Document:

Loan Agreement

 Exhibit 10.22 

 
 

 
 LOAN AGREEMENT - REVOLVING LINE OF CREDIT 

This Loan Agreement – Revolving Line of Credit is made as of the 22nd day of March, 2012 (the “Effective Date”),
between JAGGED PEAK, INC., a Nevada corporation (“Borrower”), in favor of FIFTH THIRD BANK, an Ohio banking corporation (“Lender”). 

W I T N E S S E T H: 
 WHEREAS, Borrower has applied to Lender for a revolving line of credit in the maximum revolving principal amount of $3,000,000.00 (the “Commitment Amount” or the “Loan”).

 WHEREAS, the Loan is (i) evidenced by that certain Promissory Note - Revolving Line of Credit of even Effective Date
herewith, made by Borrower and payable to the order of Lender in the maximum revolving principal amount of the $3,000,000.00 (together with any renewals, substitutions, modifications and extensions thereof made or permitted by Lender in its sole and
absolute discretion, the “Note”) and (ii) secured by, among other collateral, a security agreement and fixture filing of even date herewith from Borrower to Lender (the Note, the Security Agreement, this Agreement and all other
documents executed by Borrower or delivered to Lender in connection with the Loan being hereinafter collectively called the “Loan Documents”). 
 NOW, THEREFORE, and in consideration of the covenants herein contained, the parties hereto agree as follows: 
 SECTION 1 
 DEFINITIONS 

For the purpose of this Agreement, the following terms shall have the meanings set forth in this Section 1. Any references in this
Agreement to the financial condition or business operations of the Borrower or to the adverse effect on the Borrower of certain events, circumstances or conditions, shall be deemed to refer to the Borrower entities on a consolidated basis. (When
accounting terms used herein are not specifically defined, whether or not capitalized herein, they shall have the meaning attributable to them under generally accepted accounting principles or as are otherwise acceptable to Lender in its sole
discretion and shall be interpreted and all accounting determinations shall be made in accordance with GAAP.) 
 1.1.
“Account” shall have the same definition as the definition contained in Article 9 of the Uniform Commercial Code of the state of Florida, and shall also mean any account receivable of Borrower as that term is used under generally
accepted accounting principles. 
 1.2. “Account Debtor” means any Person who owes payment to Borrower for
goods or services rendered by Borrower to that Person. 
 1.3. “Affiliate” means any Person which or who
directly or indirectly controls, is controlled by, or is under common control with Borrower. 
 1.4. “Agreement”
means this Loan Agreement, as it may from time to time be amended. 
 1.5. “Business Day” means any day not a
Saturday, Sunday or legal holiday in the State of Florida, on which commercial banks are open for business in Tampa. 
 1.6.
“Certificate of” means a certificate signed by the president of that Person. 

  
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 1.7. “Debt” means any indebtedness or liability for borrowed money
(including any liability on account of deposits or advances), and any other indebtedness evidenced by notes, debentures, bonds, Rate Management Obligations, or similar obligations. 

1.8. “Default Rate” has the meaning set forth in the Note. 

1.9. “EBITDA” means on a consolidated basis, the amount of Borrower’s earnings before interest, taxes, depreciation
and amortization expense, for the quarterly measurement period. 
 1.10. “Event of Default” means any of the
events specified herein, provided that there has been satisfied any requirement in connection with such event for the giving of notice, or the lapse of time, or the happening of any further condition, event, or act; “Default” shall mean
any of such events, whether or not any such requirement has been satisfied. 
 1.11. “Financial Statements”
means the balance sheet, operating statement, and statement of income and surplus as of the end of and for the applicable period for Borrower in format reasonably acceptable to Lender. 

1.12. “Fixed Charge Coverage Ratio – Rolling Quarterly Test” means each of the quarterly tests to be performed by
Lender, commencing with the Borrower’s quarter ending closest to March 31, 2013, to determine the ratio of the ratio of (a) Borrower’s EBITDA plus rent plus operating lease payments to the extent permitted, less cash taxes paid,
less distributions (excluding non-cash compensation to managers), less dividends less capital expenditures (other than capital expenditures financed with the proceeds of purchase money Indebtedness or capital leases to the extent permitted
hereunder) plus non-cash expenses for compensation to employees and consultants, less other extraordinary income items for the twelve month period ending, based on a rolling four quarter average, divided by (b) the consolidated sum of
(i) Borrower’s interest expense, plus (ii) all principal payments with respect to Indebtedness that were paid or were due and payable by all consolidated entities during the period plus rent plus permitted operating lease expense
incurred in the same such period. The Fixed Charge Coverage Ratio – Rolling Quarterly Test will commence as of March 31, 2013 and continue quarterly thereafter throughout the term of the Loan. 

1.13. “Fixed Charge Coverage Ratio – 2012 Test” means each of the three quarterly tests to be performed by Lender,
commencing June 30, 2012 through December 31, 2012, to determine the ratio of (a) Borrower’s EBITDA plus rent plus operating lease payments to the extent permitted, less cash taxes paid, less distributions (excluding non-cash
compensation to managers), less dividends less capital expenditures (other than capital expenditures financed with the proceeds of purchase money Indebtedness or capital leases to the extent permitted hereunder) plus non-cash expenses for
compensation to employees and consultants, less other extraordinary income items for the year to date period ending (i.e., the test for the fiscal quarter ending closest to June 30, 2012 will test six months of operating performance, the test
for the fiscal quarter ending closest to September 30, 2012 will test nine months of operating performance, and the final Fixed Charge Coverage Ratio Test for the fiscal quarter ending closest to December 31, 2012, will test twelve months
of operating performance), plus payments made to Moriah Capital, L.P. of up to $170,000 for repurchase of Borrower’s stock, divided by (b) the consolidated sum of (i) Borrower’s interest expense, plus (ii) all principal
payments with respect to Indebtedness that were paid or were due and payable by all consolidated entities during the period plus rent plus permitted operating lease expense incurred in the same such period. 

1.14. “Indebtedness” means all amounts or sums due from Borrower to Lender, now or in the future, under this Agreement,
the Note, and all other Loan Documents, any and all Rate Management Agreements, any and all Rate Management Obligations and under any and all other notes, instruments, or agreements between Borrower and the Lender whatsoever including, without
limitation, principal, interest, standby fees, costs of collection, attorneys’ fees and other expenses of the Lender which Borrower is obligated to pay and amounts advanced by Lender in discharge of obligations of Borrower, whether such amounts
are now due or hereafter incurred, directly or indirectly, and whether such amounts are from time to time reduced and thereafter increased or entirely extinguished and thereafter reincurred. 

  
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 1.15. “Loan Documents” means, collectively, this Agreement, the Note, the
Security Agreement granting to Lender a security interest in all assets of Borrower described in said Security Agreement; such Uniform Commercial Code Financing Statements as Lender deems necessary, any and all Rate Management Agreements, the
Closing Certificate and Agreement and any and all other documents contemplated hereby or thereby; and all other documents or agreements by any party evidencing, guarantying or securing the Loan and “Loan Document” means any one of
the Loan Documents. 
 1.16. “Loan Fee” means the initial loan fee paid at closing in the amount of $15,000.00.

 1.17. “Note” means, collectively, the Promissory Note - Revolving Line of Credit in the amount of
$3,000,000.00 and any renewal, replacement or substitution therefor and any additional promissory note hereafter entered into by Borrower in favor of Lender. 
 1.18. “Obligations” means all obligations whether direct, indirect or contingent to pay money, however arising, including, without limitation, general accounts payable, payments under
leases, installment purchase contracts, Debts, and the like. 
 1.19. “Permitted Liens” means: 

 

	 	(a)	Liens for taxes not yet due or that are being actively contested in good faith by appropriate proceedings and for which adequate reserves shall have been established in
accordance with GAAP; 

  

	 	(b)	Other statutory or common law liens incidental to the conduct of its business or the ownership of its property and assets that (i) were not incurred in connection
with the borrowing of money or the obtaining of advances or credit, and (ii) do not in the aggregate materially detract from the value of its property or assets or materially impair the use thereof in the operation of its business;

  

	 	(c)	Those security interests and other liens in favor of Lender securing the repayment of the Indebtedness; and 

 

	 	(d)	Purchase money liens on fixed assets securing the loans and capitalized leases permitted pursuant to the provisions of Section 6.1 hereof, provided that any such
lien is limited to the purchase price and expressly attaches only to the personal property acquired thereby. 

1.20. “Permitted Obligations” means the following: (i) the Indebtedness; and (ii) accounts payable and accrued
payables arising in the ordinary course of business which are not past due in accordance with their terms. 
 1.21.
“Person” means an individual, a partnership, a corporation, an entity, an association, a trust, a joint venture, an unincorporated organization, or any government or any department or agency or authority thereof, or any natural or
artificial person. 
 1.22. “Property” means the Accounts and the assets and other property described in the
Security Agreements as property upon which Lender has been granted a security interest pursuant to the Security Agreements. 

1.23. “Rate Management Agreement” means any agreement, device or arrangement providing for payments which are related to
fluctuations of interest rates, exchange rates, forward rates, or equity prices, including, but not limited to, dollar-denominated or cross-currency interest rate exchange agreements, forward currency exchange agreements, interest rate cap or collar
protection agreements, forward rate currency or interest rate options, puts and warrants, and any agreement pertaining to equity derivative transactions (e.g., equity or equity index swaps, options, caps, floors, collars and forwards), including
without limitation any ISDA Master Agreement between Borrower and Lender or any affiliate of Fifth Third Bancorp, and any schedules, confirmations and documents and other confirming evidence between the parties confirming transactions thereunder,
all whether now existing or hereafter arising, and in each case as amended, modified or supplemented from time to time. 

  
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 1.24. “Rate Management Obligations” means any and all obligations of
Borrower to Lender or any affiliate of Fifth Third Bancorp, whether absolute, contingent or otherwise and howsoever and whensoever (whether now or hereafter) created, arising, evidenced or acquired (including all renewals, extensions and
modifications thereof and substitutions therefore), under or in connection with (i) any and all Rate Management Agreements, and (ii) any and all cancellations, buy-backs, reversals, terminations or assignments of any Rate Management
Agreement. 
 1.25. “Security Agreements” means the Security Agreement of even Effective Date herewith to be
executed by Borrower granting to Lender a first lien upon certain assets of Borrower described therein and all other documents from time to time executed and delivered which secure the Indebtedness. 

1.26. “Security Documents” means the Security Agreement, Uniform Commercial Code Financing Statement, including any and
all amendments, modifications, extension, renewals, replacements, substitutions and consolidations of any such documents, collectively, executed by Borrower in favor of Lender securing the assets of Borrower in connection with the Note. 

1.27. “Senior Funded Indebtedness” means all Indebtedness (i) in respect of money borrowed or (ii) evidenced
by a note, debenture (excluding subordinated) or other like written obligation to pay money, or (iii) in respect of rent or hire of property under leases or lease arrangements which under generally accepted accounting principles are required to
be capitalized, or (iv) in respect of obligations under conditional sales or other title retention agreements. 
 SECTION 2

 DESCRIPTION OF BORROWING RELATIONSHIP 
 2.1 The Loan. Subject to the terms and conditions contained in this Agreement, and in reliance upon the representations and warranties hereinafter set forth, Lender agrees to extend to Borrower the
credit evidenced by the Note. Borrower agrees to accept such extension of credit and to use the proceeds thereof only as provided herein. The Loan shall be evidenced by the Note and this Agreement, and principal and interest on the Loan shall be
payable as provided in the Note. 
 2.2 Security for the Loan. The payment and performance by Borrower of its obligations
under the Note and the Loan Documents shall be secured by (i) the Security Documents; (ii) UCC Financing Statement filed with the Nevada Secretary of State; and (iii) such other collateral and security as may be (A) required
under this Agreement or any of the other Loan Documents, or (B) otherwise provided to Lender. 
 2.3 Note. The Note
evidences a $3,000,000 revolving line of credit entered by and between Borrower and Lender concurrently herewith. The total amount to be advanced under the Revolving Note shall not exceed at any one time the sum of $3,000,000.00. All advances under
the Note shall be secured by the Security Agreement of even Effective Date herewith. Borrower may only make advances under the Revolving Note in accordance with the terms, obligations and limits set forth herein. 

2.4 Other Notes. All of the terms, covenants and conditions contained in this Loan Agreement shall apply not only to the Note, but
also to all other Indebtedness and other sums owed from Borrower to Lender, now or in the future; and Borrower hereby acknowledges and agrees that subject to any applicable notice or cure periods, any breach or default or other similar condition or
event (however described) of this Loan Agreement shall also be a default under any and all of the foregoing notes, and obligations and a default under any of the foregoing notes or obligations shall also be a default under this Loan Agreement.

 2.5 Loan Fee. Borrower has paid Lender a non-refundable loan origination fee of $15,000.00 (the “Loan Fee”).
The parties recognize and agree that the Loan Fee (i) was not and is not a charge for the use of money, but rather a purchase of the right to secure a loan of money on the part of Borrower, and (ii) was a

  
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material inducement for Lender to make the Loan and for having Lender ready, willing and able to fund the Loan in accordance with the terms of this Agreement. Borrower’s payment of the Loan
Fee to Lender is and shall be in addition to all other payments (including without limitation principal and interest) now or hereafter payable to Lender pursuant to the Note and the other Loan Documents. 

2.6 Unused Commitment Fee. In addition to the aforesaid Loan Fee, Borrower agrees to pay Lender an additional Loan Fee in an
amount equal to 25 basis points (.250%) to be calculated on the portion of the unused Commitment Amount (the “Unused Commitment Fee”). The Unused Commitment Fee will be collected in arrears and shall be due on a quarterly basis (and
computed on the basis of a year of 360 days and the actual number of days elapsed and the daily unused Commitment Amount), beginning on June 30, 2012, and shall be paid within five (5) days of the date of notification from Lender to
Borrower. 
 SECTION 3 
 CONDITIONS PRECEDENT 
 The obligation of the Lender to make the Loan
hereunder (or to advance funds under the Note from time to time) is subject to the following conditions precedent and subject to no material adverse change (as determined solely by Lender in its sole discretion) in the financial condition of
Borrower having occurred and to Borrower’s certification of no pending or threatened material adverse litigation against Borrower: 
 3.1 Financial Statements. Delivery to Lender of Financial Statements and other financial information described in this Agreement, or as otherwise reasonably requested by Lender. 

3.2 Supporting Documents. Current, certified copies of Borrower’s Articles of Incorporation and By-Laws, a Good Standing
Certificate, corporate resolutions authorizing the transactions contemplated hereby, and incumbency certificates, all in form and substance satisfactory to Lender. 
 3.3 Debts. A schedule of existing Debts of Borrower as of the Effective Date (a true, correct and complete schedule of which has been attached to this Agreement as Schedule 3.3,
accompanied by, as and to the extent applicable, a certified schedule of existing liens on any and all assets of Borrower). Borrower shall provide an updated schedule of existing Debts of Borrower (i) quarterly with the financial reports
required by Section 5.1 hereof when there have been changes in such debt schedule other than debts incurred in the ordinary course of operation of Borrower’s business, and (ii) annually with the financial reports required by
Section 5.1 hereof. 
 3.4 Documents Required for the Closing. Borrower shall have duly executed and delivered to
Lender, or provided to Lender prior to any further disbursements of the Loan (the “Closing”) the following: 
  

	 	(i)	the Note; 

  

	 	(ii)	this Loan Agreement; 

  

	 	(iii)	the Security Agreement; 

  

	 	(iv)	Uniform Commercial Code Financing Statements; 

  

	 	(v)	the Closing Statement; and 

  

	 	(vi)	such other documents and information as Lender’s counsel reasonably requires. 

3.5 Default. No Event of Default is in existence. 

  
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 SECTION 4 
 BORROWING, REPAYMENT AND SECURITY 
 4.1 Revolving Note. As provided
in the Note, Borrower may borrow, pay, reborrow and repay under the terms of the Note and pursuant to this Section 4 (provided that at no time shall the balance outstanding exceed $3,000,000.00). 

4.2 Disbursements and Borrowing Availability Under Note. Advances which may be made by Lender from time to time under the Note
shall be made available to Borrower by crediting such proceeds to Borrower’s operating account with Lender. Lender may in its sole discretion charge Borrower’s operating account for all of Borrower’s liabilities then due with respect
to the loan(s) described in this Loan Agreement, including without limitation, interest, principal, fees and reimbursement of customary Lender expenses. 
 4.3 Security. All Indebtedness shall be secured by the Security Documents. Any default under any Loan Document beyond any applicable notice and cure period shall be deemed a Default under this Loan
Agreement. 
 4.4 Prepayments. Borrower may, at its option, prepay the Note in whole or in part without penalty or
premium. 
 4.5 Calculation of Interest. Any interest due on the Note or on any other amount constituting Indebtedness
hereunder, shall be calculated on the basis of the actual number of days elapsed over a year containing 360 days. Notwithstanding anything herein or in any document contemplated hereby to the contrary, the maximum amount of interest which Lender
shall collect hereunder shall not exceed that amount which when added to any other amount deemed interest under applicable law equals the amount which would have been collected if interest had been calculated on the outstanding principal
indebtedness at the maximum interest rate per annum allowed by applicable law. In the event any interest is received or charged by Lender in excess of that amount, Borrower shall be entitled to an immediate refund of such excess. 

4.6 Application of Payments. All payments received on the Note shall be applied first to expenses that are neither principal nor
interest, then to reasonable costs and expenses required to be paid under the terms of this Agreement, then to interest to the extent then accrued and then to principal. 
 4.7 Place and Medium of Payment. Unless Borrower is otherwise notified by Lender, all payments of principal, interest, or other amounts constituting Indebtedness shall be made at the office of the
Lender specified herein or at such other address as the Lender may designate. 
 4.8 Reaffirmation of Representations and
Warranties. Each request by the Borrower for an advance under the Note and the Commitment Amount (i) shall constitute a reaffirmation that the representations and warranties contained in this Agreement remain true and correct in all
material respects as of the date of such request and that the Borrower is in compliance with the financial covenants contained herein, and unless the Lender is notified to the contrary in writing prior to the disbursement of the requested advance,
will be so on the date of such advance and (ii) shall constitute the Borrower’s representation and warranty that the information set forth in each such request and any certification by the Borrower in connection therewith is true and
correct and omits no material fact necessary to make the same not misleading. 
 SECTION 5 

FINANCIAL STATEMENTS AND OTHER AFFIRMATIVE COVENANTS 
 Borrower covenants and agrees that from the date hereof and until the Indebtedness is paid in full it shall, where appropriate: 
 5.1 Financial Statements, Etc. Borrower will deliver to Lender the following: 
  

	 	(i)	Effective as of December 31, 2012, and continuing annually thereafter within one hundred and twenty (120) days after the end of each fiscal year, annual
audited year-end Financial Statements as of the end of and for such year of the Borrower acceptable to Lender in reasonable detail, setting forth in comparative form the corresponding figures for the corresponding date and period in the preceding
fiscal year. 

  
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	 	(ii)	Commencing as of December 31, 2012 and annually by December 31 of each year thereafter Borrower shall deliver a proposed budget for the ensuing year during
the term of the Loan. 

  

	 	(iii)	Commencing as of March 30, 2012 and continuing quarterly thereafter, within forty-five (45) days after the end of each of Borrower’s fiscal quarters
Borrower shall provide to Lender, internally prepared Financial Statements as of the end of and for such period in reasonable detail to include operating statement, balance sheet and statement of cash flows certified to Lender by an Officer of
Borrower and acceptable to Lender in its sole but reasonable discretion. 

  

	 	(iv)	Commencing as of March 30, 2012 and continuing quarterly thereafter, within forty-five (45) days after the end of each of Borrower’s fiscal quarters,
Borrower shall provide to Lender, internally prepared profit and loss projection statement for the ensuing fiscal quarter, signed by an Officer of the Borrower. 

 

	 	(v)	Within forty-five (45) days after the end of each quarter, commencing with Borrower’s fiscal quarter ending June 28, 2012, Borrower shall provide to
Lender a Covenant Compliance Worksheet, in the form attached hereto as Exhibit 5.1, or on such other form as Lender may from time to time approve in writing, signed by an Officer of the Borrower. 

 

	 	(vi)	Promptly upon receipt thereof, copies of all other material detailed reports (if any) submitted to Borrower by independent certified public accountants in connection
with each annual or interim review of the books of Borrower by such accountants. 

  

	 	(vii)	Promptly upon Borrower obtaining knowledge of the occurrence of any default, a notice thereof, specifying the nature thereof; and promptly upon the occurrence of any
event or the discovery of any fact which might affect or indicate a material and adverse change in Borrower’s financial condition, notice thereof specifying the nature thereof. 

 

	 	(viii)	Such other material financial and general business information as Lender may from time to time reasonably request from Borrower or any guarantor from time to time
obligated to Lender with respect to the Loan (a “Guarantor”), including, without limitation, at such times as Lender requests, a listing of all Accounts, including names, addresses and phone numbers of Account Debtors.

 5.2 Books of Account. Borrower will maintain books of account in accordance with its accrual basis
accounting consistently applied, and otherwise in accordance with generally accepted accounting principles, so as to disclose the information necessary for determining whether the provisions of this Agreement have been met. 

5.3 Right of Inspection. Whenever Lender, in its sole discretion, deems it necessary, and upon five Business Days’ prior
notice to Borrower, Borrower will permit Lender or any agent designated by Lender to visit and inspect any property of Borrower and to inspect and make excerpts of Borrower’s accounting records, all at such reasonable times and as often as
Lender may reasonably request. 
 5.4 Insurance. Borrower currently has in place and will at all times maintain adequate
insurance with responsible insurers with coverage normally obtained by businesses similar to Borrower’s, and in full compliance with all of Lender’s underwriting guidelines and criteria, including, but not limited to business interruption
insurance. Borrower will provide Lender prior to closing (and annually thereafter), a Certificate of Insurance in form required by Lender naming Lender as the “loss payee,” specifying the types and amounts of insurance in force and the
insurers of each risk covered by such insurance, and maintain the same throughout the term of the loan. 

  
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 5.5 Payment of Indebtedness, Taxes, Etc. Borrower will (a) pay and discharge all
of their indebtedness and Obligations as and when due and payable and (b) pay and discharge promptly all taxes, assessments and governmental charges or levies imposed upon its income and profits, or upon any of their property, real, personal or
mixed, or upon any part thereof, before the same shall become in default, as well as all lawful claims for labor, materials and supplies or otherwise which, if unpaid, might become a lien or charge upon such properties or any part thereof; provided,
however, that Borrower will not be required to pay and discharge any such tax, assessment, charge, levy or claim referred to in clause (b) above so long as the validity thereof shall be diligently and continuously contested in good faith by
appropriate proceedings with respect to any such tax, assessment, charge, levy or claim so contested. 
 5.6 Maintenance of
Corporate Existence, Rights. Borrower will do or cause to be done all things necessary to preserve and keep in full force and effect its existence, franchises, rights and privileges as a corporation under the laws of Nevada and will do or cause
to be done all things necessary to preserve and keep in full force and effect its right to own property and operate all aspects of its business in the State of Florida in a manner not less favorable to it than those now in existence. Borrower will
comply with all requirements applicable to it under the laws or regulations of the United States, of any state or states and of any other governmental authority. 
 5.7 Use of Proceeds. The funds borrowed under the Note will be used only for valid corporate purposes. 
 5.8 Further Assurances. If at any time the Lender, in its sole but reasonable discretion, believes that any portion of the Indebtedness is not properly secured or will or may not be properly
secured by the Security Agreements as a first priority lien upon all Accounts and assets to Lender’s reasonable satisfaction, then Borrower shall, within three (3) days after written notice of such request from Lender, take all actions and
do all things and matters necessary to assure to the satisfaction of Lender that any part of the Indebtedness then existing or thereafter to be created is properly secured or will be secured as contemplated by this Agreement or any other Loan
Document. 
 5.9 Maintenance of Assets. Borrower will maintain its offices and all of its equipment and assets in good
working order and make all normal and customary repairs and replacements of the same. 
 5.10 Litigation Notice. Borrower
will deliver to Lender prompt written notice of any action, suit or proceeding at law or in equity or by or before any governmental instrumentality or other agency which, if adversely determined, would materially adversely affect the business,
properties or condition, financial or otherwise, of Borrower. 
 5.11 Transactions with Affiliates. Borrower shall not
enter into any transaction including, without limitation, the purchase, sale, or exchange of property with any Affiliate except in the ordinary course of and pursuant to the reasonable requirement of Borrower’s business, and upon terms
substantially the same and no less favorable to Borrower as Borrower would obtain in a comparable arms’ length transaction with any Person not an Affiliate, and so long as such transaction is not prohibited hereunder. So long as Borrower is
indebted to Lender, Borrower agrees that it shall not divert any orders, business, billings, or accounts to any Affiliate or any Person. 
 5.12 Shareholder Debt and Loans to Related Parties. All Shareholder Debt and/or any Debt to Affiliates or Related Parties shall at all times be and remain expressly subordinate to the Loan and the
lien, operation and effect of Lender’s security interests pledged therefor and Borrower shall execute such additional subordinations as is required by Lender and shall cause Borrower’s stockholders, Affiliates or Related Parties to execute
such additional subordinations as Lender deems appropriate. Payments of interest under any existing or future Shareholder Debt or Loans to Affiliates or Related Parties debt shall be permitted unless and until Lender shall notify Borrower in writing
otherwise. 

  
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 5.13 Review of Accounts. At any time following the occurrence of an Event of Default,
Borrower shall allow Lender, at Lender’s request (when Lender deems the same reasonably necessary), to obtain a review of all Accounts by an independent third party acceptable to Lender and Borrower, all at the expense of Borrower, the review
to be in form satisfactory to Lender. In the event of such a review, the Lender agrees and, prior to the commencement thereof, will cause the independent third party to acknowledge and agree to maintain the confidentiality of the information to
which access is given and will not deal with such information in any manner which results in the breach of the Borrower’s ethical obligation to maintain the confidentiality of privileged client information and communications. 

5.14 Fixed Charge Coverage Ratio. Borrower shall at all times maintain a fixed charge coverage ratio (the “Fixed Charge
Coverage Ratio”) of not less than 1.50:1.00, as measured and verified by Lender quarterly. The applicable Fixed Charge Coverage Ratio will be measured by Lender quarterly through December 31, 2012 on the basis of the Fixed Charge Coverage
Ratio – 2012 Tests and thereafter will be measured by Lender quarterly on the Fixed Charge Coverage Ratio – Rolling Quarterly Basis. 
 5.15 Senior Funded Indebtedness to EBITDA. Borrower shall at all times maintain a maximum Senior Funded Indebtedness to EBITDA ratio of not more than 2:00:1.00. Borrower’s Senior Funded
Indebtedness to EBITDA shall be measured by Lender on a quarterly basis throughout the term of the Loan, on a rolling four quarter average, commencing June 30, 2012. In the event the Senior Funded Indebtedness to EBITDA ratio is out of
compliance during any test period, Borrower shall be required to make an immediate principal reduction payment in an amount sufficient to bring the Loan into compliance with this financial covenant. 

5.16 Cash Distributions. Borrower shall not pay distributions or dividends to shareholders or otherwise disburse cash to
shareholders or investors during the term of the Loan without Lender’s prior written consent. Without limitation of the foregoing, it is expressly agreed that the repurchase by Borrower of Borrower’s stock previously held by Moriah Capital
LP (“Moriah Capital”) for an amount not to exceed $170,000.00 has been approved by the Lender. 
 5.17
Primary Banking Relationship. Throughout the term of the Loan Borrower shall maintain all operating and reserve accounts with Lender. 
 5.18 Cross Default and Cross Collateralization. Borrower hereby agrees that any breach or default or other similar condition or event (however described) of any other loan, note, obligation, Rate
Management Agreement, Rate Management Obligation or indebtedness now or hereafter owed to Lender by Borrower beyond any applicable grace period provided in the instrument or agreement under which such indebtedness was created or secured, including,
but not limited to that certain Revolving Line of Credit Loan of even Effective Date herewith in favor of Lender in the amount of $3,000,000.00 and/or or any other indebtedness owed to Lender beyond any applicable grace period provided in the
instrument or agreement under which such indebtedness was created or secured, which is not cured within the applicable grace period shall be deemed a breach and default of this document. Borrower hereby agrees that all of the Loan Documents,
Additional Security Documents, Rate Management Agreements, security documents and any future mortgages and loan documents are hereby cross-collateralized, such that all collateral and property named or described in each and every one of the Loan
Documents shall be collateral for any and all future notes and the proceeds received by Lender from such collateral whether by liquidation or otherwise shall be applied to such notes and in such order as Lender may determine in Lender sole
discretion. 

  
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 SECTION 6 
 NEGATIVE COVENANTS 
 Borrower covenants and agrees that from the date
hereof until the Indebtedness is paid in full: 
 6.1 Liens, Etc. Borrower will not create or allow to be created, incur
any additional debt or otherwise borrow money in excess of a cumulative total of $150,000.00 or allow to be incurred, assume or suffer, or allow to exist any mortgage, pledge, lien, charge or other encumbrance of any nature whatsoever (except
Permitted Liens) on any of its assets now or hereafter owned, or enter into or suffer or allow to exist any conditional sales contracts or other title retention agreements, any such liens, nor will it in any way become responsible for the
Obligations of any other Person, directly or indirectly, whether by agreement to purchase the Obligations of any other Person, by guaranty, endorsement, surety agreement or otherwise, without the prior written consent of Lender. Notwithstanding the
foregoing, prior to incurring any liens other than Permitted Liens, Borrower shall provide written subordination of any and all such liens to Lender, in form and content acceptable to Lender. 

6.2 Merger; Consolidation; Sale of Substantial Assets; Name Change. Borrower will not directly or indirectly merge or consolidate
with, or sell, lease, transfer or otherwise dispose of all or a substantial part of its properties, shares or assets to, or acquire all or a substantial part of the properties, shares or assets of, any other Person, without the prior written consent
of Lender; provided, however, that (a) Borrower may acquire all or a substantial part of the properties, shares or assets of, another Person, whether through a merger, acquisition of assets or otherwise, so long as the total
amount of consideration paid in all or any such transactions during the term hereof (including any debt assumed by Borrower in such transactions), does not exceed $250,000.00 and (b) nothing contained in this Agreement or any of the other Loan
Documents shall be construed to permit any of the properties and assets of Borrower to be transferred by Borrower to its Canadian subsidiary or any other non-U.S. entity. Borrower shall provide not less than thirty (30) days advance written
notice to Lender as herein required prior to effecting any change of its corporate name or reorganization of Borrower in another jurisdiction. 
 6.3 Loans and Investments. Borrower will not purchase any stock, securities or evidence of indebtedness, or make or permit to exist any loans or advances to, without the prior written consent of
Lender, or make any investments or acquire any interest in, any other Person, except as contemplated in Section 6.2 hereof. 
 6.4 Nature of Business. Borrower shall not conduct any business other than its current business or business customarily conducted by companies similarly situated. Paul Demirdjian shall at all times
serve as Chief Executive Officer of Borrower. 
 6.5 Sale, Pledge, Etc. of Property. Borrower will not sell, transfer,
pledge or otherwise dispose of any of its interest in any of its assets except in the ordinary course of its business. 
 6.6
Sale and Leaseback. Borrower will not enter into any arrangement, direct or indirect, with any Person whereby it shall sell or transfer any property, real or personal, and used or useful in its business, whether now owned or hereafter
acquired, and thereafter rent or lease such property or other property which it intends to use for substantially the same purpose or purposes as the property being transferred. 
 6.7 Material Adverse Change. Borrower shall not have a material adverse change in its financial condition. 

  
 10 

 SECTION 7 
 REPRESENTATIONS AND WARRANTIES 
 Borrower represents and warrants and so
long as this Agreement is in effect or any part of the Indebtedness remains unpaid, shall continue to warrant at all times, that: 
 7.1 Borrower. Borrower is a corporation duly formed and validly existing under and by virtue of the laws of the State of Nevada and duly qualified to transact business in the State of Florida.
Borrower holds in full force and effect all material permits, licenses, and franchises necessary for it to carry out its operations in conformity with all applicable laws and regulations of the States of Nevada and Florida. 

7.2 Financial Statements. Borrower has heretofore made available to Lender its most recent Financial Statements and other
pertinent financial information. All of those Financial Statements fairly represent the financial condition of the Borrower and the result of its operations as of the date of the balance sheets and income and surplus statements, all of which were
prepared in accordance with generally-accepted accounting principles. 
 7.3 Changes in Financial Condition. Since the
date that Borrower has applied for the loan, there has been no material adverse change in the assets or the financial condition of Borrower from that set forth or reflected in the Financial Statements as of that date or for the period then ended.

 7.4 Legal or Administrative. There are no actions, suits or proceedings by any public or governmental body, agency or
authority or litigation by any Person, or by any public or governmental body, agency, or authority pending or threatened against Borrower or to which it is a party involving the possibility of any judgment or liability not fully covered by insurance
or by adequate reserves set upon the books of Borrower, or which may result in any material adverse change in the business or in the condition, financial or otherwise, of Borrower, and, to the best of the knowledge and belief of Borrower, it has
materially complied with all applicable laws and requirements of governmental authorities. 
 7.5 Assets. Borrower has
good, marketable title to all of its assets reflected in the Financial Statements and such assets are free and clear of all liens, charges and encumbrances except for Permitted Liens. 

7.6 Loss. Since the date of the Financial Statements already delivered to Lender, no substantial loss, damage, destruction or
taking of any of the physical properties or assets of Borrower has occurred which has not been fully restored or replaced, or which is not fully covered by insurance. Borrower is not aware of any material adverse fact or likelihood concerning its
condition or future prospects which has not been fully disclosed in writing to Lender. 
 7.7 Corporate Restrictions.
Borrower is not a party to any contract or subject to any charter or other corporate restriction which would materially and adversely affect its property or business, or its ability to perform its obligations under the Loan Documents. 

7.8 Tax Returns. Borrower has filed all Federal, State and local tax returns which are required to be filed and has paid all taxes
as shown on the returns and all assessments received by it to the extent that the taxes have become due other than taxes being contested in good faith. 
 7.9 Purpose of Borrowing. None of the proceeds of the loan by Lender will be used for the purpose of reducing or carrying any margin security or for the purpose of reducing or retiring any
indebtedness which was originally incurred to purchase or carry a margin security or for any other purpose which might constitute this transaction a “purpose credit” within the meaning of Regulation U, as now in effect or as it may
hereafter be amended, and all such proceeds shall be used for normal business purposes. 

  
 11 

 7.10 Authority. Borrower has full authority to enter into the Loan Documents and
carry out all terms thereof and all required approvals or consents of the Board of Directors and shareholders of the Borrower and all other Persons have been obtained. 
 7.11 Payment of Loan Proceeds. Lender is authorized to disburse all proceeds of any loan to Borrower hereunder directly to Borrower by depositing such proceeds in Borrower’s account with
Lender. 
 SECTION 8 
 EVENTS OF DEFAULT 
 If any of the following events shall occur and be
continuing then there shall be an Event of Default: 
 (i) If Borrower defaults in the payment of any principal or interest
under the Note and such payment remains uncured for five (5) days after due date or defaults in payment of principal or interest under any other obligation owed to Lender after the expiration of any applicable notice and/or cure periods; or

 (ii) If Borrower defaults in any payment of principal of or interest on any other Obligation for borrowed money in excess of
$25,000 beyond any period of grace provided with respect thereto, or in the performance of any other material agreement, term, or condition contained in any agreement under which any such Obligation is created and either (A) such default
continues beyond maturity of the Obligation (whether by acceleration or otherwise) or (B) the effect of such default is to cause, or permit the holder or holders of such Obligation (or trustee on behalf of such holder or holders) to cause such
Obligation or any part thereof to become due prior to its stated maturity; or 
 (iii) If any representation or warranty made by
Borrower herein or in any writing furnished in connection with or pursuant to the Loan Documents shall be false or misleading in any material respect; or 
 (iv) If Borrower defaults in the performance or observance of any other agreement, covenant, term or condition contained herein or in any other Loan Document and such default shall not have been remedied
within thirty (30) days after written notice thereof is sent by Lender to Borrower; provided, however, that Borrower reasonably cannot perform or comply with any such obligation within such thirty (30) day period, the Borrower may have
such additional time to rectify such failure as may be reasonably required provided and for so long as Borrower continuously proceeds with due diligence, not to exceed sixty (60) days provided Lender does not deem itself insecure; or

 (v) If a proceeding or case shall be commenced in any court of competent jurisdiction, seeking (a) the liquidation,
reorganization, dissolution, winding-up, or recomposition or readjustment of debts of Borrower, or (b) the appointment of a trustee, receiver, custodian, liquidator or the like of Borrower under any law relating to bankruptcy, insolvency,
reorganization, winding-up, or composition or adjustment of debts, without the consent of Borrower and such proceedings or case shall continue undismissed for a period of sixty (60) days, or an order, judgment or decree approving or ordering
any of the foregoing shall be entered and continue unstayed and in effect, for a period of sixty (60) days, or an order for relief against Borrower shall be entered in an involuntary case under Title 11 of the United States Code or any other
Federal or State bankruptcy, insolvency or similar law (as now or hereafter in effect); or 
 (vi) If Borrower shall
(a) apply for or consent to the appointment of, or the taking possession by, a receiver, custodian, trustee or liquidator of itself or of all or a substantial part of its property, (b) admit in writing its inability, or be generally
unable, to pay its debts as such debts become due, (c) make a general assignment for the benefit of its creditors (d) commence a voluntary case under Title 11 of the United States Code or any other Federal or State bankruptcy, insolvency
or similar law, or (e) take any corporate action for the purpose of effecting any of the foregoing; or 

  
 12 

 (vii) If any final, non-appealable order is entered in any proceeding against Borrower or
any part of their assets for an amount in excess of $25,000.00 and the judgment is not satisfied within thirty (30) days thereafter; or 
 (viii) If there is a default under the terms of the Loan Documents, Security Agreement, or under the Permitted Liens beyond any applicable notice and cure periods; or 

(ix) If a material adverse change occurs in the business or financial condition of Borrower or any Guarantor from time to time obligated
to Lender with respect to the Loan. 
 (x) If Borrower shall default in the due observance or performance of any of its
covenants or agreements under any Rate Management Agreement beyond any applicable notice and cure periods, if any. 
 (xi)
Borrower fails to make any payments of principal or interest in connection with the Loan or any other indebtedness owed to Lender beyond any applicable grace period provided in the instrument or agreement under which such indebtedness was created or
secured, which is not cured within the applicable grace period, 
 (xii) Nonpayment by Borrower of any Rate Management
Obligation when due or the breach by Borrower of any term, provision or condition contained in any Rate Management Agreement. 

Thereupon, Lender may, at its option, declare the Note and all other amounts of the Indebtedness to be immediately due and payable
together with interest accrued thereon, which shall bear interest at the Default Rate (as defined in the Note) and Lender shall have the right to pursue all legal rights and remedies allowed by law. Nothing herein or in any other Loan Document is
intended to affect any rights of Lender with respect to any Indebtedness which may now or hereafter be payable on demand. If the grace periods contained in any other Loan Document evidencing any of the loans that are the subject matter of this Loan
Agreement allow longer periods of time as grace periods after default, the grace periods of time set forth in this Section shall be the grace periods of time that shall control. 

SECTION 9 

MISCELLANEOUS 
 9.1 Expenses. Borrower agrees, whether or not the transactions hereby contemplated shall be consummated, to pay, and save Lender and any agent of Lender harmless against liability for the payment
of all reasonable expenses arising in connection with this transaction, including, without limitation, any state documentary stamp taxes and intangible taxes or other taxes (including interest and penalties, if any) which may be determined to be
payable in respect to the execution and delivery of any Loan Documents executed in connection with this Agreement, (other than income or other taxes of Lender based upon receipt of interest income) and the reasonable fees and expenses of
Lender’s counsel. If an Event of Default shall occur, Borrower shall also pay all Lender’s reasonable costs of collection and expenses incurred to remedy such default, including, without limitation, Lender’s or any of its agent’s
or employees’ travel expenses, court costs and attorneys’ fees and legal assistants’ fees, and disbursements whether incurred in connection with collection efforts, trial or appeal. 

9.2 Payments on Business Days. Whenever any payment to be made hereunder or under any other Loan Document shall be stated to be
due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall be included in computing interest, if any, due in connection with such payment. 

9.3 Survival of Representations and Warranties. All representations and warranties contained herein or made in writing by Borrower
in connection herewith shall survive the execution and delivery of the Loan Documents. 

  
 13 

 9.4 Successors and Assigns. All covenants and agreements in this Agreement shall bind
and inure to the benefit of the respective successors and assigns of the parties hereto whether so expressed or not. 
 9.5
Notices. All notices which are required or permitted hereunder must be in writing and shall be deemed to have been given, delivered or made, as the case may be, (notwithstanding lack of actual receipt by the addressee) (i) when delivered
by personal delivery, (ii) three (3) days after having been deposited in the United States mail, certified or registered, return receipt requested, sufficient postage affixed and prepaid, or (iii) one (1) day after having been
deposited with an expedited, overnight courier service (such as Federal Express), addressed to the party to whom notice is intended to be given at the address set forth below. Any party shall have the right to change such party’s address for
notice hereunder to any other location within the continental United States by giving of thirty (30) days’ notice to all other parties in the manner set forth herein. 

 

			
	 If to Borrower:
	  	JAGGED PEAK, INC.
		  	3000 Bayport Drive, Suite 250
		  	Tampa, Florida 33607
		
	 With copy to:
	  	SHUMAKER, LOOP & KENDRICK, LLP
		  	101 East Kennedy Boulevard, Suite 2800
		  	Tampa, Florida 33602
		  	Attn: Gregory C. Yadley, Esquire
		
	 If to Lender:
	  	FIFTH THIRD BANK
		  	201 East Kennedy Boulevard, Suite 1800
		  	Tampa, Florida 33602
		
	 With copy to:
	  	TRENAM, KEMKER, SCHARF,
		  	BARKIN, FRYE, O’NEILL & MULLIS, P.A.
		  	101 East Kennedy Boulevard, Suite 2700
		  	Tampa, Florida 33602
		  	Attn: Robert G. Stern, Esquire

 9.6 Applicable Law. This Agreement is being delivered in the State of Florida and shall be
construed and enforced in accordance with the laws of the State of Florida. 
 9.7 Headings. The descriptive section
headings herein have been inserted for convenience only and shall not be deemed to limit or otherwise affect the construction of any provisions hereof. 
 9.8 Counterparts. This Agreement may be executed simultaneously in several counterparts, each of which shall be deemed an original, and it shall not be necessary in making proof of this Agreement
to produce or account for more than one such counterpart. 
 9.9 Remedies Cumulative. All rights and remedies of Lender
hereunder are cumulative and concurrent and in addition to any rights and remedies which Lender may have under the laws of Florida or the laws of the United States, and the exercise of any one right or remedy by Lender against Borrower will not
deprive Lender of any other right or remedy against Borrower. 
 9.10 Severability. If any portion of any Loan Document
is declared void by any court as illegal or against public policy the remainder of the Loan Document in question shall continue in full effect. 
 9.11 Waiver. Borrower waives presentment, notice of dishonor and protest as to all obligations under the Note. 

  
 14 

 9.12 Waiver by Lender. No delay or omission by the Lender in exercising any right
hereunder or under any Loan Document or with respect to the Indebtedness shall operate as a waiver of that or any other right, and no single or partial exercise of any right shall preclude the Lender from any other or further exercise of any other
right or remedy. The Lender may (but shall not be obligated to ) cure any Event of Default on account of Borrower in any reasonable manner without waiving the Event of Default so cured and without waiving any other prior or subsequent Event of
Default by Borrower, and all amounts and expenses incurred by Lender in doing so shall bear interest at the Default Rate. All rights and remedies of the Lender under this Agreement and under the Uniform Commercial Code and other applicable laws
shall be deemed cumulative. 
 9.13 Withholding and Other Tax Liabilities. Lender shall have the right to refuse to make
any advances hereunder from time to time unless Borrower shall have given to Lender evidence, reasonably satisfactory to Lender, that Borrower has properly deposited or paid, as required by law, all withholding taxes and all federal, state, city,
county or other taxes due up to and including the date of the advance. Upon expiration or termination of the Note, Lender shall be entitled to continue to hold any and all of the collateral until Borrower has given to Lender evidence, satisfactory
to Lender, that Borrower has properly deposited or paid, as required by law, all federal withholding taxes due up to and including the date of such expiration or termination. In the event that any lien, assessment or tax liability against Borrower
shall arise in favor of any taxing authority and, in the case of a tax liability, not be classified as a Permitted Lien, whether or not notice thereof shall be filed or recorded as may be required by law, Lender shall have the right after five
(5) business days’ notice to Borrower (but shall not be obligated, nor shall Lender hereby assume the duty) to pay any such lien, assessment or tax liability by virtue of which such charge shall have arisen. In order to pay any such lien,
assessment or tax liability, Lender shall not be obliged to wait until said lien, assessment or tax liability is filed before taking such action as hereinabove set forth. Any sum or sums which Lender shall have paid for the discharge of such lien
shall be added to Borrower’s Indebtedness and shall be paid by Borrower to Lender with interest thereon at the Default Rate, upon demand, and Lender shall be subrogated to all rights of such taxing authority against Borrower. 

9.14 WAIVER OF JURY TRIAL. BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, THE OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (whether verbal or
written) OR ACTIONS OF ANY PARTY. IT FURTHER WAIVES ANY RIGHT IT MAY HAVE TO SEEK TO CONSOLIDATE ANY SUCH LITIGATION IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER LITIGATION IN WHICH A JURY TRIAL CANNOT OR HAS NOT BEEN WAIVED. FURTHER,
BORROWER HEREBY CERTIFIES THAT NO REPRESENTATIVE OR AGENT OF LENDER, NOR THE LENDER’S COUNSEL, HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT LENDER WOULD NOT, IN THE EVENT OF SUCH LITIGATION, SEEK TO ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL
PROVISION. BORROWER ACKNOWLEDGES THAT THE PROVISIONS OF THIS SECTION ARE A MATERIAL INDUCEMENT TO LENDER’S EXECUTION AND ACCEPTANCE OF THIS AGREEMENT AND/OR THE OTHER LOAN DOCUMENTS. 

[REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK] 

  
 15 

 IN WITNESS WHEREOF, the parties hereto have signed and sealed this Agreement as of the
Effective Date first above written. 
  

									
	WITNESSES:	 		 	JAGGED PEAK, INC., a Nevada corporation
					
	 	 	 	 		 	By:	 	 
	[Witness Signature Above]	 		 		 	Paul Demirdjian, Chief Executive Officer
					
	 	 	 	 		 		 	
	[Print Witness Name Above]	 		 		 	(CORPORATE SEAL)                
				
		 		 		 	“BORROWER”
					
	 	 	 	 		 		 	
	[Witness Signature Above]	 		 		 	
					
	 	 	 	 		 		 	
	 [Print Witness Name Above]
 As to Borrower
	 		 		 	

  

									
		 		 	 FIFTH THIRD BANK, an Ohio banking
 corporation

					
	 	 	 	 		 	By:	 	 
	[Witness Signature Above]	 		 	Print Name:                         
                                         
                      
		 		 	Its:                           
                      Vice President
		 		 		 	(CORPORATE SEAL)                
	 	 	 	 		 		 	
	[Print Witness Name Above]	 		 		 	“LENDER”
					
	 	 	 	 		 		 	
	[Witness Signature Above]	 		 		 	
					
	 	 	 	 		 		 	
	[Print Witness Name Above]	 		 		 	

 As to Lender 

  
 16Class A(2012-A) Terms Document

 Exhibit 4.1 
 EXECUTION VERSION 
  

 
  

DISCOVER CARD EXECUTION NOTE TRUST 
 Issuer 
 and 

U.S. BANK NATIONAL ASSOCIATION 
 Indenture Trustee 
 CLASS A(2012-A) TERMS DOCUMENT 

Dated as of March 29, 2012 
 to 
 AMENDED AND RESTATED INDENTURE SUPPLEMENT 

Dated as of June 4, 2010 
 for the DiscoverSeries Notes 
 to 

INDENTURE 
 Dated
as of July 26, 2007 
  
  

 

 TABLE OF CONTENTS 

 
  

					
	 	  	Page	 
		
	 ARTICLE I Definitions and Other Provisions of General Application
	  	 	1	  
		
	 Section 1.01.    Definitions
	  	 	1	  
	 Section 1.02.    Representations and Warranties of Issuer
	  	 	7	  
	 Section 1.03.    Representations and Warranties of Indenture Trustee
	  	 	8	  
	 Section 1.04.    Limitations on Liability
	  	 	8	  
	 Section 1.05.    Governing Law
	  	 	9	  
	 Section 1.06.    Counterparts
	  	 	9	  
	 Section 1.07.    Ratification of Indenture and Indenture Supplement
	  	 	9	  
		
	 ARTICLE II The Class A(2012-A) Notes
	  	 	9	  
		
	 Section 2.01.    Creation and Designation
	  	 	9	  
	 Section 2.02.    Adjustments to Required Subordinated Percentages and Amount
	  	 	9	  
	 Section 2.03.    Interest Payment
	  	 	10	  
	 Section 2.04.    Payments of Interest and Principal; Payments of Increased Costs Amount
	  	 	10	  
	 Section 2.05.    [Reserved]
	  	 	11	  
	 Section 2.06.    Form of Class A(2012-A) Notes; Legend; Transfer Restriction
	  	 	11	  
	 Section 2.07.    Delivery and Payment for the Class A(2012-A) Notes
	  	 	12	  
	 Section 2.08.    Additional Early Redemption Events
	  	 	12	  
	 Section 2.09.    Increases in the Outstanding Dollar Principal Amount
	  	 	12	  
	 Section 2.10.    Designation of Additional Amounts to be included in the Excess Spread Amount for
the DiscoverSeries Notes
	  	 	14	  

 Exhibit 
  

	 	Exhibit	A Form of Class A Note 

  
 i 

 THIS CLASS A(2012-A) TERMS DOCUMENT (this “Terms Document”), by and between
DISCOVER CARD EXECUTION NOTE TRUST, a statutory trust created under the laws of the State of Delaware (the “Issuer”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association organized and existing under the laws of the
United States of America, as Indenture Trustee (the “Indenture Trustee”), is made and entered into as of March 29, 2012. 
 Pursuant to this Terms Document, the Issuer shall create a new Tranche of Class A Notes of the DiscoverSeries and shall specify the principal terms thereof. 

ARTICLE I 

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

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

 (2) all other terms used herein which are defined in the Note Purchase Agreement dated as of March 29, 2012, by and among
Discover Card Execution Note Trust, Discover Bank, the Purchaser (as defined therein), the Committed Purchaser (as defined therein) and the Agent (as defined therein) (as may be amended, supplemented, restated, amended and restated or otherwise
modified from time to time, the “Note Purchase Agreement”), the Indenture Supplement or the Indenture, either directly or by reference therein, have the meanings assigned to them therein; 

(3) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting
principles and, except as otherwise herein expressly provided, the term “generally accepted accounting principles” with respect to any computation required or permitted hereunder means such accounting principles as are generally accepted
in the United States of America at the date of such computation; 
 (4) all references in this Terms Document to designated
“Articles,” “Sections” and other subdivisions are to the designated Articles, Sections and other subdivisions of this Terms Document; the words “herein,” “hereof” and “hereunder” and other words of
similar import refer to this Terms Document as a whole and not to any particular Article, Section or other subdivision; 
 (5) in
the event that any term or provision contained herein shall conflict with or be inconsistent with any term or provision contained in the Indenture Supplement or the Indenture, the terms and provisions of this Terms Document shall be controlling, but
solely with respect to the Class A(2012-A) Notes; 
 (6) each capitalized term defined herein shall relate only to the Class
A(2012-A) Notes and no other Tranche of Notes issued by the Issuer; 

 (7) “including” and words of similar import will be deemed to be followed by
“without limitation”; and 
 (8) for purposes of determining any amount or making any calculation hereunder, such
amount or calculation, (x) if specified to be as of the first day of any Due Period, shall (a) include any Notes issued during such Due Period as if such Notes had been outstanding on the first day of such Due Period and (b) give
effect to any payments, deposits or other allocations made on the Distribution Date related to the prior Due Period, and (y) if specified to be as of the close of business on the last day of any Due Period shall give effect to any payments,
deposits or other allocations made on the related Distribution Date. 
 “Agent” has the meaning set forth in
the Note Purchase Agreement. 
 “Class A(2012-A) Adverse Event” means the occurrence of any of the following:
(a) an Early Redemption Event with respect to the Class A(2012-A) Notes or (b) an Event of Default and acceleration of the Class A(2012-A) Notes; provided, however, that if the only such event to have occurred is an Excess
Spread Early Redemption Event for which an Excess Spread Early Redemption Cure has occurred, a Class A(2012-A) Adverse Event shall not be treated as continuing from and after the date of such cure. 

“Class A(2012-A) Note” means any Note, in the form set forth in Exhibit A hereto, designated therein as a Class
A(2012-A) Note and duly executed and authenticated in accordance with the Indenture. 
 “Class A(2012-A)
Noteholder” means a Person in whose name a Class A(2012-A) Note is registered in the Note Register. 
 “Class
A(2012-A) Termination Date” means the earliest to occur of (a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class A(2012-A) Notes is paid in full and the Note Purchase Commitment has been
permanently reduced to zero, (b) the Legal Maturity Date and (c) the date on which the Indenture is discharged and satisfied pursuant to Article VI thereof. 
 “Class A(2012-A) Tranche Interest Allocation” for the Class A(2012-A) Notes for any Distribution Date means the Note Interest for the Class A(2012-A) Notes. 

“Existing Expected Maturity Date” has the meaning set forth in the Note Purchase Agreement. 

“Existing Legal Maturity Date” has the meaning set forth in the Note Purchase Agreement. 

“Existing Liquidation Commencement Date” has the meaning set forth in the Note Purchase Agreement. 

“Expected Maturity Date” means May 15, 2014 or, if such date is extended pursuant to the Note Purchase Agreement,
the Existing Expected Maturity Date. 

  
 2 

 “Expected Principal Payment Date” means each Distribution Date for which
the Targeted Principal Payment Amount is greater than zero, including (i) the Expected Maturity Date and (ii) any Interim Expected Maturity Date. 
 “Increase Amount” means the amount of any increase in the Outstanding Dollar Principal Amount as specified in any Notice of Increase delivered under Section 2.09. 

“Increased Costs Amount” has the meaning set forth in the Note Purchase Agreement. 

“Indenture” means the Indenture dated as of July 26, 2007, as amended by the First Amendment to the Indenture,
dated as of June 4, 2010, between the Issuer and the Indenture Trustee, as the same may be further amended, supplemented, restated, amended and restated, replaced or otherwise modified from time to time. 

“Indenture Supplement” means the Amended and Restated Indenture Supplement dated as of June 4, 2010, for the
DiscoverSeries Notes, by and between the Issuer and the Indenture Trustee, as the same may be amended, supplemented, restated, amended and restated, replaced or otherwise modified from time to time. 

“Initial Dollar Principal Amount” means (a) $0 plus (b) the sum of all Increase Amounts specified in all
Notices of Increase delivered under Section 2.09. 
 “Interest Accrual Period” means, with respect to any
Interest Payment Date, the period from and including the previous Interest Payment Date (or, in the case of the first Interest Payment Date for any Class A(2012-A) Note, from and including the applicable Issuance Date) to but excluding such Interest
Payment Date; provided, that, for purposes of calculating Note Interest with respect to the first Interest Payment Date in the month immediately following the calendar month in which an increase in the Outstanding Dollar Principal Amount occurs,
Interest Accrual Period means, with respect to the related Increase Amount, the period from and including the date of such increase to but excluding such Interest Payment Date. 

“Interest Payment Date” means the fifteenth day of each month commencing in April 2012, or if such fifteenth day is not
a Business Day, the next succeeding Business Day. 
 “Interim Expected Maturity Date” for any Increase Amount
has the meaning specified in the applicable Notice of Increase delivered under Section 2.09; provided, that, in no event shall any Interim Expected Maturity Date be later than the Expected Maturity Date. 

“Interim Liquidation Commencement Date” means, for any Increase Amount, the Interim Liquidation Commencement Date
specified as such in the applicable Notice of Increase delivered under Section 2.09. 
 “Interim Liquidation
Period” for any Increase Amount and the related Interim Expected Maturity Date means, unless an Early Redemption Event or an Event of Default for the Class A(2012-A) Notes shall have occurred prior thereto, the period commencing on the
related Interim Liquidation Commencement Date and ending on the earlier to occur of (x) the payment in full of such Increase Amount or (y) the occurrence of an Early Redemption Event or an Event of Default for the Class A(2012-A) Notes;
provided, however, that (i) if an Excess Spread Early 

  
 3 

 
Redemption Cure has occurred with respect to any Excess Spread Early Redemption Event for the Class A(2012-A) Notes prior to the commencement of the Interim Liquidation Period for such Increase
Amount (and no other Early Redemption Event or Event of Default for the Class A(2012-A) Notes has occurred), the Interim Liquidation Period for such Increase Amount shall be determined as if such Excess Spread Early Redemption Event had not
occurred, and (ii) if the Interim Liquidation Period has terminated in accordance with clause (y) above, due solely to the occurrence of an Excess Spread Early Redemption Event for which there has been a subsequent Excess Spread Early
Redemption Cure (and no other Early Redemption Event or Event of Default has occurred), the Interim Liquidation Period for such Increase Amount shall resume and shall continue until the earlier to occur of (x) the payment in full of such
Increase Amount or (y) the occurrence of a subsequent Early Redemption Event or Event of Default. 
 “Issuance
Date” means March 29, 2012, with respect to all Class A(2012-A) Notes issued on the date hereof and, with respect to any increase in the Outstanding Dollar Principal Amount pursuant to Section 2.09, any Issuance Date specified in
the Notice of Increase delivered thereunder. 
 “Legal Maturity Date” means November 15, 2016 or, if such
date is extended pursuant to the Note Purchase Agreement, the Existing Legal Maturity Date. 
 “Liquidation Commencement
Date” means the Existing Liquidation Commencement Date. 
 “Liquidation Period” for the Class
A(2012-A) Notes that are scheduled to mature on the Expected Maturity Date means, unless an Early Redemption Event or an Event of Default for the Class A(2012-A) Notes shall have occurred prior thereto, the period commencing on the Liquidation
Commencement Date and ending on the earlier to occur of (x) the payment in full of the Outstanding Dollar Principal Amount of the Class A(2012-A) Notes or (y) the occurrence of an Early Redemption Event or an Event of Default for the Class
A(2012-A) Notes; provided, however, that (i) if an Excess Spread Early Redemption Cure has occurred with respect to any Excess Spread Early Redemption Event for the Class A(2012-A) Notes prior to the commencement of the
Liquidation Period (and no other Early Redemption Event or Event of Default for these Class A(2012-A) Notes has occurred), the Liquidation Period shall be determined as if such Excess Spread Early Redemption Event had not occurred, and (ii) if
the Liquidation Period has terminated in accordance with clause (y) above, due solely to the occurrence of an Excess Spread Early Redemption Event for which there has been a subsequent Excess Spread Early Redemption Cure (and no other Early
Redemption Event or Event of Default has occurred), the Liquidation Period shall resume and shall continue until the earlier to occur of (x) the payment in full of the Outstanding Dollar Principal Amount of the Class A(2012-A) Notes or
(y) the occurrence of a subsequent Early Redemption Event or Event of Default. 
 “Note Interest” for
these Class A(2012-A) Notes has the meaning set forth in the Note Purchase Agreement. 

  
 4 

 “Note Interest Rate” for these Class A(2012-A) Notes has the meaning set
forth in the Note Purchase Agreement; for the avoidance of doubt the Note Interest Rate shall be calculated in accordance with the calculation basis set forth in the Note Purchase Agreement. 

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

“Principal Payment Date” means, for the Class A(2012-A) Notes, each Expected Principal Payment Date, or upon the
acceleration of such Notes following an Event of Default or upon the occurrence and during the continuance of an Early Redemption Event (unless all such events have been cured), each Distribution Date and the Legal Maturity Date, or in the event of
a cleanup call, the date of redemption in accordance with Section 1202 of the Indenture. 
 “Required Daily Deposit
Target Finance Charge Amount” means, for any day in a Due Period, an amount equal to the Class A(2012-A) Tranche Interest Allocation for the related Distribution Date, plus any Class A Tranche Interest Allocation Shortfall for the
Class A(2012-A) Notes for the immediately preceding Distribution Date; provided, however, that for purposes of determining the Required Daily Deposit Target Finance Charge Amount on any day on which the Class A(2012-A) Tranche Interest
Allocation cannot be determined because the Note Interest Rate for the applicable Interest Accrual Period has not yet been notified to the Calculation Agent and the Indenture Trustee in accordance with the Note Purchase Agreement, the Required Daily
Deposit Target Finance Charge Amount shall be the Class A(2012-A) Tranche Interest Allocation determined based on a pro forma calculation made on the assumption that the Note Interest Rate will be equal to the sum of (i) the Note Interest Rate,
excluding any applicable margin, for the prior Interest Accrual Period and applicable to the Interest Payment Date occurring in such Due Period, multiplied by 1.25 and (ii) any applicable margin; provided, further, that for
purposes of determining the Required Daily Deposit Target Finance Charge Amount for any day in the Due Period preceding the first Interest Payment Date on which the Outstanding Dollar Principal Amount of the Class A(2012-A) Notes is greater than
zero, if the Class A(2012-A) Tranche Interest Allocation cannot be determined because the Note Interest Rate for such first Interest Accrual Period has not yet been notified to the Calculation Agent and the Indenture Trustee in accordance with the
Note Purchase Agreement, a rate equal to the rate provided by the Agent, based on the Agent’s good faith estimate of the anticipated Note Interest Rate for such first Interest Accrual Period, to the Indenture Trustee and Calculation Agent on
the date of effectiveness of such first increase in the Outstanding Dollar Principal Amount of the Class A(2012-A) Notes shall be used in lieu of the Note Interest Rate. 
 “Required Daily Deposit Target Principal Amount” means, for any day in a Due Period, (i) if such Due Period is in the Liquidation Period or any Interim Liquidation Period, the
Targeted Principal Payment Amount for the related Distribution Date, (ii) if such day is on or after the occurrence and during the continuance of a Class A(2012-A) Adverse Event, the Nominal Liquidation Amount of the Class A(2012-A) Notes, and
(iii) in all other circumstances, zero. 
 “Required Subordinated Amount of Class B Notes” means, for the
Class A(2012-A) Notes for any date of determination, an amount equal to the product of 

  
 5 

 (a) the Required Subordinated Percentage of Class B Notes for such Class A(2012-A) Notes on
such date of determination and 
 (b) the Nominal Liquidation Amount of such Class A(2012-A) Notes on such date of determination;

 provided however, that for any date of determination on or after the occurrence and during the continuation of a Class A(2012-A)
Adverse Event, the Required Subordinated Amount of Class B Notes for Class A(2012-A) Notes will be the greater of 
 (x) the
amount determined above for such date of determination and 
 (y) the amount determined above for the date immediately prior to
the date on which such Class A(2012-A) Adverse Event shall have occurred. 
 “Required Subordinated Amount of Class C
Notes” means, for the Class A(2012-A) Notes for any date of determination, an amount equal to the product of 
 (a) the
Required Subordinated Percentage of Class C Notes for such Class A(2012-A) Notes on such date of determination and 
 (b) the
Nominal Liquidation Amount of such Class A(2012-A) Notes on such date of determination; 
 provided, however, that for any date of
determination on or after the occurrence and during the continuation of a Class A(2012-A) Adverse Event, the Required Subordinated Amount of Class C Notes for the Class A(2012-A) Notes will be the greater of 

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

(y) the amount determined above for the date immediately prior to the date on which such Class A(2012-A) Adverse Event shall have
occurred. 
 “Required Subordinated Amount of Class D Notes” means, for the Class A(2012-A) Notes for any date of
determination, an amount equal to the product of 
 (a) the Required Subordinated Percentage of Class D Notes for such Class
A(2012-A) Notes on such date of determination and 
 (b) the Nominal Liquidation Amount of such Class A(2012-A) Notes on such
date of determination; 
 provided, however, that for any date of determination on or after the occurrence and during the continuation of
a Class A(2012-A) Adverse Event, the Required Subordinated Amount of Class D Notes for the Class A(2012-A) Notes will be the greater of 
 (x) the amount determined above for such date of determination and 

  
 6 

 (y) the amount determined above for the date immediately prior to the date on which the
Class A(2012-A) Adverse Event shall have occurred. 
 “Required Subordinated Percentage of Class B Notes”
means, for the Class A(2012-A) Notes, 7.284768%, subject to adjustment in accordance with Section 2.02. 

“Required Subordinated Percentage of Class C Notes” means, for the Class A(2012-A) Notes, 9.271523%, subject to
adjustment in accordance with Section 2.02. 
 “Required Subordinated Percentage of Class D Notes” means,
for the Class A(2012-A) Notes, 15.894040%, subject to adjustment in accordance with Section 2.02. 
 “Stated
Principal Amount” means (a) $0, plus (b) the sum of all Increase Amounts specified in all Notices of Increase delivered under Section 2.09, minus (c) the aggregate amount of principal paid to the Class
A(2012-A) Noteholders pursuant to Section 2.04. 
 “Targeted Principal Payment Amount” means, for any
Distribution Date, the sum of: 
 (i) if such Distribution Date is in the Liquidation Period, any Increase Amount that is
scheduled to mature on the Expected Maturity Date; and 
 (ii) if such Distribution Date is in any Interim Liquidation Period,
the applicable Increase Amount maturing on such Distribution Date. 
 Section 1.02. Representations and Warranties of Issuer. The
Issuer represents and warrants that: 
 (a) the Issuer has been duly formed and is validly existing as a statutory trust in good
standing under the laws of the State of Delaware, and has full power and authority to execute and deliver this Terms Document and to perform the terms and provisions hereof; 
 (b) the execution, delivery and performance of this Terms Document by the Issuer have been duly authorized by all necessary corporate and statutory trust proceedings of any Beneficiary and the Owner
Trustee, do not require any approval or consent of any governmental agency or authority, and do not and will not conflict with any material provision of the Certificate of Trust or the Trust Agreement of the Issuer; 

(c) this Terms Document is the valid, binding and enforceable obligation of the Issuer, except as the same may be limited by receivership,
insolvency, reorganization, moratorium or other laws relating to the enforcement of creditors’ rights generally or by general equity principles; 
 (d) to the best of the Issuer’s knowledge, this Terms Document will not conflict with any law or governmental regulation or court decree applicable to it; 

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

  
 7 

 (f) all information heretofore furnished by the Issuer in writing to the Indenture Trustee
for purposes of or in connection with this Terms Document or any transaction contemplated hereby is, and all such information hereafter furnished by the Issuer in writing to the Indenture Trustee will be, true and accurate in every material respect
or based on reasonable estimates on the date as of which such information is stated or certified; and 
 (g) to the best
knowledge of the Issuer, there are no proceedings or investigations pending against the Issuer before any court, regulatory body, administrative agency, or other tribunal or governmental instrumentality having jurisdiction over the Issuer
(A) asserting the invalidity of this Terms Document, (B) seeking to prevent the consummation of any of the transactions contemplated by this Terms Document or (C) seeking any determination or ruling which in the Issuer’s judgment
would materially and adversely affect the performance by the Issuer of its obligations under this Terms Document or the validity or enforceability of this Terms Document. 
 Section 1.03. Representations and Warranties of Indenture Trustee. The Indenture Trustee represents and warrants and any successor trustee shall represent and warrant that: 

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

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

(a) It is expressly understood and agreed by the parties hereto that (i) this Terms Document is executed and delivered by the Owner
Trustee not individually or personally but solely as Owner Trustee under the Trust Agreement, in the exercise of the powers and authority conferred and vested in it, (ii) each of the representations, undertakings and agreements herein made on
the part of the Issuer is made and intended not as a personal representation, undertaking or agreement by the Owner Trustee but is made and intended for the purpose of binding only the Issuer, (iii) nothing herein contained will be construed as
creating any liability on the Owner Trustee individually or personally, to perform any covenant of the Issuer either expressed or implied herein, all such liability, if any, being expressly waived by the parties to this Terms Document and by any
Person claiming by, through or under them and (iv) under no circumstances will the Owner Trustee be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Issuer under this Terms Document or any related documents. 
 (b)
None of the Indenture Trustee, the Owner Trustee, the Calculation Agent, any Beneficiary, the Depositor, any Master Servicer or any Servicer or any of their respective officers, directors, employees, incorporators or agents will have any liability
with respect to this 

  
 8 

 
Terms Document, and recourse may be had solely to the Collateral pledged to secure these Class A(2012-A) Notes under the Indenture, the Indenture Supplement and this Terms Document (except as
expressly provided in Sections 9.01 and 9.02 of the Note Purchase Agreement). 
 Section 1.05. Governing Law. THIS TERMS DOCUMENT
WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATION LAW, WITHOUT REFERENCE TO ANY CONFLICT OF LAW PROVISIONS THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF
ANY OTHER STATE. 
 Section 1.06. Counterparts. This Terms Document may be executed in any number of counterparts, each of which
when so executed will be deemed to be an original, but all such counterparts will together constitute but one and the same instrument. 

Section 1.07. Ratification of Indenture and Indenture Supplement. As supplemented by this Terms Document, each of the Indenture and the
Indenture Supplement is in all respects ratified and confirmed and the Indenture as supplemented by the Indenture Supplement and this Terms Document shall be read, taken and construed as one and the same instrument. 

ARTICLE II 
 The
Class A(2012-A) Notes 
 Section 2.01. Creation and Designation. There is hereby created a Tranche of Class A Notes to be
issued pursuant to the Indenture, the Indenture Supplement, this Terms Document and the Note Purchase Agreement to be known as the “DiscoverSeries Class A(2012-A) Notes.” 
 Section 2.02. Adjustments to Required Subordinated Percentages and Amount. 
 (a) On any date, the Issuer may, at the direction of the Beneficiary, change the Required Subordinated Percentage of Class B Notes, the Required Subordinated Percentage of Class C Notes or the Required
Subordinated Percentage of Class D Notes, in each case for the Class A(2012-A) Notes; provided that the Issuer has received written confirmation from each applicable Note Rating Agency that the change in such percentage will not result in a
Ratings Effect for any Tranche of Outstanding DiscoverSeries Notes; and provided further, that (i) if there is no Tranche of Class A Notes that is currently rated “AAA” or the equivalent by a Note Rating Agency, then none
of the Required Subordinated Percentage of Class B Notes, the Required Subordinated Percentage of Class C Notes and the Required Subordinated Percentage of Class D Notes, in each case for the Class A(2012-A) Notes, shall be reduced without the
written consent of the Agent and (ii) if there is an increase in the Required Subordinated Percentage of Class B Notes, the Required Subordinated Percentage of Class C Notes or the Required Subordinated Percentage of Class D Notes, in each case
for any Tranche of Class A Notes that is rated “AAA” or the equivalent by a Note Rating Agency, then there shall be a commensurate increase in the Required Subordinated Percentage of Class B Notes, the Required Subordinated Percentage
of Class C Notes and the Required Subordinated Percentage of Class D Notes, as applicable, in each case for the Class A(2012-A) Notes. 

  
 9 

 (b) On any date, the Issuer may, at the direction of the Beneficiary, replace all or a
portion of the Required Subordinated Amount of Class B Notes, the Required Subordinated Amount of Class C Notes or the Required Subordinated Amount of Class D Notes, in each case for the Class A(2012-A) Notes with a different form of credit
enhancement (including, without limitation, a cash collateral account, a letter of credit, a reserve account, a surety bond, an insurance policy or a collateral interest, or any combination thereof) and may add such definitions and other terms and
make such additional amendments to this Terms Document as shall be necessary for such replacement; provided that the Issuer has received written confirmation from each applicable Note Rating Agency that such replacement, such addition and
such other amendments will not result in a Ratings Effect for any Tranche of Outstanding DiscoverSeries Notes; and provided further, that (i) if there is no Tranche of Class A Notes that is currently rated “AAA” or the
equivalent by a Note Rating Agency, then none of the Required Subordinated Amount of Class B Notes, the Required Subordinated Amount of Class C Notes or the Required Subordinated Amount of Class D Notes, in each case for the Class A(2012-A) Notes,
shall be replaced with a different form of credit enhancement without the written consent of the Agent and (ii) if any Tranche of Class A Notes that is rated “AAA” or the equivalent by a Note Rating Agency is outstanding and
there is a replacement of all or a portion of the Required Subordinated Amount of Class B Notes, the Required Subordinated Amount of Class C Notes or the Required Subordinated Amount of Class D Notes with a different form of credit enhancement, in
each case for any such Tranche of Class A Notes, then there shall be a commensurate replacement of all or a portion of the Required Subordinated Amount of Class B Notes, the Required Subordinated Amount of Class C Notes or the Required
Subordinated Amount of Class D Notes, in each case for the Class A(2012-A) Notes. 
 Section 2.03. Interest Payment. For each
Interest Payment Date, the amount of interest due with respect to the Class A(2012-A) Notes shall be the Note Interest for the Class A(2012-A) Notes, or such other amount based on any alternative rate then in effect under the Note Purchase
Agreement, in each case as determined pursuant to the Note Purchase Agreement; plus, without duplication, any Class A Tranche Interest Allocation Shortfall for such Class A(2012-A) Notes for the immediately preceding Distribution Date,
together with interest thereon at the Note Interest Rate in effect with respect to the Interest Accrual Period related to the current Interest Payment Date, calculated on the basis of the actual number of days in the Interest Accrual Period related
to the current Interest Payment Date and a 360-day year. 
 Section 2.04. Payments of Interest and Principal; Payments of Increased
Costs Amount. 
 (a) The Issuer will cause interest to be paid on each Interest Payment Date and principal to be paid on each
Principal Payment Date on which the Targeted Principal Payment Amount is greater than zero, with the last such principal payment to be made on or prior to the Expected Maturity Date; provided, however, that it shall not be an Event of
Default if scheduled principal is not paid in full on or prior to any Interim Expected Maturity Date or the Expected Maturity Date unless funds for such payment have been allocated in accordance with Section 3.01 of the Indenture Supplement;
and provided, further, that if a Class A(2012-A) Adverse Event has occurred and is continuing, principal will instead be payable in monthly installments on each Principal Payment Date for the Class A(2012-A) Notes in an amount equal to
the lesser of the Nominal Liquidation Amount of the Class A(2012-A) Notes and the amount allocated for such payment in accordance with Section 3.01 of the Indenture Supplement, with such payment

  
 10 

 
to be made in accordance with Section 3.05 of the Indenture Supplement. All payments of interest and principal on the Class A(2012-A) Notes shall be made as set forth in Section 1102 of
the Indenture. 
 (b) The right of the Class A(2012-A) Noteholders to receive payments from the Issuer will terminate on the
Class A(2012-A) Termination Date. 
 (c) All payments of principal, interest or other amounts to the Class A(2012-A) Noteholders
will be made pro rata based on the Outstanding Dollar Principal Amount of their Class A(2012-A) Notes. 
 (d) For the
avoidance of doubt, the “Targeted Principal Payment Amount” shall be the amount scheduled to be paid on each Principal Payment Date as specified in this Terms Document for the Class A(2012-A) Notes for purposes of clause (a)(x)(i) of the
definition of “Targeted Principal Deposit” in the Indenture Supplement. 
 (e) The Increased Costs Amount, if
applicable, shall be paid in accordance with the Note Purchase Agreement from the Series Finance Charge Amounts remaining after step (54) (Targeted Deposit to Class D Reserve Subaccounts from Series Finance Charge Amounts) of Section 3.01
of the Indenture Supplement, in accordance with step (55) (Other Deposits and Payments from Series Finance Charge Amounts) of Section 3.01 of the Indenture Supplement. 

(f) The date referenced in clause (iv) of the definition of “Principal Allocation Amount” in the Indenture shall be the
Liquidation Commencement Date. 
 Section 2.05. [Reserved] 
 Section 2.06. Form of Class A(2012-A) Notes; Legend; Transfer Restriction. 
 (a) The Class A(2012-A) Notes shall be Registered Notes delivered in definitive form and shall be initially registered in the name of the Agent on behalf of the Owners. The Class A(2012-A) Notes will be
issued in minimum denominations of $250,000 and integral multiples of $1,000 in excess of that amount. 
 (b) Each Class
A(2012-A) Note issued pursuant to this Terms Document and the Note Purchase Agreement shall, until such time as the laws of any jurisdiction in which they are offered or sold no longer restrict the transfer or sale thereof, bear a legend in
substantially the following form: 
 THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER SECTION 5 OF THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A. THE HOLDER OF

  
 11 

 
THIS NOTE AGREES FOR THE BENEFIT OF DISCOVER CARD EXECUTION NOTE TRUST AND DISCOVER BANK THAT (A) THIS NOTE MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) TO A PERSON WHO THE
SELLER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, OR (2) TO DISCOVER BANK OR ITS AFFILIATES, IN EACH CASE, IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAW OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY SUBSEQUENT PURCHASER FROM IT OF THE RESALE
RESTRICTIONS SET FORTH IN (A) ABOVE. 
 (c) No Note issued under this Terms Document or beneficial interest therein shall be
transferred except in accordance with the transfer restrictions described in the legend set forth in clause (b) above. 

Section 2.07. Delivery and Payment for the Class A(2012-A) Notes. The Issuer shall execute and deliver the Class A(2012-A) Notes to the
Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class A(2012-A) Notes when authenticated, each in accordance with Sections 203 and 303 of the Indenture and the Note Purchase Agreement. 

Section 2.08. Additional Early Redemption Events.To the extent set forth in Section 4.01(b) of the Indenture Supplement and pursuant
thereto, the following shall be additional Early Redemption Events relating to the Class A(2012-A) Notes: (a) failure on the part of the Issuer to make any interest payment with respect to the Class A(2012-A) Notes required by the terms of the
Note Purchase Agreement, the Indenture, the Indenture Supplement or this Terms Document on or before the date occurring thirty five (35) days after the date such payment is required to be made herein or therein; and (b) a default in the
performance, or breach, of any covenant or warranty of the Issuer in the Note Purchase Agreement, and continuance of such default or breach for a period of sixty (60) days after there has been given, by written notice, to the Issuer by the
Indenture Trustee or to the Issuer and the Indenture Trustee by the Agent, a written notice specifying such default or breach and requesting it to be remedied, and if as a result of such default or breach, the interests of the Class A(2012-A)
Noteholders are materially and adversely affected and continue to be materially and adversely affected during the sixty (60) day period. 

Section 2.09. Increases in the Outstanding Dollar Principal Amount. Subject to clauses (ii), (iii), (iv) and (v) of
Section 2.02 and Section 2.03 of the Indenture Supplement (which, for the avoidance of doubt, apply to any increase pursuant to this Section 2.09), the Issuer may increase the Outstanding Dollar Principal Amount of the Class A(2012-A)
Notes, so long as the following conditions precedent are satisfied: 
 (a) the Issuer shall have given the Agent and the
Indenture Trustee written notice of such increase in the Outstanding Dollar Principal Amount of the Class A(2012-A) Notes (the “Notice of Increase”) at least three (3) Business Days in advance of the Issuance Date thereof,
which notice shall include: 

  
 12 

	 	(i)	the Issuance Date of such increase in the Outstanding Dollar Principal Amount of the Class A(2012-A) Notes; 

 

	 	(ii)	the amount of such increase in the Outstanding Dollar Principal Amount of the Class A(2012-A) Notes and the resulting Stated Principal Amount of the Class A(2012-A)
Notes; 

  

	 	(iii)	the first Interest Payment Date on which interest will be paid on such increase in the Outstanding Dollar Principal Amount of the Class A(2012-A) Notes;

  

	 	(iv)	the Interim Expected Maturity Date (which date shall be a Distribution Date) and the Interim Liquidation Commencement Date (or otherwise confirm that such Increase
Amount is scheduled to mature on the Expected Maturity Date) with respect to the Increase Amount of the Outstanding Dollar Principal Amount of the Class A(2012-A) Notes; and 

 

	 	(v)	any other terms that the Issuer may set forth in such notice of increase to clarify the rights of Holders of the Class A(2012-A) Notes or the effect of such increase on
any calculations to be made with respect to the Class A(2012-A) Notes, Class A, or the Issuer; 

 (b) no Class
A(2012-A) Adverse Event has occurred and is continuing; 
 (c) such increase will not cause the Outstanding Dollar Principal
Amount of the Class A(2012-A) Notes to exceed the Note Purchase Commitment; 
 (d) (i) no Note Interest or other amount due
and payable to any Class A(2012-A) Noteholder prior to the Issuance Date for such increase remains outstanding and (ii) as of the most recent Distribution Date preceding such Issuance Date, there is no un-reimbursed Nominal Liquidation Amount
Deficit with respect to the Class A(2012-A) Notes; and 
 (e) all of the representations and warranties of the Issuer, the
Seller, the Master Servicer and the Servicer, as applicable, set forth in the Indenture, Indenture Supplement, the Pooling and Servicing Agreement, the Series 2007-CC Supplement and the Note Purchase Agreement that do not expressly speak to an
earlier date shall be true and correct in all material respects as though made on and as of such Issuance Date after giving effect thereto. 

All such terms set forth in the Notice of Increase shall be incorporated into and form a part of this Terms Document on and after the effective date of
such increase in the Outstanding Dollar Principal Amount of the Class A(2012-A) Notes. The Expected Maturity Date, Expected Principal Payment Date, Liquidation Commencement Date, Liquidation Period and Legal Maturity Date, in each case as in effect
as of the Issuance Date of such increase in the Outstanding Dollar Principal Amount of the Class A(2012-A) Notes, shall be applicable to such increased amounts unless otherwise provided in the applicable Notice of Increase. The Issuer shall not have
to satisfy the conditions set forth in Section 310 of the Indenture in connection with an increase in the Outstanding Dollar Principal Amount of the Class A(2012-A) Notes so 

  
 13 

 
long as such conditions were satisfied or waived in connection with the initial issuance of Class A(2012-A) Notes. Any such increase shall be deemed to have occurred under Section 310 of the
Indenture and this Section 2.09 for purposes of the Indenture, the Indenture Supplement and this Terms Document. 

Section 2.10. Designation of Additional Amounts to be included in the Excess Spread Amount for the DiscoverSeries Notes.At
any time that any outstanding Series of certificates issued by the Master Trust provides that the Series Principal Collections allocated to such Series will be deposited into the Group Finance Charge Collections Reallocation Account for the Master
Trust to the extent necessary for application to cover shortfalls for other Series issued by the Master Trust, an amount equal to (x) all Series Principal Collections allocated to such Series, multiplied by (y) a fraction, the
numerator of which is the sum of the Nominal Liquidation Amounts for each outstanding Tranche of the DiscoverSeries Notes (including the Class A(2012-A) Notes) and the denominator of which is (i) the Aggregate Investor Interest for the Master
Trust minus (ii) the sum of the Series Investor Interests for all such Series that provide that the Series Principal Collections allocated to such Series will be so deposited, is hereby designated to be included in the Excess Spread
Amount and shall be treated as Series Finance Charge Amounts for the DiscoverSeries. 
 [Remainder of page intentionally
blank; signature page follows] 

  
 14 

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

			
	 DISCOVER CARD EXECUTION NOTE TRUST,
   as Issuer

		
	By:	 	 Wilmington Trust Company,
 not
in its individual capacity but solely
 as Owner Trustee

  

			
		
	By:	 	/s/ Jennifer A. Luce
		 	 Name: Jennifer A. Luce

Title: Assistant Vice President

  

			
	 U.S. BANK NATIONAL ASSOCIATION,
   as Indenture Trustee

		
	By:	 	/s/ Patricia M. Child
		 	 Name: Patricia M. Child

Title: Vice President

 [Signature page to the Terms Document Class A(2012-A)] 

 FORM OF DISCOVERSERIES CLASS A(2012-A) NOTE 

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE
SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A. THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF DISCOVER CARD EXECUTION NOTE TRUST AND DISCOVER BANK THAT
(A) THIS NOTE MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN COMPLIANCE WITH RULE
144A UNDER THE SECURITIES ACT, OR (2) TO DISCOVER BANK OR ITS AFFILIATES, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAW OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND
EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY SUBSEQUENT PURCHASER FROM IT OF THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE. 
 THE HOLDER OF THIS NOTE, BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT, PRIOR TO THE DATE THAT IS ONE YEAR AND ONE DAY AFTER THE LATER OF (I) THE TERMINATION OF THE POOLING AND SERVICING
AGREEMENT WITH RESPECT TO THE MASTER TRUST, (II) TERMINATION OF THE TRUST AGREEMENT WITH RESPECT TO THE ISSUER OR (III) THE DATE ON WHICH NO NOTES OF ANY TRANCHE, CLASS OR SERIES OF NOTES ISSUED BY THE ISSUER REMAIN OUTSTANDING, ACQUIESCE, PETITION
OR OTHERWISE INVOKE OR CAUSE THE MASTER TRUST OR THE ISSUER TO INVOKE THE PROCESS OF ANY GOVERNMENTAL AUTHORITY FOR THE PURPOSE OF COMMENCING OR SUSTAINING A CASE AGAINST THE MASTER TRUST OR THE ISSUER UNDER ANY FEDERAL OR STATE BANKRUPTCY,
INSOLVENCY OR SIMILAR LAW OR APPOINTING A RECEIVER, LIQUIDATOR, ASSIGNEE, TRUSTEE, CUSTODIAN, SEQUESTRATOR OR OTHER SIMILAR OFFICIAL OF THE MASTER TRUST OR THE ISSUER OR ANY SUBSTANTIAL PART OF ITS PROPERTY OR ORDERING THE WINDING-UP OR LIQUIDATION
OF THE AFFAIRS OF THE MASTER TRUST OR THE ISSUER. 
 THE HOLDER OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A
BENEFICIAL INTEREST IN THIS NOTE, BY THE ACQUISITION OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE NOTES AS INDEBTEDNESS FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON OR
MEASURED BY INCOME. 
 THIS NOTE MAY NOT BE ACQUIRED BY OR FOR THE ACCOUNT OF ANY EMPLOYEE BENEFIT PLAN (AS DESCRIBED BELOW).

			
	 REGISTERED
	  	$500,000,000*
	 No. 1
	  	 (Maximum Outstanding Dollar Principal

Amount)

 DISCOVER CARD EXECUTION NOTE TRUST 
 Floating Rate 
 DISCOVERSERIES CLASS A(2012-A) NOTE 

DISCOVER CARD EXECUTION NOTE TRUST, a statutory trust created under the laws of the State of Delaware (herein referred to as the
“Issuer” or the “Note Issuance Trust”), for value received, hereby promises to pay to THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH, as the Agent, or registered assigns, subject to the following
provisions, a principal sum of up to $500,000,000 (five hundred million dollars) payable on the May 15, 2014 Payment Date (the “Expected Maturity Date”), or, if such date is extended pursuant to the Note Purchase Agreement
dated as of March 29, 2012 (such Note Purchase Agreement, as amended, restated, amended and restated, supplemented, replaced or otherwise modified from time to time, is herein called the “Note Purchase Agreement”), by and among
the Note Issuance Trust, as Issuer, Discover Bank, as Depositor, Beneficiary and Calculation Agent for the Issuer, Gotham Funding Corporation, as the Purchaser, and The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as the Committed Purchaser
and as the Agent, the Existing Expected Maturity Date (as defined in the Note Purchase Agreement), except as otherwise provided below or in the Indenture, the Indenture Supplement or the Terms Document (as defined on the reverse hereof);
provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the November 15, 2016 Payment Date (the “Legal Maturity Date”), or if such date is extended pursuant to the Note
Purchase Agreement, the Existing Legal Maturity Date (as defined in the Note Purchase Agreement). Interest will accrue on this Note at the Note Interest Rate, as set forth in the Note Purchase Agreement, and shall be due and payable on each Interest
Payment Date from and including the previous Interest Payment Date to but excluding such Interest Payment Date (or, in the case of the first Interest Payment Date, from and including the Issuance Date to but excluding the first Interest Payment
Date); provided, however, that the first payment of interest for any Increase Amount shall be due and payable on the Interest Payment Date in the calendar month following the Issuance Date for such Increase Amount, for a period from
and including such Issuance Date to but excluding such Interest Payment Date. Interest will be computed on the basis of the actual number of days elapsed and a 360-day year, except as otherwise provided in the Note Purchase Agreement. Such principal
of and interest on this Note shall be paid in the manner specified on the reverse hereof. 
 The principal and interest may be
payable monthly, and may be payable earlier or later than the Expected Maturity Date, following an Event of Default or while an Early Redemption Event has occurred and is continuing. No principal or interest will be distributed on the Note following
the distribution of proceeds of a Receivables Sale. 
 The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 

The Initial Dollar Principal Amount of this Note is $0 on the date hereof. All increases or decreases in the Initial Dollar Principal
Amount and the Outstanding Dollar Principal Amount made pursuant to the Terms Document (as defined on the reverse hereof) shall be maintained on the records of U.S. Bank National Association, as Indenture Trustee (the “Indenture
Trustee”, which term includes any successor Indenture Trustee under the Indenture); provided, however, that the failure of the 

  
 2 

 
Indenture Trustee to make any such recordation, or any error thereon, shall not affect the obligations of the Issuer hereunder or under the Terms Document (as defined on the reverse hereof).

 Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as
though fully set forth on the face of this Note. 
 Unless the certificate of authentication hereon has been executed by the
Indenture Trustee whose name appears below by manual signature, this Note shall not be entitled to any benefit under the Indenture, Indenture Supplement or the Terms Document referred to on the reverse hereof, or be valid or obligatory for any
purpose. 
  

	*	Denominations of $250,000 and in integral multiples of $1,000 in excess thereof. 

  
 3 

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

			
	 DISCOVER CARD EXECUTION NOTE TRUST,
   as Issuer

		
	By:	 	 WILMINGTON TRUST COMPANY,

not in its individual capacity, but solely
 as
Owner Trustee

		
	By:	 	 
		 	Name:
		 	Title:
		
		 	Date: March 29, 2012

  
 4 

 INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

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

 

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

		
	By:	 	 
		 	Name:
		 	Title:
		
		 	Date: March 29, 2012

  
 5 

 REVERSE OF NOTE 

This Note is one of the Notes of a duly authorized issue of Notes of the Issuer, designated as its Class A(2012-A) DiscoverSeries Notes
(herein called the “Class A(2012-A) Notes”), all issued under an Indenture dated as of July 26, 2007, as amended by the First Amendment to Indenture, dated as of June 4, 2010 (such Indenture, as amended, restated, amended
and restated, supplemented, replaced or otherwise modified from time to time, is herein called the “Indenture”), as supplemented by an Amended and Restated Indenture Supplement dated as of June 4, 2010 (such Indenture
Supplement, as may be further amended, restated, amended and restated, supplemented, replaced or otherwise modified from time to time, is herein called the “Indenture Supplement”), between the Issuer and Indenture Trustee, to which
Indenture and Indenture Supplement reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes. The Class A(2012-A) Notes are subject to all terms of
the Indenture, the Indenture Supplement, the Terms Document for the Class A(2012-A) Notes, dated as of March 29, 2012 (such Terms Document, as amended, restated, amended and restated, supplemented, replaced or otherwise modified from time to
time, is herein called the “Terms Document”), between the Issuer and Indenture Trustee, the Note Purchase Agreement and the Fee Letter, dated as of March 29, 2012 among The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch,
the Note Issuance Trust and Discover Bank (such Fee Letter, as amended, restated, amended and restated, supplemented, replaced or otherwise modified from time to time, is herein called the “Fee Letter”). All terms used in this Class
A(2012-A) Note that are defined in the Indenture, the Indenture Supplement and the Terms Document shall have the meanings assigned to them in or pursuant to the Indenture, the Indenture Supplement and the Terms Document. 

The Class B Notes, the Class C Notes and the Class D Notes of the DiscoverSeries and other tranches of Class A Notes of the
DiscoverSeries will also be issued under the Indenture and the Indenture Supplement. 
 The Class A(2012-A) Notes are and will
be equally and ratably secured by the collateral pledged as security therefor as provided in the Indenture and the Indenture Supplement. 
 Principal of the Class A(2012-A) Notes will be payable on or prior to the Expected Maturity Date, or, if such date is extended pursuant to the Note Purchase Agreement, the Existing Expected Maturity Date
(as defined in the Note Purchase Agreement), in an amount described on the face hereof except as otherwise provided in the Indenture, the Indenture Supplement or the Terms Document. During the Liquidation Period, if any, principal will be
distributed monthly on each Distribution Date, commencing on the month following the commencement of such period. 
 Principal
of any Increase Amount for which an Interim Expected Maturity Date is designated will be payable on or prior to such Interim Expected Maturity Date, except as otherwise provided in the Indenture, the Indenture Supplement or the Terms Document.
During the Interim Liquidation Period, if any, principal will be distributed monthly on each Distribution Date, commencing on the month following the commencement of such period. 

As described above, the entire unpaid principal amount of this Class A(2012-A) Note shall be due and payable on the Legal Maturity Date,
or if such date is extended pursuant to the Note Purchase Agreement, the Existing Legal Maturity Date (as defined in the Note Purchase Agreement). Notwithstanding the foregoing, the entire unpaid principal amount of the Class A(2012-A) Notes shall
be due and payable on the date on which an Event of Default relating to the Class A(2012-A) Notes shall have occurred and be continuing and, except in the event of an insolvency-related default, the Indenture Trustee or the Majority Holders of the
applicable Series, Class or Tranche of Outstanding Dollar Principal Amount of the Outstanding Notes have declared the Class A(2012-A) Notes to be 

  
 6 

 
immediately due and payable in the manner provided in Section 702 of the Indenture; provided, however, that such acceleration of the entire unpaid principal amount of
the Notes may be rescinded by the Majority Holders of such applicable Series, Class or Tranche of Notes. 
 On any day occurring
on or after the date on which the aggregate Nominal Liquidation Amount of any Tranche of Notes is reduced to less than 5% of its highest Outstanding Dollar Principal Amount, the Depositor or any Affiliate thereof has the right, but not the
obligation, to redeem such Tranche of Notes in whole but not in part, pursuant to Section 1202 of the Indenture. The redemption price will be an amount equal to the Outstanding Dollar Principal Amount of such Tranche, plus accrued,
unpaid and additional interest or principal accreted and unpaid on such Tranche to but excluding the date of redemption. 

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

On each Payment Date, the Paying Agent shall distribute to each Holder of Class A(2012-A) Notes of record on the related Record Date
(except for the final distribution with respect to this Class A(2012-A) Note) such Holder of Class A(2012-A) Notes’ pro rata share of the amounts held by the Paying Agent that are allocated and available on such Payment Date to pay interest and
principal on the Class A Notes. 
 Payments of interest on this Class A(2012-A) Note due and payable on each Payment Date,
together with any installment of principal, if any, to the extent not in full payment of this Class A(2012-A) Note, shall be made by check mailed to or by wire transfer to the Person whose name appears as the Registered Holder of this Class
A(2012-A) Note on the Note Register as of the close of business on each Record Date. Any such checks shall be mailed to the Person entitled thereto at the address of such Person as it appears on the Note Register as of the applicable Record Date
without requiring that this Class A(2012-A) Note be submitted for notation of payment. Any reduction in the principal amount of this Class A(2012-A) Note (or any one or more Predecessor Notes) effected by any payments made on any Payment Date shall
be binding upon all future Holders of this Class A(2012-A) Note and of any Class A(2012-A) Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If funds are expected to be
available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Class A(2012-A) Note on a Payment Date occurring after the Purchase Commitment Termination Date (as defined in the Note Purchase
Agreement), then the Indenture Trustee, in the name of and on behalf of the Issuer, will notify the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date by notice mailed within five days of such Payment Date
and the amount then due and payable shall be payable only upon presentation and surrender of this Class A(2012-A) Note at the Indenture Trustee’s principal Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed
for such purposes located in the City of New York. On any payment of interest or principal being made, details of such payment shall be entered by the Indenture Trustee on behalf of the Issuer in Schedule A hereto. 

As provided in the Indenture and subject to certain limitations set forth therein and as set forth in the first legend on the face
hereof, the transfer of this Class A(2012-A) Note may be registered on the Note Register upon surrender of this Class A(2012-A) Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Indenture Trustee duly executed by, the Holder hereof or his attorney duly authorized in writing, with such signature guaranteed by a commercial bank or
trust company located, or having a correspondent located, in the City of New York 

  
 7 

 
or the city in which the Corporate Trust Office is located, or a member firm of a national securities exchange, and such other documents as the Indenture Trustee may require, and thereupon one or
more new Class A(2012-A) Notes of authorized denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees. No service charge will be charged for any registration of transfer or exchange of this
Class A(2012-A) Note, but the transferor may be required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange. 

To the fullest extent permitted by applicable law, each Noteholder or Note Owner, by acceptance of a Class A(2012-A) Note or, in the case
of a Note Owner, a beneficial interest in a Class A(2012-A) Note, covenants and agrees that by accepting the benefits of the Indenture that it will not, prior to the date that is one year and one day after the later of (i) the termination of
the Second Amended and Restated Pooling and Servicing Agreement dated as of June 4, 2010, as amended by the First Amendment to the Second Amended and Restated Pooling and Servicing Agreement, dated as of October 18, 2011, among Discover
Bank, as Master Servicer, Servicer and Seller, and U.S. Bank National Association, as Trustee, as amended, restated, amended and restated, supplemented, replaced or otherwise modified from time to time (the “Pooling and Servicing
Agreement”), with respect to Discover Card Master Trust I (the “Master Trust”), (ii) termination of the Trust Agreement dated as of July 2, 2007, as amended by the First Amendment to Trust Agreement, dated as of
June 4, 2010, between Discover Bank, as Beneficiary, and Wilmington Trust Company, as Owner Trustee, as amended, restated, amended and restated, supplemented, replaced or otherwise modified from time to time (the “Trust
Agreement”), with respect to the Issuer or (iii) the date on which no notes of any tranche, class or series of notes issued by the Issuer remain outstanding, acquiesce, petition or otherwise invoke or cause the Master Trust or the
Issuer to invoke the process of any Governmental Authority for the purpose of commencing or sustaining a case against the Master Trust or the Issuer under any Federal or state bankruptcy, insolvency or similar law or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Master Trust or the Issuer or any substantial part of its property or ordering the winding-up or liquidation of the affairs of the Master Trust or the Issuer.

 Prior to the due presentment for registration of transfer of this Class A(2012-A) Note, the Issuer, the Indenture Trustee and
any agent of the Issuer or the Indenture Trustee may treat the Person in whose name this Class A(2012-A) Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all
purposes, whether or not this Class A(2012-A) Note be overdue, and neither the Issuer, the Indenture Trustee nor any such agent shall be affected by notice to the contrary. 
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Notes under
the Indenture at any time by the Issuer with the consent of the Holders of Notes representing not less than 66 2/3% of the Outstanding Dollar Principal Amount of each adversely affected Series, Class or Tranche of Notes. The Indenture also contains
provisions permitting the Holders of Notes representing specified percentages of the Outstanding Dollar Principal Amount of the Notes, on behalf of the Holders of all the Notes, to waive compliance by the Issuer with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Class A(2012-A) Note shall be conclusive and binding upon such Holder and upon all future Holders of this Class
A(2012-A) Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Class A(2012-A) Note. The Indenture also permits the Indenture
Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued thereunder. 

  
 8 

 The term “Issuer” as used in this Class A(2012-A) Note includes any
successor to the Issuer under the Indenture. 
 The Issuer is permitted by the Indenture, under certain circumstances, to merge
or consolidate, subject to the rights of the Indenture Trustee and the Holders of Notes under the Indenture. 
 The transfer of
this Note is subject to certain restrictions set forth in the Note Purchase Agreement. In no event shall this Note, or any interest therein, be transferred to an employee benefit plan, trust or account subject to the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”), or described in Section 4975(e)(1) of the Internal Revenue Code of 1986, as amended (the “Code”), and not excepted under Section 4975(g). Any Holder of this Note or, in the
case of a Note Owner, a beneficial interest in a Class A(2012-A) Note, by its acceptance hereof, shall be deemed to represent and warrant that it is not (i) an employee benefit plan (as defined in Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended, or a plan described in Section 4975(e)(l) of the Code, (ii) purchasing any Note or any interest therein on behalf of any such plan as investment manager, named fiduciary or trustee of any such plan,
or (iii) purchasing any Note or interest therein with any assets of any plan within the meaning of 29 CFR Section 2510.3-101. 
 The Class A(2012-A) Notes are issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations therein set forth. 

THIS CLASS A(2012-A) NOTE AND THE INDENTURE WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK,
INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATION LAW, WITHOUT REFERENCE TO ANY CONFLICT OF LAW PROVISIONS THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANY OTHER STATE. 

No reference herein to the Indenture and no provision of this Class A(2012-A) Note or of the Indenture shall alter or impair the
obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Class A(2012-A) Note at the times, place, and rate, and in the coin or currency herein prescribed. 

No recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer on the Notes or under the Indenture or
any certificate or other writing delivered in connection therewith, against (i) the Owner Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent,
officer, director or employee of the Owner Trustee in its individual capacity, any holder of a beneficial interest in the Issuer or any successor or assign of the Owner Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Owner Trustee has no such obligations in its individual capacity). The Holder of this Class A(2012-A) Note by the acceptance hereof agrees that, except as expressly provided in the Indenture and the Indenture
Supplement in the case of an Event of Default under the Indenture, the Holder shall have no claim against any of the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken
to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in this Class A(2012-A) Note. 

  
 9 

 ASSIGNMENT 
 Social Security or taxpayer I.D. or other identifying number of assignee 
 FOR VALUE RECEIVED, the
undersigned hereby sells, assigns and transfers unto 
 (name and address of assignee) 
 the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints attorney, to transfer said Note on the books kept for registration thereof, with full power of substitution in
the premises. 
  

							
	 Dated:
	 	 	 		 	*
		 		 		 	Signature Guaranteed:

  

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

  
 10 

 SCHEDULE A 
 PART I 
 INTEREST PAYMENTS 

 

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

					
	 Second
	  		  		  		  	
		  	  
	  	  
	  	  
	  	  

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

  
 11 

 PART II 
 PRINCIPAL PAYMENTS 
  

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

					
	 Second
	  		  		  		  	
		  	  
	  	  
	  	  
	  	  

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

  
 12 

 PART III 
 INCREASES IN OUTSTANDING DOLLAR PRINCIPAL AMOUNT 
  

									
	 Issuance

Date of
 Increase
	  	Amount
of
Increase
in
Outstanding
Dollar
Principal
Amount	  	Resulting Initial
Dollar 
Principal
Amount	  	Stated Principal
Amount	  	Confirmation of
increase by or on
behalf of the Note
Issuance Trust
		  		  		  		  	
		  	  
	  	  
	  	  
	  	  

		  		  		  		  	
		  	  
	  	  
	  	  
	  	  

  
 13

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