(2007-2) Notes’ pro rata share of the amounts held by
the Paying Agent that are allocated and available on such Payment Date to pay interest and
principal on the Class C Notes.

     Payments of interest on this Class C(2007-2) 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
C(2007-2) Note, shall be made by check mailed to the Person whose name appears as the Registered
Holder of this Class C(2007-2) Note on the Note Register as of the close of business on each Record
Date, except that with respect to Class C(2007-2) 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 C(2007-2) Note be submitted for notation
of payment. Any reduction in the principal amount of this Class C(2007-2) 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 C(2007-2) Note and of any Class C(2007-2) 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 C(2007-2) 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 C(2007-2) 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. On any payment of interest or principal being made,
details of such payment shall be entered by the Indenture Trustee on behalf of the Issuer in
Schedule A hereto.

     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 C(2007-2) Note may be
registered on the Note Register upon surrender of this Class C(2007-2) 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 C(2007-2) Notes of authorized

8

 

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 C(2007-2) 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 C(2007-2) Note or, in the case of a Note Owner, a beneficial interest in a
Class C(2007-2) 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 C(2007-2) Note, the
Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the
Person in whose name this 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 C(2007-2) 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
C(2007-2) Note shall be conclusive and binding upon such Holder and upon all future Holders of this
Class C(2007-2) 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
C(2007-2) 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 C(2007-2) 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.

9

 

     The Class C(2007-2) Notes are issuable only in registered form in denominations as provided in
the Indenture, subject to certain limitations therein set forth.

     THIS CLASS C(2007-2) 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 C(2007-2) 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 C(2007-2) 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 C(2007-2) 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 C(2007-2) Note.

10

 

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.

11

 

SCHEDULE A

PART I

INTEREST PAYMENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Confirmation of	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	payment by or on	 
	Interest	 	Date of	 	 	Total Amount	 	 	Amount of	 	 	behalf of the Note	 
	Payment Date	 	Payment	 	 	of Interest Payable	 	 	Interest Paid	 	 	Issuance Trust	 
	First
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Second
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

[continue numbering until the appropriate number of interest payment dates for the Notes is
reached]

12

 

PART II

PRINCIPAL PAYMENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Confirmation of	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	payment by or on	 
	Principal	 	Date of	 	 	Total Amount	 	 	 	 	 	 	behalf of the Note	 
	Payment Date	 	Payment	 	 	of Principal Payable	 	 	Total Amount Paid	 	 	Issuance Trust	 
	First
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Second
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

[continue numbering until the appropriate number of installment dates for the Notes is
reached]

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]