Document:

exv4w3

 

[Exhibit 4.3]

NORDSTROM CREDIT CARD MASTER NOTE TRUST II,

as Issuer

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Indenture Trustee

	 
	SERIES 2007-2 INDENTURE SUPPLEMENT

	Dated as of May 1, 2007

 

 

1

 

TABLE OF CONTENTS

Page

ARTICLE ONE

DEFINITIONS

	 	 	 	 	 
	Section 1.01. Definitions
	 	 	1	 
	Section 1.02. Other Definitional Provisions
	 	 	13	 

ARTICLE TWO

CREATION OF THE SERIES 2007-2 NOTES

	 	 	 	 	 
	Section 2.01. Designation
	 	 	14	 
	Section 2.02. Forms of Series 2007-2 Notes.
	 	 	14	 
	Section 2.03. Registration; Registration of Transfer and Exchange.
	 	 	14	 

ARTICLE THREE

SERVICING FEE

	 	 	Section 3.01. Servicing Fee 19	 

ARTICLE FOUR

RIGHTS OF SERIES 2007-2 NOTEHOLDERS AND

ALLOCATION AND APPLICATION OF COLLECTIONS

	 	 	 	 	 
	Section 4.01. Collections and Allocations.
	 	 	20	 
	Section 4.02. Determination of Monthly Interest, Monthly Principal and Interest Rate.
	 	 	22	 
	Section 4.03. Application of Available Finance Charge Collections and Available Principal Collections
	 	 	22	 
	Section 4.04. Investor Charge-Offs and Investor Uncovered Dilution
	 	 	25	 
	Section 4.05. Reallocated Principal Collections
	 	 	25	 
	Section 4.06. Excess Finance Charge Collections.
	 	 	25	 
	Section 4.07. Shared Principal Collections.
	 	 	25	 
	Section 4.08. Principal Funding Account.
	 	 	26	 
	Section 4.09. Reserve Account.
	 	 	27	 
	Section 4.10. Eligible Investments.
	 	 	28	 

 

 

2

 

Page

ARTICLE FIVE

DELIVERY OF SERIES 2007-2 NOTES; DISTRIBUTIONS;

REPORTS TO SERIES 2007-2 NOTEHOLDERS

	 	 	 	 	 
	Section 5.01. Delivery and Payment for the Series 2007-2 Notes
	 	 	29	 
	Section 5.02. Distributions.
	 	 	29	 
	Section 5.03. Reports and Statements to Series 2007-2 Noteholders.
	 	 	29	 

ARTICLE SIX

SERIES 2007-2 PAY OUT EVENTS

	 	 	Section 6.01. Series 2007-2 Pay Out Events 31	 

ARTICLE SEVEN

REDEMPTION OF SERIES 2007-2 NOTES;

FINAL DISTRIBUTIONS; SERIES TERMINATION

	 	 	 	 	 	 	 	 	 
	Section 7.01. Optional Redemption of Series 2007-2 Notes; Final Distributions33
	 	 	 	 
	Section 7.02. Sale of the Receivables or Redemption of the Notes pursuant to Section 2.06 or 7.01
	 	 	33	 
	of the Transfer and Servicing Agreement and Section 5.05 and 5.16 of the Master Indenture and
	 	 	 	 
	Section 7.01
Section 7.03. Series Termination
	 	 	34	 	 	 	 	 

ARTICLE EIGHT

MISCELLANEOUS PROVISIONS

	 	 	 	 	 
	Section 8.01. Ratification of Master Indenture; Amendments
	 	 	35	 
	Section 8.02. Counterparts.
	 	 	35	 
	Section 8.03. GOVERNING LAW.
	 	 	35	 
	Section 8.04. Limitation of Liability.
	 	 	35	 

 

 

3

 

Page

EXHIBITS

	 	 	 	 	 
	EXHIBIT A-1

EXHIBIT A-2

EXHIBIT A-3

EXHIBIT B

	 	Form of Class A Note
Form of Class B Note
Form of Class C Note
Form of Monthly Payment Instructions and
	 	A-1-1

A-2-1

A-3-1

	Notification to the Indenture Trustee
	 	B-1
	EXHIBIT C

EXHIBIT D

EXHIBIT E

EXHIBIT F

	 	Form of Monthly Statement
Form of Monthly Servicer’s Certificate
Form of Investment Letter for Transfer of Class A or Class B Notes
Form of Investment Letter for Transfer of Class C Notes
	 	C-1

D-1

E-1

F-1

 

 

4

 

SERIES 2007-2 INDENTURE SUPPLEMENT

This Series 2007-2 Indenture Supplement, dated as of May 1, 2007 (the “2007-2 Indenture Supplement”), is between
Nordstrom Credit Card Master Note Trust II (formerly known as Nordstrom Private Label Credit Card Master Note Trust), a
statutory trust organized and existing under the laws of the State of Delaware (the “Issuer” or the “Trust”), and Wells
Fargo Bank, National Association, a national banking association, not in its individual capacity, but solely as
indenture trustee under the Master Indenture (together with its successors in the trusts thereunder as provided in the
Amended and Restated Master Indenture, dated as of May 1, 2007 (the “Master Indenture”), between the Issuer and Wells
Fargo Bank, National Association, the “Indenture Trustee”).

RECITALS

Section 2.12 of the Master Indenture provides that the Issuer may, pursuant to one or more Indenture Supplements,
direct the Indenture Trustee, on behalf of the Issuer, to issue one or more Series of Notes and to set forth the
Principal Terms of such Series; and

WHEREAS, pursuant to this Series 2007-2 Indenture Supplement, the Issuer and the Indenture Trustee shall create a
new Series of Notes and specify the Principal Terms thereof.

ARTICLE ONE

DEFINITIONS

Section 1.01. Definitions. Whenever used in this Indenture Supplement, the following words and
phrases shall have the following meanings:

“Accumulation Period Factor” means, with respect to any Monthly Period, a fraction, the numerator of which
is equal to the sum of the initial invested amounts of all outstanding Series, and the denominator of which is equal to
the sum of (i) the Initial Invested Amount, (ii) the initial invested amounts of all outstanding Series (other than
Series 2007-2) which are not expected to be in their revolving period, and (iii) the initial invested amounts of all
other outstanding Series which are not allocating Shared Principal Collections to other Series and are in their
revolving periods; provided, however, that this definition may be changed at any time if the Rating Agency Condition is
satisfied.

“Accumulation Period Length” has the meaning set forth in Section 4.03(f).

“Accumulation Shortfall” means, with respect to (i) a Distribution Date prior to the Controlled
Accumulation Period, zero (ii) the first Distribution Date during the Controlled Accumulation Period, the excess, if
any, of the Controlled Accumulation Amount over the amount deposited in the Principal Funding Account on that
Distribution Date and (iii) each subsequent Distribution Date during the Controlled Accumulation Period, the excess, if
any, of the Controlled Deposit Amount for the prior Distribution Date over the amount deposited in the Principal
Funding Account pursuant to Section 4.03(c) on such Distribution Date.

 

 

5

 

“Additional Interest” means, with respect to any Distribution Date, Class A Additional Interest, Class B
Additional Interest and Class C Additional Interest.

“Adjusted Invested Amount” means, for any Determination Date, an amount equal to the Invested Amount,
minus the amount on deposit in the Principal Funding Account, in each case as of the Determination Date.

“Available Finance Charge Collections” means, with respect to any Monthly Period and the related
Distribution Date, an amount equal to the sum of (i) the Investor Finance Charge Collections, (ii) the Excess Finance
Charge Collections allocated to Series 2007-2, (iii) the Reserve Account Draw Amount and (iv) Principal Funding
Investment Proceeds, if any.

“Available Principal Collections” means, with respect to any Monthly Period and the related Distribution
Date, an amount equal to the (i) Investor Principal Collections minus (ii) the amount of Reallocated Principal
Collections which pursuant to Section 4.05 are required to be applied on such Distribution Date, plus (iii) any Shared
Principal Collections that are allocated to Series 2007-2 in accordance with Section 8.05 of the Master Indenture and
Section 4.07 hereof, plus (iv) the aggregate amount to be treated as Available Principal Collections pursuant to
Sections 4.03(a)(v), (vi) and to the extent applicable (vii) for such Distribution Date.

“Base Rate” means, with respect to any Monthly Period, the sum of (i) the Servicing Fee Rates and (ii) the
weighted average of the Class A Note Interest Rate and the Class B Note Interest Rate.

“Benefit Plan” means an employee benefit plan, as defined in Section 3(3) of ERISA, that is subject to
Title I of ERISA, a plan, as defined in Section 4975(e)(1) of the Code, that is subject to Section 4975 of the Code,
and any entity deemed to hold plan assets of any of the foregoing by reason of an employee benefit plan’s or plan’s
investment in the entity or otherwise under ERISA.

“Benefit Plan Investor” has the meaning set forth in Section 2.03(f)(i).

“Class” means the Class A Notes, Class B Notes or Class C Notes, as applicable.

“Class A Additional Interest” means, with respect to any Distribution Date, an amount equal to the product
of (i) a fraction, the numerator of which is the actual number of days in such Interest Period, and the denominator of
which is 360, (ii) the Class A Note Interest Rate in effect with respect to the related Interest Period and (iii) the
Class A Interest Shortfall for the preceding Distribution Date (which shall be zero in the case of the first
Distribution Date). Notwithstanding anything to the contrary herein, Class A Additional Interest shall be payable or
distributed to the Class A Noteholders only to the extent permitted by applicable law.

“Class A Covered Amount” equals for any Distribution Date, the product of (i) the Class A Note Interest
Rate for the related Interest Period, (ii) a fraction, the numerator of which is the actual number of days in such
Interest Period, and the denominator of which is 360 and (iii) the balance on deposit in the Principal Funding Account
on the first day of such Interest Period, up to the Class A Note Principal Balance as of the related Record Date.

 

 

6

 

“Class A Interest Shortfall” means, with respect to any Distribution Date, the excess, if any, as
determined by the Servicer, of (i) the amount described in Section 4.03(a)(ii) over (ii) the sum of (a) the aggregate
amount of Available Finance Charge Collections allocated and paid for such amounts on such Distribution Date and
(b) the Reallocated Principal Amount applied to fund a deficiency in the amount distributed pursuant to
Section 4.03(a)(ii) on such Distribution Date.

“Class A Monthly Interest” means, with respect to any Distribution Date, an amount of monthly interest
distributable from the Collection Account with respect to the Class A Notes on such Distribution Date equal to the
product of (i) a fraction, the numerator of which is the actual number of days in the related Interest Period and the
denominator of which is 360, (ii) the Class A Note Interest Rate and (iii) the Class A Note Principal Balance as of the
close of business on the last day of the related Monthly Period (or, with respect to the initial Distribution Date, the
Class A Note Initial Principal Balance).

“Class A Note Initial Principal Balance” means $453,800,000.

“Class A Note Interest Rate” means One-Month LIBOR plus 0.06% per annum.

“Class A Note Principal Balance” means, on any date of determination, an amount equal to (i) the Class A
Note Initial Principal Balance, minus (ii) the aggregate amount of principal payments made to the Class A Noteholders
on or prior to such date.

“Class A Noteholder” means the Person in whose name a Class A Note is registered in the Note Register.

“Class A Notes” means any one of the Notes executed by the Issuer and authenticated by or on behalf of the
Indenture Trustee, substantially in the form of Exhibit A-1.

“Class A Reallocated Principal Amount” means, with respect to any Distribution Date, the lesser of:

(i) the excess of the amounts described in Sections 4.03(a)(i) and (ii) over the amount actually
distributed pursuant to such Sections; and

(ii) the greater of (a)(1) the product of (A) 16.50% and (B) the Initial Invested Amount minus (b) the
amount of unreimbursed Investor Charge-Offs (after giving effect to Investor Charge-Offs for the related
Monthly Period) and unreimbursed Reallocated Principal Collections (as of the preceding Distribution Date or
$0, in the case of the first Distribution Date) and (ii) zero.

“Class B Additional Interest” means, with respect to any Distribution Date, an amount equal to the product
of (i) a fraction, the numerator of which is the actual number of days in such Interest Period and the denominator of
which is 360, (ii) the Class B Note Interest Rate in effect with respect to the related Interest Period and (iii) the
Class B Interest Shortfall for the preceding Distribution Date (which shall be zero in the case of the first
Distribution Date). Notwithstanding anything to the contrary herein, Class B Additional Interest shall be payable or
distributed to the Class B Noteholders only to the extent permitted by applicable law.

 

 

7

 

“Class B Covered Amount” equals for any Distribution Date, the product of (i) the Class B Interest Rate
for the related Interest Period, (ii) a fraction, the numerator of which is the actual number of days for such Interest
Period, and whose denominator is 360 and (iii) the balance of the Principal Funding Account on the first day of the
related Interest Period in excess of the Class A Note Principal Balance as of the related Record Date, up to the
Class B Note Principal Balance as of the related Record Date.

“Class B Interest Shortfall” means, with respect to any Distribution Date, the excess, if any, as
determined by the Servicer, of (i) the amount described in Section 4.03(a)(iii) over (ii) the sum of (a) the aggregate
amount of Available Finance Charge Collections allocated and paid for such amounts on such Distribution Date and
(b) the Reallocated Principal Amount applied to fund a deficiency in the amount distributed pursuant to
Section 4.03(a)(iii) on such Distribution Date.

“Class B Monthly Interest” means, with respect to any Distribution Date, the amount of monthly interest
distributable from the Collection Account with respect to the Class B Notes on such Distribution Date and which shall
be an amount equal to the product of (i) a fraction, the numerator of which is 30, the actual number of days in such
Interest Period, and the denominator of which is 360, (ii) the Class B Note Interest Rate in effect with respect to the
related Interest Period and (iii) the Class B Note Principal Balance as of the close of business on the last day of the
preceding Monthly Period (or, with respect to the initial Distribution Date, the Class B Note Initial Principal
Balance).

“Class B Note Initial Principal Balance” means $46,200,000.

“Class B Note Interest Rate” means One-Month LIBOR plus 0.18% per annum.

“Class B Note Principal Balance” means, on any date of determination, an amount equal to (i) the Class B
Note Initial Principal Balance, minus (ii) the aggregate amount of principal payments made to the Class B Noteholders
on or prior to such date.

“Class B Noteholder” means the Person in whose name a Class B Note is registered in the Note Register.

“Class B Notes” means any one of the Notes executed by the Issuer and authenticated by or on behalf of the
Indenture Trustee, substantially in the form of Exhibit A-2.

“Class B Reallocated Principal Amount” means, with respect to any Distribution Date, the lesser of:

(i) the excess of the amount described in Section 4.03(a)(iii) over the amount actually distributed
pursuant to such Section; and

(ii) the greater of (a)(1) the product of (A) 8.0% and (B) the Initial Invested Amount minus (b) the
amount of unreimbursed Investor Charge-Offs (after giving effect to Investor Charge-Offs for the related
Monthly Period) and unreimbursed Reallocated Principal Collections (as of the preceding Distribution Date or
$0 in the case of the first Distribution Date) and (ii) zero.

 

 

8

 

“Class C Additional Interest” means, with respect to any Distribution Date, an amount equal to the product
of (i) a fraction, the numerator of which is the actual number of days in such Interest Period, and the denominator of
which is 360, (ii) the Class C Note Interest Rate in effect with respect to such Interest Period and (iii) the Class C
Interest Shortfall for the preceding Distribution Date. Notwithstanding anything to the contrary herein, Class C
Additional Interest shall be payable or distributed to the Class C Noteholders only to the extent permitted by
applicable law.

“Class C Interest Shortfall” means, with respect to any Distribution Date, the excess, if any, as
determined by the Servicer, of (i) the amount described in Section 4.03(a)(iv) over (ii) the aggregate amount of
Available Finance Charge Collections allocated and paid for such amounts on such Distribution Date.

“Class C Monthly Interest” means, with respect to any Distribution Date, the amount of monthly interest
distributable from the Collection Account with respect to the Class C Notes on such Distribution Date and which shall
be an amount equal to the product of (i) a fraction, the numerator of which is the actual number of days in the related
Interest Period, and the denominator of which is 360, times (ii) the Class C Note Interest Rate in effect with respect
to the related Interest Period and (iii) the Class C Note Principal Balance as of the close of business on the last day
of the related Monthly Period (or, with respect to the initial Distribution Date, the Class C Note Initial Principal
Balance).

“Class C Note Initial Principal Balance” means $43,500,000.

“Class C Note Interest Rate” means a per annum rate of 0.00% or the rate specified by the Transferor
pursuant to Section 4.02(b).

“Class C Note Principal Balance” means on any date of determination, an amount equal to (i) the Class C
Note Initial Principal Balance, minus (ii) the aggregate amount of principal payments made to the Class C Noteholders
on or prior to such date.

“Class C Noteholder” means the Person in whose name a Class C Note is registered in the Note Register.

“Class C Notes” means any one of the Notes executed by the Issuer and authenticated by or on behalf of the
Indenture Trustee, substantially in the form of Exhibit A-3.

“Closing Date” means May 1, 2007.

“Controlled Accumulation Amount” means, for any Distribution Date with respect to the Controlled
Accumulation Period, $62,500,000; provided, however, that if the Accumulation Period Length is determined to be less
than eight months pursuant to Section 4.03(f), the Controlled Accumulation Amount for each Distribution Date with
respect to the Controlled Accumulation Period will be equal to (i) the product of (a) the Offered Note Initial
Principal Balance and (b) the Accumulation Period Factor for such Monthly Period divided by (ii) the Required
Accumulation Factor Number.

 

 

9

 

“Controlled Accumulation Period” means, unless a Pay Out Event shall have occurred prior thereto, the
period commencing at the close of business on August 1, 2011 or such later date as is determined in accordance with
Section 4.03(f), and ending on the first to occur of (i) the commencement of the Early Amortization Period, (ii) the
payment in full of the Offered Notes and (iii) the Expected Principal Payment Date.

“Controlled Deposit Amount” means, for any Distribution Date with respect to the Controlled Accumulation
Period, an amount equal to the sum of the Controlled Accumulation Amount and any existing Accumulation Shortfall.

“Defaulted Amount” means, with respect to a Distribution Date, the total amount of Defaulted Receivables
for the related Monthly Period.

“Determination Date” means, for each series of Notes, the fifth Business Day preceding the Distribution
Date.

“Dilution Amount” means the amount of the required reduction in the amount of Principal Receivables used
in the calculation of the Transferor Interest described in the first two sentences of Section 3.09(a) of the Transfer
and Servicing Agreement.

“Disqualified Transferee” has the meaning set forth in Section 2.03(k).

“Distribution Date” means June 15, 2007 and the fifteenth day of each calendar month thereafter, or if
such fifteenth day is not a Business Day, the next succeeding Business Day, and with respect to the Series 2007-2 Final
Maturity Date, May 15, 2015

“Early Amortization Period” means the period commencing on the Business Day immediately preceding the day
on which a Pay Out Event with respect to Series 2007-2 is deemed to have occurred, and ending on the first to occur of
(i) the payment in full of the Note Principal Balance and (ii) the Series 2007-2 Final Maturity Date.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

“Excess Reserve Account Investment Earnings” means, as of any Distribution Date, interest and other
investment income, net of losses and investment expenses, earned on amounts on deposit in the Reserve Account less the
amount, if any, required to be retained in the Reserve Account so that the amount therein equals the Required Reserve
Account Amount.

“Expected Final Principal Payment Date” means the April 16, 2012 Distribution Date.

“Finance Charge Shortfall” means, with respect to any Distribution Date and the related Monthly Period, an
amount equal to the excess, if any, of (i) the full amount required to be paid, without duplication, pursuant to
Sections 4.03(a)(i) through (ix) on such Distribution Date over (ii) the Investor Finance Charge Collections.

“Fixed Investor Percentage” means, with respect to any day during a Monthly Period, the percentage
equivalent (which percentage shall never exceed 100%) of a fraction, (i) the numerator of which is the Invested Amount
as of the close of business on the last day of the

 

 

10

 

Revolving Period unless the numerator is reset as described in the proviso below and (ii) the denominator of which
is calculated each Reset Date and which is equal to the greater of (a) the total amount of Principal Receivables in the
Trust as of the close of business on the Reset Date and (b) the sum of the numerators used to calculate the investor
percentages for allocations with respect to Principal Receivables for all Series outstanding as of such Reset Date;
provided, however, that if, after the commencement of the Controlled Accumulation Period or the Early Amortization
Period, a Pay Out Event occurs with respect to another Series that was designated in the Indenture Supplement therefor
as a Series that is a “Paired Series” with respect to Series 2007-2, the Transferor may, by written notice delivered to
the Indenture Trustee and the Servicer, designate a different numerator for the foregoing fraction, provided that
(1) such numerator is not less than the Adjusted Invested Amount as of the last day of the Revolving Period for such
Paired Series, (2) such action shall be taken only upon satisfaction of the Rating Agency Condition and (3) the
Transferor shall have delivered to the Indenture Trustee an Officer’s Certificate to the effect that, based on the
facts known to such officer at that time, in the reasonable belief of the Transferor, such designation will not cause a
Pay Out Event or an event that, after the giving of notice or the lapse of time, would constitute a Pay Out Event, to
occur with respect to Series 2007-2.

“Floating Investor Percentage” means, with respect to any day during a Monthly Period, the percentage
equivalent (which percentage shall never exceed 100%) of a fraction, (i) the numerator of which is equal to the
Adjusted Invested Amount as of the close of business on the last day of the preceding Monthly Period (or with respect
to the first Monthly Period, the Initial Invested Amount) and (ii) the denominator of which is calculated each Reset
Date and which is equal to (a) with respect to allocations of Uncovered Dilution Amounts only, the sum of the
numerators used to calculate the Investor Percentage for allocating the Uncovered Dilution Amount on the Reset Date or
(ii) for all other purposes, the greater of (a) the aggregate amount of Principal Receivables in the Trust as of the
close of business on such Reset Date and (b) the sum of the numerators used to calculate the Investor Percentages for
allocations with respect to Finance Charge Receivables, Defaulted Amounts or Principal Receivables, as applicable, for
all Series outstanding as of the Reset Date.

“Group One” means Series 2007-2 and each other Series hereafter specified in the related Indenture
Supplement to be included in Group One.

“Indenture” means the Master Indenture, as supplemented by this Series 2007-2 Indenture Supplement, as the
same may be amended, supplemented, restated or otherwise modified from time to time.

“Indenture Supplement” has the meaning specified in the Master Indenture.

“Initial Invested Amount” means $543,500,000.

“Interest Period” means, with respect to any Distribution Date, the period from and including the
preceding Distribution Date (or, in the case of the first Distribution Date, from and including the Closing Date) to
but excluding the current Distribution Date.

 

 

11

 

“Invested Amount” means, as of any date of determination, an amount equal to the initial principal amount
of the Series 2007-2 Notes minus the sum of (i) amount of principal previously paid to the Series 2007-2 Noteholders
and (ii) the excess, if any, of the aggregate amount of Investor Charge-Offs and Reallocated Principal Collections over
the reimbursements of such amounts pursuant to Section 4.03(a)(vi) prior to such date.

“Investor Charge-Off” has the meaning set forth in Section 4.04.

“Investor Default Amount” means, with respect to any Distribution Date, an amount equal to the product of
the Defaulted Amount for the related Monthly Period and the Floating Investor Percentage.

“Investor Finance Charge Collections” means, with respect to any Monthly Period, an amount equal to the
Investor Percentage for such Monthly Period of Collections of Finance Charge Receivables (including Recoveries, any
Excess Reserve Account Investment Earnings and Interchange treated as Collections of Finance Charge Receivables)
deposited in the Collection Account for such Monthly Period pursuant to Section 8.04 of the Master Indenture.

“Investor Percentage” means, for any Monthly Period, with respect to (i) Finance Charge Receivables,
Defaulted Amounts and Uncovered Dilution Amounts at any time and Principal Receivables during the Revolving Period, the
Floating Investor Percentage for such Monthly Period and (ii) Principal Receivables during the Controlled Accumulation
Period or the Early Amortization Period, the Fixed Investor Percentage for such Monthly Period.

“Investor Principal Collections” means, with respect to any Monthly Period, the aggregate amount retained
in the Collection Account for Series 2007-2 Noteholders pursuant to Section 4.01(c)(ii) for such Monthly Period.

“Investor Uncovered Dilution Amount” means, with respect to any Monthly Period, an amount equal to the
product of the weighted average Floating Investor Percentage for such Monthly Period and the Uncovered Dilution Amount.

“LIBOR Determination Date” means two London Business Days prior to the Closing Date with respect to the
first Distribution Date and, as to each subsequent Distribution Date, two London Business Days prior to the immediately
preceding Distribution Date.

“London Business Day” means any day other than a Saturday, Sunday or a day on which banking institutions
in London, England, are authorized or obligated by law or government decree to be closed.

“Master Indenture” means the Amended and Restated Master Indenture, dated as of May 1, 2007, between the
Trust and the Indenture Trustee, as the same may be amended, supplemented, restated or otherwise modified from time to
time.

“Monthly Interest” means, with respect to any Distribution Date, the sum of the Class A Monthly Interest,
the Class B Monthly Interest and the Class C Monthly Interest.

 

 

12

 

“Monthly Period” has the meaning set forth in the Master Indenture; provided, however, that the initial
Monthly Period will commence on the Closing Date and end on the last day of calendar month preceding the first
Distribution Date; provided, however, that for the purposes of calculating Portfolio Yield which includes the month of
May 2007, the Monthly Period will be the period from and including the Closing Date to and including May 31, 2007.

“Monthly Principal” means, with respect to any Distribution Date, an amount equal to the least of (i) the
Available Principal Collections on deposit in the Collection Account with respect to such Distribution Date, (ii) for
each Distribution Date with respect to the Controlled Accumulation Period, the Controlled Deposit Amount for such
Distribution Date, (iii) the excess of the Offered Note Initial Principal Balance over the amount on deposit in the
Principal Funding Account without taking into account deposits thereto on such Distribution Date and (iv) the Adjusted
Invested Amount (after taking into account any adjustments to be made on such Distribution Date) prior to any deposit
into the Principal Funding Account on such Distribution Date.

“Monthly Principal Reallocation Amount” means, with respect to any Monthly Period, an amount equal to the
sum of the Class A Reallocated Principal Amount and the Class B Reallocated Principal Amount.

“Monthly Servicing Fee” has the meaning set forth in Section 3.01(a).

“Note Principal Balance” means, on any date of determination, an amount equal to the sum of the Class A
Note Principal Balance, the Class B Note Principal Balance and the Class C Note Principal Balance.

“Noteholders” means the holders of Class A Notes, Class B Notes and the Class C Notes.

“Offered Note Initial Principal Balance” means, as of any date, the sum of the Class A Note Initial
Principal Balance and the Class B Note Initial Principal Balance.

“Offered Note Principal Balance” means, as of any date, the sum of the Class A Note Principal Balance and
the Class B Note Principal Balance.

“Offered Notes” means the Class A Notes and the Class B Notes.

“One-Month LIBOR” means, with respect to any Interest Period, the rate determined by the Indenture Trustee
by reference to the British Bankers’ Association Interest Settlement Rate for deposits in Dollars, with a maturity of
one month commencing on the related LIBOR Determination Date, appearing on Reuters LIBOR01 (or any successor to or
substitute for such service, providing rate quotations comparable to those currently provided by such service, as
determined by the Indenture Trustee from time to time for purposes of providing quotations of interest rates applicable
to deposits in Dollars in the London interbank market) at approximately 11:00 a.m., London time, on the second London
Business Day before the first day of such Interest Period. In the event that such rate is not available at such time
for any reason, then the “One-Month LIBOR” shall be the rate at which deposits in Dollars in a principal amount of not
less than $1,000,000 and for a maturity comparable to such Interest Period are offered by the Indenture Trustee in
immediately available funds in the London interbank market at

 

 

13

 

approximately 11:00 a.m., London time, on the second London Business Day before (and for value on) the first day
of such Interest Period.

“Portfolio Adjusted Yield” means, with respect to any Monthly Period, the Portfolio Yield minus the Base
Rate.

“Portfolio Yield” means, with respect to any Monthly Period, the annualized percentage equivalent of a
fraction, (i) the numerator of which is equal to the sum of (a) Investor Finance Charge Collections with respect to
such Monthly Period and (b) the Principal Funding Investment Proceeds and any Reserve Account Draw Amount deposited
into the Collection Account on the related Distribution Date, such sum to be calculated on a cash basis after
subtracting the Investor Default Amount and the Investor Uncovered Dilution Amount, and (ii) the denominator of which
is the Note Principal Balance as of the first day of such Monthly Period; provided, however, that Excess Finance Charge
Collections that are allocated to Series 2007-2 with respect to such Monthly Period may be added to the numerator if
the Transferor shall have provided ten Business Days’ prior written notice of such action to each Rating Agency and the
Transferor, the Servicer and the Indenture Trustee has not received notification in writing that such action will not
result in any such Rating Agency reducing or withdrawing its            then-existing rating of the Class A Notes or any
outstanding Series or Class; provided further that the Portfolio Yield for the month of March 2007 shall equal      %.

“Principal Funding Account” has the meaning set forth in Section 4.08(a).

“Principal Funding Account Balance” means, with respect to any date of determination, the principal
amount, if any, on deposit in the Principal Funding Account on such date.

“Principal Funding Investment Proceeds” means, with respect to any Distribution Date, the investment
earnings on funds in the Principal Funding Account (net of investment expenses and losses) for the related Interest
Period.

“Principal Funding Investment Shortfall” means, with respect to any Distribution Date, the excess of the
Class A Covered Amount and the Class B Covered Amount over the Principal Funding Investment Proceeds.

“QIB” means a Qualified Institutional Buyer under Rule 144A.

“Rating Agency” means each of Standard & Poor’s and Moody’s.

“Reallocated Principal Collections” means, with respect to any Distribution Date, Investor Principal
Collections applied in accordance with Section 4.05 in an amount not to exceed the Monthly Principal Reallocation
Amount for the related Monthly Period.

“Reassignment Amount” means, with respect to any Distribution Date, after giving effect to any deposits
and distributions otherwise to be made on such Distribution Date, the sum of (i) the Note Principal Balance on such
Distribution Date, (ii) Monthly Interest and any Monthly Interest due on one or more prior Distribution Dates but not
distributed to the Series 2007-2 Noteholders on one or more prior Distribution Dates, and (iii) the amount of
Additional Interest

 

 

14

 

and any Additional Interest due but not distributed to the Series 2007-2 Noteholders on one or more prior
Distribution Dates.

“Required Accumulation Factor Number” means a fraction, rounded upwards to the nearest whole number, the
numerator of which is one and the denominator of which is equal to the lowest monthly principal payment rate on the
Accounts, expressed as a decimal, for the 12 months preceding the date of such calculation; provided, however, that
this definition may be changed at any time if the Rating Agency Condition is satisfied.

“Required Reserve Account Amount” means zero or, for any Distribution Date on or after the Reserve Account
Funding Date, an amount equal to (i) 0.50% of the Offered Note Principal Balance or (ii) any other amount designated by
the Servicer; provided, however, the Servicer may only designate a lesser amount if the Rating Agency Condition remains
satisfied and the Servicer certifies to the Indenture Trustee that, based on the facts known to the certifying officer
at the time, in its reasonable belief, such designation will not cause a Pay Out Event to occur for the Series 2007-2
Notes.

“Reserve Account” means the account established pursuant to Section 4.09.

“Reserve Account Draw Amount” means, with respect to any Distribution Date, an amount equal to the lesser
of (i) the amount then on deposit in the Reserve Account with respect to such Distribution Date and (ii) the Principal
Funding Investment Shortfall.

“Reserve Account Funding Date” means the Distribution Date with respect to the Monthly Period which
commences no later than four months prior to the Controlled Accumulation Period, provided that the Reserve Account
Funding Date shall be accelerated to (i) the Distribution Date with respect to the Monthly Period which commences no
later than four months prior to the Controlled Accumulation Period if the average of the Portfolio Adjusted Yields for
any three consecutive Monthly Periods shall be less than 6.00%; (ii) the Distribution Date with respect to the Monthly
Period which commences no later than six months prior to the Controlled Accumulation Period if the average of the
Portfolio Adjusted Yield for any three consecutive Monthly Periods shall be less than 3.00%; or (iii) the Distribution
Date which commences no later than nine months prior to the Controlled Accumulation Period if the average of the
Portfolio Adjusted Yields for any three consecutive Monthly Periods shall be less than 2.00%.

“Reset Date” means (i) the close of business on the last day of each calendar month, (ii) each Removal
Date, (iii) each date the Trust issues a new series of Notes or class of Notes relating to a multiple issuance series,
(iv) each date there is an increase in the invested amount with respect to any series of Notes issued by the Trust and
(v) each Addition Date that Supplemental Accounts are designated to the Trust.

“Revolving Period” means the period beginning on the Closing Date and ending on the earlier of the close
of business on the day immediately preceding the day the Controlled Accumulation Period commences or the Early
Amortization Period commences.

“Rule 144A” means Rule 144A under the Securities Act.

 

 

15

 

“Rule 144A Global Note” has the meaning set forth in Section 2.02.

“Series 2007-2” means the Series of Notes the terms of which are specified in this Series 2007-2 Indenture
Supplement.

“Series 2007-2 Final Maturity Date” means the earlier to occur of (i) the Distribution Date on which the
Note Principal Balance is paid in full and (ii) the May 2015 Distribution Date.

“Series 2007-2 Indenture Supplement” means this Series 2007-2 Indenture Supplement, as the same may be
amended, supplemented, restated or otherwise modified from time to time.

“Series 2007-2 Note” means a Class A Note, a Class B Note or a Class C Note.

“Series 2007-2 Noteholder” means a Class A Noteholder, a Class B Noteholder or a Class C Noteholder.

“Series 2007-2 Pay Out Event” has the meaning set forth in Section 6.01.

“Series 2007-2 Principal Shortfall” means an amount equal to, with respect to any Distribution Date during
(i) the Revolving Period, zero, (ii) the Controlled Accumulation Period, the excess, if any, of the Controlled Deposit
Amount with respect to such Distribution Date over the amount of Available Principal Collections for such Distribution
Date (excluding any portion thereof attributable to Shared Principal Collections), and (iii) the Early Amortization
Period, the excess, if any, of the Adjusted Invested Amount over the amount of Available Principal Collections for such
Distribution Date (excluding any portion thereof attributable to Shared Principal Collections).

“Servicing Fee” has the meaning set forth in the Transfer and Servicing Agreement.

“Servicing Fee Rate” means 2.0% per annum.

“Successor Servicer” has the meaning set forth in the Transfer and Servicing Agreement.

“Transfer and Servicing Agreement” means the Amended and Restated Transfer and Servicing Agreement, dated
as of May 1, 2007, among the Bank, the Purchaser and the Trust, as amended, supplemented, restated or otherwise
modified from time to time.

“Transferor Certificate” has the meaning set forth in the Trust Agreement.

“Transferor Percentage” has the meaning set forth in the Master Indenture.

“Transition Expenses” means any documented expenses and costs reasonably incurred by a Successor Servicer
in connection with the transition of servicing duties under the Transaction Documents relating to Series 2007-2 to the
Successor Servicer. The aggregate amount of Transition Expenses shall not exceed $100,000.

 

 

16

 

“Trust Agreement” means the Second Amended and Restated Trust Agreement, dated as of May 1, 2007, between
the Owner Trustee and the Transferor, as the same may be amended, supplemented, restated or otherwise modified from
time to time.

“Uncovered Dilution Amount” means, with respect to any Distribution Date, that portion of the Dilution
Amount for the related Monthly Period which would cause the Transferor Interest to fall below the Required Transferor
Interest after giving effect to any deposits to the Special Funding Account by the Transferor or addition of Principal
Receivables transferred to the Trust by the Transferor.

Section 1.02. Other Definitional Provisions.

(a) Each capitalized term defined herein shall relate to the Series 2007-2 Notes and no other Series of Notes
issued by the Trust, unless the context otherwise requires. All capitalized terms used herein and not otherwise defined
herein have the meanings ascribed to them in the Trust Agreement, the Master Indenture or the Transfer and Servicing
Agreement. In the event that any term or provision contained herein shall conflict with or be inconsistent with any
term or provision contained in the Trust Agreement, the Master Indenture or the Transfer and Servicing Agreement, the
terms and provisions of this Series 2007-2 Indenture Supplement shall govern.

(b) As used in this Series 2007-2 Indenture Supplement and in any certificate or other document made or delivered
pursuant hereto or thereto, accounting terms not defined in this Series 2007-2 Indenture Supplement or in any such
certificate or other document, and accounting terms partly defined in this Series 2007-2 Indenture Supplement or in any
such certificate or other document to the extent not defined, shall have the respective meanings given to them under
GAAP. To the extent that the definitions of accounting terms in this Series 2007-2 Indenture Supplement or in any such
certificate or other document are inconsistent with the meanings of such terms under GAAP, the definitions contained in
this Master Indenture or in any such certificate or other document shall control.

(c) Unless otherwise specified, references to any amount as on deposit or outstanding on any particular date means
such amount at the close of business on such day.

(d) The words “hereof,” “herein,” “hereunder” and words of similar import when used in this Series 2007-2
Indenture Supplement shall refer to this Series 2007-2 Indenture Supplement as a whole and not to any particular
provision of this Series 2007-2 Indenture Supplement; references to any Article, subsection, Section, Schedule or
Exhibit are references to Articles, subsections, Sections, Schedules and Exhibits in or to this Series 2007-2 Indenture
Supplement unless otherwise specified; and the term “including” means “including without limitation.”

ARTICLE TWO

 

 

17

 

CREATION OF THE SERIES 2007-2 NOTES

Section 2.01. Designation.

(a) There is hereby created and designated a Series of Notes to be issued pursuant to the Master Indenture and
this Series 2007-2 Indenture Supplement to be known as “Nordstrom Credit Card Master Note Trust Asset Backed Notes,
Series 2007-2” or the “Series 2007-2 Notes.” The Series 2007-2 Notes shall be issued in three Classes, the first of
which shall be known as the “Series 2007-2 Floating Rate Asset Backed Notes, Class A”, the second of which shall be
known as the “Series 2007-2 Floating Rate Asset Backed Notes, Class B”, and the third of which shall be known as the
“Series 2007-2 Asset Backed Notes, Class C”. The Series 2007-2 Notes shall be due and payable on the Series 2007-2
Final Maturity Date.

(b) Series 2007-2 shall be included in Group One and shall be a Principal Sharing Series with respect to Group One
only. Series 2007-2 shall be an Excess Allocation Series with respect to Group One only. Series 2007-2 shall not be
subordinated to any other Series.

(c) In the event that any term or provision contained herein shall conflict with or be inconsistent with any term
or provision contained in the Master Indenture, the terms and provisions of this Series 2007-2 Indenture Supplement
shall be controlling.

Section 2.02. Forms of Series 2007-2 Notes.

(a) The form of each of the Class A Notes, the Class B Notes and the Class C Notes shall be substantially as set
forth in Exhibits A-1, A-2 and A-3 hereto.

(b) The Offered Notes offered and sold in reliance on the exemption from registration under Rule 144A (except for
any sale directly from the Issuer) shall be issued initially in the form of one or more permanent global notes in
definitive, fully registered form without interest coupons with the applicable legend set forth in Exhibit A-1,
Exhibit A-2 and Exhibit A-3 hereto, added to the form of the Class A Notes (“Class-A Rule 144A Global Notes”), the
Class B Notes (“Class-B Rule 144A Global Notes”) and the Class C Notes (the “Class-C Rule 144A Global Notes” and,
together with the Class-A Rule 144A Global Notes and the Class-B Rule 144A Global Notes, the “Rule 144A Global Notes”).
The Offered Notes, each shall be registered in the name of the nominee of DTC and deposited with the Indenture
Trustee, at its Corporate Trust Office, as custodian for DTC, duly executed by the Issuer and authenticated by the
Indenture Trustee as hereinafter provided. The Class C Notes will not be registered with the DTC and will be retained
by the Transferor. The aggregate principal amount of the Class A Rule 144A Global Note and the Class B Rule 144A
Global Notes may from time to time be increased or decreased by adjustments made on the records of the Indenture
Trustee or DTC or its nominee, as the case may be, as hereinafter provided.

Section 2.03. Registration; Registration of Transfer and Exchange.

(a) No Series 2007-2 Note may be sold or transferred (including by pledge or hypothecation) unless such sale or
transfer is exempt from the registration requirements of the

 

 

18

 

Securities Act and is exempt from the registration requirements under applicable State securities laws and the
representations deemed to be made by the transferee pursuant to Section 2.03(g) are true and correct.

(b) No Offered Note may be offered, sold, resold or delivered, within the United States except in accordance with
Section 2.03(e) and in accordance with Rule 144A to QIBs purchasing for their own account or for the accounts of one or
more QIBs, for which the purchaser is acting as fiduciary or agent.

(c) Upon final payment due on a Series 2007-2 Note, the Holder thereof shall present and surrender such Series
2007-2 Note at the Corporate Trust Office or at the office of the Paying Agent.

(d) Notwithstanding any provision to the contrary herein, so long as a Global Note remains outstanding and is held
by or on behalf of DTC, transfers of a Global Note, in whole or in part, shall only be made in accordance with this
Section 2.03(e).

(i) Subject to clauses (ii) through (iv) of this Section 2.03(e), a transfer of a Global Note shall be
limited to transfers of such Global Note in whole, but not in part, to nominees of DTC or to a successor of
DTC or such successor’s nominee.

(ii) In the event that a Global Note is exchanged for a Note of the same Class in definitive form, such
Offered Notes may be exchanged for one another only in accordance with such procedures as are substantially
consistent with the provisions above (including certification requirements intended to ensure that such
transfers are to a QIB, or otherwise comply with Rule 144A) and as may be from time to time adopted by the
Issuer and the Indenture Trustee.

(e) Each transferee of an Offered Note shall deliver to the Indenture Trustee an Investment Letter substantially
in the form of Exhibit E, in the case of the Class A Notes or Class B Notes or Exhibit F, in the case of the Class C
Notes, and shall be deemed to represent and agree as follows:

(i) The transferee is aware that the sale of such Offered Notes to it is being made in reliance on
Rule 144A.

(ii) The transferee understands that (A) the Offered Notes have not been and will not be registered under
the Securities Act or any State securities laws, and may not be reoffered, resold, pledged or otherwise
transferred except (1) to a Person whom the seller reasonably believes is a QIB in a transaction meeting the
requirements of Rule 144A or (2) in a transaction complying with the provisions of Rule 903 or 904 under the
Securities Act, in accordance with any applicable securities laws of any State of the United States or any
other applicable jurisdictions and that (B) the transferee will, and each subsequent holder is required to,
notify any subsequent purchaser of such Offered Notes from it of the resale restrictions referred to in (A)
above.

(iii) The transferee agrees that if in the future it should offer, sell or otherwise transfer such
Offered Note, it will do so only pursuant to Rule 144A to a Person who the

 

 

19

 

seller reasonably believes is a QIB in a transaction meeting the requirements of Rule 144A, purchasing
for its own account or for the account of a QIB, whom the holder has informed that such offer, sale or other
transfer is being made in reliance on Rule 144A.

(iv) Each Offered Note will bear a legend to the following effect, unless the Transferor and the
Indenture Trustee determine otherwise in accordance with applicable law:

“THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAW. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES THAT
THIS NOTE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES
ACT AND OTHER APPLICABLE LAWS AND ONLY (I) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A
PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A
(A “QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS
INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE
144A AND (II) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER
APPLICABLE JURISDICTIONS.

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (“DTC”), TO THE TRUST OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

NO RESALE OR OTHER TRANSFER OF ANY NOTE SHALL BE MADE TO ANY TRANSFEREE UNLESS: (A) SUCH TRANSFEREE IS NOT,
AND WILL NOT ACQUIRE THE NOTE ON BEHALF OR WITH PLAN ASSETS OF, AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN
SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR ANY OTHER “PLAN”
AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “INTERNAL REVENUE
CODE”), THAT IS SUBJECT TO ERISA OR SECTION 4975 OF THE INTERNAL REVENUE CODE OR ANY ENTITY DEEMED TO HOLD
PLAN ASSETS OF ANY OF THE FOREGOING BY REASON OF AN EMPLOYEE

 

 

20

 

BENEFIT PLAN’S OR PLAN’S INVESTMENT IN THE ENTITY (EACH, A “BENEFIT PLAN”) OR (B) THE ACQUISITION AND HOLDING
OF THE NOTE BY SUCH TRANSFEREE ARE ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER PTCE 84-14, PTCE 90-1,
PTCE 91-38, PTCE 95-60, PTCE 96-23 OR A SIMILAR EXEMPTION. EACH PURCHASER OR TRANSFEREE OF A NOTE, BY ITS
ACCEPTANCE OF SUCH NOTE, WILL BE DEEMED TO HAVE MADE THE REPRESENTATION SET FORTH IN CLAUSE (A) OR (B) ABOVE.

THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF
THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

TRANSFERS OF THE NOTES MUST GENERALLY BE ACCOMPANIED BY APPROPRIATE TAX TRANSFER DOCUMENTATION AND ARE SUBJECT
TO RESTRICTIONS AS PROVIDED IN THE MASTER INDENTURE.

THE HOLDER, BY ACCEPTANCE OF THIS NOTE, SHALL BE DEEMED TO HAVE AGREED TO TREAT THIS NOTE AS DEBT SOLELY OF
THE TRUST FOR UNITED STATES FEDERAL, STATE AND LOCAL INCOME, SINGLE BUSINESS AND FRANCHISE TAX PURPOSES.”

(v) If the transferee is acquiring any Offered Note, or any interest or participation therein, as a
fiduciary or agent for one or more investor accounts, it has sole investment discretion with respect to each
such account and that it has full power to make the acknowledgments, representations and agreements contained
herein on behalf of such account.

(vi) (A) The transferee is not acquiring and will not acquire the Offered Notes on behalf of or with plan
assets of any Benefit Plan or (B) its acquisition and holding of the Offered Note are eligible for the
exemptive relief available under PTCE 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 or a similar
exemption. By its acceptance of a Offered Note each transferee will be deemed to have made the representation
set forth in clause (A) or (B).

(vii) The transferee agrees that if at some time in the future it wishes to transfer or exchange any of
the Offered Notes, it will not transfer or exchange any of the Offered Notes unless such transfer or exchange
is in accordance with the Master Indenture. The purchaser understands that any purported transfer of any
Offered Note (or any interest therein) in contravention of any of the restrictions and conditions in the
Master Indenture shall be void, and the purported transferee in such transfer shall not be recognized by the
Trust or any other Person as a Noteholder for any purpose.

(f) Any purported transfer of a Series 2007-2 Note not in accordance with this Section 2.03 or Section 2.05 of the
Master Indenture shall be null and void and shall not be given effect for any purpose hereunder or under the Master
Indenture.

 

 

21

 

(g) If the Indenture Trustee determines or is notified by the Issuer, the Transferor or the Servicer that (i) a
transfer or attempted or purported transfer of any interest in any Series 2007-2 Note was consummated in compliance
with the provisions of this Section on the basis of a materially incorrect certification from the transferee or
purported transferee, (ii) a transferee failed to deliver to the Indenture Trustee any certification required to be
delivered hereunder or (iii) the holder of any interest in a Series 2007-2 Note is in breach of any representation or
agreement set forth in any certification or any deemed representation or agreement of such holder, the Indenture
Trustee shall not register such attempted or purported transfer and if a transfer has been registered, such transfer
shall be absolutely null and void ab initio and shall vest no rights in the purported transferee (such purported
transferee, a “Disqualified Transferee”) and the last preceding holder of such interest in such Series 2007-2 Note that
was not a Disqualified Transferee shall be restored to all rights as a Holder thereof retroactively to the date of
transfer of such Series 2007-2 Note by such Holder.

ARTICLE THREE

 

 

22

 

SERVICING FEE

Section 3.01. Servicing Fee.

(a) Servicing Compensation. The share of the Servicing Fee allocable to the Series 2007-2 Noteholders
with respect to any Distribution Date (the “Monthly Servicing Fee”) shall be equal to one-twelfth of the product of
(1) the Servicing Fee Rate and (2) (i) the Adjusted Invested Amount for the related Monthly Period, minus (ii) the
product of the average daily amount, if any, on deposit in the Special Funding Account during the Monthly Period and
the Investor Percentage with respect to such Monthly Period. The remainder of the Servicing Fee shall be paid by the
Holders of the Transferor Certificates or the Noteholders of other Series (as provided in the related Indenture
Supplements) and in no event shall the Trust, the Indenture Trustee or the Series 2007-2 Noteholders be liable for the
share of the Servicing Fee to be paid by the Holders of the Transferor Certificates or the Noteholders of any other
Series. To the extent that the Monthly Servicing Fee is not paid in full pursuant to the preceding provisions of this
Section and Section 4.03, it shall be paid by the Holders of the Transferor Certificates.

(b) Interchange. On or before each Determination Date, the Servicer shall notify the Transferor of the
amount of Interchange to be included as Investor Finance Charge Collections with respect to the preceding Monthly
Period as determined pursuant to this Section. Such amount of Interchange shall be equal to the product of (i) the
amount of Interchange attributable to the Accounts, as reasonably estimated by the Servicer, and (ii) the Investor
Percentage with regard to Finance Charge Receivables. On each Transfer Date, the Transferor shall deposit into the
Collection Account, in immediately available funds, the amount of Interchange to be so included as Investor Finance
Charge Collections with respect to the preceding Monthly Period and such Interchange shall be treated as a portion of
Investor Finance Charge Collections for all purposes of this Series 2007-2 Indenture Supplement, the Master Indenture
and the Transfer and Servicing Agreement.

ARTICLE FOUR

 

 

23

 

RIGHTS OF SERIES 2007-2 NOTEHOLDERS

AND ALLOCATION AND APPLICATION OF COLLECTIONS

Section 4.01. Collections and Allocations.

(a) Allocations. Collections of Finance Charge Receivables, Principal Receivables and Defaulted
Receivables allocated to Series 2007-2 pursuant to Article Eight of the Master Indenture shall be allocated and
distributed as set forth in this Article.

(b) Payments to the Transferor. The Servicer shall on each Deposit Date direct the Indenture Trustee to
withdraw from the Collection Account and pay to the Holders of the Transferor Certificates (or to the Successor
Servicer to the extent that the Successor Servicer is owed Transition Expenses pursuant to Section 4.03(a)(ix)) the
following amounts:

(i) an amount equal to the Transferor Percentage for the related Monthly Period of Collections of Finance
Charge Receivables; and

(ii) an amount equal to the Transferor Percentage for the related Monthly Period of Collections of
Principal Receivables deposited in the Collection Account, if the Transferor Interest (determined after giving
effect to any Principal Receivables transferred to the Trust on such Deposit Date) exceeds the Required
Transferor Interest.

; provided, that, during the Revolving Period, the amount of Reallocated Principal Collections payable with respect to
interest on the Series 2007-2 Notes on any Distribution Date will be paid by the Servicer from the amount of
Collections of Receivables otherwise payable to the Transferor.

The withdrawals to be made from the Collection Account pursuant to this Section do not apply to deposits into the
Collection Account that do not represent Collections, including payment of the purchase price for the Receivables or
the Notes pursuant to, respectively, Section 2.06 or 7.01 of the Transfer and Servicing Agreement or Section 11.04 of
the Master Indenture and payment of the purchase price for the Series 2007-2 Notes pursuant to Section 7.01 of this
Series 2007-2 Indenture Supplement.

(c) Allocations to the Series 2007-2 Noteholders. The Servicer shall, prior to the close of business on
any Deposit Date, allocate to the Series 2007-2 Noteholders the following amounts:

(i) Allocations of Finance Charge Collections. The Servicer shall allocate to the Series 2007-2
Noteholders and retain in the Collection Account for application as provided herein an amount equal to the
product of (A) the Investor Percentage and (B) the aggregate amount of Collections of Finance Charge
Receivables deposited in the Collection Account.

 

 

24

 

(ii) Allocations of Principal Collections. The Servicer shall allocate to the Series 2007-2
Noteholders the following amounts:

(A) Allocations During the Revolving Period. During the Revolving Period, an amount
equal to the product of (1) the Investor Percentage and (2) the aggregate amount of Collections of
Principal Receivables deposited in the Collection Account on such Deposit Date shall be allocated to
the Series 2007-2 Noteholders and shall be first, if any other Principal Sharing Series in Group One
is outstanding and in its amortization period or accumulation period, retained in the Collection
Account for application, to the extent necessary, as Shared Principal Collections to other Series in
Group One on the related Distribution Date, and second paid to the Holders of the Transferor
Certificates if the Transferor Interest on such Deposit Date is greater than the Required Transferor
Interest (after giving effect to all Principal Receivables transferred to the Trust on such day) and
otherwise shall be deposited in the Special Funding Account.

(B) Allocations During the Controlled Accumulation Period. During the Controlled
Accumulation Period, an amount equal to the product of (1) the Investor Percentage and (2) the
aggregate amount of Collections of Principal Receivables deposited in the Collection Account on such
Deposit Date shall be allocated to the Series 2007-2 Noteholders and deposited in the Principal
Funding Account until applied as provided herein; provided, however, that if such amount, along with
all other allocations to the Series 2007-2 Noteholders of Principal Receivables during the related
Monthly Period exceeds the Controlled Deposit Amount for the related Distribution Date, then such
excess shall be first, if any other Principal Sharing Series in Group One is outstanding and in its
amortization period or accumulation period, retained in the Collection Account for application, to
the extent necessary, as Shared Principal Collections to other Series in Group One on the related
Distribution Date, and second paid to the Holders of the Transferor Certificates if the Transferor
Interest on such Deposit Date is greater than the Required Transferor Interest (after giving effect
to all Principal Receivables transferred to the Trust on such day) and otherwise shall be deposited
in the Special Funding Account.

(C) Allocations During the Early Amortization Period. During the Early Amortization
Period, an amount equal to the product of (1) the Investor Percentage and (2) the aggregate amount of
Collections of Principal Receivables deposited in the Collection Account on such Deposit Date shall
be allocated to the Series 2007-2 Noteholders and retained in the Collection Account until applied as
provided herein; provided, however, that after the date on which an amount of such Collections equal
to the Adjusted Invested Amount has been deposited into the Collection Account and allocated to the
Series 2007-2 Noteholders, such amount shall be first, if any other Principal Sharing Series in Group
One is outstanding and in its amortization period or accumulation period, retained in the Collection
Account for application, to the extent necessary, as Shared Principal Collections to other Series in
Group One on the related Distribution Date, and second paid to the Holders of the Transferor
Certificates only if the Transferor

 

 

25

 

Interest on such date is greater than the Required Transferor Interest (after giving effect to
all Principal Receivables transferred to the Trust on such day) and otherwise shall be deposited in
the Special Funding Account.

Section 4.02. Determination of Monthly Interest, Monthly Principal and Interest Rate.

(a) On each Determination Date, the Servicer shall calculate all amounts necessary to make the required
distributions to the Series 2007-2 Noteholders on the related Distribution Date, including the following amounts in
respect of such Distribution Date and the related Monthly Period (i) the Class A Monthly Interest; (ii) the Class A
Interest Shortfall; (iii) the Class A Additional Interest; (iv) the Class B Monthly Interest; (v) the Class B Interest
Shortfall; (vi) the Class B Additional Interest; (vii) the Class C Monthly Interest; (viii) the Class C Interest
Shortfall; (ix) the Class C Additional Interest; and (x) the Monthly Principal.

(b) The Class C Note Interest Rate may be increased by the Issuer upon satisfaction of the Rating Agency
Condition. The Issuer will give the Rating Agencies 30 days’ prior written notice of the proposed increase to the
Class C Note Interest Rate.

Section 4.03. Application of Available Finance Charge Collections and Available Principal
Collections. The Servicer shall apply, or shall cause the Indenture Trustee to apply by written instruction to the
Indenture Trustee in the form of Exhibit B attached hereto, on each Distribution Date, Available Finance Charge
Collections and Available Principal Collections, as the case may be, on deposit in the Collection Account with respect
to the related Monthly Period or such Distribution Date to make the following distributions:

(a) On each Distribution Date, an amount equal to the Available Finance Charge Collections will be
distributed or deposited in the following amounts and priority:

(i) an amount equal to the Monthly Servicing Fee, plus the amount of any Monthly Servicing Fee previously
due but not distributed to the Servicer on one or more prior Distribution Dates, shall be distributed to the
Servicer (unless such amount has been netted against deposits to the Collection Account in accordance with
Section 8.04 of the Master Indenture);

(ii) an amount equal to the Class A Monthly Interest for such Distribution Date, plus the amount of any
Class A Monthly Interest previously due but not distributed to Class A Noteholders on one or more prior
Distribution Dates, plus the amount of any Class A Additional Interest for such Distribution Dates, plus the
amount of any Class A Additional Interest previously due but not distributed to Class A Noteholders on one or
more prior Distribution Dates, shall be distributed to the Paying Agent for payment to Class A Noteholders on
such Distribution Date;

(iii) an amount equal to the Class B Monthly Interest for such Distribution Date, plus the amount of any
Class B Monthly Interest previously due but not distributed to Class B Noteholders on one or more prior
Distribution Dates, plus the amount of any Class B Additional Interest for such Distribution Dates, plus the
amount of any Class B Additional Interest previously due but not distributed to Class B Noteholders on one or

 

 

26

 

more prior Distribution Dates, shall be distributed to the Paying Agent for payment to Class B
Noteholders on such Distribution Date;

(iv) an amount equal to the Class C Monthly Interest for such Distribution Date, plus the amount of any
Class C Monthly Interest previously due but not distributed to the Class C Noteholders on one or more prior
Distribution Dates, plus the amount of any Class C Additional Interest for such Distribution Dates, plus the
amount of any Class C Additional Interest previously due but not distributed to the Class C Noteholders on one
or more prior Distribution Dates shall be distributed to the Paying Agent for payment to the Class C
Noteholders on such Distribution Date;

(v) an amount equal to the Investor Default Amount and the Investor Uncovered Dilution Amount, if any,
for such Distribution Date shall be treated as a portion of Available Principal Collections for such
Distribution Date;

(vi) an amount equal to the sum of the aggregate amount of Investor Charge-Offs and the amount of
Reallocated Principal Collections which have not been previously reimbursed pursuant to this subparagraph
shall be treated as a portion of Available Principal Collections for such Distribution Date;

(vii) upon the occurrence of an Event of Default with respect to Series 2007-2 and acceleration of the
maturity of the Series 2007-2 Notes, the balance, if any, up to the outstanding principal amount of the Series
2007-2 Notes will be treated as Available Principal Collections for that Distribution Date for distribution to
the Series 2007-2 Noteholders;

(viii) on each Distribution Date from and after the Reserve Account Funding Date, but prior to the date
on which the Reserve Account terminates pursuant to Section 4.09(e), an amount up to the excess, if any, of
the Required Reserve Account Amount over the amount then on deposit in the Reserve Account will be deposited
into the Reserve Account;

(ix) an amount equal to any Transition Expenses and other amounts the Trust may be liable for from time
to time that are not otherwise provided for above will be applied by the Indenture Trustee as directed by the
Servicer; and

(x) the balance, if any, will constitute a portion of Excess Finance Charge Collections for such
Distribution Date and will be available for allocation to other Series in Group One or to the Holder of the
Transferor Certificates as described in Section 8.07 of the Master Indenture and Section 4.01.

(b) On each Distribution Date with respect to the Revolving Period, an amount equal to the Available
Principal Collections shall be treated as Shared Principal Collections and applied in accordance with
Section 8.05 of the Master Indenture.

(c) On each Distribution Date with respect to the Controlled Accumulation Period, Available Principal
Collections deposited in the Collection Account for the related Monthly Period shall be deposited in an amount
up to the Monthly Principal for

 

 

27

 

such Distribution Date into the Principal Funding Account and any Available Principal Collections
remaining after the deposit of the Monthly Principal into the Principal Funding Account shall be treated as
Shared Principal Collections and applied in accordance with Section 8.05 of the Master Indenture.

(d) On each Distribution Date with respect to the Early Amortization Period, an amount equal to the
Available Principal Collections deposited in the Collection Account for the related Monthly Period shall be
distributed or deposited in the following order of priority:

(i) an amount equal to the Available Principal Collections for such Distribution Date shall be
distributed to the Paying Agent for payment to the Class A Noteholders on such Distribution Date and on each
subsequent Distribution Date until the Class A Note Principal Balance has been reduced to zero;

(ii) after giving effect to the distribution referred to in clause (i) above, an amount equal to any
remaining Available Principal Collections shall be distributed to the Paying Agent for payment to the Class B
Noteholders on such Distribution Date and on each subsequent Distribution Date until the Class B Note
Principal Balance has been reduced to zero;

(iii) after giving effect to the distributions referred to in clauses (i) and (ii) above, an amount equal
to any remaining Available Principal Collections shall be distributed to the Paying Agent for payment to the
Class C Noteholders on such Distribution Date and on each subsequent Distribution Date until the Class C Note
Principal Balance has been reduced to zero; and

(iv) the balance of such Available Principal Collections remaining after application in accordance with
clauses (i) through (iii) above shall be treated as Shared Principal Collections and applied in accordance
with Section 8.05 of the Master Indenture.

(e) On the earlier to occur of (i) the first Distribution Date with respect to the Early Amortization
Period and (ii) the Expected Final Principal Payment Date, the Indenture Trustee, acting in accordance with
instructions from the Servicer, shall withdraw from the Principal Funding Account and distribute to the Paying
Agent for payment to the (i) Class A Noteholders, the amounts deposited into the Principal Funding Account
pursuant to Section 4.03(d)(i) until the Class A Notes are paid in full and then (ii) Class B Noteholders, any
remaining amounts deposited into the Principal Funding Account pursuant to Section 4.03(d)(ii) until the
Class B Notes are paid in full.

(f) The Controlled Accumulation Period is scheduled to commence on August 1, 2011; provided, however,
that, if the Accumulation Period Length (determined as described below) is less than eight months, the date on
which the Controlled Accumulation Period actually commences will be delayed to the first Business Day of the
month that is the number of whole months prior to the Expected Final Principal Payment Date at least equal to
the Accumulation Period Length and, as a result, the number of

 

 

28

 

Monthly Periods in the Controlled Accumulation Period will at least equal the Accumulation Period Length.
On the Determination Date immediately preceding the July 2011 Distribution Date, and each Determination Date
thereafter until the Controlled Accumulation Period begins, the Servicer will determine the “Accumulation
Period Length”, which will equal the number of whole months such that the sum of the Accumulation Period
Factors for each month during such period will be equal to or greater than the Required Accumulation Factor
Number; provided, however, that the Accumulation Period Length will not be determined to be less than one
month; provided further, however, that the determination of the Accumulation Period Length may be changed at
any time if the Rating Agency Condition is satisfied.

Section 4.04. Investor Charge-Offs and Investor Uncovered Dilution. On each Determination Date,
the Servicer shall calculate the Investor Default Amount and the Investor Uncovered Dilution Amount, if any, for the
related Distribution Date. If the Investor Default Amount exceeds the amount of Available Finance Charge Collections
allocated with respect thereto pursuant to Section 4.03(a)(v) with respect to such Distribution Date, then the Invested
Amount will be reduced by the amount of the excess as an Investor Charge-Off. If the Investor Uncovered Dilution
Amount exceeds the amount of Available Finance Charge Collections allocated with respect thereto pursuant to Section
4.03(a)(v) (after giving effect to the allocation to cover the Investor Default Amount) with respect to such
Distribution Date, and the Transferor Interest is zero, then the Invested Amount will be reduced by the amount by which
the Transferor Interest would fall below zero if the Investor Uncovered Dilution Amount was deducted from the
Transferor Interest. In no event, however, will the Invested Amount be reduced below zero.

Section 4.05. Reallocated Principal Collections. On each Distribution Date, the Servicer shall
apply, or shall cause the Indenture Trustee to apply, Reallocated Principal Collections with respect to such
Distribution Date, to fund any deficiency pursuant to and in the priority set forth in Sections 4.03(a)(i) through
(iii). On each Distribution Date following the termination of the Revolving Period, the Invested Amount shall be
reduced by the amount of Reallocated Principal Collections for such Distribution Date.

Section 4.06. Excess Finance Charge Collections. Series 2007-2 shall be an Excess Allocation
Series with respect to Group One only. Subject to Section 8.07 of the Master Indenture, Excess Finance Charge
Collections with respect to the Excess Allocation Series in Group One for any Distribution Date will be allocated to
Series 2007-2 in an amount equal to the product of (i) the aggregate amount of Excess Finance Charge Collections with
respect to all the Excess Allocation Series in Group One for such Distribution Date and (ii) a fraction, the numerator
of which is the Finance Charge Shortfall for Series 2007-2 for such Distribution Date and the denominator of which is
the aggregate amount of Finance Charge Shortfalls for all the Excess Allocation Series in Group One for such
Distribution Date.

Section 4.07. Shared Principal Collections. Subject to Section 8.05 of the Master Indenture, Shared
Principal Collections with respect to the Series in Group One for any Distribution Date will be allocated to Series
2007-2 in an amount equal to the product of (i) the aggregate amount of Shared Principal Collections with respect to
all Principal Sharing Series in Group One for such Distribution Date and (ii) a fraction, the numerator of which is the
Series

 

 

29

 

2007-2 Principal Shortfall for such Distribution Date and the denominator of which is the aggregate amount
of Principal Shortfalls for all the Series which are Principal Sharing Series in Group One for such Distribution
Date.

Section 4.08. Principal Funding Account.

(a) The Indenture Trustee shall establish and maintain with an Eligible Institution (which may be the Indenture
Trustee) in the name of the Trust, for the benefit of the Series 2007-2 Noteholders, a segregated trust account with
the corporate trust department of such Eligible Institution (the “Principal Funding Account”), bearing a designation
clearly indicating that the funds deposited therein are held for the benefit of the Series 2007-2 Noteholders. The
Indenture Trustee shall possess all right, title and interest in all funds on deposit from time to time in the
Principal Funding Account and in all proceeds thereof. The Principal Funding Account shall be under the sole dominion
and control of the Indenture Trustee for the benefit of the Series 2007-2 Noteholders. If at any time the institution
holding the Principal Funding Account ceases to be an Eligible Institution, the Transferor shall notify the Indenture
Trustee, and the Indenture Trustee upon being notified (or the Transferor on its behalf) shall, within ten Business
Days, establish a new Principal Funding Account meeting the conditions specified above with an Eligible Institution,
and shall transfer any cash or any investments to such new Principal Funding Account. The Indenture Trustee, at the
direction of the Servicer, shall (i) make withdrawals from the Principal Funding Account from time to time, in the
amounts and for the purposes set forth in this Series 2007-2 Indenture Supplement, and (ii) on each Distribution Date
(from and after the commencement of the Controlled Accumulation Period) prior to the termination of the Principal
Funding Account, make deposits into the Principal Funding Account in the amounts specified in, and otherwise in
accordance with, Section 4.03(c).

(b) Funds on deposit in the Principal Funding Account shall be invested at the direction of the Servicer by the
Indenture Trustee in Eligible Investments. Funds on deposit in the Principal Funding Account on any Distribution Date,
after giving effect to any withdrawals from the Principal Funding Account on such Distribution Date, shall be invested
in such investments that will mature so that such funds will be available for withdrawal prior to the following
Distribution Date.

On each Distribution Date with respect to the Controlled Accumulation Period and on the first Distribution Date
with respect to the Early Amortization Period, the Indenture Trustee, acting at the Servicer’s direction given on or
before such Distribution Date, shall transfer from (i) the Principal Funding Account to the Collection Account the
Principal Funding Investment Proceeds on deposit in the Principal Funding Account and (ii) from the Reserve Account any
Reserve Account Draw Amount for application as Available Finance Charge Collections in accordance with Section 4.03.

Principal Funding Investment Proceeds (including reinvested interest) shall not be considered part of the amounts
on deposit in the Principal Funding Account for purposes of this Series 2007-2 Indenture Supplement.

 

 

30

 

Section 4.09. Reserve Account.

(a) On or before the Reserve Account Funding Date, the Indenture Trustee shall establish and maintain with an
Eligible Institution (which may be the Indenture Trustee) in the name of the Trust, for the benefit of the Noteholders,
a segregated trust account with the corporate trust department of such Eligible Institution (the “Reserve Account”),
bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Noteholders.
The Indenture Trustee shall possess all right, title and interest in all funds on deposit from time to time in the
Reserve Account and in all proceeds thereof. The Reserve Account shall be under the sole dominion and control of the
Indenture Trustee for the benefit of the Noteholders. If at any time the institution holding the Reserve Account
ceases to be an Eligible Institution, the Servicer shall notify the Indenture Trustee, and the Indenture Trustee upon
being notified (or the Servicer on its behalf) shall, within ten Business Days, establish a new Reserve Account meeting
the conditions specified above with an Eligible Institution, and shall transfer any cash or any investments to such new
Reserve Account. The Indenture Trustee, at the direction of the Servicer, shall (i) make withdrawals from the Reserve
Account from time to time in an amount up to the Available Reserve Account Amount at such time, for the purposes set
forth in this Series 2007-2 Indenture Supplement, and (ii) on each Distribution Date (from and after the Reserve
Account Funding Date) prior to termination of the Reserve Account, make a deposit into the Reserve Account in the
amount specified in, and otherwise in accordance with, Section 4.03(a)(viii).

(b) Funds on deposit in the Reserve Account shall be invested at the direction of the Servicer by the Indenture
Trustee in Eligible Investments. Funds on deposit in the Reserve Account on any Distribution Date, after giving effect
to any withdrawals from the Reserve Account on such Distribution Date, shall be invested in such investments that will
mature so that such funds will be available for withdrawal prior to the following Distribution Date.

On each Distribution Date, all interest and earnings (net of losses and investment expenses) accrued since the
preceding Distribution Date on funds on deposit in the Reserve Account shall be retained in the Reserve Account (to the
extent that the amount on deposit in the Reserve Account is less than the Required Reserve Account Amount) and the
balance, if any, shall be deposited into the Collection Account and included in Available Finance Charge Collections
for such Distribution Date. For purposes of determining the availability of funds or the balance in the Reserve
Account for any reason under this Series 2007-2 Indenture Supplement, except as otherwise provided in the preceding
sentence, investment earnings on such funds shall be deemed not to be available or on deposit.

(c) In the event that on any Distribution Date the Reserve Account Draw Amount is greater than zero, the Reserve
Account Draw Amount shall be withdrawn from the Reserve Account by the Indenture Trustee (acting in accordance with the
instructions of the Servicer) and deposited into the Collection Account for application as Available Finance Charge
Collections for such Distribution Date.

(d) In the event that the amount on deposit in the Reserve Account on any Distribution Date, after giving effect
to all deposits to and withdrawals from the Reserve Account with respect to such Distribution Date, is greater than the
Required Reserve Account

 

 

31

 

Amount, the Indenture Trustee, acting in accordance with the instructions of the Servicer, shall withdraw from the
Reserve Account an amount equal to the excess of the amount on deposit in the Reserve Account over the Required Reserve
Account Amount, and distribute such excess to the holders of the Transferor Certificates.

(e) Upon the earliest to occur of (i) the termination of the Trust pursuant to the Trust Agreement, (ii) the first
Distribution Date relating to the Early Amortization Period and (iii) the Expected Final Principal Payment Date, the
Indenture Trustee, acting in accordance with the instructions of the Servicer, after the prior payment of all amounts
owing to the Noteholders that are payable from the Reserve Account as provided herein, shall withdraw from the Reserve
Account all amounts, if any, on deposit in the Reserve Account and distribute any such amounts remaining to the holders
of the Transferor Certificates. The Reserve Account shall thereafter be deemed to have terminated for purposes of this
Series 2007-2 Indenture Supplement.

Section 4.10. Eligible Investments.

(a) The Indenture Trustee shall hold funds on deposit in the Principal Funding Account and the Reserve Account
invested pursuant to Sections 4.08(b) and 4.09(b), respectively, in Eligible Investments. The Indenture Trustee shall
hold such of the Eligible Investments as constitutes investment property through a securities intermediary, which
securities intermediary shall agree with the Indenture Trustee that (i) such investment property shall at all times be
credited to a securities account of the Indenture Trustee, (ii) such securities intermediary shall treat the Indenture
Trustee as entitled to exercise the rights that comprise each financial asset credited to such securities account,
(iii) all property credited to such securities account shall be treated as a financial asset, (iv) such securities
intermediary shall comply with entitlement orders originated by the Indenture Trustee without the further consent of
any other person or entity, (v) such securities intermediary will not agree with any Person or entity other than the
Indenture Trustee to comply with entitlement orders originated by such other Person or entity, (vi) such securities
accounts and the property credited thereto shall not be subject to any lien, security interest or right of set-off in
favor of such securities intermediary or anyone claiming through it (other than the Indenture Trustee) and (vii) such
agreement shall be governed by the laws of the State of New York. Terms used in the preceding sentence that are
defined in the New York UCC and not otherwise defined herein has the meaning set forth in the New York UCC.

(b) Any investment instructions required to be given to the Indenture Trustee pursuant to the terms hereof must be
given to the Indenture Trustee no later than 11:00 a.m., New York City time, on the date such investment is to be made.
In the event the Indenture Trustee receives such investment instruction later than such time, the Indenture Trustee
may, but shall have no obligation to, make such investment. In the event the Indenture Trustee is unable to make an
investment required in an investment instruction received by the Indenture Trustee after 11:00 a.m., New York City
time, on such day, such investment shall be made by the Indenture Trustee on the next succeeding Business Day. In no
event shall the Indenture Trustee be liable for any investment not made pursuant to investment instructions received
after 11:00 a.m., New York City time, on the day such investment is requested to be made.

ARTICLE FIVE

 

 

32

 

DELIVERY OF SERIES 2007-2 NOTES;

DISTRIBUTIONS; REPORTS TO SERIES 2007-2 NOTEHOLDERS

Section 5.01. Delivery and Payment for the Series 2007-2 Notes. The Issuer shall execute and
issue, and the Indenture Trustee shall authenticate, the Series 2007-2 Notes in accordance with Section 2.03 of the
Master Indenture. The Indenture Trustee shall deliver the Series 2007-2 Notes to or upon the order of the Trust when
so authenticated.

Section 5.02. Distributions.

(a) On each Distribution Date, the Paying Agent shall distribute to each Class A Noteholder of record on the
related Record Date (other than as provided in Section 11.02 of the Master Indenture) such Class A Noteholder’s pro
rata share of the amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay
interest and principal on the Class A Notes pursuant to this Series 2007-2 Indenture Supplement.

(b) On each Distribution Date, the Paying Agent shall distribute to each Class B Noteholder of record on the
related Record Date (other than as provided in Section 11.02 of the Master Indenture) such Class B Noteholder’s pro
rata share of the amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay
interest and principal on the Class B Notes pursuant to this Series 2007-2 Indenture Supplement.

(c) On each Distribution Date, the Paying Agent shall distribute to each Class C Noteholder of record on the
related Record Date (other than as provided in Section 11.02 of the Master Indenture) such Class C Noteholder’s pro
rata share of the amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay
interest and principal on the Class C Notes pursuant to this Series 2007-2 Indenture Supplement.

(d) The distributions to be made pursuant to this Section are subject to the provisions of Sections 2.06, 6.01 and
7.01 of the Transfer and Servicing Agreement, Section 11.02 of the Master Indenture and Section 7.01 of this Series
2007-2 Indenture Supplement.

(e) Except as provided in Section 11.02 of the Master Indenture with respect to a final distribution,
distributions to Series 2007-2 Noteholders hereunder shall be made by (i) check mailed to each Series 2007-2 Noteholder
(at such Noteholder’s address as it appears in the Note Register), except that with respect to any Series 2007-2 Notes
registered in the name of the nominee of a Clearing Agency, such distribution shall be made in immediately available
funds and (ii) without presentation or surrender of any Series 2007-2 Note or the making of any notation thereon.

Section 5.03. Reports and Statements to Series 2007-2 Noteholders.

(a) On each Distribution Date, the Paying Agent, on behalf of the Indenture Trustee, shall forward to each Series
2007-2 Noteholder a statement substantially in the form of Exhibit C prepared by the Servicer.

 

 

33

 

(b) Not later than the Determination Date preceding each Distribution Date, the Servicer shall deliver to the
Owner Trustee, the Indenture Trustee, the Paying Agent and each Rating Agency (i) a statement substantially in the form
of Exhibit C prepared by the Servicer and (ii) a certificate of an Authorized Officer substantially in the form of
Exhibit D; provided that the Servicer may amend the form of Exhibit C and Exhibit D, from time to time, with the
consent of the Indenture Trustee.

(c) A copy of this Series 2007-2 Indenture Supplement, as well as each statement or certificate provided pursuant
to Section 5.03(a) or (b), the Transfer and Servicing Agreement and the Trust Agreement may be obtained by any Series
2007-2 Noteholder by a request in writing to the Servicer.

(d) On or before January 31 of each calendar year, beginning with calendar year 2008, the Paying Agent, on behalf
of the Indenture Trustee, shall furnish or cause to be furnished to each Person who at any time during the preceding
calendar year was a Series 2007-2 Noteholder, a statement prepared by the Servicer containing the information which is
required to be contained in the statement to Series 2007-2 Noteholders, as set forth in Section 5.03(a), aggregated for
such calendar year or the applicable portion thereof during which such Person was a Series 2007-2 Noteholder, together
with other information as is required to be provided by an issuer of indebtedness under the Code. Such obligation of
the Paying Agent shall be deemed to have been satisfied to the extent that substantially comparable information shall
be provided by the Paying Agent pursuant to any requirements of the Code as from time to time in effect.

(e) The Paying Agent on behalf of the Indenture Trustee, may make available, via the Paying Agent’s internet
website, any statement required to be forwarded to the Series 2007-2 Noteholders under Section 5.03(a) and the
statement required to be forwarded to the Series 2007-2 Noteholders under Section 5.03(d) and, with the consent or at
the direction of the Servicer, such other information regarding the Notes or the Receivables as the Paying Agent may
have in its possession, but only with the use of a password provided by the Paying Agent or its agent to such Person.
Neither the Paying Agent nor the Indenture Trustee will make any representation or warranties as to the accuracy or
completeness of such documents and will assume no responsibility therefor.

The Paying Agent’s internet website shall be initially located at “www.CTSLink.com” or at such other address as
shall be specified by the Indenture Trustee from time to time in writing to the Series 2007-2 Noteholders. In
connection with providing access to the Paying Agent’s internet website, the Indenture Trustee may require registration
and the acceptance of a disclaimer. Neither the Paying Agent nor the Indenture Trustee shall be liable for the
dissemination of information in accordance with this Series 2007-2 Indenture Supplement.

ARTICLE SIX

 

 

34

 

SERIES 2007-2 PAY OUT EVENTS

Section 6.01. Series 2007-2 Pay Out Events. If any one of the following events shall occur with
respect to the Series 2007-2 Notes:

(a) failure on the part of the Transferor (i) to make any payment or deposit required to be made by the
Transferor by the terms of the Transfer and Servicing Agreement, the Master Indenture or this Series 2007-2
Indenture Supplement on or before the date occurring five Business Days after the date such payment or deposit
is required to be made therein or herein or (ii) duly to observe or perform any other covenants or agreements
of the Transferor set forth in the Transfer and Servicing Agreement, the Master Indenture or this Series
2007-2 Indenture Supplement, which failure has a material adverse effect on the Series 2007-2 Noteholders and
which continues unremedied for a period of 60 days after the date on which written notice of such failure,
requiring the same to be remedied, shall have been given to the Transferor by the Indenture Trustee, or to the
Transferor and the Indenture Trustee by any Holder of the Series 2007-2 Notes;

(b) any representation or warranty made by the Transferor in the Transfer and Servicing Agreement, or any
information contained in a computer file or microfiche list required to be delivered by the Transferor
pursuant to Section 2.01 or Section 2.09 of the Transfer and Servicing Agreement shall prove to have been
incorrect in any material respect when made or when delivered, which continues to be incorrect in any material
respect for a period of 60 days after the date on which written notice of such failure, requiring the same to
be remedied, shall have been given to the Transferor by the Indenture Trustee, or to the Transferor and the
Indenture Trustee by any Holder of the Series 2007-2 Notes and as a result of which the interests of the
Series 2007-2 Noteholders are materially and adversely affected for such period; provided, however, that a
Series 2007-2 Pay Out Event pursuant to this Subsection shall not be deemed to have occurred hereunder if the
Transferor has accepted reassignment of the related Receivable, or all of such Receivables, if applicable,
during such period in accordance with the provisions of the Transfer and Servicing Agreement;

(c) a failure by the Transferor to convey Receivables in Supplemental Accounts or Participation Interests
to the Trust within five Business Days after the day on which it is required to convey such Receivables
pursuant to Section 2.09(a) of the Transfer and Servicing Agreement (including the failure of the Account
Owner to transfer the Receivables);

(d) any Servicer Default shall occur;

(e) the average Portfolio Adjusted Yield for any three consecutive Monthly Periods is less than zero;

 

 

35

 

(f) the Offered Note Principal Balance shall not be paid in full on the Expected Final Principal Payment
Date;

(g) an Insolvency Event occurs with respect to the Transferor (including any additional Transferor), the
Bank, the Seller, any other Account Owner or the Servicer;

(h) the Transferor is unable for any reason to transfer Receivables to the Trust in accordance with the
Transfer and Servicing Agreement or the Seller is unable for any reason to transfer Receivables to the
Transferor in accordance with the Receivables Purchase Agreement;

(i) the Trust becomes required to register as an “investment company” under the Investment Company Act;
or

(j) without limiting the foregoing, the occurrence of an Event of Default with respect to Series 2007-2
and acceleration of the maturity of the Series 2007-2 Notes pursuant to Section 5.03 of the Master Indenture;

then, in the case of any event described in subparagraph (a), (b) or (d), after the applicable grace period, if any,
set forth in such subparagraphs, either the Indenture Trustee or the Holders of Series 2007-2 Notes evidencing at least
25% of the aggregate unpaid principal amount of Series 2007-2 Notes by notice then given in writing to the Transferor
and the Servicer (and to the Indenture Trustee if given by the Series 2007-2 Noteholders) may declare that a “Series
Pay Out Event” with respect to Series 2007-2 (a “Series 2007-2 Pay Out Event”) has occurred as of the date of such
notice, and, in the case of any event described in subparagraph (c), (e), (f), (g), (h), (i) or (j), a Series 2007-2
Pay Out Event shall occur without any notice or other action on the part of the Indenture Trustee or the Series 2007-2
Noteholders immediately upon the occurrence of such event.

ARTICLE SEVEN

 

 

36

 

REDEMPTION OF SERIES 2007-2 NOTES; FINAL DISTRIBUTIONS; SERIES TERMINATION

Section 7.01. Optional Redemption of Series 2007-2 Notes; Final Distributions.

(a) On any day occurring on or after the date on which the outstanding principal balance of the Series 2007-2
Notes is reduced to 10% or less of the initial Note Principal Balance, the Servicer shall have the option to redeem the
Series 2007-2 Notes if it has determined, in its sole estimation, that the cost of servicing the related Receivables is
unduly burdensome in relation to the benefit, at a purchase price equal to (i) if such day is a Distribution Date, the
Reassignment Amount for such Distribution Date or (ii) if such day is not a Distribution Date, the Reassignment Amount
for the Distribution Date following such day.

(b) The Servicer shall give the Indenture Trustee at least 30 days’ prior written notice of the date on which the
Servicer intends to exercise such redemption option. Not later than 12:00 noon, New York City time, on such date the
Servicer shall deposit into the Collection Account in immediately available funds the excess of the Reassignment Amount
over the amount, if any, on deposit in the Principal Funding Account. Such redemption option is subject to payment in
full of the Reassignment Amount. Following such deposit into the Collection Account in accordance with the foregoing,
the Invested Amount for Series 2007-2 shall be reduced to zero and the Series 2007-2 Noteholders shall have no further
security interest in the Receivables. The Reassignment Amount shall be distributed as set forth in Section 7.02(b).

Section 7.02. Sale of the Receivables or Redemption of the Notes pursuant to Section 2.06 or 7.01 of
the Transfer and Servicing Agreement and Section 5.05 and 5.16 of the Master Indenture and Section 7.01.

(a) (i) The amount to be paid by the Transferor with respect to Series 2007-2 in connection with a
reassignment of Receivables to the Transferor pursuant to Section 2.06 of the Transfer and Servicing Agreement
shall equal the Reassignment Amount for the first Distribution Date following the Monthly Period in which the
reassignment obligation arises under the Transfer and Servicing Agreement.

(ii) The amount to be paid by the Transferor with respect to Series 2007-2 in connection with a purchase
of the Notes pursuant to Section 7.01 of the Transfer and Servicing Agreement shall equal the Reassignment
Amount for the Distribution Date of such repurchase.

(b) With respect to the Reassignment Amount deposited into the Collection Account pursuant to Section 7.01 or any
amounts allocable to the Series 2007-2 Notes deposited into the Collection Account pursuant to Section 5.05 and 5.16 of
the Master Indenture, the Indenture Trustee shall, in accordance with the written direction of the Servicer, not later
than 12:00 noon, New York City time, on the related Distribution Date, make deposits or distributions of the following
amounts (in the priority set forth below and, in each case, after giving effect to any deposits and distributions
otherwise to be made on such date) in immediately available funds:

 

 

37

 

(i) (A) the Class A Note Principal Balance on such Distribution Date will be distributed to the Paying Agent for
payment to the Class A Noteholders and (B) an amount equal to the sum of (1) Class A Monthly Interest for such
Distribution Date, (2) any Class A Monthly Interest previously due but not distributed to the Class A Noteholders on a
prior Distribution Date and (3) the amount of Class A Additional Interest, if any, for such Distribution Date and any
Class A Additional Interest previously due but not distributed to the Class A Noteholders on any prior Distribution
Date, will be distributed to the Paying Agent for payment to the Class A Noteholders, (ii) (A) the Class B Note
Principal Balance on such Distribution Date will be distributed to the Paying Agent for payment to the Class B
Noteholders and (B) an amount equal to the sum of (1) Class B Monthly Interest for such Distribution Date, (2) any
Class B Monthly Interest previously due but not distributed to the Class B Noteholders on a prior Distribution Date and
(3) the amount of Class B Additional Interest, if any, for such Distribution Date and any Class B Additional Interest
previously due but not distributed to the Class B Noteholders on any prior Distribution Date, will be distributed to
the Paying Agent for payment to the Class B Noteholders, (iii) (A) the Class C Note Principal Balance on such
Distribution Date will be distributed to the Paying Agent for payment to the Class C Noteholders and (B) an amount
equal to the sum of (1) Class C Monthly Interest for such Distribution Date, (2) any Class C Monthly Interest
previously due but not distributed to the Class C Noteholders on a prior Distribution Date and (3) the amount of
Class C Additional Interest, if any, for such Distribution Date and any Class C Additional Interest previously due but
not distributed to the Class C Noteholders on any prior Distribution Date, will be distributed to the Paying Agent for
payment to the Class C Noteholders and (iv) any excess shall be released to the Transferor.

(c) Notwithstanding anything to the contrary in this Series 2007-2 Indenture Supplement, the Master Indenture or
the Transfer and Servicing Agreement, all amounts distributed to the Paying Agent pursuant to Section 7.01(d) for
payment to the Series 2007-2 Noteholders shall be deemed distributed in full to the Series 2007-2 Noteholders on the
date on which such funds are distributed to the Paying Agent pursuant to this Section and shall be deemed to be a final
distribution pursuant to Section 11.02 of the Master Indenture.

Section 7.03. Series Termination. On the Series 2007-2 Final Maturity Date, the right of the
Series 2007-2 Noteholders to receive payments from the Issuer will be limited solely to the right to receive payments
pursuant to Section 5.05 of the Master Indenture.

ARTICLE EIGHT

 

 

38

 

MISCELLANEOUS PROVISIONS

Section 8.01. Ratification of Master Indenture; Amendments. As supplemented by this Series 2007-2
Indenture Supplement, the Master Indenture is in all respects ratified and confirmed and the Master Indenture as so
supplemented by this Series 2007-2 Indenture Supplement shall be read, taken and construed as one and the same
instrument. This Series 2007-2 Indenture Supplement may be amended only by an Indenture Supplement entered into in
accordance with the terms of Section 10.01 or 10.02 of the Master Indenture. For purpose of the application of
Section 10.02 to any amendment of this Series 2007-2 Indenture Supplement, the Series 2007-2 Noteholders shall be the
only Noteholders whose vote shall be required. Notwithstanding the foregoing, upon satisfaction of the Rating Agency
Condition, the provisions of this Series 2007-2 Indenture Supplement may be amended by the parties hereto without
consent of Class A Noteholders if the amendment is to restrict the Transfer of Class B and/or Class C Notes and such
amendment is in the Opinion of Counsel necessary to ensure that the Trust would not be treated as an association or
publicly traded partnership taxable as a corporation.

Section 8.02. Counterparts. This Series 2007-2 Indenture Supplement may be executed in two or
more counterparts, and by different parties on separate counterparts, each of which shall be an original, but all of
which shall constitute one and the same instrument.

Section 8.03. GOVERNING LAW. THIS SERIES 2007-2 INDENTURE SUPPLEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN
SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL
BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

Section 8.04. Limitation of Liability. Notwithstanding any other provision herein or elsewhere,
this Series 2007-2 Indenture Supplement has been executed and delivered by Wilmington Trust Company, not in its
individual capacity, but solely in its capacity as Owner Trustee of the Trust, in no event shall Owner Trustee in its
individual capacity have any liability in respect of the representations, warranties, or obligations of the Trust
hereunder or under any other document, as to all of which recourse shall be had solely to the assets of the Trust, and
for all purposes of this Series 2007-2 Indenture Supplement and each other document, the Owner Trustee (as such or in
its individual capacity) shall be subject to, and entitled to the benefits of, the terms and provisions of the Trust
Agreement.

 

 

39

 

IN WITNESS WHEREOF, the undersigned have caused this Series 2007-2 Indenture Supplement to be duly executed and
delivered by their respective duly authorized officers on the day and year first above written.

NORDSTROM CREDIT CARD MASTER NOTE TRUST II,

as Issuer

By: WILMINGTON TRUST COMPANY,

not in its individual capacity

but solely as Owner Trustee

By: /s/ James P. Lawler

	 	 	James P. Lawler

Vice President

Wells Fargo Bank, N.A.,

as Indenture Trustee

By: /s/ Melissa K. Philibert

	 	 	Melissa K. Philibert

Vice President

Acknowledged and Accepted:

NORDSTROM CREDIT CARD RECEIVABLES II LLC,

as Transferor

By: /s/ Marc A. Anacker

	 	 	Marc A. Anacker

Treasurer	 

NORDSTROM fsb,

as Servicer

By: /s/ Kevin T. Knight

	 	 	Kevin T. Knight	 

Chairman and CEO

 

 

40

 

EXHIBIT A-1

FORM OF SERIES 2007-2 FLOATING RATE

ASSET BACKED NOTE, CLASS A

RULE 144A GLOBAL NOTE

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR UNDER ANY STATE SECURITIES LAW. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES THAT THIS NOTE MAY BE
REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE
LAWS AND ONLY (I) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A “QIB”), PURCHASING FOR ITS OWN ACCOUNT
OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE,
PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A OF THE SECURITIES ACT AND (II) IN ACCORDANCE WITH ALL
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTIONS.

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (“DTC”), TO THE TRUST OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

NO RESALE OR OTHER TRANSFER OF ANY NOTE SHALL BE MADE TO ANY TRANSFEREE UNLESS: (A) SUCH TRANSFEREE IS NOT, AND
WILL NOT ACQUIRE THE NOTE ON BEHALF OR WITH PLAN ASSETS OF, AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF
THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR ANY OTHER “PLAN” AS DEFINED IN
SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “INTERNAL REVENUE CODE”), THAT IS SUBJECT TO
ERISA OR SECTION 4975 OF THE INTERNAL REVENUE CODE OR ANY ENTITY DEEMED TO HOLD PLAN ASSETS OF ANY OF THE FOREGOING BY
REASON OF AN EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN THE ENTITY (EACH, A “BENEFIT PLAN”) OR (B) THE ACQUISITION
AND HOLDING OF THE NOTE BY SUCH TRANSFEREE ARE ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER PTCE 84-14, PTCE 90-1,
PTCE 91-38, PTCE 95-60, PTCE 96-23 OR A SIMILAR

			
	 
	 	

	
 	 	A-1-

 

 

41

 

EXEMPTION. EACH PURCHASER OR TRANSFEREE OF A NOTE, BY ITS ACCEPTANCE OF SUCH NOTE, WILL BE DEEMED TO HAVE MADE
THE REPRESENTATION SET FORTH IN CLAUSE (A) OR (B) ABOVE.

THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS
NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

TRANSFERS OF THE NOTES MUST GENERALLY BE ACCOMPANIED BY APPROPRIATE TAX TRANSFER DOCUMENTATION AND ARE SUBJECT TO
RESTRICTIONS AS PROVIDED IN THE MASTER INDENTURE.

THE HOLDER, BY ACCEPTANCE OF THIS NOTE, SHALL BE DEEMED TO HAVE AGREED TO TREAT THE NOTES AS DEBT SOLELY OF THE
TRUST FOR UNITED STATES FEDERAL, STATE AND LOCAL INCOME, SINGLE BUSINESS AND FRANCHISE TAX PURPOSES.”

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME INSTITUTE
AGAINST THE TRUST OR THE TRANSFEROR, OR JOIN IN INSTITUTING AGAINST THE TRUST OR THE TRANSFEROR, ANY BANKRUPTCY,
REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDINGS, OR OTHER PROCEEDINGS UNDER ANY UNITED STATES
FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW.

No. 144A/R-1 Up to $453,800,000

CUSIP NO. 65566VAC4

Class A Note Rate: One-Month LIBOR plus 0.06%

NORDSTROM CREDIT CARD MASTER NOTE TRUST II

SERIES 2007-2 FLOATING RATE ASSET BACKED NOTE, CLASS A

Nordstrom Credit Card Master Note Trust II (herein referred to as the “Trust”), a Delaware statutory trust
governed by a Second Amended and Restated Trust Agreement, dated as of May 1, 2007 (the “Trust Agreement”), between
Nordstrom Credit Card Receivables II LLC, as transferor (the “Transferor”), and Wilmington Trust Company, as owner
trustee (the “Owner Trustee”), for value received, hereby promises to pay to DTC, or its registered assigns, subject to
the following provisions, the principal sum of     , or such greater or lesser amount as determined in
accordance with the Master Indenture, referred to herein, on the Series 2007-2 Final Maturity Date (which is the
earlier to occur of (a) the Distribution Date on which the Note Principal Balance is paid in full and (b) the May 15,
2015 Distribution Date), except as otherwise provided below or in the Master Indenture. The Trust will pay interest on
the unpaid principal amount of this Note at One-Month LIBOR plus 0.06% on each Distribution Date until the principal
amount of this Note is paid in full. Interest on this Note will accrue for each Distribution Date from and including
the preceding Distribution Date

			
	 
	 	

	
 	 	A-1-

 

 

42

 

(or in the case of the initial Distribution Date, from and including the Closing Date) to but excluding the
current Distribution Date. Interest will be computed on the basis of the actual number of days in such Interest Period
and a 360-day year. Principal of this Note shall be paid in the manner specified on the reverse hereof.

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.

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 or on behalf of the Indenture Trustee, by
manual signature, this Note shall not be entitled to any benefit under the Master Indenture or the Series 2007-2
Indenture Supplement referred to on the reverse hereof, or be valid for any purpose.

			
	 
	 	

	
 	 	A-1-

 

 

43

 

IN WITNESS WHEREOF, the Trust has caused this Class A Note to be duly executed.

NORDSTROM CREDIT CARD MASTER NOTE TRUST II,

	 	 	 
	  as Trust

By:

	 	

WILMINGTON TRUST COMPANY,

not in its individual capacity but solely as Owner
Trustee under the Trust Agreement

By:

Name:

Title:

Dated:      ,      

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class A Notes described in the within-mentioned Master Indenture.

WELLS FARGO BANK, NATIONAL ASSOCIATION,

  as Indenture Trustee

By:

Authorized Signatory

			
	 
	 	

	
 	 	A-1-

 

 

44

 

NORDSTROM CREDIT CARD MASTER NOTE TRUST II

SERIES 2007-2 FLOATING RATE ASSET BACKED NOTE, CLASS A

Summary of Terms and Conditions

This Class A Note is one of a duly authorized issue of Notes of the Trust, designated as Nordstrom Credit Card
Master Note Trust II, Series 2007-2 (the “Series 2007-2 Notes”), issued under an Amended and Restated Master Indenture,
dated as of May      , 2007 (the “Master Indenture”) between the Trust and Wells Fargo Bank, National Association, as
indenture trustee (the “Indenture Trustee”), as supplemented by the Series 2007-2 Indenture Supplement, dated as of
May 1, 2007 (the “Series 2007-2 Indenture Supplement” and, together with the Master Indenture, the “Master Indenture”),
between the Trust and the Indenture Trustee, and representing the right to receive certain payments from the Trust.
The Notes are subject to all of the terms of the Master Indenture. All terms used in this Note that are defined in the
Master Indenture has the meanings assigned to them in or pursuant to the Master Indenture. In the event of any
conflict or inconsistency between the Master Indenture and this Note, the Master Indenture shall control. This Class A
Note does not purport to summarize the Master Indenture and reference is made to the Master Indenture for the
interests, rights and limitations of rights, benefits, obligations and duties evidenced thereby, and the rights, duties
and immunities of the Indenture Trustee.

The Class B Notes and the Class C Notes will also be issued under the Master Indenture.

The Noteholder, by its acceptance of this Class A Note, agrees that it will look solely to the property of the
Trust allocated to the payment of this Class A Note for payment hereunder and that the Indenture Trustee is not liable
to the Noteholders for any amount payable under the Note or the Master Indenture or, except as expressly provided in
the Master Indenture, subject to any liability under the Master Indenture.

The Expected Final Principal Payment Date is the April 16, 2012 Distribution Date, but principal with respect to
the Class A Notes may be paid earlier or later under certain circumstances described in the Master Indenture. If for
one or more months during the Controlled Accumulation Period there are not sufficient funds to deposit into the
Principal Funding Account the Controlled Deposit Amount, then to the extent that excess funds are not available on
subsequent Distribution Dates with respect to the Controlled Accumulation Period to make up for such shortfalls, the
final payment of principal of the Notes will occur later than the Expected Final Principal Payment Date. Payments of
principal of the Notes shall be payable in accordance with the provisions of the Master Indenture.

Subject to the terms and conditions of the Master Indenture, the Transferor may, from time to time, direct the
Owner Trustee, on behalf of the Trust, to issue one or more new Series of Notes.

On each Distribution Date, the Paying Agent shall distribute to each Class A Noteholder of record on the related
Record Date (except for the final distribution in respect of this Class A Note) such Class A Noteholder’s pro rata
share of the amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay
interest and principal on the Class A Notes pursuant to the Series 2007-2 Indenture Supplement. Except as provided in
the Master

			
	 
	 	

	
 	 	A-1-

 

 

45

 

Indenture with respect to a final distribution, distributions to Series 2007-2 Noteholders shall be made by
(i) check mailed to each Series 2007-2 Noteholder (at such Noteholder’s address as it appears in the Note Register),
except that with respect to any Series 2007-2 Notes registered in the name of the nominee of a Clearing Agency, such
distribution shall be made in immediately available funds and (ii) without presentation or surrender of any Series
2007-2 Note or the making of any notation thereon. Final payment of this Class A Note will be made only upon
presentation and surrender of this Class A Note at the office or agency specified in the notice of final distribution
delivered by the Indenture Trustee to the Series 2007-2 Noteholders in accordance with the Master Indenture.

On any day occurring on or after the date on which the outstanding principal balance of the Series 2007-2 Notes is
reduced to 10% or less of the initial Note Principal Balance, the Servicer shall have the option to redeem the Series
2007-2 Notes, at a purchase price equal to, if such day (i) is a Distribution Date, the Reassignment Amount for such
Distribution Date or (ii) is not a Distribution Date, the Reassignment Amount for the Distribution Date following such
day.

THIS CLASS A NOTE DOES NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN, THE TRANSFEROR, NORDSTROM FSB OR ANY
AFFILIATE OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

Each Noteholder, by accepting a Note, hereby covenants and agrees that it will not at any time institute against
the Trust or the Transferor, or join in instituting against the Trust or the Transferor, prior to the date which is one
year and one day after the termination of this Master Indenture, acquiesce, petition or otherwise invoke or cause the
Trust or the Transferor to invoke the process of any Governmental Authority for the purpose of commencing or sustaining
a case against the Trust or the Transferor under any Debtor Relief Law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Trust or Transferor or any substantial part of its
property or ordering the winding-up or liquidation of the affairs of the Trust or Transferor.

Except as otherwise provided in the Indenture Supplement, the Class A Notes are issuable only in minimum
denominations of $100,000 and integral multiples of $1,000. The transfer of this Class A Note shall be registered in
the Note Register upon surrender of this Class A Note for registration of transfer at any office or agency maintained
by the Transfer Agent and Registrar accompanied by a written instrument of transfer, in a form satisfactory to the
Indenture Trustee or the Transfer Agent and Registrar, duly executed by the Class A Noteholder or such Class A
Noteholder’s attorney, and duly authorized in writing with such signature guaranteed, and thereupon one or more new
Class A Notes in any authorized denominations of like aggregate principal amount will be issued to the designated
transferee or transferees.

As provided in the Master Indenture and subject to certain limitations therein set forth, Class A Notes are
exchangeable for new Class A Notes in any authorized denominations and of like aggregate principal amount, upon
surrender of such Notes to be exchanged at the office or agency of the Transfer Agent and Registrar. No service charge
may be imposed for any such

			
	 
	 	

	
 	 	A-1-

 

 

46

 

exchange but the Trust or Transfer Agent and Registrar may require payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection therewith.

The Trust, the Transferor, the Indenture Trustee and any agent of the Trust, Transferor or the Indenture Trustee
shall treat the person in whose name this Class A Note is registered as the owner hereof for all purposes, and neither
the Trust, the Transferor, the Indenture Trustee nor any agent of the Trust, Transferor or the Indenture Trustee shall
be affected by notice to the contrary.

THIS CLASS A NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO
ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

			
	 
	 	

	
 	 	A-1-

 

 

47

 

ASSIGNMENT

Social Security or other identifying number of assignee

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(name and address of assignee)

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

Dated:  1

Signature Guaranteed:

1NOTE: 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.

			
	 
	 	

	
 	 	A-1-

 

 

48

 

SCHEDULE OF EXCHANGES IN GLOBAL SECURITY

The following exchanges of a part of this Global Security have been made:

	 	 	 	 	 	 	 	 	 
	Date of Exchange

	 	Amount of
Decrease in Principal
Amount of this
Global Security
	 	Amount of
Increase in
Principal Amount of
this Global
Security
	 	Principal Amount of
this Global
Security following
such decrease (or
increase)
	 	Signature of
authorized officer
of Trustee or
securities
Custodian

			
	 
	 	

	
 	 	A-1-

 

 

49

 

EXHIBIT A-2

FORM OF SERIES 2007-2 FLOATING RATE

ASSET BACKED NOTE, CLASS B

RULE 144A GLOBAL NOTE

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR UNDER ANY STATE SECURITIES LAW. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES THAT THIS NOTE MAY BE
REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE
LAWS AND ONLY (I)(A) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A “QIB”), PURCHASING FOR ITS
OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER,
RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A OF THE SECURITIES ACT AND (II) IN ACCORDANCE
WITH ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTIONS.

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (“DTC”), TO THE TRUST OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

NO RESALE OR OTHER TRANSFER OF ANY NOTE SHALL BE MADE TO ANY TRANSFEREE UNLESS: (A) SUCH TRANSFEREE IS NOT, AND
WILL NOT ACQUIRE THE NOTE ON BEHALF OR WITH PLAN ASSETS OF, AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF
THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR ANY OTHER “PLAN” AS DEFINED IN
SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “INTERNAL REVENUE CODE”), THAT IS SUBJECT TO
ERISA OR SECTION 4975 OF THE INTERNAL REVENUE CODE OR ANY ENTITY DEEMED TO HOLD PLAN ASSETS OF ANY OF THE FOREGOING BY
REASON OF AN EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN THE ENTITY (EACH, A “BENEFIT PLAN”) OR (B) THE ACQUISITION
AND HOLDING OF THE NOTE BY SUCH TRANSFEREE ARE ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER PTCE 84-14, PTCE 90-1,
PTCE 91-38, PTCE 95-60, PTCE 96-23 OR A SIMILAR

			
	 
	 	

	
 	 	A-2-

 

 

50

 

EXEMPTION. EACH PURCHASER OR TRANSFEREE OF A NOTE, BY ITS ACCEPTANCE OF SUCH NOTE, WILL BE DEEMED TO HAVE MADE
THE REPRESENTATION SET FORTH IN CLAUSE (A) OR (B) ABOVE.

THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS
NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

TRANSFERS OF THE NOTES MUST GENERALLY BE ACCOMPANIED BY APPROPRIATE TAX TRANSFER DOCUMENTATION AND ARE SUBJECT TO
RESTRICTIONS AS PROVIDED IN THE MASTER INDENTURE.

THE HOLDER, BY ACCEPTANCE OF THIS NOTE, SHALL BE DEEMED TO HAVE AGREED TO TREAT THE NOTES AS DEBT SOLELY OF THE
TRUST FOR UNITED STATES FEDERAL, STATE AND LOCAL INCOME, SINGLE BUSINESS AND FRANCHISE TAX PURPOSES.”

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME INSTITUTE
AGAINST THE TRUST OR THE TRANSFEROR, OR JOIN IN INSTITUTING AGAINST THE TRUST OR THE TRANSFEROR, ANY BANKRUPTCY,
REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDINGS, OR OTHER PROCEEDINGS UNDER ANY UNITED STATES
FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW.

No. 144A/R-1 Up to $46,200,000

CUSIP NO. 65566VAD2

Class B Note Rate: One-Month LIBOR plus 0.18%

NORDSTROM CREDIT CARD MASTER NOTE TRUST II

SERIES 2007-2 FLOATING RATE ASSET BACKED NOTE, CLASS B

Nordstrom Credit Card Master Note Trust II (herein referred to as the “Trust”), a Delaware statutory trust
governed by a Second Amended and Restated Trust Agreement, dated as of May 1, 2007 (the “Trust Agreement”), between
Nordstrom Credit Card Receivables II LLC, as transferor (the “Transferor”), and Wilmington Trust Company, as owner
trustee (the “Owner Trustee”), for value received, hereby promises to pay to DTC, or its registered assigns, subject to
the following provisions, the principal sum of      , or such greater or lesser amount as determined in
accordance with the Master Indenture, on the Series 2007-2 Final Maturity Date (which is the earlier to occur of
(a) the Distribution Date on which the Note Principal Balance is paid in full and (b) the May 15, 2015 Distribution
Date), except as otherwise provided below or in the Master Indenture. The Trust will pay interest on the unpaid
principal amount of this Note at One-Month LIBOR plus 0.18% on each Distribution Date until the principal amount of
this Note is paid in full. Interest on this Note will accrue for each Distribution Date from and including the
preceding Distribution Date (or in the case of the initial Distribution Date, from and including the Closing Date) to
but excluding the current Distribution

			
	 
	 	

	
 	 	A-2-

 

 

51

 

Date. Interest will be computed on the basis of the actual number of days in such Interest Period and a 360-day year.
Principal of this Note shall be paid in the manner specified on the reverse hereof.

“LIBOR Determination Date” means two London Business Day prior to the Closing Date with respect to the
first Distribution Date and, as to each subsequent Distribution Date, two London Business Days prior to the immediately
preceding Distribution Date.

“London Business Day” means any day other than a Saturday, Sunday or a day on which banking institutions
in London, England, are authorized or obligated by law or government decree to be closed.

“One-Month LIBOR” means, with respect to any Interest Period, the rate determined by the Indenture Trustee
by reference to the British Bankers’ Association Interest Settlement Rate for deposits in Dollars, with a maturity of
one month commencing on the related LIBOR Determination Date, appearing on page 3750 of the Telerate Service (or any
such page as may replace page 3750 on such service or any successor to or substitute for such service, providing rate
quotations comparable to those currently provided by such service, as determined by the Indenture Trustee from time to
time for purposes of providing quotations of interest rates applicable to deposits in Dollars in the London interbank
market) at approximately 11:00 a.m., London time, on the second Business Day before the first day of such Interest
Period. In the event that such rate is not available at such time for any reason, then the “One-Month LIBOR” shall be
the rate at which deposits in Dollars in a principal amount of not less than $1,000,000 and for a maturity comparable
to such Interest Period are offered by the [Wells Fargo Bank, National Association] in immediately available funds in
the London interbank market at approximately 11:00 a.m., London time, on the second Business Day before (and for value
on) the first day of such Interest Period.

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.

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 or on behalf of the Indenture Trustee, by
manual signature, this Note shall not be entitled to any benefit under the Master Indenture or the Series 2007-2
Indenture Supplement referred to on the reverse hereof, or be valid for any purpose.

THIS CLASS B NOTE IS SUBORDINATED TO THE EXTENT NECESSARY TO FUND PAYMENT ON THE CLASS A NOTES TO THE EXTENT
SPECIFIED IN THE SERIES 2007-2 INDENTURE SUPPLEMENT.

			
	 
	 	

	
 	 	A-2-

 

 

52

 

IN WITNESS WHEREOF, the Trust has caused this Class B Note to be duly executed.

NORDSTROM CREDIT CARD MASTER NOTE TRUST II,

	 	 	 
	  as Trust

BY:

	 	

WILMINGTON TRUST COMPANY,

not in its individual capacity but solely as Owner
Trustee under the Trust Agreement

By:

Name:

Title:

Dated:      ,      

MASTER INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class B Notes described in the within-mentioned Master Indenture.

WELLS FARGO BANK, NATIONAL ASSOCIATION,

  as Indenture Trustee

By:

Authorized Signatory

			
	 
	 	

	
 	 	A-2-

 

 

53

 

NORDSTROM CREDIT CARD MASTER NOTE TRUST II

SERIES 2007-2 FLOATING RATE ASSET BACKED NOTE, CLASS B

Summary of Terms and Conditions

This Class B Note is one of a duly authorized issue of Notes of the Trust, designated as Nordstrom Credit Card
Master Note Trust II, Series 2007-2 (the “Series 2007-2 Notes”), issued under an Amended and Restated Master Indenture,
dated as of May 1, 2007 (the “Master Indenture”), between the Trust and Wells Fargo Bank, National Association, as
indenture trustee (the “Indenture Trustee”), as supplemented by the Series 2007-2 Indenture Supplement, dated as of
May 1, 2007 (the “Series 2007-2 Indenture Supplement”), between the Trust and the Indenture Trustee, and representing
the right to receive certain payments from the Trust. The term “Master Indenture,” unless the context otherwise
requires, refers to the Master Indenture as supplemented by the Series 2007-2 Indenture Supplement. The Notes are
subject to all of the terms of the Master Indenture. All terms used in this Note that are defined in the Master
Indenture has the meanings assigned to them in or pursuant to the Master Indenture. In the event of any conflict or
inconsistency between the Master Indenture and this Note, the Master Indenture shall control.

The Class A Notes and the Class C Notes will also be issued under the Master Indenture.

The Noteholder, by its acceptance of this Note, agrees that it will look solely to the property of the Trust
allocated to the payment of this Note for payment hereunder and that the Master Indenture Trustee is not liable to the
Noteholders for any amount payable under the Note or the Master Indenture or, except as expressly provided in the
Master Indenture, subject to any liability under the Master Indenture.

This Class B Note does not purport to summarize the Master Indenture and reference is made to the Master Indenture
for the interests, rights and limitations of rights, benefits, obligations and duties evidenced thereby, and the
rights, duties and immunities of the Indenture Trustee.

The Class B Note Initial Principal Balance is $46,200,000. The Class B Note Principal Balance on any date of
determination will be an amount equal to (a) the Class B Note Initial Principal Balance, minus (b) the aggregate amount
of principal payments made to the Class B Noteholders on or prior to such date.

The Expected Final Principal Payment Date is the April 16, 2012 Distribution Date, but principal with respect to
the Class B Notes may be paid earlier or later under certain circumstances described in the Master Indenture. If for
one or more months during the Controlled Accumulation Period there are not sufficient funds to deposit into the
Principal Funding Account the Controlled Deposit Amount, then to the extent that excess funds are not available on
subsequent Distribution Dates with respect to the Controlled Accumulation Period to make up for such shortfalls, the
final payment of principal of the Class B Notes will occur later than the Expected Final Principal Payment Date.
Payments of principal of the Class B Notes shall be payable in accordance with the provisions of the Master Indenture.

			
	 
	 	

	
 	 	A-2-

 

 

54

 

Subject to the terms and conditions of the Master Indenture, the Transferor may, from time to time, direct the
Owner Trustee, on behalf of the Trust, to issue one or more new Series of Notes.

On each Distribution Date, the Paying Agent shall distribute to each Class B Noteholder of record on the related
Record Date (except for the final distribution in respect of this Class B Note) such Class B Noteholder’s pro rata
share of the amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay
interest and principal on the Class B Notes pursuant to the Indenture Supplement. Except as provided in the Master
Indenture with respect to a final distribution, distributions to Series 2007-2 Noteholders shall be made by (i) check
mailed to each Series 2007-2 Noteholder (at such Noteholder’s address as it appears in the Note Register), except that
with respect to any Series 2007-2 Notes registered in the name of the nominee of a Clearing Agency, such distribution
shall be made in immediately available funds and (ii) without presentation or surrender of any Series 2007-2 Note or
the making of any notation thereon. Final payment of this Class B Note will be made only upon presentation and
surrender of this Class B Note at the office or agency specified in the notice of final distribution delivered by the
Indenture Trustee to the Series 2007-2 Noteholders in accordance with the Master Indenture.

On any day occurring on or after the date on which the outstanding principal balance of the Series 2007-2 Notes is
reduced to 10% or less of the initial Note Principal Balance, the Servicer shall have the option to redeem the Series
2007-2 Notes, at a purchase price equal to if such day (i) is a Distribution Date, the Reassignment Amount for such
Distribution Date or (ii) is not a Distribution Date, the Reassignment Amount for the Distribution Date following such
day.

THIS CLASS B NOTE DOES NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN, THE TRANSFEROR, NORDSTROM FSB OR ANY
AFFILIATE OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

Each Noteholder, by accepting a Note, hereby covenants and agrees that it will not at any time institute against
the Trust or the Transferor, or join in instituting against the Trust or the Transferor, prior to the date which is one
year and one day after the termination of this Master Indenture, acquiesce, petition or otherwise invoke or cause the
Trust or the Transferor to invoke the process of any Governmental Authority for the purpose of commencing or sustaining
a case against the Trust or the Transferor under any Debtor Relief Law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Trust or Transferor or any substantial part of its
property or ordering the winding up or liquidation of the affairs of the Trust or Transferor.

Except as otherwise provided in the Indenture Supplement, the Class B Notes are issuable only in minimum
denominations of $100,000 and integral multiples of $1,000. The transfer of this Class B Note shall be registered in
the Note Register upon surrender of this Class B Note for registration of transfer at any office or agency maintained
by the Transfer Agent and Registrar accompanied by a written instrument of transfer, in a form satisfactory to the
Indenture Trustee or the Transfer Agent and Registrar, duly executed by the Class B Noteholder or such Class B

			
	 
	 	

	
 	 	A-2-

 

 

55

 

Noteholder’s attorney, and duly authorized in writing with such signature guaranteed, and thereupon one or more
new Class B Notes in any authorized denominations of like aggregate principal amount will be issued to the designated
transferee or transferees.

As provided in the Master Indenture and subject to certain limitations therein set forth, Class B Notes are
exchangeable for new Class B Notes in any authorized denominations and of like aggregate principal amount, upon
surrender of such Notes to be exchanged at the office or agency of the Transfer Agent and Registrar. No service charge
may be imposed for any such exchange but the Trust or Transfer Agent and Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in connection therewith.

The Trust, the Transferor, the Indenture Trustee and any agent of the Trust, Transferor or the Indenture Trustee
shall treat the person in whose name this Class B Note is registered as the owner hereof for all purposes, and neither
the Trust, the Transferor, the Indenture Trustee nor any agent of the Trust, Transferor or the Indenture Trustee shall
be affected by notice to the contrary.

THIS CLASS B NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO
ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

			
	 
	 	

	
 	 	A-2-

 

 

56

 

ASSIGNMENT

Social Security or other identifying number of assignee

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(name and address of assignee)

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

Dated:  2

Signature Guaranteed:

2NOTE: 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.

			
	 
	 	

	
 	 	A-2-

 

 

57

 

SCHEDULE OF EXCHANGES IN GLOBAL SECURITY

The following exchanges of a part of this Global Security have been made:

	 	 	 	 	 	 	 	 	 
	Date of Exchange

	 	Amount of
Decrease in Principal
Amount of this
Global Security
	 	Amount of
Increase in
Principal Amount of
this Global
Security
	 	Principal Amount of
this Global
Security following
such decrease (or
increase)
	 	Signature of
authorized officer
of Trustee or
securities
Custodian

			
	 
	 	

	
 	 	A-2-

 

 

58

 

EXHIBIT A-3

FORM OF SERIES 2007-2 FLOATING RATE

ASSET BACKED NOTE, CLASS C

RULE 144A GLOBAL NOTE

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR UNDER ANY STATE SECURITIES LAW. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES THAT THIS NOTE MAY BE
REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE
LAWS AND ONLY (I) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A “QIB”), PURCHASING FOR ITS OWN ACCOUNT
OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE,
PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A OF THE SECURITIES ACT AND (II) IN ACCORDANCE WITH ALL
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTIONS.

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (“DTC”), TO THE TRUST OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

NO RESALE OR OTHER TRANSFER OF ANY NOTE SHALL BE MADE TO ANY TRANSFEREE UNLESS: (A) SUCH TRANSFEREE IS NOT, AND
WILL NOT ACQUIRE THE NOTE ON BEHALF OR WITH PLAN ASSETS OF, AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF
THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR ANY OTHER “PLAN” AS DEFINED IN
SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “INTERNAL REVENUE CODE”), THAT IS SUBJECT TO
ERISA OR SECTION 4975 OF THE INTERNAL REVENUE CODE OR ANY ENTITY DEEMED TO HOLD PLAN ASSETS OF ANY OF THE FOREGOING BY
REASON OF AN EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN THE ENTITY (EACH, A “BENEFIT PLAN”) OR (B) THE ACQUISITION
AND HOLDING OF THE NOTE BY SUCH TRANSFEREE ARE ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER PTCE 84-14, PTCE 90-1,
PTCE 91-38, PTCE 95-60, PTCE 96-23 OR A SIMILAR

			
	 
	 	

	
 	 	A-3-

 

 

59

 

EXEMPTION. EACH PURCHASER OR TRANSFEREE OF A NOTE, BY ITS ACCEPTANCE OF SUCH NOTE, WILL BE DEEMED TO HAVE MADE
THE REPRESENTATION SET FORTH IN CLAUSE (A) OR (B) ABOVE.

THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS
NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

TRANSFERS OF THE NOTES MUST GENERALLY BE ACCOMPANIED BY APPROPRIATE TAX TRANSFER DOCUMENTATION AND ARE SUBJECT TO
RESTRICTIONS AS PROVIDED IN THE MASTER INDENTURE.

THE HOLDER, BY ACCEPTANCE OF THIS NOTE, SHALL BE DEEMED TO HAVE AGREED TO TREAT THE NOTES AS DEBT SOLELY OF THE
TRUST FOR UNITED STATES FEDERAL, STATE AND LOCAL INCOME, SINGLE BUSINESS AND FRANCHISE TAX PURPOSES.”

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME INSTITUTE
AGAINST THE TRUST OR THE TRANSFEROR, OR JOIN IN INSTITUTING AGAINST THE TRUST OR THE TRANSFEROR, ANY BANKRUPTCY,
REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDINGS, OR OTHER PROCEEDINGS UNDER ANY UNITED STATES
FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW.

No. 144A/R-1 Up to $43,500,000

Class C Note Rate: One-Month LIBOR plus 0.00%

NORDSTROM CREDIT CARD MASTER NOTE II TRUST

SERIES 2007-2 ASSET BACKED NOTE, CLASS C

Nordstrom Credit Card Master Note Trust II (herein referred to as the “Trust”), a Delaware statutory trust
governed by a Second Amended and Restated Trust Agreement, dated as May      , 2007 (the “Trust Agreement”), between
Nordstrom Credit Card Receivables II LLC, as transferor (the “Transferor”), and Wilmington Trust Company, as owner
trustee, (the “Owner Trustee”), for value received, hereby promises to pay to Nordstrom Credit Card Receivables II LLC,
or registered assigns, subject to the following provisions, the principal sum of      , or such greater or
lesser amount as determined in accordance with the Master Indenture, on the Series 2007-2 Final Maturity Date (which is
the earlier to occur of (a) the Distribution Date on which the Note Principal Balance is paid in full and (b) the May
15, 2015 Distribution Date), except as otherwise provided below or in the Master Indenture. The Trust will pay
interest on the unpaid principal amount of this Note at the Class C Note Interest Rate on each Distribution Date until
the principal amount of this Note is paid in full. Interest on this Note will accrue for each Distribution Date from
and including the most recent Distribution Date on which interest has been paid to but excluding such Distribution Date
or, for the initial Distribution Date, from and including the Closing Date to but excluding such Distribution Date.

			
	 
	 	

	
 	 	A-3-

 

 

60

 

Interest will be computed on the basis of the actual number of days in such Interest Period and a 360-day year.
Principal of this Note shall be paid in the manner specified on the reverse hereof.

“Class C Note Interest Rate” means a per annum rate of 0.00% or the rate specified by the Transferor
pursuant to Section 4.02(b) of the Series 2007-2 Indenture Supplement.

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.

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 or on behalf of the Indenture Trustee, by
manual signature, this Note shall not be entitled to any benefit under the Master Indenture or the Series 2007-2
Indenture Supplement referred to on the reverse hereof, or be valid for any purpose.

THIS CLASS C NOTE IS SUBORDINATED TO THE EXTENT NECESSARY TO FUND PAYMENTS ON THE CLASS A NOTES AND THE CLASS B
NOTES TO THE EXTENT SPECIFIED IN THE SERIES 2007-2 INDENTURE SUPPLEMENT.

			
	 
	 	

	
 	 	A-3-

 

 

61

 

IN WITNESS WHEREOF, the Trust has caused this Class C Note to be duly executed.

NORDSTROM CREDIT CARD MASTER NOTE II TRUST,

	 	 	 
	  as Trust

By:

	 	

WILMINGTON TRUST COMPANY,

not in its individual capacity but solely as Owner
Trustee under the Trust Agreement

By:

Name:

Title:

Dated:      ,      

			
	 
	 	

	
 	 	A-3-

 

 

62

 

MASTER INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class C Notes described in the within-mentioned Master Indenture.

WELLS FARGO BANK, NATIONAL ASSOCIATION,

  as Indenture Trustee

By:

Authorized Signatory

			
	 
	 	

	
 	 	A-3-

 

 

63

 

NORDSTROM CREDIT CARD MASTER NOTE TRUST II

SERIES 2007-2 ASSET BACKED NOTE, CLASS C

Summary of Terms and Conditions

This Class C Note is one of a duly authorized issue of Notes of the Trust, designated as Nordstrom Credit Card
Master Note Trust II, Series 2007-2 (the “Series 2007-2 Notes”), issued under an Amended and Restated Master Indenture,
dated as of May 1, 2007 (the “Master Indenture”), between the Trust and Wells Fargo Bank, National Association, as
indenture trustee (the “Indenture Trustee”), as supplemented by the Series 2007-2 Indenture Supplement, dated as of
May 1, 2007 (the “Series 2007-2 Indenture Supplement”), between the Trust and the Indenture Trustee, and representing
the right to receive certain payments from the Trust. The term “Master Indenture,” unless the context otherwise
requires, refers to the Master Indenture as supplemented by the Series 2007-2 Indenture Supplement. The Notes are
subject to all of the terms of the Master Indenture. All terms used in this Note that are defined in the Master
Indenture has the meanings assigned to them in or pursuant to the Master Indenture. In the event of any conflict or
inconsistency between the Master Indenture and this Note, the Master Indenture shall control.

The Class A Notes and the Class B Notes will also be issued under the Master Indenture.

The Noteholder, by its acceptance of this Note, agrees that it will look solely to the property of the Trust
allocated to the payment of this Note for payment hereunder and that the Master Indenture Trustee is not liable to the
Noteholders for any amount payable under the Note or the Master Indenture or, except as expressly provided in the
Master Indenture, subject to any liability under the Master Indenture.

This Note does not purport to summarize the Master Indenture and reference is made to the Master Indenture for the
interests, rights and limitations of rights, benefits, obligations and duties evidenced thereby, and the rights, duties
and immunities of the Indenture Trustee.

The Class C Note Initial Principal Balance is $43,500,000. The Class C Note Principal Balance on any date of
determination will be an amount equal to (a) the Class C Note Initial Principal Balance minus (b) the aggregate amount
of principal payments made to the Class C Noteholders on or prior to such date.

Subject to the terms and conditions of the Master Indenture, the Transferor may, from time to time, direct the
Owner Trustee, on behalf of the Trust, to issue one or more new Series of Notes.

On each Distribution Date, the Paying Agent shall distribute to each Class C Noteholder of record on the related
Record Date (except for the final distribution in respect of this Class C Note) such Class C Noteholder’s pro rata
share of the amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay
interest and principal on the Class C Notes pursuant to the Indenture Supplement. Except as provided in the Master
Indenture with respect to a final distribution, distributions to Series 2007-2 Noteholders shall be made by (i) check
mailed to each Series 2007-2 Noteholder (at such Noteholder’s address as it appears in the Note Register), except that
with respect to any Series 2007-2 Notes registered in the name of

			
	 
	 	

	
 	 	A-3-

 

 

64

 

the nominee of a Clearing Agency, such distribution shall be made in immediately available funds and (ii) without
presentation or surrender of any Series 2007-2 Note or the making of any notation thereon. Final payment of this
Class C Note will be made only upon presentation and surrender of this Class C Note at the office or agency specified
in the notice of final distribution delivered by the Indenture Trustee to the Series 2007-2 Noteholders in accordance
with the Master Indenture.

On any day occurring on or after the date on which the outstanding principal balance of the Series 2007-2 Notes is
reduced to 10% or less of the initial Note Principal Balance, the Servicer shall have the option to redeem the Series
2007-2 Notes, at a purchase price equal to if such day (i) is a Distribution Date, the Reassignment Amount for such
Distribution Date or (ii) is not a Distribution Date, the Reassignment Amount for the Distribution Date following such
day.

THIS NOTE DOES NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN, THE TRANSFEROR, NORDSTROM FSB OR ANY AFFILIATE
OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL
AGENCY OR INSTRUMENTALITY.

Each Noteholder, by accepting a Note, hereby covenants and agrees that it will not at any time institute against
the Trust or the Transferor, or join in instituting against the Trust or the Transferor, prior to the date which is one
year and one day after the termination of this Master Indenture, acquiesce, petition or otherwise invoke or cause the
Trust or the Transferor to invoke the process of any Governmental Authority for the purpose of commencing or sustaining
a case against the Trust or the Transferor under any Debtor Relief Law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Trust or Transferor or any substantial part of its
property or ordering the winding up or liquidation of the affairs of the Trust or Transferor.

Except as otherwise provided in the Indenture Supplement, the Class C Notes are issuable only in minimum
denominations of $100,000 and integral multiples of $1,000. The transfer of this Class C Note shall be registered in
the Note Register upon surrender of this Class C Note for registration of transfer at any office or agency maintained
by the Transfer Agent and Registrar accompanied by a written instrument of transfer, in a form satisfactory to the
Indenture Trustee or the Transfer Agent and Registrar, duly executed by the Class C Noteholder or such Class C
Noteholder’s attorney, and duly authorized in writing with such signature guaranteed, and thereupon one or more new
Class C Notes in any authorized denominations of like aggregate principal amount will be issued to the designated
transferee or transferees.

As provided in the Master Indenture and subject to certain limitations therein set forth, Class C Notes are
exchangeable for new Class C Notes in any authorized denominations and of like aggregate principal amount, upon
surrender of such Notes to be exchanged at the office or agency of the Transfer Agent and Registrar. No service charge
may be imposed for any such exchange but the Trust or Transfer Agent and Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in connection therewith.

			
	 
	 	

	
 	 	A-3-

 

 

65

 

The Trust, the Transferor, the Indenture Trustee and any agent of the Trust, the Transferor or the Indenture
Trustee shall treat the person in whose name this Class C Note is registered as the owner hereof for all purposes, and
neither the Trust, the Transferor, the Indenture Trustee nor any agent of the Trust, the Transferor or the Indenture
Trustee shall be affected by notice to the contrary.

THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

			
	 
	 	

	
 	 	A-3-

 

 

66

 

ASSIGNMENT

Social Security or other identifying number of assignee

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(name and address of assignee)

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

Dated:  3

Signature Guaranteed:

3NOTE: 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.

			
	 
	 	

	
 	 	A-3-

 

 

67

 

EXHIBIT B

FORM OF MONTHLY PAYMENT INSTRUCTIONS AND

NOTIFICATION TO THE INDENTURE TRUSTEE

NORDSTROM CREDIT CARD MASTER NOTE TRUST II

SERIES 2007-2

The undersigned, a duly authorized representative of Nordstrom fsb, as Servicer (the “Servicer”) pursuant to the
Amended and Restated Transfer and Servicing Agreement, dated as of May 1, 2007 (the “Transfer and Servicing
Agreement”), among the Servicer, Nordstrom Credit Card Receivables II LLC, as Transferor, Nordstrom Credit Card Master
Note Trust II (the “Trust”), as issuer, and Wells Fargo Bank, National Association, as Indenture Trustee, does hereby
certify as follows:

1. Capitalized terms used in this Certificate have their respective meanings set forth in the Transfer and
Servicing Agreement or the Amended and Restated Master Indenture, dated as of May      , 2007 (the “Master Indenture”),
between the Trust and Wells Fargo Bank, National Association, as indenture trustee (the “Indenture Trustee”), as
supplemented by the Series 2007-2 Indenture Supplement, dated as of May 1, 2007, between the Trust and the Indenture
Trustee (as amended and supplemented, the “Series 2007-2 Indenture Supplement”), as applicable.

2. Nordstrom fsb is the Servicer.

3. The undersigned is an Authorized Officer of the Servicer.

I. Instruction to Make a Withdrawal

Pursuant to Section 4.03 of the Series 2007-2 Indenture Supplement, the Servicer does hereby instruct the
Indenture Trustee (i) to make withdrawals from the Collection Account on      ,      , which date is a
Distribution Date under the Series 2007-2 Indenture Supplement, in the aggregate amounts as set forth below in respect
of the following amounts and (ii) to apply the proceeds of such withdrawals in accordance with Sections 3.01(a) and
4.03(a):

	 	 	 	 	 
	(A) Pursuant to Section 4.03(a)(i):
	 	 	 	 
	(1) The Monthly Servicing Fee for such Distribution
Date
	 	$	—	 
	(2) Accrued and unpaid Monthly Servicing Fees
	 	$	—	 
	(B) Pursuant to Section 4.03(a)(ii):
	 	 	 	 
	(1) Interest at the Class A Note Interest Rate for the
related Interest Period on the outstanding principal
balance of the Class A Notes
	 	$	—	 

			
	 
	 	

	
 	 	B-

 

 

68

 

	 	 	 	 	 
	(2) Class A Monthly Interest previously due but not
paid
	 	$	—	 
	(3) Class A Additional Interest and any Class A
Additional Interest previously due but not paid
	 	$	—	 
	(C) Pursuant to Section 4.03(a)(iii):
	 	 	 	 
	(1) Interest at the Class B Note Interest Rate for the
related Interest Period on the outstanding principal
balance of the Class B Notes
	 	$	—	 
	(2) Class B Monthly Interest previously due but not
paid
	 	$	—	 
	(3) Class B Additional Interest and any Class B
Additional Interest previously due but not paid
	 	$	—	 
	(D) Pursuant to Section 4.03(a)(iv):
	 	 	 	 
	(1) Interest at the Class C Note Interest Rate for the
related Interest Period on the outstanding principal
balance of the Class C Notes
	 	$	—	 
	(2) Class C Monthly Interest previously due but not
paid
	 	$	—	 
	(3) Class C Additional Interest and any Class C
Additional Interest previously due but not paid
	 	$	—	 
	(E) Pursuant to Section 4.03(a)(v):
	 	 	 	 
	(1) Investor Default Amount and Investor Uncovered
Dilution Amount for such Distribution Date to be
treated as Available Principal Collections
	 	$	—	 
	(F) Pursuant to Section 4.03(a)(vi):
	 	 	 	 
	(1) Aggregate amount of Investor Charge-Offs and
Reallocated Principal Collections not previously
reimbursed to be treated as Available Principal
Collections
	 	$	—	 
	(G) Pursuant to Section 4.03(a)(vii):
	 	 	 	 
	(1) Balance, if any, up to the outstanding principal
amount of the Series 2007-2 Notes to be treated as
Available Principal Collections
	 	$	—	 

			
	 
	 	

	
 	 	B-

 

 

69

 

	 	 	 	 	 
	(H) Pursuant to Section 4.03(a)(viii):
	 	 	 	 
	(1) An amount equal to the amount to be deposited in
the Reserve Account
	 	$	—	 
	(I) Pursuant to Section 4.03(a)(ix):
	 	 	 	 
	(1) An amount equal to the Transition Expenses
	 	$	—	 
	(J) Pursuant to Section 4.03(a)(x):
	 	 	 	 
	(1) Balance, if any, to constitute a portion of Excess
Finance Charge Collections and to be available for
allocation to other Series in Group One or to the
Holder of the Transferor Certificates
	 	$	—	 

Pursuant to Sections 4.03(b), (c) and (d), the Servicer hereby instructs the Indenture Trustee (i) to make
withdrawals from the Collection Account on      , which date is a Distribution Date under the Series 2007-2
Indenture Supplement, in the aggregate amounts (equal to the Available Principal Collections) as set forth below in
respect of the following amounts and (ii) to apply the proceeds of such withdrawals in accordance with Sections
4.03(b), (c) and (d):

	 	 	 	 	 
	(A) Pursuant to Section 4.03(b):
	 	 	 	 
	(1) During the Revolving
Period, amount equal to
Available Principal Collections
to be treated as Shared
Principal Collections
	 	$	—	 
	(B) Pursuant to Section 4.03(c):
	 	 	 	 
	(1) During Controlled
Accumulation Period, Available
Principal Collections deposited
in the Collection Account for
the related Monthly Period
deposited in an amount up to
the Monthly Principal for such
Distribution Date into the
Principal Funding Account
	 	$	—	 
	(C) Pursuant to Section 4.03(d)(i):
	 	 	 	 
	(1) During Early Amortization
Period, Available Principal
Collections for such
Distribution Date to Class A
Notes until Class A Notes paid
in full
	 	$	—	 
	(D) Pursuant to Section 4.03(d)(ii):
	 	 	 	 

			
	 
	 	

	
 	 	B-

 

 

70

 

	 	 	 	 	 
	(1) After giving effect to
clause (C) above, during Early
Amortization Period, if any
remaining Available Principal
Collections, to Class B Notes
until Class B Notes paid in
full
	 	$	—	 
	(E) Pursuant to Section 4.03(d)(iii):
	 	 	 	 
	(1) After giving effect to
clauses (C) and (D) above,
during Early Amortization
Period, if any remaining
Available Principal
Collections, to Class C Notes
until Class C Notes paid in
full
	 	$	—	 
	(F) Pursuant to Section 4.03(d)(iv):
	 	 	 	 
	(1) Amount, if any, remaining
after giving effect to clauses
(C), (D) and (E) above, to be
treated as Shared Principal
Collections
	 	$	—	 
	(G) Pursuant to Section 4.03(e):
	 	 	 	 
	(1) Amount to be withdrawn from
the Principal Funding Account
and distributed to the Paying
Agent for payment to the (i)
Class A Noteholders and then
(ii) Class B Noteholders
	 	$	—	 

Pursuant to Section 4.05, the Servicer does hereby instruct the Indenture Trustee to apply on      , which is
a Distribution Date under the Series 2007-2 Indenture Supplement, any Reallocated Principal Collections for such
Distribution Date in amount equal to $     .

INSTRUCTION TO MAKE CERTAIN PAYMENTS

Pursuant to Section 5.02, the Servicer does hereby instruct the Indenture Trustee or the Paying Agent, as the case
may be, to pay in accordance with Section 5.02 from the Collection Account or the Principal Funding Account, as
applicable, on      , which date is a Distribution Date under the Series 2007-2 Indenture Supplement, the
following amounts as set forth below:

	 	 	 	 	 
	(A) Pursuant to Section 5.02(a):
	 	 	 	 
	Interest to be distributed to Class A Noteholders
	 	$	—	 
	(B) Pursuant to Section 5.02(a):
	 	 	 	 
	Principal to be distributed to Class A Noteholders
	 	$	—	 
	(C) Pursuant to Section 5.02(b):
	 	 	 	 
	Interest to be distributed to Class B Noteholders
	 	$	—	 
	(D) Pursuant to Section 5.02(b):
	 	 	 	 
	Principal to be distributed to Class B Noteholders
	 	$	—	 

			
	 
	 	

	
 	 	B-

 

 

71

 

	 	 	 	 	 
	(E) Pursuant to Section 5.02(c):
	 	 	 	 
	Interest to be distributed to Class C Noteholders
	 	$	—	 
	(F) Pursuant to Section 5.02(c):
	 	 	 	 
	Principal to be distributed to Class C Noteholders
	 	$	—	 

			
	 
	 	

	
 	 	B-

 

 

72

 

IN WITNESS WHEREOF, the undersigned has duly executed this Certificate this      day of      ,      .

	 	 	 	NORDSTROM fsb,

as Servicer

By:

Name:

Title:

	 	 	 	(1)

			
	 
	 	

	
 	 	B-

 

 

73

 

EXHIBIT C

FORM OF MONTHLY STATEMENT

NORDSTROM CREDIT CARD MASTER NOTE TRUST II

SERIES 2007-2

Pursuant to the Amended and Restated Master Indenture, dated as of May 1, 2007 (as amended, supplemented or
modified from time to time, the “Master Indenture”), between Nordstrom Credit Card Master Note Trust II (the “Trust”)
and Wells Fargo Bank, National Association, as indenture trustee (the “Indenture Trustee”), as supplemented by the
Series 2007-2 Indenture Supplement, dated as of May      , 2007 (the “Series 2007-2 Indenture Supplement”), between the
Trust and the Indenture Trustee, Nordstrom fsb, as Servicer (the “Servicer”) under the Amended and Restated Transfer
and Servicing Agreement, dated as of May 1, 2007 (the “Transfer and Servicing Agreement”), among Nordstrom Credit Card
Receivables II LLC, as Transferor, the Servicer, the Trust and Wells Fargo Bank, National Association, as Indenture
Trustee, is required to prepare certain information each month regarding current distributions to the Series 2007-2
Noteholders and the performance of the Trust during the previous month. The information which is required to be
prepared with respect to the Distribution Date of      , and with respect to the performance of the Trust during
the month of      is set forth below. Capitalized terms used in this Monthly Statement have their respective
meanings set forth in the Master Indenture and the Series 2007-2 Indenture Supplement.

	 	 	 	 	 
	(A) Information regarding distributions in
respect of the Class A Notes
	 	 	 	 
	(1) The total amount of the
distribution in respect of
Class A Notes
	 	$	—	 
	(2) The amount of the
distribution set forth in
paragraph 1 above in respect of
interest on the Class A Notes
	 	$	—	 
	(3) The amount of the
distribution set forth in
paragraph 1 above in respect of
principal of the Class A Notes
	 	$	—	 
	(4) The amount of the
distribution set forth in
paragraph 1 above to be treated
as Shared Principal Collections
	 	$	—	 
	(B) Information regarding distributions in
respect of the Class B Notes
	 	 	 	 
	(1) The total amount of the
distribution in respect of
Class B Notes
	 	$	—	 

			
	 
	 	

	
 	 	C-

 

 

74

 

	 	 	 	 	 
	(2) The amount of the
distribution set forth in
paragraph 1 above in respect of
interest on the Class B Notes
	 	$	—	 
	(3) The amount of the
distribution set forth in
paragraph 1 above in respect of
principal of the Class B Notes
	 	$	—	 
	(4) The amount of the
distribution set forth in
paragraph 1 above to be treated
as Shared Principal Collections
	 	$	—	 
	(C) Information regarding distributions in
respect of the Class C Notes
	 	 	 	 
	(1) The total amount of the
distribution in respect of
Class C Notes
	 	$	—	 
	(2) The amount of the
distribution set forth in
paragraph 1 above in respect of
interest on the Class C Notes
	 	$	—	 
	(3) The amount of the
distribution set forth in
paragraph 1 above in respect of
principal of the Class C Notes
	 	$	—	 
	(4) The amount of the
distribution set forth in
paragraph 1 above to be treated
as Shared Principal Collections
	 	$	—	 
	(D) The Uncovered Dilution Amount
	 	$	—	 

			
	 
	 	

	
 	 	C-

 

 

75

 

Receivables —

	 	 	 	 	 
	Beginning of the Month Principal Receivables:
	 	$	—	 
	Beginning of the Month Finance Charge Receivables:
	 	$	—	 
	Beginning of the Month Total Receivables:
	 	$	—	 
	Removed Principal Receivables:
	 	$	—	 
	Removed Finance Charge Receivables:
	 	$	—	 
	Removed Total Receivables:
	 	$	—	 
	Additional Principal Receivables:
	 	$	—	 
	Additional Finance Charge Receivables:
	 	$	—	 
	Additional Total Receivables:
	 	$	—	 
	Discounted Receivables Generated this Period:
	 	$	—	 
	Net Recoveries for month of _________, 200_
	 	$	—	 
	Interchange
	 	$	—	 
	End of the Month Principal Receivables:
	 	$	—	 
	End of the Month Finance Charge Receivables:
	 	$	—	 
	End of the Month Total Receivables:
	 	$	—	 
	Special Funding Account Balance:
	 	$	—	 
	End of the Month Transferor Interest:
	 	$	—	 

Delinquencies And Losses —

	 	 	 	 	 
	End of the Month Delinquencies:
	 	Receivables

	31-60 Days Delinquent
	 	$	—	 
	61-90 Days Delinquent
	 	$	—	 
	91+ Days Delinquent
	 	$	—	 
	Total 31+ Days Delinquent
	 	$	—	 
	Defaulted Receivables During the Month
	 	$	—	 
	Note Principal Balances —
	 	 	 	 
	Class A Note Principal Balance
	 	$	—	 
	Class B Note Principal Balance
	 	$	—	 
	Class C Note Principal Balance
	 	$	—	 
	Initial Invested Amount
	 	$	—	 
	Investor Default Amount
	 	$	—	 
	Investor Charge-Offs
	 	$	—	 

			
	 
	 	

	
 	 	C-

 

 

76

 

	 	 	 	 	 
	Series 2007-2
	 	 	 	 
	Floating Investor Percentage
	 	 	—	%
	Fixed Investor Percentage
	 	 	—	%
	Available Finance Charge Collections
	 	$	—	 
	Investor Default Amount
	 	$	—	 
	Monthly Servicing Fees
	 	$	—	 
	Available Principal Collections
	 	$	—	 
	Required Transferor Interest
	 	$	—	 
	Excess Finance Charge Collections
	 	$	—	 
	Shared Principal Collections
	 	$	—	 
	Application Of Collections —
	 	 	 	 
	Monthly Servicing Fee
	 	$	—	 
	Class A Monthly Interest
	 	$	—	 
	Class B Monthly Interest
	 	$	—	 
	Class C Monthly Interest
	 	$	—	 
	Investor Default Amount
	 	$	—	 
	Investor Charge Offs and Reallocated Principal Collections not
previously reimbursed
	 	$	—	 
	Amounts To Be Deposited In The Reserve Account
	 	$	—	 
	Reserve Account Draw Amount
	 	$	—	 
	Excess Finance Charges Collections
	 	 	 	 
	Total Excess Finance Charge Collections for all allocation series
	 	$	—	 
	Yield And Base Rate —
	 	 	 	 
	Base Rate (Current Month)
	 	 	—	%
	Base Rate (Prior Month)
	 	 	—	%
	Base Rate (Two Months Ago)
	 	 	—	%
	Three Month Average Base Rate
	 	 	—	%
	Portfolio Yield (Current Month)
	 	 	—	%
	Portfolio Yield (Prior Month)
	 	 	—	%
	Portfolio Yield (Two Months Ago)
	 	 	—	%
	Three Month Average Portfolio Adjusted Yield
	 	 	—	%
	Principal Collections —
	 	 	 	 
	Principal Funding Account Balance at Month End
	 	 	 	 
	Series 2007-2 Principal Shortfall
	 	$	—	 
	Shared Principal Collections Allocable from other Principal
	 	$	—	 
	Sharing Series
	 	 	 	 

			
	 
	 	

	
 	 	C-

 

 

77

 

	 	 	 	 	 
	Investor Charge Offs and Reductions
	 	 	 	 
	Investor Charge Offs
	 	$	—	 
	Reductions in Invested Amount (other than by Principal Payments)
	 	$	—	 
	Previous Reductions In Invested Amount Reimbursed
	 	$	—	 

	 	 	 	NORDSTROM fsb,

as Servicer

By:

Name:

Title:

			
	 
	 	

	
 	 	C-

 

 

78

 

EXHIBIT D

FORM OF MONTHLY SERVICER’S CERTIFICATE

NORDSTROM CREDIT CARD MASTER NOTE TRUST II

SERIES 2007-2

The undersigned, a duly authorized representative of Nordstrom fsb, as Servicer (the “Servicer”) pursuant to the
Amended and Restated Transfer and Servicing Agreement, dated as of May      , 2007 (the “Transfer and Servicing
Agreement”), among the Servicer, Nordstrom Credit Card Receivables II LLC, as Transferor, Nordstrom Credit Card Master
Note Trust II (the “Trust”) and Wells Fargo Bank, National Association, as Indenture Trustee (the “Indenture Trustee”),
does hereby certify as follows:

	 	1.	 	Capitalized terms used in this Certificate have their respective meanings set forth in the
Transfer and Servicing Agreement or the Amended and Restated Master Indenture, dated as of May 1, 2007
(as amended or supplemented, the “Master Indenture”), between the Trust and the Indenture Trustee as
supplemented by the Series 2007-2 Indenture Supplement, dated as of May 1, 2007, between the Trust and
the Indenture Trustee (the “Series 2007-2 Indenture Supplement” and, together with the Master Indenture,
the “Master Indenture”), as applicable.

	 	2.	 	Nordstrom fsb is, as of the date hereof, the Servicer under the Transfer and Servicing
Agreement.

	 	3.	 	The undersigned is an Authorized Officer of the Servicer. This Certificate relates to the
Distribution Date occurring on      , 200_. As of the date hereof, to the best knowledge of
the undersigned, the Servicer has performed in all material respects all its obligations under the
Transfer and Servicing Agreement and the Master Indenture through the Monthly Period preceding such
Distribution Date [or, if there has been a default in the performance of any such obligation, set forth
in detail the (i) nature of such default, (ii) the action taken by the Servicer, if any, to remedy such
default and (iii) the current status of each such default]; if applicable, insert “None.”

	 	4.	 	As of the date hereof, to the best knowledge of the undersigned, no Pay Out Event occurred on
or prior to such Distribution Date.

			
	 
	 	

	
 	 	D-

 

 

79

 

IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Certificate this      day of      ,      .

	 	 	 	NORDSTROM fsb,

as Servicer

By:

Name:

Title:

			
	 
	 	

	
 	 	D-

 

 

80

 

EXHIBIT E

FORM OF INVESTMENT LETTER

(Transfer pursuant to §2.03(e) of the Series 2007-2 Indenture Supplement)

_________, ____

Wells Fargo Bank, National Association,

as Indenture Trustee

625 Marquette Avenue

MAC N9311-161

Minneapolis, Minnesota 55479

Attn: Corporate Trust Services-Asset Backed Administration

Attention:      

	 	 	 	Re: Nordstrom Credit Card Master Note Trust II, Series 2007-2 Asset-Backed Notes

Dear Sirs:

This letter is delivered by the undersigned (the “Transferee”) pursuant to Section 2.03(e) of the Series 2007-2
Indenture Supplement (the “2007-2 Indenture Supplement”), dated as of May 1, 2007, among Nordstrom Credit Card Master
Note Trust II, as issuer (the “Trust”) and Wells Fargo Bank, National Association, as indenture trustee (the “Indenture
Trustee”), in connection with our proposed purchase of $     aggregate principal amount of Asset-Backed Notes,
Class A (the “Class A Notes”), $     aggregate principal amount of Asset-Backed Notes, Class B (the “Class B
Notes”) and $     aggregate principal amount of Asset-Backed Notes, Class C (the “Class C Notes”, and together
with the Class A Notes and Class B Notes, the “Offered Notes”), representing obligations of the Nordstrom Credit Card
Master Note Trust II (the “Trust”). Capitalized terms used herein without definition shall have the meanings set forth
in the 2007-2 Indenture Supplement. The investor on whose behalf the undersigned is executing this letter (the
“Transferee”) confirms that:

1. Reference is made to the offering circular, as supplemented by the offering circular supplement, each dated as
of April 25, 2007 (collectively the “Offering Circular”), relating to the Offered Notes. Capitalized terms used herein
that are not otherwise defined shall have the meanings ascribed thereto in the Offering Circular. The Transferee has
received a copy of the Offering Circular and such other information as the Transferee deems necessary in order to make
its investment decision and the Transferee has been provided the opportunity to ask questions of, and receive answers
from, the Servicer and Nordstrom Credit Card Receivables II LLC, as Transferor, concerning the Servicer, the Transferor
and the terms and conditions of the offering described in the Offering Circular. The Transferee has received and
understands the above, and understands that substantial risks are involved in an investment in the Offered Notes.

			
	 
	 	

	
 	 	E-1

 

 

81

 

2. The Transferee is aware that the sale of such Offered Notes to it being made in reliance on Rule 144A.

3. The Transferee is (i) a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities Act of
1933, as amended (the “Securities Act”)) (“QIB”) and (ii) acquiring the Offered Notes for its own account or for the
account of an investor of the type described in clause (i)(a) above as to each of which the Transferee exercises sole
investment discretion. The Transferee is purchasing the Offered Notes for investment purposes and not with a view to,
or for, the offer or sale in connection with, a public distribution or in any other manner that would violate the
Securities Act or the securities laws of any State.

4. The Transferee understands that (i) the Offered Notes have not been and will not be registered under the
Securities Act or any State securities laws, and may not be reoffered, resold, pledged or otherwise transferred except
(a) to a person whom the seller reasonably believes is a QIB in a transaction meeting the requirements of Rule 144A or
(b) in a transaction complying with the provisions of Rule 903 or 904 under the Securities Act, in each case, in
accordance with any applicable securities laws of any State of the United States or any other applicable jurisdictions,
and that (ii) the Transferee will, and each subsequent holder is required to, notify any subsequent Transferee of such
Offered Notes from it of the resale restrictions referred to in (i) above.

5. The Transferee agrees that if in the future it should offer, sell or otherwise transfer such Offered Note, it
will do so only pursuant to Rule 144A to a person who the seller reasonably believes is a QIB in a transaction meeting
the requirements of Rule 144A, purchasing for its own account or for the account of a QIB, whom the holder has informed
that such offer, sale or other transfer is being made in reliance on Rule 144A.

6. The Transferee acknowledges that the Offered Notes offered in reliance on Rule 144A will be represented by a
Rule 144A Global Note.

7. Each Offered Note will bear a legend to the following effect, unless the Transferor and the Indenture Trustee
determine otherwise in accordance with applicable law:

“THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (AS AMENDED, THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAW. THE HOLDER
HEREOF, BY PURCHASING THIS NOTE, AGREES THAT THIS NOTE MAY BE REOFFERED, RESOLD, PLEDGED OR
OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS
AND ONLY (I) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT
THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF
RULE 144A (A “QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF
A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER,

			
	 
	 	

	
 	 	E-2

 

 

82

 

RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A AND (II) IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY
OTHER APPLICABLE JURISDICTIONS.

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY
OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

NO RESALE OR OTHER TRANSFER OF ANY NOTE SHALL BE MADE TO ANY TRANSFEREE UNLESS: (A) SUCH
TRANSFEREE IS NOT, AND WILL NOT ACQUIRE THE NOTE ON BEHALF OR WITH PLAN ASSETS OF, AN
“EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR ANY OTHER “PLAN” AS DEFINED IN SECTION
4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “INTERNAL REVENUE CODE”),
THAT IS SUBJECT TO ERISA OR SECTION 4975 OF THE INTERNAL REVENUE CODE OR ANY ENTITY DEEMED
TO HOLD PLAN ASSETS OF ANY OF THE FOREGOING BY REASON OF AN EMPLOYEE BENEFIT PLAN’S OR
PLAN’S INVESTMENT IN THE ENTITY (EACH, A “BENEFIT PLAN”) OR (B) THE ACQUISITION AND HOLDING
OF THE NOTE BY SUCH TRANSFEREE ARE ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER PTCE
84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR A SIMILAR EXEMPTION. EACH
PURCHASER OR TRANSFEREE OF A NOTE, BY ITS ACCEPTANCE OF SUCH NOTE, WILL BE DEEMED TO HAVE
MADE THE REPRESENTATION SET FORTH IN CLAUSE (A) OR (B) ABOVE.

THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING
PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

TRANSFERS OF THE NOTES MUST GENERALLY BE ACCOMPANIED BY APPROPRIATE TAX TRANSFER

			
	 
	 	

	
 	 	E-3

 

 

83

 

DOCUMENTATION AND ARE SUBJECT TO RESTRICTIONS AS PROVIDED IN THE MASTER INDENTURE.

THE HOLDER, BY ACCEPTANCE OF THIS NOTE, SHALL BE DEEMED TO HAVE AGREED TO TREAT THE NOTE AS
DEBT SOLELY OF THE TRUST FOR UNITED STATES FEDERAL, STATE AND LOCAL INCOME, SINGLE BUSINESS
AND FRANCHISE TAX PURPOSES.”

8. (a) The Transferee is not acquiring and will not acquire the Offered Notes on behalf of or with plan assets of
any “employee benefit plan”, as defined in Section 3(3) of ERISA, that is subject to the requirements of Title I of
ERISA or any other “plan” as defined in Section 4975(e)(1) of the Internal Revenue Code that is subject to Section 4975
of the Internal Revenue Code or any entity deemed to hold plan assets of any of the foregoing by reason of an employee
benefit plan’s or plan’s investment in the entity (each, a “Benefit Plan”) or (b) its acquisition and holding of the
Offered Note are eligible for the exemptive relief available under PTCE 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE
96-23 or a similar exemption. By its acceptance of an Offered Note each Transferee will be deemed to have made the
representation set forth in clause (i) or (ii).

9. The Transferee agrees that if at some time in the future it wishes to transfer or exchange any of the Offered
Notes, it will not transfer or exchange any of the Offered Notes unless such transfer or exchange is in accordance with
the Master Indenture and the Indenture Supplement. The Transferee understands that any purported transfer of any
Offered Note (or any interest therein) in contravention of any of the restrictions and conditions in the Master
Indenture and the Indenture Supplement shall be void, and the purported transferee in such transfer shall not be
recognized by the Trust or any other Person as an Offered Noteholder for any purpose.

The Transferee hereby irrevocably requests for you to arrange for Offered Notes to be purchased by the Transferee
and to be recorded on the books of the Indenture Trustee as follows:

	 	 	 
	Principal Amount	 	 
	of Offered Notes

	 	Recorded in Name of:
	 

	 

			
	 
	 	

	
 	 	E-4

 

 

84

 

9. You and the Indenture Trustee are entitled to rely upon this letter and are irrevocably authorized to produce
this letter or a copy hereof to any interested party in any administrative or legal proceeding or official inquiry with
respect to the matters covered hereby.

Very truly yours,

By:

Name:

Title:

			
	 
	 	

	
 	 	E-5

 

 

85

 

EXHIBIT F

FORM OF TRANSFER CERTIFICATE

FOR INITIAL AND SUBSEQUENT TRANSFER OF A CLASS C NOTE

(Transfer pursuant to §2.03(e) of the Indenture Supplement)

_________, ____

	 	 	 	 	 
	Wells Fargo Bank, National Association,
as Indenture Trustee
625 Marquette Avenue
MAC N9311-161
Minneapolis, Minnesota 55479
	 	 	 	 
	Attn: Corporate Trust Services-Asset Backed Administration

	Attention: _____________________________
Re:
	 	Nordstrom Credit Card Master Note Trust II, Series 2007-2, Class C Notes

	 
	 	 	 

Dear Sirs:

In connection with our proposed purchase of $     aggregate principal amount of Asset Backed Notes, Class C
(the “Class C Notes”), representing obligations of the Nordstrom Credit Card Master Note Trust II (the “Trust”), the
investor on whose behalf the undersigned is executing this letter (the “Transferee”) confirms that:

1. Reference is made to the amended and restated master indenture, as supplemented by the indenture supplement,
each dated as of May      , 2007, as the same may be amended, supplemented or otherwise modified from time to time
(collectively, the “Master Indenture”), relating to the Class C Notes. Capitalized terms used herein that are not
otherwise defined shall have the meanings ascribed thereto in the Master Indenture. The Transferee has received a copy
of the Master Indenture and such other information as the Transferee deems necessary in order to make its investment
decision and the Transferee has been provided the opportunity to ask questions of, and receive answers from, the
Servicer and Nordstrom Credit Card Receivables II LLC, as Transferor, concerning the Servicer, the Transferor and the
terms and conditions of the offering described in the Master Indenture. The Transferee has received and understands
the above, and understands that substantial risks are involved in an investment in the Class C Notes. The Transferee
represents that in making its investment decision to acquire the Class C Notes, the Transferee has not relied on
representations, warranties, opinions, projections, financial or other information or analysis, if any, supplied to it
by any person, including you, the Transferor, the Servicer or the Owner Trustee or any of your or their affiliates,
except as expressly contained in the Master Indenture and in the other written information, if any, discussed above.
The Transferee has such knowledge and experience in financial and business matters as to be capable of evaluating the
merits and risks of an investment in the Class C Notes, and the Transferee is able to bear the substantial economic
risks of such an investment. The Transferee has relied

			
	 
	 	

	
 	 	F-1

 

 

86

 

upon its own tax, legal and financial advisors in connection with its decision to purchase the Class C Notes.

2. The Transferee is (a) a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities Act of
1933, as amended (the “Securities Act”)) and (b) acquiring the Class C Notes for its own account or for the account of
an investor of the type described in clause (i)(a) above as to each of which the Transferee exercises sole investment
discretion. The Transferee is purchasing the Class C Notes for investment purposes and not with a view to, or for, the
offer or sale in connection with, a public distribution or in any other manner that would violate the Securities Act or
the securities laws of any State.

3. The Transferee understands that (i) the Class C Notes have not been and will not be registered under the
Securities Act or any State securities law, and may not be reoffered, resold, pledged or otherwise transferred except
(a) to a person whom the seller reasonably believes is a QIB in a transaction meeting the requirements of Rule 144A,
(b) in a transaction complying with the provisions of Rule 903 or 904 under the Securities Act, in each case, in
accordance with any applicable securities laws of any State of the United States or any other applicable jurisdictions,
and that (ii) the Transferee will, and each subsequent holder is required to, notify any subsequent Transferee of such
Class C Notes from it of the resale restrictions referred to in (i) above.

4. The Transferee agrees that if in the future it should offer, sell or otherwise transfer such Class C Note, it
will do so only pursuant to Rule 144A to a person who the seller reasonably believes is a QIB in a transaction meeting
the requirements of Rule 144A, purchasing for its own account or for the account of a QIB, whom the holder has informed
that such offer, sale or other transfer is being made in reliance on Rule 144A.

5. The Transferee is a QIB, it acknowledges that the Class C Notes offered in reliance on Rule 144A will be
represented by a Rule 144A Global Note.

6. Each Class C Note will bear a legend to the following effect, unless the Transferor and the Indenture Trustee
determine otherwise in accordance with applicable law:

“NO CLASS C NOTE MAY BE SOLD, TRANSFERRED, ASSIGNED OR CONVEYED (EACH A “TRANSFER”) UNLESS
THE MASTER INDENTURE TRUSTEE AND THE TRANSFEROR ARE PROVIDED WITH AN OPINION OF COUNSEL
THAT SUCH TRANSFER WILL NOT CAUSE THE TRUST TO BE TREATED AS AN ASSOCIATION OR PUBLICLY
TRADED PARTNERSHIP TAXABLE AS A CORPORATION FOR FEDERAL INCOME TAX PURPOSES.

THIS CLASS C NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAW. THE HOLDER HEREOF,
BY PURCHASING THIS CLASS C NOTE, AGREES THAT THIS CLASS C NOTE MAY BE REOFFERED, RESOLD,
PLEDGED OR OTHERWISE

			
	 
	 	

	
 	 	F-2

 

 

87

 

TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY
(I) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE
HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE
144A (A “QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A
QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A AND (II) IN ACCORDANCE WITH ALL APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTIONS.

UNLESS THIS CLASS C NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CLASS C NOTE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.

THIS CLASS C NOTE MAY NOT BE PURCHASED BY OR TRANSFERRED TO ANY “EMPLOYEE BENEFIT PLAN”
WITHIN THE MEANING OF SECTION 3(3) OF ERISA (WHETHER OR NOT SUBJECT TO ERISA, AND
INCLUDING, WITHOUT LIMITATION, FOREIGN AND GOVERNMENTAL PLANS) OR ANY “PLAN” DESCRIBED IN
SECTION 4975(E)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “INTERNAL REVENUE
CODE”), OR ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” OF ANY OF THE FOREGOING
BY REASON OF A PLAN’S INVESTMENT IN SUCH ENTITY.

THE PRINCIPAL OF THIS CLASS C NOTE IS PAYABLE AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS C NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.

TRANSFERS OF THE CLASS C NOTES MUST GENERALLY BE ACCOMPANIED BY APPROPRIATE TAX TRANSFER

			
	 
	 	

	
 	 	F-3

 

 

88

 

DOCUMENTATION AND ARE SUBJECT TO RESTRICTIONS AS PROVIDED IN THE MASTER INDENTURE.

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT
ANY TIME INSTITUTE AGAINST THE ISSUER OR THE TRANSFEROR, OR JOIN IN INSTITUTING AGAINST THE
ISSUER OR THE TRANSFEROR, ANY BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY OR
LIQUIDATION PROCEEDINGS, OR OTHER PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE
BANKRUPTCY OR SIMILAR LAW.”

7. The Transferee is not acquiring and will not acquire the Class C Notes on behalf of or with plan assets of any
“employee benefit plan”, as defined in Section 3(3) of ERISA, whether or not subject to ERISA (including, without
limitation, foreign and governmental plans), any “plan” of the Internal Revenue Code or any entity deemed to include
plan assets of any of the foregoing by reason of an employee benefit plan’s or plan’s investment in the entity (each, a
“Benefit Plan”).

8. The Transferee agrees that if at some time in the future it wishes to transfer or exchange any of the Class C
Notes, it will not transfer or exchange any of the Class C Notes unless such transfer or exchange is in accordance with
the Master Indenture and the Indenture Supplement. The Transferee understands that any purported transfer of any
Class C Note (or any interest therein) in contravention of any of the restrictions and conditions in the Master
Indenture and the Indenture Supplement shall be void, and the purported transferee in such transfer shall not be
recognized by the Trust or any other Person as a Class C Noteholder for any purpose.

The Transferee hereby irrevocably requests for you to arrange for Class C Notes to be purchased by the Transferee
and to be recorded on the books of the Indenture Trustee as follows:

	 	 	 
	Principal Amount	 	 
	of Class C Notes

	 	Recorded in Name of:
	 

	 

9. You and the Indenture Trustee are entitled to rely upon this letter and are irrevocably authorized to produce
this letter or a copy hereof to any interested party in any administrative or legal proceeding or official inquiry with
respect to the matters covered hereby.

Very truly yours,

By:

Name:

Title:

			
	 
	 	

	
 	 	F-4

 

 

89exv4w4

 

Exhibit 4.4

AMENDMENT NO. 2 TO

AMENDED AND RESTATED PREFERRED STOCK RIGHTS AGREEMENT

This
AMENDMENT NO. 2, dated as of May 8, 2007 (this “Amendment”) amends that certain Amended
and Restated Preferred Stock Rights Agreement, dated as of November 22, 2004, as amended by
Amendment No. 1, dated December 14, 2006 (the “Rights Agreement”), between Catalytica Energy
Systems, Inc., a Delaware corporation (the “Company”), and Mellon Investor Services LLC, a New
Jersey limited liability company, as Rights Agent (the “Rights Agent”). Capitalized terms used but
not defined herein have the meanings ascribed to them in the Rights Agreement.

RECITALS

A. The Company and the Rights Agent have previously executed and entered into the Rights
Agreement;

B. Section 27 of the Rights Agreement provides in pertinent part that prior to the occurrence
of a Distribution Date, the Company may amend the Rights Agreement in any respect without the
approval of any holders of Rights and that upon the delivery of a certificate from an appropriate
officer of the Company that states that the proposed amendment is in compliance with the terms of
such Section 27, and provided such amendment does not change or increase the Rights Agent’s rights,
duties or obligations, the Rights Agent shall execute such amendment;

C. The Company intends to enter into a Contribution and Merger Agreement (as it may be amended
or supplemented from time to time, the “Contribution and Merger Agreement”) by and among the
Company, Renegy Holdings, Inc., a Delaware corporation and wholly-owned subsidiary of the Company
(“Holdings”), Snowflake Acquisition Corporation, a Delaware corporation and wholly-owned subsidiary
of Holdings (“Merger Sub”), Renegy, LLC, an Arizona limited liability company (“Renegy”), Renegy
Trucking, LLC, an Arizona limited liability company (“Renegy Trucking”), Snowflake White Mountain
Power, LLC, an Arizona limited liability company (“Snowflake” and, together with Renegy and Renegy
Trucking, the “Renegy Companies”), Robert M. Worsley (“R. Worsley”), Christi M. Worsley (“C.
Worsley”) and the Robert M. Worsley and Christi M. Worsley Revocable Trust (the “Worsley Trust”
and, together with R. Worsley and C. Worsley, “Worsley”); and

D. On May 2, 2007, the Board of Directors of the Company approved and deemed desirable an
amendment to the Rights Agreement to provide that: (i) neither the execution and delivery of the
Contribution and Merger Agreement nor the performance of the parties’ respective obligations
thereunder will result in Worsley, the Renegy Companies or any of their Affiliates becoming an
“Acquiring Person” or the occurrence of a “Distribution Date” pursuant to the terms of the Rights
Agreement; and (ii) the Final Expiration Date will occur immediately prior to the Effective Time
(as defined in the Contribution and Merger Agreement).

NOW, THEREFORE, in consideration of the promises and the mutual agreements herein set forth,
the parties hereby agree as follows:

1. Section 1(a) of the Rights Agreement is hereby amended and restated in its entirety to read
as follows:

 

 

 

“(a) “Acquiring Person” shall mean any Person, who or which, together with all
Affiliates and Associates of such Person, shall be the Beneficial Owner of 20% or more of
the
Common Shares then outstanding, but shall not include the Company, any Subsidiary of
the Company or any employee benefit plan of the Company or of any Subsidiary of the Company,
or any entity holding Common Shares for or pursuant to the terms of any such plan; provided,
however, that Morgan Stanley Capital Partners III, L.P. (“MSCP”) shall not be deemed an
“Acquiring Person” until such time as MSCP shall be the Beneficial Owner of 21.5% or more of
the Company’s Common Shares then outstanding (not including any Common Shares held by any
MSCP affiliate for market-making purposes or in the ordinary course of such MSCP affiliate’s
asset management operations) or announces a tender offer to acquire 21.5% or more of the
Company’s Common Shares then outstanding (collectively, the “Limitations”). Notwithstanding
the foregoing, no Person shall be deemed to be an Acquiring Person as the result of an
acquisition of Common Shares by the Company which, by reducing the number of shares
outstanding, increases the proportionate number of shares beneficially owned by such Person
to 20% or more of the Common Shares of the Company then outstanding (or with respect to
MSCP, increases such number of shares to 21.5% or more of the Common Shares of the Company
then outstanding; provided, however, that if a Person shall become the Beneficial Owner of
20% or more of the Common Shares of the Company then outstanding (or with respect to MSCP,
shall become the Beneficial Owner of 21.5% or more of the Common Shares of the Company then
outstanding) by reason of share purchases by the Company and shall, after such share
purchases by the Company, become the Beneficial Owner of any additional Common Shares of the
Company (other than pursuant to a dividend or distribution paid or made by the Company on
the outstanding Common Shares in Common Shares or pursuant to a split or subdivision of the
outstanding Common Shares), then such Person shall be deemed to be an Acquiring Person
unless upon becoming the Beneficial Owner of such additional Common Shares of the Company
such Person does not beneficially own 20% or more of the Common Shares of the Company then
outstanding (or with respect to MSCP, does not beneficially own 21.5% or more of the Common
Shares of the Company then outstanding). Notwithstanding the foregoing, (i) if the
Company’s Board of Directors determines in good faith that a Person who would otherwise be
an “Acquiring Person,” as defined pursuant to the foregoing provisions of this paragraph
(a), has become such inadvertently (including, without limitation, because (A) such Person
was unaware that it beneficially owned a percentage of the Common Shares that would
otherwise cause such Person to be an “Acquiring Person,” as defined pursuant to the
foregoing provisions of this paragraph (a), or (B) such Person was aware of the extent of
the Common Shares it beneficially owned but had no actual knowledge of the consequences of
such beneficial ownership under this Agreement) and without any intention of changing or
influencing control of the Company, and if such Person divested or divests with reasonable
promptness (as determined in the discretion of the Board of Directors of the Company) a
sufficient number of Common Shares so that such Person would no longer be an “Acquiring
Person,” as defined pursuant to the foregoing provisions of this paragraph (a), then such
Person shall not be deemed to be or to have become an “Acquiring Person” for any purposes of
this Agreement; and (ii) if, as of the date hereof, any Person is the Beneficial Owner of
20% or more of the Common Shares outstanding (or with respect to MSCP, is the Beneficial
Owner of 21.5% or more of the Common Shares outstanding), such Person shall not be or become
an “Acquiring Person,” as defined pursuant to the foregoing provisions of this paragraph
(a), unless and until such time as such Person shall become the Beneficial Owner of
additional Common Shares (other than pursuant to a dividend or distribution paid or made by
the Company on the outstanding Common Shares in Common Shares or pursuant to a split or
subdivision of the outstanding Common Shares), unless, upon becoming the Beneficial Owner of
such additional Common Shares, such Person is not then the Beneficial Owner of 20% or more
of the Common Shares then outstanding (or with respect to MSCP, is not then the Beneficial
Owner of 21.5% or more of the Common Shares then outstanding). In its determination of
whether a Person has divested or shall divest with reasonable promptness in accordance with
this paragraph (a), the Board of Directors of the Company may take into account such factors
as it deems relevant, which may in the discretion of the Board of Directors include the

 

2

 

potential impact of the divestiture by such Person on the Company’s stock price, any
liability of such Person which may result from such divestment arising in connection with
Section 16 of the Exchange Act and any undertakings by such Person, which the Board of
Directors of the Company deems reasonably necessary to ensure compliance with this paragraph
(a). Notwithstanding the foregoing, none of Renegy, LLC, an Arizona limited liability
company (“Renegy”), Renegy Trucking, LLC, an Arizona limited liability company (“Renegy
Trucking”), Snowflake White Mountain Power, LLC, an Arizona limited liability company
(“Snowflake” and, together with Renegy and Renegy Trucking, the “Renegy Companies”), Robert
M. Worsley (“R. Worsley”), Christi M. Worsley (“C. Worsley”) and the Robert M. Worsley and
Christi M. Worsley Revocable Trust (the “Worsley Trust” and, together with R. Worsley and C.
Worsley, “Worsley”), or any of their respective Affiliates, Associates or Subsidiaries,
shall be deemed to be an “Acquiring Person,” as defined pursuant to the foregoing provisions
of this paragraph (a) by virtue of: (A) the approval, execution, delivery, announcement or
performance of the Contribution and Merger Agreement by and among the Company, Renegy
Holdings, Inc., a Delaware corporation and wholly-owned subsidiary of the Company
(“Holdings”), Snowflake Acquisition Corporation, a Delaware corporation and wholly-owned
subsidiary of Holdings (“Merger Sub”), the Renegy Companies and Worsley (as it may be
amended or supplemented from time to time, the “Contribution and Merger Agreement”), (B) the
acquisition of Beneficial Ownership of the Contribution Shares, the Warrants or the Warrant
Shares (as each term is defined in the Contribution and Merger Agreement) by the Worsley
Trust pursuant to the Contribution and Merger Agreement, or (C) the consummation of the
Merger or the Contribution (as each term is defined in the Contribution and Merger
Agreement) or the transactions expressly contemplated by the Contribution and Merger
Agreement (each of the events set forth in the foregoing clauses (A) to (C), an “Exempt
Event”; provided, however, that if the Contribution and Merger Agreement has terminated
prior to the consummation of the Closing (as defined in the Contribution and Merger
Agreement), then the events set forth in the foregoing clauses (A) to (C) shall cease to be
an Exempt Event).”

2. Section 1(k) of the Rights Agreement is hereby amended by adding the following sentence to
the end thereof:

“Notwithstanding the foregoing, a Distribution Date shall not be deemed to have occurred as
a result of any Exempt Event.”

3. Section 1(p) of the Rights Agreement is hereby amended and restated in its entirety to read
as follows:

“(p) “Expiration Date” shall mean the earliest to occur of: (i) the Close of Business
on the Final Expiration Date, (ii) the Redemption Date, (iii) the time at which the Board of
Directors orders the exchange of the Rights as provided in Section 24 hereof, and (iv) the
time that is immediately prior to the Effective Time (as defined in the Contribution and
Merger Agreement).”

4. Section 1(gg) of the Rights Agreement is hereby amended by adding the following sentence to
the end thereof:

“Notwithstanding the foregoing, a Shares Acquisition Date shall not be deemed to have
occurred as a result of any Exempt Event.”

 

3

 

5. The second paragraph of Section 26 is hereby amended to read as follows:

“Subject to the provisions of Section 21 hereof, any notice or demand authorized by
this Agreement to be given or made by the Company or by the holder of any Rights Certificate
to or on the Rights Agent shall be sufficiently given or made if sent by first-class mail,
postage prepaid, addressed (until another address is filed in writing with the Company) or
by facsimile transmission as follows:

Mellon Investor Services LLC

525 Market Street, Suite 3500

San Francisco, CA 94105

Attention: Client Relationship Executive

Facsimile No.: (415) 951-4181

with a copy to:

Mellon Investor Services LLC

480 Washington Blvd.

Jersey City, New Jersey 07310

Attention: General Counsel

Facsimile No.: (201) 680-4610”

6. A new Section 35 is hereby added to the Rights Agreement, to read as follows:

“Section 35. Termination. Notwithstanding anything to the contrary in this
Agreement, this Agreement shall expire and terminate immediately prior to the Effective Time
(as defined in the Contribution and Merger Agreement) (the “Termination Date”).
The Company shall provide the Rights Agent with prior written notice of the Effective Time
and the Termination Date. The Rights Agent shall not be deemed to have any knowledge of the
Effective Time or the Termination Date unless and until such notice is received.”

7. Governing Law. This Amendment shall be deemed to be a contract made under the laws
of the State of Delaware and for all purposes shall be governed by and construed in accordance with
the laws of such State applicable to contracts to be made and performed entirely within such State;
provided, however, that all provisions regarding the rights, duties and obligations of the Rights
Agent shall be governed by and construed in accordance with the laws of the State of New York
applicable to contracts made and to be performed entirely within such State.

8. No Other Changes. Except as expressly amended, modified or superseded by this
Amendment, the terms of the Rights Agreement shall remain in full force and effect.

9. Counterparts. This Amendment may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original, but all such
counterparts shall together constitute one and the same instrument.

[Remainder of Page Intentionally Left Blank]

 

4

 

IN WITNESS WHEREOF, this Amendment has been duly executed by the Company and the Rights Agent
as of the day and year first written above.

	 	 	 	 	 
	COMPANY	 	CATALYTICA ENERGY SYSTEMS, INC.
	 	 	a Delaware Corporation
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Robert W. Zack
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Robert W. Zack
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	Chief Executive Officer and Chief Financial Officer
	 

	 	 	 	 
	 
	 	 	 	 
	RIGHTS AGENT	 	MELLON INVESTOR SERVICES LLC
	 	 	a New Jersey limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Asa Drew
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Asa Drew
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	Client Relationship Executive

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]