Document:

EXHIBIT 10.1

     

     EXECUTION COPY 

     

     

     

     

     

     

     

     

    
      

    

     

     

    SALE AND SERVICING
AGREEMENT

     

     

    among

     

     

    JOHN DEERE OWNER TRUST 2008

     

     

    Issuing Entity

     

     

    JOHN DEERE RECEIVABLES, INC.

     

     

    Seller

     

     

    and

     

     

    JOHN DEERE CAPITAL CORPORATION

     

     

    Servicer

     

     

     

     

    Dated as of April 15, 2008

     

     

     

    
      

    

     

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

     

     

    
      

       

      TABLE OF
CONTENTS

       

      Page

       

      
        	 
      	
                 

                ARTICLE
      I

                 

              	 
      
	 
      	 
      	 
      
	 
      	
                 

                Definitions

                 

              	 
      
	 
      	 
      	 
      
	
                 

                SECTION
      1.01

                 

              	
                 

                Definitions

                 

              	
                 

                1

                 

              
	
                 

                SECTION
      1.02

                 

              	
                 

                Other
      Definitional Provisions

                 

              	
                 

                16

                 

              
	
                 

                SECTION
      1.03

                 

              	
                 

                Calculations

                 

              	
                 

                17

                 

              
	 
      	 
      	 
      
	 
      	
                 

                ARTICLE
      II

                 

              	 
      
	 
      	 
      	 
      
	 
      	
                 

                Conveyance
      of Receivables

                 

              	 
      
	 
      	 
      	 
      
	
                 

                SECTION
      2.01

                 

              	
                 

                Conveyance
      of Receivables

                 

              	
                 

                17

                 

              
	
                 

                SECTION
      2.02

                 

              	
                 

                Waiver

                 

              	
                 

                17

                 

              
	 
      	 
      	 
      
	 
      	
                 

                ARTICLE
      III

                 

              	 
      
	 
      	 
      	 
      
	 
      	
                 

                The
      Receivables

                 

              	 
      
	 
      	 
      	 
      
	
                 

                SECTION
      3.01

                 

              	
                 

                Representations
      and Warranties of Seller

                 

              	
                 

                18

                 

              
	
                 

                SECTION
      3.02

                 

              	
                 

                Repurchase
      by Seller upon Breach

                 

              	
                 

                18

                 

              
	
                 

                SECTION
      3.03

                 

              	
                 

                Custody
      of Receivable Files

                 

              	
                 

                19

                 

              
	
                 

                SECTION
      3.04

                 

              	
                 

                Duties
      of Servicer as Custodian

                 

              	
                 

                19

                 

              
	
                 

                SECTION
      3.05

                 

              	
                 

                Instructions;
      Authority to Act

                 

              	
                 

                20

                 

              
	
                 

                SECTION
      3.06

                 

              	
                 

                Custodian’s
      Indemnification

                 

              	
                 

                20

                 

              
	SECTION
      3.07    	Effective
      Period and Termination	20
	 
      	 
      	 
      
	 
      	
                 

                ARTICLE
      IV

                 

              	 
      
	 
      	 
      	 
      
	 
      	
                 

                Administration
      and Servicing of Receivables

                 

              	 
      
	 
      	 
      	 
      
	
                 

                SECTION
      4.01

                 

              	
                 

                Duties
      of Servicer

                 

              	
                 

                21

                 

              
	
                 

                SECTION
      4.02

                 

              	
                 

                Collection
      of Receivable Payments

                 

              	
                 

                21

                 

              
	
                 

                SECTION
      4.03

                 

              	
                 

                Realization
      upon Receivables

                 

              	
                 

                22

                 

              
	
                 

                SECTION
      4.04

                 

              	
                 

                Physical
      Damage Insurance

                 

              	
                 

                22

                 

              
	
                 

                SECTION
      4.05

                 

              	
                 

                Maintenance
      of Security Interests in Financed Equipment

                 

              	
                 

                22

                 

              
	
                 

                SECTION
      4.06

                 

              	
                 

                Covenants
      of Servicer

                 

              	
                 

                22

                 

              
	
                 

                SECTION
      4.07

                 

              	
                 

                Purchase
      by Servicer of Receivables upon Breach

                 

              	
                 

                22

                 

              
	
                 

                SECTION
      4.08

                 

              	
                 

                Servicing
      Fee

                 

              	
                 

                23

                 

              
	
                 

                SECTION
      4.09

                 

              	
                 

                Servicer’s
      Certificate

                 

              	
                 

                23

                 

              
	
                 

                SECTION
      4.10

                 

              	
                 

                Annual
      Statement as to Compliance; Notice of Default

                 

              	
                 

                23

                 

              
	
                 

                SECTION
      4.11

                 

              	
                 

                Report
      on Assessment of Compliance and Annual Independent Certified Public
      Accountants’ Report

                 

              	
                 

                24

                 

              
	
                 

                SECTION
      4.12

                 

              	
                 

                Access
      to Certain Documentation and Information Regarding
Receivables

                 

              	
                 

                25

                 

              

      

       

       

      
        
           

        

        
          i

          
            

          

        

        
           

        

      

    

      
        	
                 

                SECTION
      4.13

                 

              	
                 

                Servicer
      Expenses

                 

              	
                 

                25

                 

              
	
                 

                SECTION
      4.14

                 

              	
                 

                Appointment
      of Sub-Servicer

                 

              	
                 

                25

                 

              
	
                 

                SECTION
      4.15

                 

              	
                 

                Information
      to be Furnished in the Event of Resignation or Termination

                 

              	
                 

                25

                 

              
	
                 

                SECTION
      4.16

                 

              	
                 

                Exchange
      Act Reports

                 

              	
                 

                25

                 

              
	 
      	 
      	 
      
	 
      	
                 

                ARTICLE
      V

                 

              	 
      
	 
      	 
      	 
      
	 
      	
                 

                Distributions;
      Reserve Account;

                 

              	 
      
	 
      	
                 

                Statements
      to the Certificateholder and Noteholders

                 

              	 
      
	 
      	 
      	 
      
	
                 

                SECTION
      5.01

                 

              	
                 

                Establishment
      of Trust Accounts

                 

              	
                 

                27

                 

              
	
                 

                SECTION
      5.02

                 

              	
                 

                Collections

                 

              	
                 

                30

                 

              
	
                 

                SECTION
      5.03

                 

              	
                 

                Additional
      Deposits

                 

              	
                 

                30

                 

              
	
                 

                SECTION
      5.04

                 

              	
                 

                Distributions

                 

              	
                 

                30

                 

              
	
                 

                SECTION
      5.05

                 

              	
                 

                Reserve
      Account

                 

              	
                 

                31

                 

              
	
                 

                SECTION
      5.06

                 

              	
                 

                Statements
      to the Certificateholder and Noteholders

                 

              	
                 

                32

                 

              
	
                 

                SECTION
      5.07

                 

              	
                 

                Net
      Deposits

                 

              	
                 

                33

                 

              
	 
      	 
      	 
      
	 
      	
                 

                ARTICLE
      VI

                 

              	 
      
	 
      	 
      	 
      
	 
      	
                 

                The
      Seller

                 

              	 
      
	 
      	 
      	 
      
	
                 

                SECTION
      6.01

                 

              	
                 

                Representations
      of Seller

                 

              	
                 

                35

                 

              
	
                 

                SECTION
      6.02

                 

              	
                 

                Corporate
      Existence

                 

              	
                 

                36

                 

              
	
                 

                SECTION
      6.03

                 

              	
                 

                Liability
      of Seller; Indemnities

                 

              	
                 

                37

                 

              
	
                 

                SECTION
      6.04

                 

              	
                 

                Merger
      or Consolidation of, or Assumption of the Obligations of,
      Seller

                 

              	
                 

                38

                 

              
	
                 

                SECTION
      6.05

                 

              	
                 

                Limitation
      on Liability of Seller and Others

                 

              	
                 

                38

                 

              
	
                 

                SECTION
      6.06

                 

              	
                 

                Seller
      May Own Notes; Retention of the Certificate

                 

              	
                 

                38

                 

              
	
                 

                SECTION
      6.07

                 

              	
                 

                Right
      of Seller to Repurchase Receivables

                 

              	
                 

                38

                 

              
	 
      	 
      	 
      
	 
      	
                 

                ARTICLE
      VII

                 

              	 
      
	 
      	 
      	 
      
	 
      	
                 

                The
      Servicer

                 

              	 
      
	 
      	 
      	 
      
	
                 

                SECTION
      7.01

                 

              	
                 

                Representations
      of Servicer

                 

              	
                 

                39

                 

              
	
                 

                SECTION
      7.02

                 

              	
                 

                Indemnities
      of Servicer

                 

              	
                 

                40

                 

              
	
                 

                SECTION
      7.03

                 

              	
                 

                Merger
      or Consolidation of, or Assumption of the Obligations of,
      Servicer

                 

              	
                 

                42

                 

              
	
                 

                SECTION
      7.04

                 

              	
                 

                Limitation
      on Liability of Servicer and Others

                 

              	
                 

                42

                 

              
	
                 

                SECTION
      7.05

                 

              	
                 

                JDCC
      Not to Resign as Servicer

                 

              	
                 

                43

                 

              
	
                 

                SECTION
      7.06

                 

              	
                 

                Servicer
      to Act as Administrator

                 

              	
                 

                43

                 

              
	 
      	 
      	 
      
	 
      	
                 

                ARTICLE
      VIII

                 

              	 
      
	 
      	 
      	 
      
	 
      	
                 

                Default

                 

              	 
      
	 
      	 
      	 
      
	
                 

                SECTION
      8.01

                 

              	
                 

                Servicer
      Default

                 

              	
                 

                43

                 

              
	
                 

                SECTION
      8.02

                 

              	
                 

                Appointment
      of Successor

                 

              	
                 

                44

                 

              
	
                 

                SECTION
      8.03

                 

              	
                 

                Notification
      to Noteholders and the Certificateholder

                 

              	
                 

                45

                 

              

      

       

       

      
        
           

        

        
          ii

          
            

          

        

        
           

        

      

    

      
        
          	
                   

                  SECTION
      8.04

                   

                	
                   

                  Waiver
      of Past Defaults

                   

                	
                   

                  45

                   

                
	 
      	 
      	 
      
	 
      	
                   

                  ARTICLE
      IX

                   

                	 
      
	 
      	 
      	 
      
	 
      	
                   

                  Termination

                   

                	 
      
	 
      	 
      	 
      
	
                   

                  SECTION
      9.01

                   

                	
                   

                  Optional
      Purchase of All Receivables and Termination

                   

                	
                   

                  46

                   

                
	 
      	 
      	 
      
	 
      	
                   

                  ARTICLE
      X

                   

                	 
      
	 
      	 
      	 
      
	 
      	
                   

                  Miscellaneous
      Provisions

                   

                	 
      
	 
      	 
      	 
      
	
                   

                  SECTION
      10.01

                   

                	
                   

                  Amendment

                   

                	
                   

                  47

                   

                
	
                   

                  SECTION
      10.02

                   

                	
                   

                  Protection
      of Title to Trust

                   

                	
                   

                  48

                   

                
	
                   

                  SECTION
      10.03

                   

                	
                   

                  Notices

                   

                	
                   

                  50

                   

                
	
                   

                  SECTION
      10.04

                   

                	
                   

                  Assignment

                   

                	
                   

                  50

                   

                
	
                   

                  SECTION
      10.05

                   

                	
                   

                  Limitations
      on Rights of Others

                   

                	
                   

                  51

                   

                
	
                   

                  SECTION
      10.06

                   

                	
                   

                  Severability

                   

                	
                   

                  51

                   

                
	
                   

                  SECTION
      10.07

                   

                	
                   

                  Separate
      Counterparts

                   

                	
                   

                  51

                   

                
	
                   

                  SECTION
      10.08

                   

                	
                   

                  Headings

                   

                	
                   

                  51

                   

                
	
                   

                  SECTION
      10.09

                   

                	
                   

                  Governing
      Law

                   

                	
                   

                  51

                   

                
	
                   

                  SECTION
      10.10

                   

                	
                   

                  Assignment
      to Indenture Trustee

                   

                	
                   

                  51

                   

                
	
                   

                  SECTION
      10.11

                   

                	
                   

                  Nonpetition
      Covenants

                   

                	
                   

                  51

                   

                
	
                   

                  SECTION
      10.12

                   

                	
                   

                  Limitation
      of Liability of Owner Trustee and Indenture Trustee

                   

                	
                   

                  52

                   

                
	
                   

                  SECTION
      10.13

                   

                	
                   

                  Additional
      Securities

                   

                	
                   

                  52

                   

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                   

                  SCHEDULES

                   

                	 
      	 
      
	 
      	 
      	 
      
	
                   

                  SCHEDULE
      A

                   

                	
                   

                  –
      Schedule of Receivables

                   

                	 
      
	
                   

                  SCHEDULE
      B

                   

                	
                   

                  –
      Location of Receivable Files

                   

                	 
      
	
                   

                  SCHEDULE
      C

                   

                	
                   

                  –
      List of Fiscal Months

                   

                	 
      
	
                   

                  SCHEDULE
      D

                   

                	
                   

                  –
      Servicer’s Certificate

                   

                	 
      
	
                   

                  SCHEDULE
      E

                   

                	
                   

                  –
      Statement to Certificateholder

                   

                	 
      
	
                   

                  SCHEDULE
      F

                   

                	
                   

                  –
      Statement to Noteholders

                   

                	 
      
	
                   

                  SCHEDULE
      G

                   

                	
                   

                  –
      Payment and Deposit Instructions to Indenture Trustee

                   

                	 
      
	 
      	 
      	 
      
	
                   

                  APPENDIX
      A

                   

                	
                   

                  –
      Servicing Criteria

                   

                	 
      
	 
      	 
      	 
      

        

    

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

     

     

    
      
                               
This SALE AND SERVICING AGREEMENT dated as of April 15, 2008, among JOHN DEERE
OWNER TRUST 2008, a Delaware statutory trust (the “Issuing Entity”), JOHN DEERE
RECEIVABLES, INC., a Nevada corporation (the “Seller”), and JOHN DEERE CAPITAL
CORPORATION, a Delaware corporation (“JDCC” or the
“Servicer”).

         

                               
WHEREAS the Issuing Entity desires to purchase a portfolio of receivables
arising in connection with agricultural and construction equipment retail
installment sale and loan contracts generated by JDCC in the ordinary course of
business;

         

                               
WHEREAS the Seller has purchased such receivables from JDCC and desires to sell
such receivables to the Issuing Entity; and

         

                               
WHEREAS JDCC desires to service such receivables.

         

                               
NOW, THEREFORE, in consideration of the premises and the mutual covenants herein
contained, the parties hereto agree as follows:

         

         

        ARTICLE I

Definitions

         

                               
SECTION 1.01   Definitions .  Whenever used in this Agreement, the
following words and phrases, unless the context otherwise requires, shall have
the following meanings:

         

                               
“Administration Agreement” means the Administration Agreement dated as of April
15, 2008 among the Trust, JDCC, as Administrator, and U.S. Bank National
Association, as indenture trustee, as the same may be amended and supplemented
from time to time.

         

                               
“Administration Fee” means the fee payable to the Administrator pursuant to
Section 3 of the Administration Agreement.

         

                               
“Administrator” means the administrator under the Administration
Agreement.

         

                               
“Agreement” means this Sale and Servicing Agreement, as the same may be amended
and supplemented from time to time.

         

                               
“Amount Financed” with respect to a Receivable means the amount advanced under
the Receivable toward the purchase price of the related Financed Equipment and
any related costs.

         

                               
“Annual Percentage Rate” or “APR” of a Receivable means the fixed annual rate of
finance charges specified in the related Contract.

         

                               
“Certificate” means the Certificate (as defined in the Trust
Agreement).

         

                               
“Certificate Balance” equals, initially, and, on each day thereafter, equals the
initial Certificate Balance reduced by all amounts allocable to principal
previously distributed to the Certificateholder.

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

                               
“Certificate Distribution Account” has the meaning assigned to such term in the
Trust Agreement.

         

                               
“Certificateholder” has the meaning assigned to such term in the Trust
Agreement.

         

                               
“Certificate Monthly Principal Distributable Amount” means (a) zero on any
Payment Date on which the outstanding principal balance of the Notes has not
been reduced to zero after taking into account distributions on such Payment
Date and (b) on each Payment Date on and after the Payment Date on which the
outstanding principal balance of the Notes is reduced to zero, an amount equal
to the Principal Distributable Amount minus the principal payment, if any, on
the Notes on such Payment Date.

         

                               
“Class A-1 Note Final Payment Date” means May 8, 2009.

         

                               
“Class A-1 Note Interest Rate” means a rate per annum equal to
2.74080%.

         

                               
“Class A-1 Notes” means the Class A-1 Notes (as defined in the
Indenture).

         

                               
“Class A-2 Note Final Payment Date” means March 15, 2011.

         

                               
“Class A-2 Notes” means the Class A-2 Notes (as defined in the
Indenture).

         

                               
“Class A-2 Note Interest Rate” means a rate per annum equal to
3.63%.

         

                               
“Class A-3 Note Final Payment Date” means June 15, 2012.

         

                               
“Class A-3 Note Interest Rate” means a rate per annum equal to
4.18%.

         

                               
“Class A-3 Notes” means the Class A-3 Notes (as defined in the
Indenture).

         

                               
“Class A-4 Note Final Payment Date” means March 16, 2015.

         

                               
“Class A-4 Note Interest Rate” means a rate per annum equal to
4.89%.

         

                               
“Class A-4 Notes” means the Class A-4 Notes (as defined in the
Indenture).

         

                               
“Code” means the Internal Revenue Code of 1986, as amended from time to
time.

         

                               
“Collection Account” means the account designated as such, established and
maintained pursuant to Section 5.01.

         

                               
“Collection Period” means, with respect to the first Payment Date, the period
from the Cut-off Date through the Fiscal Month ending on April 27, 2008 and,
with respect to each subsequent Payment Date, the Fiscal Month ending
immediately preceding such Payment Date.  Any amount stated “as of the
close of business on the last day of a Collection Period” shall give effect to
the following calculations as determined as of the end of the day on such last
day:  (1) all applications of collections and (2) all distributions to be
made on the following Payment Date.

         

         

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

         

                               
“Commission” means the United States Securities and Exchange
Commission.

         

                               
“Contract” means an agricultural or construction equipment retail installment
sale or loan contract.

         

                               
“Corporate Trust Office” means the office of the Indenture Trustee at which at
any particular time its corporate trust business shall be administered, which
office at date of the execution of this Agreement is located at 209 S. LaSalle
Street, Suite 300, Chicago, IL 60604, Attention: JDOT 2008; or at such other
address as the Indenture Trustee may designate from time to time by notice to
the Noteholders and the Seller, or the corporate trust office of any successor
Indenture Trustee (the address of which the successor Indenture Trustee will
notify the Noteholders and the Seller).

         

                               
“Current Principal Distribution Amount” means, with respect to any Payment Date,
an amount equal to the Note Value at the beginning of the related Collection
Period less the Note Value at the end of that Collection
Period.

         

                               
“Cut-off Date” means March 23, 2008.

         

                               
“Dealer” means the dealer who sold an item of Financed Equipment securing a
Receivable.

         

                               
“Deere” means Deere & Company, a Delaware corporation, and its
successors.

         

                               
“Delinquent” means a Scheduled Payment determined by the Servicer to be past due
in accordance with its normal practices, subject to Article IV relating to the
administration and servicing of the Receivables.

         

                               
“Delivery” when used with respect to Trust Account Property the perfection and
priority in which is governed by Article 8 of the UCC or the Federal Book-Entry
Regulations means:

         

                (a) 
with respect to bankers’ acceptances, commercial paper, negotiable certificates
of deposit and other obligations that constitute “instruments” within the
meaning of Section 9-102(47) of the UCC (other than certificated securities) and
are susceptible to physical delivery, transfer thereof to the Indenture Trustee
or its nominee or custodian by physical delivery to the Indenture Trustee or its
nominee or custodian endorsed to, or registered in the name of, the Indenture
Trustee or its nominee or custodian or endorsed in blank, and such additional or
alternative procedures as may hereafter become appropriate to effect the
complete transfer of ownership of any such Trust Property to the Indenture
Trustee or its nominee or custodian free and clear of any adverse claims,
consistent with changes in applicable law or regulations or the interpretation
thereof;

         

                (b) 
with respect to a “certificated security” (as defined in Section 8-102(a)(4) of
the UCC), transfer thereof (i) by physical delivery of such certificated
security endorsed to, or registered in the name of, the Indenture Trustee or its
nominee or custodian or endorsed in blank, (ii) by physical delivery of such
certificated security in registered form to a “securities intermediary” (as
defined in Section 8-102(a)(14) of the UCC) acting on

         

         

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

         

        behalf of the
Indenture Trustee if the certificated security has been specially endorsed to
the Indenture Trustee by an effective endorsement;

         

               
(c)  with respect to any security issued by the U.S. Treasury, the Federal
Home Loan Mortgage Corporation or by the Federal National Mortgage Association
that is a book-entry security held through the Federal Reserve System pursuant
to Federal book-entry regulations, the following procedures, all in accordance
with applicable law, including applicable Federal regulations and Articles 8 and
9 of the UCC:  book‐entry registration of such Trust Account Property to an
appropriate book-entry account maintained with a Federal Reserve Bank by a
securities intermediary which is also a “depository” pursuant to applicable
Federal regulations and issuance by such securities intermediary of a deposit
advice or other written confirmation of such book-entry registration to the
Indenture Trustee or its nominee or custodian of the purchase by the Indenture
Trustee or its nominee or custodian of such book-entry securities; the
identification by the Federal Reserve Bank of such book-entry certificates on
its records being credited to the securities intermediary’s Participant’s
securities account; the making by such securities intermediary of entries in its
books and records identifying such book-entry security held through the Federal
Reserve System pursuant to Federal book-entry regulations as belonging to the
Indenture Trustee or its nominee or custodian and indicating that such custodian
holds such Trust Account Property solely as agent for the Indenture Trustee or
its nominee or custodian; and such additional or alternative procedures as may
hereafter become appropriate to effect complete transfer of ownership of any
such Trust Account Property to the Indenture Trustee or its nominee or
custodian, consistent with changes in applicable law or regulations or the
interpretation thereof; and

         

                (d) 
with respect to any item of Trust Account Property that is an uncertificated
security under Article 8 of the UCC and that is not governed by clause (c)
above, registration on the books and records of the issuer thereof in the name
of the Indenture Trustee, or by another Person (not a securities intermediary)
either becoming the registered owner of the uncertificated security on behalf of
the Indenture Trustee, or having become the registered owner, acknowledging that
it holds for the Indenture Trustee, or the issuer thereof agreeing that it will
comply with instructions originated by the Indenture Trustee without further
consent of the registered owner thereof;

         

               
(e)  with respect to a “financial asset” (as defined in Section 8-102(a)(9)
of the UCC) to the extent not covered by paragraphs (a) through (d) above, if a
securities intermediary (i) indicates by book entry that such financial asset
has been credited to the Indenture Trustee’s “securities account” (as defined in
Section 8-501(a) of the UCC), (ii) receives a financial asset from the Indenture
Trustee or acquires a financial asset for the Indenture Trustee, and in either
case, accepts it for credit to the Indenture Trustee’s securities account, (iii)
becomes obligated under other law, regulation or rule to credit a financial
asset to the Indenture Trustee’s securities account, or (iv) has agreed that it
will comply with “entitlement orders” (as defined in Section 8-102(a)(8) of the
UCC) originated by the Indenture Trustee without further consent by the
“entitlement holder” (as defined in Section 8-102(a)(7) of the UCC);
and

         

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

         

               
(f)   in each case of delivery contemplated herein, the Indenture
Trustee shall make appropriate notations on its records, and shall cause the
same to be made on the records of its nominees, indicating that securities are
credited to the appropriate Trust Account and held in trust pursuant to and as
provided in this Agreement.

         

                               
“Depositor” means the Seller in its capacity as Depositor under the Trust
Agreement.

         

                               
“Determination Date” means, with respect to any Payment Date, the second
Business Day prior to such Payment Date; provided that if any Class A-1 Notes
are outstanding after the Payment Date in April 2009, the Determination Date in
May 2009 shall be the second Business Day prior to the Special Payment
Date.

         

                               
“Eligible Deposit Account” means either (a) a segregated trust account with an
Eligible Institution or (b) a segregated trust account with the corporate trust
department of a depository institution organized under the laws of the United
States of America or any State (or any domestic branch of a foreign bank),
having corporate trust powers and acting as trustee for funds deposited in such
account, so long as any of the unsecured debt obligations of such depository
institution shall have a credit rating from each of Moody’s and Standard &
Poor’s in one of its generic rating categories which signifies investment
grade.

         

                               
“Eligible Institution” means (a) the corporate trust department of the Indenture
Trustee or the Owner Trustee, or (b) a depository institution organized under
the laws of the United States of America or any State (or any domestic branch of
a foreign bank), (1)(i) which has either (A) a long-term unsecured debt rating
of AAA or better by Standard & Poor’s and Aaa or better by Moody’s or (B) a
short-term unsecured debt rating or a certificate of deposit rating of A-1+ by
Standard & Poor’s and P-1 or better by Moody’s, or any other long-term,
short-term or certificate of deposit rating acceptable to the Rating Agencies
and (ii) whose deposits are insured by the FDIC or (2)(i) the parent of which
has a long‐term or short-term unsecured debt rating acceptable to the Rating
Agencies and (ii) whose deposits are insured by the FDIC.  If so qualified,
the Indenture Trustee, the Owner Trustee, U.S. Bank National Association or BNYM
(Delaware) may be considered an Eligible Institution for the purposes of clause
(b) of this definition.

         

                               
“Eligible Investments” mean book-entry securities, negotiable instruments or
securities represented by instruments in bearer or registered form which
evidence:

         

                (a) 
direct obligations of, and obligations fully guaranteed as to timely payment by,
the United States of America;

         

               
(b)  demand deposits, time deposits or certificates of deposit of any
depository institution or trust company incorporated under the laws of the
United States of America or any State (or any domestic branch of a foreign bank)
and subject to supervision and examination by Federal or State banking or
depository institution authorities; provided, however, that at the time of the
investment or contractual commitment to invest therein, the commercial paper or
other short-term unsecured debt obligations (other than such obligations the
rating of which is based on the credit of a Person other than
such

         

         

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

         

        depository
institution or trust company) thereof shall have a credit rating from each of
Standard & Poor’s and Moody’s, in the highest investment category granted
thereby:

         

               
(c)  commercial paper having, at the time of the investment or contractual
commitment to invest therein, a rating from each of Standard & Poor’s and
Moody’s in the highest investment category granted thereby;

         

               
(d)  investments in money market mutual funds having a rating at the time
of such investment of no less than AAA by Standard & Poor’s and Aaa by
Moody’s (including funds for which the Indenture Trustee or the Owner Trustee or
any of their respective Affiliates is investment manager or
advisor);

         

              
 (e)  bankers’ acceptances issued by any depository institution or
trust company referred to in clause (b) above;

         

               
(f)   repurchase obligations with respect to any security that is a
direct obligation of, or fully guaranteed by, the United States of America or
any agency or instrumentality thereof the obligations of which are backed by the
full faith and credit of the United States of America, in either case entered
into with a depository institution or trust company (acting as principal)
described in clause (b); and

         

               
(g)  any other investment permitted by each of the Rating Agencies in
writing; provided, however, that if an investment would be an Eligible
Investment solely by virtue of clause (b), (c), (d), (e) or (f) and has a
remaining maturity of more than 30 days at the time of its acquisition by the
Indenture Trustee, then such investment shall be an Eligible Investment only if
the long-term unsecured debt rating of the obligor on such investment is at
least A-1 from Moody’s and at least A+ by S&P.

         

                               
“Exchange Act” means the Securities Exchange Act of 1934, as
amended.

         

                               
“Exchange Act Reports” means information, documents or reports required to be
filed with the Commission pursuant to Section 13 or 15(d) of the Exchange
Act.

         

                               
“Face Amount” means with respect to a Receivable as of the close of business on
the last day of a Collection Period, the gross amount of all unpaid installments
scheduled to be paid on each contract, including unearned finance and other
charges.

         

                               
“FDIC” means the Federal Deposit Insurance Corporation.

         

                               
“Financed Equipment” means an item of agricultural, construction or forestry
equipment, together with all accessions thereto, which was purchased by an
Obligor pursuant to the terms of the related Contract and securing such
Obligor’s indebtedness under the respective Receivable.

         

                               
“Fiscal Month” means a fiscal month specified in Schedule C, as may be amended
from time to time by the delivery by the Servicer to the Seller, the Owner
Trustee and the Indenture Trustee of a new Schedule C hereto listing the fiscal
months; provided that the fiscal months on any such new Schedule C shall have
the ranges of number of days generally similar to

         

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

         

        the ranges of
the number of days in the fiscal months set forth in the original Schedule C
hereto and shall not result in a Collection Period that does not allow the
Servicer a sufficient amount of time to perform the calculations required of it
hereunder in respect of such Collection Period prior to the related
Determination Date.

         

                               
“Form 10-D Disclosure Item” shall mean with respect to any Person, any
litigation or governmental proceedings pending against such Person, or any of
the Trust, the Depositor, the Indenture Trustee, the Owner Trustee or the
Servicer if such Person has actual knowledge thereof, in each case that would be
material to the Noteholders.

         

                               
“Form 10-K Disclosure Item” shall mean with respect to any Person, (a) any Form
10-D Disclosure Item and (b) any affiliations or relationships between such
Person and any Item 1119 Party to the extent such Person has actual knowledge
thereof.

         

                               
“Indenture” means the Indenture dated as of April 15, 2008, between the Issuing
Entity and the Indenture Trustee, as the same may be amended and supplemented
from time to time.

         

                               
“Indenture Trustee” means U.S. Bank National Association solely in its capacity
as indenture trustee under the Indenture and not in its individual capacity, its
successors in interest and any successor indenture trustee under the
Indenture.

         

                               
“Initial Pool Balance” means the Pool Balance as of the Cut-off Date, which is
$650,168,199.

         

                               
“Insolvency Event” means, with respect to a specified Person, (a) the filing of
a decree or order for relief by a court having jurisdiction in the premises in
respect of such Person or any substantial part of its property in an involuntary
case under any applicable Federal or State bankruptcy, insolvency or other
similar law now or hereafter in effect, or appointing a receiver, liquidator,
assignee, custodian, trustee, sequestrator or similar official for such Person
or for any substantial part of its property, or ordering the winding-up or
liquidation of such Person’s affairs, and such decree or order shall remain
unstayed and in effect for a period of 90 consecutive days; or (b) the
commencement by such Person of a voluntary case under any applicable Federal or
State bankruptcy, insolvency or other similar law now or hereafter in effect, or
the consent by such Person to the entry of an order for relief in an involuntary
case under any such law, or the consent by such Person to the appointment of or
taking possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official for such Person or for any substantial part of
its property, or the making by such Person of any general assignment for the
benefit of creditors, or the failure by such Person generally to pay its debts
as such debts become due, or the taking of action by such Person in furtherance
of any of the foregoing.

         

                               
“Investment Earnings” means, with respect to any Payment Date, the investment
earnings (net of losses and investment expenses) on amounts on deposit in the
Trust Accounts to be deposited into the Collection Account on such Payment Date
pursuant to Section 5.01(b).

         

                               
“Item 1119 Party” shall mean the parties specified in Item 1119 of Regulation
AB, which are the Issuing Entity, the Seller, JDCC, as the sponsor (as defined
in Item 1101 (l)

         

         

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

         

         

        of Regulation
AB), the Servicer, the Sub-Servicer, the Indenture Trustee, each Subcontractor
and the Owner Trustee.

         

                               
“JDCC” means John Deere Capital Corporation, a Delaware corporation, and its
successors.

         

                               
“Lien” means a security interest, lien, charge, pledge, equity or encumbrance of
any kind, other than tax liens, mechanics’ liens and any liens which attach to
the respective Receivable by operation of law as a result of any act or omission
by the related Obligor.

         

                               
“Liquidated Receivable” means any Receivable liquidated by the Servicer through
the sale or other disposition of the Financed Equipment or which the Servicer
has determined to charge-off without realizing upon the Financed
Equipment.

         

                               
“Liquidation Proceeds” means, with respect to any Liquidated Receivable, the
moneys collected in respect thereof, from whatever source (including the
proceeds of insurance policies with respect to the related Financed Equipment or
Obligor but excluding any amounts from Dealer reserves) on a Liquidated
Receivable during the Fiscal Month in which such Receivable became a Liquidated
Receivable, net of the sum of any amounts expended by the Servicer in connection
with such liquidation and any amounts required by law to be remitted to the
Obligor on such Liquidated Receivable.

         

                               
“Moody’s” means Moody’s Investors Service, Inc., or its
successor.

         

                               
“Note Distribution Account” means the account designated as such, established
and maintained pursuant to Section 5.01.

         

                               
“Note Interest Rate” means the per annum interest rate borne by a
Note.

         

                               
“Note Monthly Principal Distributable Amount” means, for any Payment Date, the
Principal
Distributable Amount; provided, that the Note Monthly Principal Distributable
Amount shall not exceed the aggregate
outstanding principal balance of the Notes; provided,
further, that on (i) the Class A-1 Note Final Payment Date, the Note Monthly
Principal Distributable Amount will at least equal the outstanding principal
balance of the Class A-1 Notes, (ii) the Class A-2 Note Final Payment Date, the
Note Monthly Principal Distributable Amount will at least equal the outstanding
principal balance of the Class A-2 Notes, (iii) the Class A-3 Note Final Payment
Date, the Note Monthly Principal Distributable Amount will at least equal the
outstanding principal balance of the Class A-3 Notes and (iv) the Class A-4 Note
Final Payment Date, the Note Monthly Principal Distributable Amount will at
least equal the outstanding principal balance of the Class A-4
Notes.

         

                               
“Note Value” means, with respect to any day, the present value of the unpaid
Scheduled Payments on the Receivables, discounted at an annual rate equal to
6.957%.  For purposes of calculating Note Value, in the case of a defaulted
Receivable: (a) prior to the time at which such defaulted Receivable becomes a
Repossessed Receivable or a 180-day Receivable, the Scheduled Payments on such
Receivable will be computed based on the amounts that would have been the
Scheduled Payments had such default not occurred; (b) at the earlier of the time
at which such defaulted Receivable becomes a Repossessed Receivable or a 180-day
Receivable,

         

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

         

         

        the amount
added to the Note Value with respect to such Receivable will be the estimated
realizable value of such Receivable, as determined by the Servicer in accordance
with its normal servicing procedures and (c) after the time such defaulted
Receivable becomes a Liquidated Receivable, and after the payment of a Purchase
Amount in respect of a Purchased Receivable, there shall be deemed to be no
Scheduled Payments due on such Receivable.

         

                               
“Noteholders’ Distributable Amount” means, with respect to any Payment Date, the
sum of (a) the accrued and unpaid interest on the Notes for such Payment Date
and (b) the Note Monthly Principal Distributable Amount.

         

                               
“Notes” means the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and
the Class A-4 Notes.

         

                               
“Obligor” on a Receivable means the purchaser or co‐purchasers of the Financed
Equipment and any other Person who owes payments under the
Receivable.

         

                               
“Officers’ Certificate” means a certificate signed by (a) the chairman of the
board, the president, any vice president, the treasurer or any assistant
treasurer and (b) the secretary or any assistant secretary of the Seller or the
Servicer, as appropriate.

         

                               
“180-day Receivable”, with respect to any Collection Period, means any
Receivable as to which a Scheduled Payment is 180 days or more Delinquent by the
last day of such Collection Period and which has not become a Liquidated
Receivable or a Repossessed Receivable; provided that a Receivable shall cease
to be a 180-day Receivable if the Servicer subsequently receives payment in full
of each Scheduled Payment that was previously 180 days or more Delinquent on
such Receivable.  

         

                               
“Opinion of Counsel” means one or more written opinions of counsel who may be an
employee of or counsel to the Seller or the Servicer, which counsel shall be
acceptable to the Indenture Trustee, the Owner Trustee or the Rating Agencies,
as applicable.

         

                               
“Owner Trust Estate” has the meaning assigned to such term in the Trust
Agreement.

         

                               
“Owner Trustee” means BNYM (Delaware) in its capacity as Owner Trustee under the
Trust Agreement, its successors in interest and any successor owner trustee
under the Trust Agreement.

         

                               
“Payment Date” means the 15th day of each month, or,
if any such date is not a Business Day, the next succeeding Business Day,
commencing May 15, 2008; provided , however, that if any Class A-1 Notes are
outstanding after the Payment Date in April 2009, Payment Date shall also mean,
solely in the context of determining the date for final payment of the Class A-1
Notes and the interest accrual period for the Class A-1 Notes from the Payment
Date in April 2009 to but excluding such final payment, the Special Payment
Date.

         

                               
“Pool Balance” as of the close of business on the last day of a Collection
Period, means the aggregate Principal Balance of the Receivables (excluding
Purchased Receivables and

         

         

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

         

         

        Liquidated
Receivables) less the aggregate Write-Down Amount as of the last day of such
Collection Period.  

         

                               
“Pool Face Amount” as of the close of business on the last day of a Collection
Period, means the aggregate Face Amount of the Receivables (excluding Purchased
Receivables and Liquidated Receivables) less the aggregate Write-Down Amount as
of the last day of such Collection Period.

         

                               
“Principal Balance” of a Receivable, as of the close of business on the last day
of a Collection Period, means the Amount Financed minus the sum of (i) that
portion of all Scheduled Payments paid on or prior to such day allocable to
principal using the actuarial method, (ii) any payment of the Purchase Amount
with respect to the Receivable purchased by the Servicer or repurchased by the
Seller and allocable to principal, and (iii) any prepayment in full or any
partial prepayments applied to reduce the Principal Balance of the
Receivable.

         

                               
“Principal Carryover Shortfall” means, with respect to any Payment Date, the
excess of (i) the Principal Distributable Amount for the immediately preceding
Payment Date over (ii) the amount that was actually deposited into the Note
Distribution Account and the Certificate Distribution Account, if applicable, on
account of principal on such immediately preceding Payment
Date.

         

                               
“Principal Distributable Amount” means, with respect to any Payment Date, the
sum of (i) the Current Principal Distribution Amount for such Payment Date and
(ii) the Principal Carryover Shortfall for such Payment
Date.

         

                               
“Purchase Agreement” means the Purchase Agreement dated as of April 15, 2008,
between the Seller and JDCC, as the same may be amended and supplemented from
time to time.

         

                               
“Purchase Amount” means with respect to a Receivable, the amount, as of the
close of business on the last day of a Collection Period, required to prepay in
full the Receivable under the terms thereof including interest to the last day
of such Collection Period.

         

                               
“Purchased Receivable” means a Receivable purchased as of the close of business
on the last day of a Collection Period by the Servicer pursuant to Section 4.07
or repurchased as of such time by the Seller pursuant to Section 3.02 or
6.07.

         

                               
“Rating Agencies” means Moody’s and Standard & Poor’s.  If no such
organization or successor is in existence, “Rating Agency” shall be a nationally
recognized statistical rating organization or other comparable Person designated
by the Seller, notice of which designation shall be given to the Indenture
Trustee, the Owner Trustee and the Servicer.

         

                               
“Rating Agency Condition” means, with respect to any action, that each Rating
Agency shall have been given 10 days (or such shorter period that is acceptable
to each Rating Agency) prior notice thereof and that each of the Rating Agencies
shall have notified the Seller, the Servicer, the Owner Trustee and the
Indenture Trustee in writing that such action will not result in a reduction or
withdrawal of the then current rating of the Notes.

         

         

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

         

         

                               
“Receivable” means any retail installment sale or loan contract listed on
Schedule A hereto.

         

                               
“Receivable Files” means the documents specified in Section
3.03.

         

                               
“Recoveries” means, with respect to any Liquidated Receivable, monies collected
in respect thereof, from whatever source (other than any amounts from Dealer
reserves) after the Fiscal Month in which such Receivable became a Liquidated
Receivable, net of the sum of any amounts expended by the Servicer for the
account of the Obligor and any amounts required by law to be remitted to the
Obligor.

         

                               
“Regulation AB” means Subpart 229.1100 – Asset
Backed Securities (Regulation AB), 17 C.F.R. §§229.1100-229.1123, as such may be
amended from time to time, and subject to such clarification and interpretation
as have been provided by the Commission in the adopting release (Asset-Backed
Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan.
7, 2005)) or by the staff of the Commission, or as may be provided by the
Commission or its staff from time to time.

         

                               
“Regulation S-X” means Regulation S-X, 17 C.F.R. §§210.1-01—210.12-29, as such
may be amended from time to time, and subject to such clarification and
interpretation as may be provided by the Commission or its staff from time to
time.

         

                               
“Reportable Event” shall mean any event required to be reported on Form 8-K, and
in any event, the following:

         

                               
(a) entry into a definitive agreement related to the Trust, the Notes or the
Receivables, or an amendment to a transaction document, even if the Depositor is
not a party to such agreement (e.g., a servicing agreement with a servicer
contemplated by Item 1108(a)(3) of Regulation AB);

         

                               
(b) termination of a transaction document (other than by expiration of the
agreement on its stated termination date or as a result of all parties
completing their obligations under such agreement), even if the Depositor is not
a party to such agreement (e.g., a servicing agreement with a servicer
contemplated by Item 1108(a)(3) of Regulation AB);

         

                               
(c) with respect to the Servicer only, the occurrence of a Servicer
Default;

         

                               
(d) the resignation, removal, replacement or substitution of the Indenture
Trustee or the Owner Trustee;

         

                               
(e) with respect to the Indenture Trustee only, a required distribution to
holders of the Notes is not made as of the required Payment Date under the
Indenture; and

         

                               
(f) with respect to the Servicer only, if the Servicer becomes aware of any
bankruptcy or receivership of the Seller, the Depositor, the Indenture Trustee,
the Owner Trustee, any enhancement or support provider contemplated by Item
1114(b) or 1115 of Regulation AB, or other material party contemplated by Item
1101(d)(1) of Regulation AB.

         

         

         

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

         

         

                               
“Reporting Subcontractor” shall mean any Subcontractor determined by the
Servicer to be “participating in the servicing function” within the meaning of
Item 1122 of Regulation AB.

         

                               
“Repossessed Receivable”, with respect to any Collection Period, means any
defaulted Receivable as to which the Financed Equipment securing such defaulted
Receivable has been repossessed by the last day of such Collection Period. 

         

                               
“Reserve Account” means the account designated as such, established and
maintained pursuant to Section 5.01.

         

                               
“Reserve Account Initial Deposit” means, with respect to the Closing Date,
$8,170,985.

         

                               
“Scheduled Payment” on a Receivable, means the scheduled periodic payment of
principal and interest required to be made by the Obligor.

         

                               
“Seller” means John Deere Receivables, Inc., a Nevada corporation, and its
successors in interest to the extent permitted hereunder.

         

                               
“Servicer” means JDCC, as the servicer of the Receivables, and each successor to
JDCC (in the same capacity) pursuant to Section 7.03 or
8.02.

         

                               
“Servicer Default” means an event specified in Section 8.01.

         

                               
“Servicer’s Certificate” means an Officers’ Certificate of the Servicer
delivered pursuant to Section 4.09, substantially in the form of Schedule
D.

         

                               
“Servicing Criteria” shall mean the “servicing criteria” set forth in Item
1122(d) of Regulation AB.

         

                               
“Servicing Fee” means the fee payable to the Servicer for services rendered
during the respective Collection Period, determined pursuant to Section
4.08.

         

                               
“Servicing Fee Rate” means 1.00% per annum.

         

                               
“Special Payment Date” means May 8, 2009 with respect to the Class A-1 Notes
only if any of the Class A-1 Notes are outstanding after the Payment Date in
April 2009.

         

                               
“Specified Reserve Account Balance” means, except as otherwise provided in the
following paragraph, with respect to any Payment Date, the lesser of (a)
$9,805,182, which is 1.50% of the initial Note Value and (b) the outstanding
principal amount of the Notes immediately preceding such Payment Date less the
Note Monthly Principal Distributable Amount to be deposited in the Note
Distribution Account on such Payment Date.  However, if (i) the Specified
Reserve Reduction Trigger is met on the Payment Date in April 2010, the
percentage in clause (a) above will be reduced to 1.25% on such Payment Date and
shall remain at such percentage for each Payment Date thereafter unless further
reduced on the Payment Date in October 2010 as provided herein; and/or (ii) the
Specified Reserve Reduction Trigger is met

         

         

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

         

         

        on the
Payment Date in October 2010, the percentage in clause (a) above will be reduced
to 1.15% on such Payment Date (regardless of whether the Specified Reserve
Reduction Trigger was met on the Payment Date in April 2010) and shall remain at
such percentage for each Payment Date thereafter.

         

                               
Upon payment of all interest and principal due on the Notes, the Specified
Reserve Account Balance shall be zero.  The Specified Reserve Account
Balance may be reduced or the definition otherwise modified without the consent
of the Noteholders and the Certificateholder provided that the Rating Agencies
confirm in writing that such reduction or modification will not result in the
reduction or withdrawal of the then current rating of any class of the Notes and
provided, further, the Owner Trustee obtains an Opinion of Counsel confirming
that the reduction or modification will not change the tax classification of the
Notes as indebtedness.  The definitions of certain terms used in the
definition of Specified Reserve Account Balance are set forth below. 

         

                   
“Average Delinquency Ratio” means, as of any Payment Date, the average of the
Delinquency Ratios for the three immediately preceding Collection Periods. 

         

                   
“Average Delinquency Ratio Test” for the Payment Date occurring in a month
specified below will be met if the Average Delinquency Ratio for such Payment
Date is less than the percentage specified opposite such Payment
Date:

         

        
          	
                   Payment Date 

                	
                   Percentage 

                
	
                  April
      2010

                	
                  3.50%

                
	
                  October
      2010

                	
                  4.50%

                

        

         

                   
“Delinquency Ratio” for any Collection Period means the ratio, expressed as a
percentage of (a) the aggregate amount of all Scheduled Payments in respect of
Receivables that are 60 days or more past due (other than Purchased Receivables
and Liquidated Receivables) as of the end of such Collection Period, determined
in accordance with the Servicer’s normal practices and procedures, to (b) the
Pool Balance as of the last day of such Collection Period. 

         

                   
“Cumulative Net Loss Ratio” means, for any Payment Date, the ratio, expressed as
a percentage, of (a) the aggregate Realized Losses on the Receivables from the
Cut-Off Date through the last day of the Collection Period immediately preceding
such Payment Date to (b) the Initial Pool Balance.  

         

                   
“Cumulative Net Loss Ratio Test” for the Payment Date occurring in a month
specified below will be met if the Cumulative Net Loss Ratio for such Payment
Date is less than the percentage specified opposite such Payment
Date:

         

        
          	
                   Payment Date 

                	
                   Percentage 

                
	
                  April
      2010

                	
                  0.55%

                
	
                  October
      2010

                	
                  0.65%

                

        

         

         

         

        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

        

         

         

                   
“Realized Losses” means, for any Collection Period, the sum of (a) in the case
of each Receivable that became a Liquidated Receivable during such Collection
Period, the difference between (i) and (ii), where (i) is the Principal Balance
plus accrued and unpaid interest on such Receivable less the Write-Down Amount
for such Receivable (if such Receivable was a 180-day Receivable or Repossessed
Receivable at the time such Receivable became a Liquidated Receivable), if any,
and (ii) is the Liquidation Proceeds received with respect to such Receivable
during such Collection Period, (b) in the case of any Receivable that became a
180-day Receivable or Repossessed Receivable during such Collection Period, the
Write-Down Amount, if any, for such Receivable and (c) in the case of each other
180-day Receivable or Repossessed Receivable, the amount of the adjustment, if
any, to the Write-Down Amount for such Receivable.  

         

                   
“Specified Reserve Reduction Trigger” for the Payment Date in April 2010 or
October 2010, will be met if the Average Delinquency Ratio Test and the
Cumulative Net Loss Ratio Test for such Payment Date are
met.

         

                   
“Write-Down Amount” means, for any Collection Period for any 180-day Receivable
or Repossessed Receivable, the excess of (a) the Principal Balance plus accrued
and unpaid interest of such Receivable as of the last day of the Collection
Period during which such Receivable became a 180-day Receivable or Repossessed
Receivable, as the case may be, over (b) the estimated realizable value of such
Receivable, as determined by the Servicer in accordance with its normal
servicing procedures for the related Collection Period, which amount may be
adjusted to zero by the Servicer in accordance with its normal servicing
procedures if such Receivable has ceased to be a 180-day Receivable as provided
in the definition of “180-day Receivable”.  

         

                               
“Standard & Poor’s” means Standard & Poor’s, a division of The
McGraw-Hill Companies, Inc., or any successor to the business of such
division.

         

                               
“Subcontractor” shall mean any vendor, subcontractor or other Person that is not
responsible for the overall servicing of Receivables but performs one or more
discrete functions identified in Item 1122(d) of Regulation AB with respect to
the Receivables under the direction or authority of the Indenture
Trustee.

         

                               
“Sub-Servicer” means Deere Credit Services, Inc., a Delaware corporation, and
each successor to Deere Credit Services, Inc. (in the same capacity) pursuant to
Section 4.14.

         

                               
“Total Distribution Amount” means, for each Payment Date, the sum of the
aggregate collections in respect of Receivables (including Liquidation Proceeds
and Purchase Amounts) received during the related Collection Period, plus
Investment Earnings, provided, that, in the event of a Special Payment Date, a
portion of the Total Distribution Amount for the May 2009 Payment Date shall be
deposited to the Trust Accounts on or before the Special

         

         

        
          
            
            

          

          
            14

            
              

            

          

          
            
            

          

        

         

         

        Payment Date as provided
in Section 5.04(d) and the remaining Total Distribution Amount shall be
distributed on the May 2009 Payment Date as provided in Section
5.04(b).

         

                               
“Transfer Date” means, with respect to any Payment Date, the Business Day
preceding such Payment Date.

         

                               
“Treasury Regulations” means regulations, including proposed or temporary
regulations, promulgated under the Code.  References herein to specific
provisions of proposed or temporary regulations shall include analogous
provisions of final Treasury Regulations or other successor Treasury
Regulations.

         

                               
“Trust” means the Issuing Entity.

         

                               
“Trust Account Property” means the Trust Accounts, all amounts and investments
held from time to time in any Trust Account (whether in the form of deposit
accounts, book‐entry securities, uncertificated securities or otherwise),
including the Reserve Account Initial Deposit, and all proceeds of the
foregoing.

         

                               
“Trust Accounts” has the meaning assigned thereto in Section
5.01.

         

                               
“Trust Agreement” means the Trust Agreement dated as of April 15, 2008, between
the Seller and the Owner Trustee, as the same may be amended and supplemented
from time to time.

         

                               
“Trust Estate” means the Trust Estate (as defined in the
Indenture).

         

                               
“Trust Officer” means, in the case of the Indenture Trustee, any officer within
the Corporate Trust Office of the Indenture Trustee who shall have direct
responsibility for the administration of the Indenture, including any Vice
President, Assistant Vice President, Secretary, Assistant Secretary or any other
officer of the Indenture Trustee customarily performing functions similar to
those performed by any of the above designated officers and also, with respect
to a particular matter, any other officer to whom such matter is referred
because of such officer’s knowledge of and familiarity with the particular
subject and, with respect to the Owner Trustee, any officer in the Corporate
Trust Services Department of the Owner Trustee with direct responsibility for
the administration of the Trust Agreement and the Basic Documents on behalf of
the Owner Trustee.

         

                               
“UCC” means the Uniform Commercial Code.

         

                               
SECTION 1.02   Other
Definitional Provisions .  Capitalized terms used herein and not
otherwise defined herein have the meanings assigned to them in the
Indenture.

         

                               
(a)  All terms defined in this Agreement shall have the defined meanings
when used in any certificate or other document made or delivered pursuant hereto
unless otherwise defined therein.

         

                               
(b)  As used in this Agreement and in any certificate or other document
made or delivered pursuant hereto or thereto, accounting terms not defined in
this Agreement or in any 

         

         

        
          
            
            

          

          
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        such
certificate or other document, and accounting terms partly defined in this
Agreement or in any such certificate or other document to the extent not
defined, shall have the respective meanings given to them under generally
accepted accounting principles in the United States.  To the extent that
the definitions of accounting terms in this Agreement or in any such certificate
or other document are inconsistent with the meanings of such terms under
generally accepted accounting principles in the United States, the definitions
contained in this Agreement or in any such certificate or other document shall
control.

         

                               
(c)  The words “hereof,” “herein,” “hereunder” and words of similar import
when used in this Agreement shall refer to this Agreement as a whole and not to
any particular provision of this Agreement; Section, Schedule and Exhibit
references contained in this Agreement are references to Sections, Schedules and
Exhibits in or to this Agreement unless otherwise specified; and the term
“including” shall mean “including without limitation.”

         

                               
(d)  The definitions contained in this Agreement are applicable to the
singular as well as the plural forms of such terms and to the masculine as well
as to the feminine and neuter genders of such terms.

         

                               
SECTION 1.03   Calculations .  For all purposes of this Agreement,
interest in respect of the Class A-1 Notes shall be computed on the basis of a
360‐day year and the actual number of days in the related period of
accrual.  Interest in respect of the Class A-1 Notes shall accrue from and
including the Closing Date or from and including the most recent Payment Date to
which interest has been paid to but excluding the current Payment Date. 
For the avoidance of doubt, if any Class A-1 Notes are outstanding after the
Payment Date in April 2009, interest on the Class A-1 Notes will accrue from and
including the Payment Date in April 2009 to but excluding the Special Payment
Date.  Interest in respect of the Class A-2 Notes, the Class A-3 Notes and
the Class A-4 Notes shall be computed on the basis of a 360-day year consisting
of twelve 30-day months.  Interest on the Class A-2 Notes, the Class A-3
Notes and the Class A-4 Notes in respect of a Payment Date will accrue from and
including the 15th
day of the month preceding such Payment Date (or the Closing Date in the case of
the first Payment Date) to and including the 14th day of the month of such
Payment Date.

         

         

         

        ARTICLE
II

Conveyance of
Receivables

         

                               
SECTION 2.01   Conveyance
of Receivables .  In consideration of the Issuing Entity’s
delivery to or upon the order of the Seller of $643,049,074.46 the issuance to
the Seller of the Certificate and the waiver, termination and release set forth
in 2.02 below, the Seller does hereby sell, transfer, assign, set over and
otherwise convey to the Issuing Entity, without recourse (subject to the
obligations herein):

         

                (a) 
all right, title and interest of the Seller in and to the Receivables, and all
moneys due thereon, on or after the Cut-off Date;

         

         

        
          
            
            

          

          
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                (b) 
the interest of the Seller in the security interests in the Financed Equipment
granted by Obligors pursuant to the Receivables and any other interest of the
Seller in the Financed Equipment;

         

               
(c)  the interest of the Seller in any proceeds with respect to the
Receivables from claims on any physical damage, credit life or disability
insurance policies covering Financed Equipment or Obligors;

         

              
 (d)  all right, title and interest of the Seller in and to the
Purchase Agreement, including the right of the Seller to cause JDCC to
repurchase Receivables from the Seller under certain circumstances;
and

         

               
(e)  the proceeds of any and all of the foregoing.

         

                               
SECTION 2.02   Waiver .  The Issuing Entity hereby waives,
releases and terminates (i) any rights it may have in any equipment (other than
the Financed Equipment) as security for any obligations owing to it under the
Receivables, (ii) any rights it may have in any property as security for any
Receivable other than the rights relating to the related Financed Equipment and
the proceeds thereof and (iii) any rights it may have to apply moneys received
under a receivable that was not sold to the Issuing Entity pursuant to Section
2.01.  Notwithstanding anything to the contrary contained herein, the
foregoing in no way constitutes a waiver, release or termination of any of the
rights of the Issuing Entity with respect to the Financed Equipment and the
rights related to the Financed Equipment.

         

         

        ARTICLE III

The
Receivables

         

                               
SECTION 3.01   Representations and Warranties of Seller .  The
Seller makes the following representations and warranties as to the Receivables
on which the Issuing Entity is deemed to have relied in acquiring the
Receivables.  Such representations and warranties speak as of the execution
and delivery of this Agreement, but shall survive the sale, transfer and
assignment of the Receivables to the Issuing Entity and the pledge thereof to
the Indenture Trustee pursuant to the Indenture.

         

                (a) 
Title .  It is the intention of the Seller that the
transfer and assignment herein contemplated constitute a sale of the Receivables
from the Seller to the Issuing Entity and that the beneficial interest in and
title to such Receivables not be part of the debtor’s estate in the event of the
filing of a bankruptcy petition by or against the Seller under any bankruptcy
law.  No Receivable has been sold, transferred, assigned or pledged by the
Seller to any Person other than the Issuing Entity.  Immediately prior to
the transfer and assignment herein contemplated, the Seller had good and
marketable title to each Receivable, free and clear of all Liens and rights of
others and, immediately upon the transfer thereof, the Issuing Entity shall have
good and marketable title to each such Receivable, free and clear of all Liens
and rights of others; and the transfer has been perfected under the
UCC.

         

         

        
          
            
            

          

          
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(b)  All Filings Made .  All filings (including UCC
filings) necessary in any jurisdiction to give the Issuing Entity a first
perfected ownership interest in the Receivables, and to give the Indenture
Trustee a first perfected security interest therein, shall have been
made.

         

                               
SECTION 3.02   Repurchase
by Seller upon Breach .  The Seller, the Servicer, the
Sub-Servicer or the Owner Trustee, as the case may be, shall inform the other
parties to this Agreement and the Indenture Trustee and JDCC promptly, in
writing, upon the discovery of any breach of the Seller’s representations and
warranties made pursuant to Section 3.01 or JDCC’s representations and
warranties made pursuant to Section 3.02(b) of the Purchase Agreement. 
Unless any such breach shall have been cured by the last day of the second month
following the month of the discovery thereof by the Owner Trustee or receipt by
the Owner Trustee of written notice from the Seller, the Servicer or the
Sub-Servicer of such breach, the Seller shall be obligated, and, if necessary,
the Seller or the Owner Trustee shall enforce the obligation of JDCC under the
Purchase Agreement, to repurchase any Receivable materially and adversely
affected by any such breach as of such last day (or, at the Seller’s option, the
last day of the first month following the month of the discovery).  In
consideration of the repurchase of the Receivable, the Seller shall remit the
Purchase Amount, in the manner specified in Section 5.03; provided, however,
that the obligation of the Seller to repurchase any Receivable arising solely as
a result of a breach of JDCC’s representations and warranties pursuant to
Section 3.02 (b) of the Purchase Agreement is subject to the receipt by the
Seller of the Purchase Amount from JDCC.  Subject to the provisions of
Section 6.03, the sole remedy of the Issuing Entity, the Owner Trustee, the
Indenture Trustee, the Noteholders or the Certificateholder with respect to a
breach of representations and warranties pursuant to Section 3.01 and the
agreement contained in this Section shall be to require the Seller to repurchase
Receivables pursuant to this Section, subject to the conditions contained
herein, or to enforce JDCC’s obligation to the Seller to repurchase such
Receivables pursuant to the Purchase Agreement.  The Owner Trustee shall
have no duty to conduct any affirmative investigation as to the occurrence of
any condition requiring the repurchase of any Receivable pursuant to this
Section.

         

                               
SECTION 3.03   Custody of
Receivable Files .  To assure uniform quality in servicing the
Receivables and to reduce administrative costs, the Issuing Entity hereby
appoints the Servicer, and the Servicer hereby accepts such appointment, to act
as the agent and as custodian of the Issuing Entity and the Indenture Trustee of
the following documents or instruments which are hereby constructively delivered
to the Indenture Trustee, as pledgee of the Issuing Entity with respect to each
Receivable:

         

                (a) 
the original executed copy of the Receivable;

         

                
(b)  the original or a copy of the credit application fully executed by the
Obligor;

         

                
(c)  the original certificate of title (or a secured party copy thereof),
the file stamped copy of the UCC financing statement or such other documents
that the Seller or JDCC shall keep on file, in accordance with its customary
procedures, evidencing the security interest of Deere & Company or an
affiliate of Deere & Company in the Financed Equipment;
and

         

         

        
          
            
            

          

          
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               (d) 
any and all other documents that JDCC or the Seller shall keep on file, in
accordance with its customary procedures, relating to a Receivable, an Obligor
or Financed Equipment.

         

                               
SECTION 3.04   Duties of
Servicer as Custodian .

         

                               
(a)  Safekeeping .  The Servicer shall hold the
Receivable Files on behalf of the Issuing Entity and maintain such accurate and
complete accounts, records and computer systems pertaining to each Receivable
File as shall enable the Issuing Entity to comply with this Agreement.  In
performing its duties as custodian the Servicer shall act with reasonable care,
using that degree of skill and attention that the Servicer exercises with
respect to the receivable files relating to all comparable receivables that the
Servicer services for itself or others.  The Servicer shall conduct, or
cause to be conducted, periodic audits of the Receivable Files held by it under
this Agreement and of the related accounts, records and computer systems, in
such a manner as shall enable the Issuing Entity or the Indenture Trustee to
verify the accuracy of the Servicer’s record keeping.  The Servicer shall
promptly report to the Issuing Entity and the Indenture Trustee any failure on
its part to hold the Receivable Files and maintain its accounts, records and
computer systems as herein provided and promptly take appropriate action to
remedy any such failure.  Nothing herein shall be deemed to require an
initial review or any periodic review by the Issuing Entity, the Owner Trustee
or the Indenture Trustee of the Receivable Files.

         

                               
(b)  Maintenance of and Access to Records .  The
Servicer shall maintain each Receivable File at its office specified in Schedule
B to this Agreement or at such other office as shall be specified to the Issuing
Entity and the Indenture Trustee by written notice not later than 90 days after
any change in location.  The Servicer shall make available to the Issuing
Entity and the Indenture Trustee or their respective duly authorized
representatives, attorneys or auditors a list of locations of the Receivable
Files and the related accounts, records and computer systems maintained by the
Servicer at such times as the Issuing Entity or the Indenture Trustee shall
instruct.

         

                               
(c)  Release of Documents .  Upon instruction from the
Indenture Trustee, the Servicer shall release any Receivable File to the
Indenture Trustee, the Indenture Trustee’s agent, or the Indenture Trustee’s
designee, as the case may be, at such place or places as the Indenture Trustee
may designate, as soon as practicable.

         

                               
SECTION 3.05   Instructions; Authority to Act .  The Servicer
shall be deemed to have received proper instructions with respect to the
Receivable Files upon its receipt of written instructions signed by a Trust
Officer of the Indenture Trustee.

         

                               
SECTION 3.06   Custodian’s
Indemnification .  The Servicer as custodian shall indemnify the
Trust, the Owner Trustee and the Indenture Trustee and each of their officers,
directors and agents for any and all liabilities, obligations, losses,
compensatory damages, payments, costs or expenses of any kind whatsoever that
may be imposed on, incurred by or asserted against the Trust, the Owner Trustee
or the Indenture Trustee or any of their officers, directors and agents as the
result of any improper act or omission in any way relating to the maintenance
and custody by the Servicer as custodian of the Receivable Files;
provided,

         

         

        
          
            
            

          

          
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        however, that
the Servicer shall not be liable to the Trust or the Owner Trustee for any
portion of any such amount resulting from the willful misfeasance, bad faith or
negligence of the Owner Trustee and the Servicer shall not be liable to the
Trust or the Indenture Trustee for any portion of any such amount resulting from
the willful misfeasance, bad faith or negligence of the Indenture
Trustee.

         

                               
SECTION 3.07   Effective
Period and Termination .  The Servicer’s appointment as custodian
shall become effective as of the Cut-off Date and shall continue in full force
and effect until terminated pursuant to this Section.  If JDCC shall resign
as Servicer in accordance with the provisions of this Agreement or if all of the
rights and obligations of any Servicer shall have been terminated under Section
8.01, the appointment of such Servicer as custodian shall be terminated by the
Indenture Trustee or by the Holders of Notes evidencing not less than 25% of the
Outstanding Amount of the Notes or, with the consent of Holders of the Notes
evidencing not less than 25% of the Outstanding Amount of the Notes, by the
Owner Trustee or by the Certificateholder, in the same manner as the Indenture
Trustee or such Holders may terminate the rights and obligations of the Servicer
under Section 8.01.  The Indenture Trustee or, with the consent of the
Indenture Trustee, the Owner Trustee may terminate the Servicer’s appointment as
custodian, with cause, at any time upon written notification to the Servicer,
and without cause upon 30 days’ prior written notification to the
Servicer.  As soon as practicable after any termination of such
appointment, the Servicer shall deliver the Receivable Files to the Indenture
Trustee or the Indenture Trustee’s agent at such place or places as the
Indenture Trustee may reasonably designate.  The Servicer shall pay the
fees of any other Person acting as custodian of the Receivables
Files.

         

         

        ARTICLE IV

Administration and Servicing of
Receivables

         

                               
SECTION 4.01   Duties of
Servicer .  The Servicer, as agent for the Issuing Entity (to the
extent provided herein), shall manage, service, administer and make collections
on the Receivables (other than Purchased Receivables) with reasonable care,
using that degree of skill and attention that the Servicer exercises with
respect to all comparable equipment receivables that it services for itself or
others.  The Servicer’s duties shall include calculating, billing,
collection and posting of all payments, responding to inquiries of Obligors on
such Receivables, investigating delinquencies, reporting tax information to
Obligors, accounting for collections, and furnishing monthly and annual
statements to the Owner Trustee and the Indenture Trustee with respect to
distributions.  Subject to the provisions of Section 4.02, the Servicer
shall follow its then current customary standards, policies and procedures in
performing its duties as Servicer.  Without limiting the generality of the
foregoing, the Servicer is authorized and empowered to execute and deliver, on
behalf of itself, the Issuing Entity, the Owner Trustee, the Indenture Trustee,
the Certificateholder and the Noteholders or any of them, any and all
instruments of satisfaction or cancellation, or partial or full release or
discharge, and all other comparable instruments, with respect to such
Receivables or to the Financed Equipment securing such Receivables.  If the
Servicer shall commence a legal proceeding to enforce a Receivable, the Issuing
Entity (in the case of a Receivable other than a Purchased Receivable) shall
thereupon be deemed to have automatically assigned, solely for the purpose of
collection, such Receivable to the Servicer.  If in any enforcement suit or
legal proceeding it shall be held that the Servicer may

         

         

         

        
          
            
            

          

          
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        not enforce a
Receivable on the ground that it shall not be a real party in interest or a
holder entitled to enforce such Receivable, the Owner Trustee shall, at the
Servicer’s expense and direction, take steps to enforce such Receivable,
including bringing suit in its name or the name of the Owner Trustee, the
Indenture Trustee, the Certificateholder or the Noteholders.  The Owner
Trustee shall upon the written request of the Servicer furnish the Servicer with
any powers of attorney and other documents reasonably necessary or appropriate
to enable the Servicer to carry out its servicing and administrative duties
hereunder.  

         

                               
SECTION 4.02   Collection
of Receivable Payments .  The Servicer shall make reasonable
efforts to collect all payments called for under the terms and provisions of the
Receivables as and when the same shall become due and shall follow such
collection procedures as it follows with respect to all comparable equipment
receivables that it services for itself or others.  In connection
therewith, the Servicer may grant extensions, rebates or adjustments on a
Receivable in accordance with its customary collection procedures with respect
to all comparable equipment receivables that it services for itself or others;
provided, however, that if the Servicer extends the date for final payment by
the Obligor of any Receivable beyond March 23, 2014, it shall promptly purchase
the Receivable from the Issuing Entity in accordance with the terms of Section
4.07; provided, further, that the Servicer shall not extend the final Scheduled
Payment for the sole purpose of purchasing the Receivables from the Issuing
Entity.  The Servicer may in its discretion waive any additional interest
above the related APR due on late Scheduled Payments or any other fees that may
be collected in the ordinary course of servicing a Receivable.  The
Servicer shall not agree to any alteration of the interest rate on any
Receivable and shall not agree to waive the repayment of the Amount Financed, or
any portion thereof, on a Receivable.  Notwithstanding anything in this
Agreement to the contrary, any Recoveries shall be paid to the Seller and the
related Liquidated Receivable shall be assigned by the Trust to the
Seller.

         

                               
SECTION 4.03   Realization
upon Receivables .  On behalf of the Issuing Entity, the Servicer
shall use its best efforts, consistent with its customary servicing procedures,
to repossess or otherwise realize upon the Financed Equipment securing any
Receivable as to which the Servicer shall have determined pursuant to customary
servicing procedures that eventual payment in full is unlikely.  The
Servicer shall follow such customary and usual practices and procedures as it
shall deem necessary or advisable in its servicing of comparable equipment
receivables, which may include selling any Financed Equipment at public or
private sale.  The Servicer is hereby authorized to exercise its discretion
consistent with its customary servicing procedures in servicing defaulted
Receivables so as to maximize the net collections of such defaulted Receivables
including, without limitation, selling such defaulted Receivables.  The
Servicer shall not be liable for any such exercise of its discretion made in
good faith and in accordance with such servicing procedures.  The foregoing
shall be subject to the provision that, in any case in which the Financed
Equipment shall have suffered damage, consistent with its customary servicing
procedures the Servicer may but shall not be required to expend funds in
connection with the repair or the repossession of such Financed
Equipment.

         

                               
SECTION 4.04   Physical Damage
Insurance .  The Servicer shall, in accordance with its customary
servicing procedures, require that each Obligor shall have obtained physical
damage insurance covering the Financed Equipment as of the execution of the
Receivable.

         

         

        
          
            
            

          

          
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SECTION 4.05   Maintenance
of Security Interests in Financed Equipment .  The Servicer
shall, in accordance with its customary servicing procedures, take such steps as
are necessary to maintain perfection of the security interest created by each
Receivable in the related Financed Equipment.  The Servicer is hereby
authorized to take such steps as are necessary to re‐perfect such security
interest on behalf of the Issuing Entity and the Indenture Trustee in the event
of the relocation of the Financed Equipment or for any other
reason.

         

                               
SECTION 4.06   Covenants of
Servicer .  The Servicer shall not release the Financed Equipment
securing any Receivable from the security interest granted by such Receivable in
whole or in part except in accordance with Section 4.03 above or in the event of
payment in full by the Obligor thereunder, nor shall the Servicer impair the
rights of the Issuing Entity, the Indenture Trustee, the Certificateholder or
the Noteholders in such Receivables, nor shall the Servicer increase the number
of scheduled payments due under a Receivable except in accordance with the terms
thereof or the terms of Section 4.02.

         

                               
SECTION 4.07   Purchase by
Servicer of Receivables upon Breach .  The Servicer (or the
Sub-Servicer on behalf of the Servicer) or the Owner Trustee shall inform the
other party and the Indenture Trustee, the Seller and JDCC promptly, in writing,
upon the discovery of any breach of Section 4.02, 4.05 or 4.06.  Unless the
breach shall have been cured by the last day of the second month following such
discovery (or, at the Servicer’s election, the last day of the first following
month), the Servicer shall purchase any Receivable materially and adversely
affected by such breach.  If the Servicer takes any action pursuant to
Section 4.02 that impairs the rights of the Issuing Entity, the Indenture
Trustee, the Certificateholder or the Noteholders in any Receivable or as
otherwise provided in Section 4.02, the Servicer shall purchase such
Receivable.  In consideration of the purchase of any such Receivable
pursuant to either of the two preceding sentences, the Servicer shall remit the
Purchase Amount in the manner specified in Section 5.03.  Subject to
Section 7.02, the sole remedy of the Issuing Entity, the Owner Trustee, the
Indenture Trustee, the Certificateholder or the Noteholders with respect to a
breach pursuant to Section 4.02, 4.05 or 4.06 shall be to require the Servicer
to purchase Receivables pursuant to this Section.  The Owner Trustee shall
have no duty to conduct any affirmative investigation as to the occurrence of
any condition requiring the purchase of any Receivable pursuant to this
Section.

         

                               
SECTION 4.08   Servicing
Fee .  On each Determination Date, the Servicer shall be entitled
to receive the Servicing Fee in respect of the immediately preceding Collection
Period equal to the product of (a) one twelfth of the Servicing Fee Rate and (b)
the Pool Balance as of the first day of such preceding Collection Period subject
to the order and priority set forth in Section 5.04.  The Servicer shall
also be entitled to that portion of interest due on a Receivable that is in
excess of interest at the related APR and that is due because of a late
Scheduled Payment, and other administrative fees or similar charges allowed by
applicable law or the Receivable with respect to Receivables, collected (from
whatever source) on the Receivables.

         

                               
SECTION 4.09   Servicer’s
Certificate .  On each Determination Date, the Servicer shall
deliver to the Owner Trustee, the Indenture Trustee and the Seller, with a copy
to the Rating Agencies, a Servicer’s Certificate containing all information
necessary to make the distributions pursuant to Sections 5.04 and 5.05 for the
Collection Period preceding the date of such Servicer’s Certificate. 
Neither the Owner Trustee nor the Indenture Trustee shall be

         

         

        
          
            
            

          

          
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        required to
determine, confirm or recalculate the information contained in the Servicer’s
Certificate.

         

                               
SECTION 4.10   Annual
Statement as to Compliance; Notice of Default .

         

                               
(a)  The Servicer shall deliver, and if required under Regulation AB shall
cause the Sub-Servicer to deliver, to the Issuing Entity, the Owner Trustee, the
Seller and the Indenture Trustee, on or before January 15 of each year (or by
such earlier date as specified in writing by the Seller as will permit the
timely filing of the Trust’s Form 10-K) a statement of compliance signed by an
authorized officer of the Servicer, providing such information as required under
Item 1123 of Regulation AB.

         

                               
(b)  The Servicer shall deliver, to the Issuing Entity, the Owner Trustee,
the Seller, the Indenture Trustee and the Rating Agencies, promptly after having
obtained knowledge thereof, but in no event later than five Business Days
thereafter, written notice in an Officer’s Certificate of any event which with
the giving of notice or lapse of time, or both, would become a Servicer Default
under Section 8.01(a) or (b).

         

                               
SECTION 4.11   Report on
Assessment of Compliance and Annual Independent Certified Public Accountants’
Report .  

         

                           
   (a)   The Servicer shall deliver, and if required
under Regulation AB shall cause the Sub-Servicer to deliver, to the Issuing
Entity, the Owner Trustee, the Seller and the Indenture Trustee on or before
January 15 of each year (or by such earlier date as specified in writing by the
Seller as will permit the timely filing of the Trust’s Form 10-K), and the
Indenture Trustee shall deliver to the Depositor and the Servicer on or before
January 15 of each year that the Issuing Entity is required to file Exchange Act
Reports (or by such earlier date as specified in writing by the Seller as will
permit the timely filing of the Trust’s Form 10-K), a report signed by an
authorized officer of the Servicer, the Sub-Servicer or the Indenture Trustee,
as applicable regarding the Servicer’s, Sub-Servicer’s or Indenture Trustee’s,
as applicable, assessment of compliance with the applicable servicing criteria
specified in Item 1122 of Regulation AB during the immediately preceding fiscal
year, in the form specified under Rules 13a-18 and 15d-18 of the Exchange Act
(or any successor provision).  Such report signed by the Indenture Trustee
shall address each of the Servicing Criteria specified in Appendix A hereto
(provided that such certification may be revised after the date of this
Agreement as agreed by the Seller and the Indenture Trustee to reflect any
guidance with respect to such criteria from the Commission).  Upon request
of the Seller, the Indenture Trustee shall deliver to the Depositor and the
Servicer on or before the date that is 75 days after the end of the Issuing
Entity’s fiscal year a copy of the assessment of compliance with the Servicing
Criteria specified in Appendix A hereto most recently prepared by the Indenture
Trustee relating to the Indenture Trustee’s servicing platform with respect to
asset-backed securities that are backed by assets of the type backing the Notes
issued by the Issuing Entity.

         

                               
(b)    The Servicer shall cause a firm of registered public
accountants, which may also render other services to the Servicer, the Seller,
JDCC or any other Affiliate of Deere, to deliver to the Issuing Entity, the
Owner Trustee and the Indenture Trustee, on or before January 15 of each year
(or by such earlier date as specified in writing by the Seller as
will

         

         

        
          
            
            

          

          
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        permit the timely filing
of the Trust’s 10-K), and the Indenture Trustee shall cause a firm of registered
public accountants, which may also render other services to the Indenture
Trustee or its Affiliates, to deliver to the Depositor and the Servicer on or
before January 15 of each year that the Issuing Entity is required to file
Exchange Act Reports (or by such earlier date as specified in writing by the
Seller as will permit the timely filing of the Trust’s 10-K) a report that
attests to, and reports on, the Servicer’s, Sub-Servicer’s (if required under
Regulation AB) or Indenture Trustee’s, as applicable assessment of compliance
delivered pursuant to Section 4.11(a), which attestation report shall be made in
accordance with the requirements of Rules 1-02(a)(3) and 2-02(g) of Regulation
S-X (or any successor provision). Upon request of the Seller, the Indenture
Trustee shall deliver to the Depositor and the Servicer on or before the date
that is 75 days after the end of the Issuing Entity’s fiscal year a copy of the
report by a firm of registered public accountants that attests to, and reports
on, the Indenture Trustee’s assessment of compliance delivered pursuant to the
last sentence of Section 4.11(a) above.

         

                               
SECTION 4.12   Access to
Certain Documentation and Information Regarding Receivables . 
The Servicer shall provide to the Certificateholder and Noteholders access to
the Receivable Files in such cases where the Certificateholder or Noteholders
shall be required by applicable statutes or regulations to review such
documentation.  Access shall be afforded without charge, but only upon
reasonable request and during the normal business hours at the respective
offices of the Servicer.  Nothing in this Section shall affect the
obligation of the Servicer to observe any applicable law prohibiting disclosure
of information regarding the Obligors and the failure of the Servicer to provide
access to information as a result of such obligation shall not constitute a
breach of this Section.

         

                               
SECTION 4.13   Servicer
Expenses .  The Servicer shall be required to pay all expenses
incurred by it in connection with its activities hereunder, including fees and
disbursements of independent accountants, fees and disbursements incurred in
connection with collection and enforcement of Receivables (other than amounts
incurred in connection with the liquidation of a Receivable which amounts shall
be netted against the Liquidation Proceeds, if any), taxes imposed on the
Servicer and expenses incurred in connection with distributions and reports to
the Certificateholder and the Noteholders.

         

                               
SECTION 4.14   Appointment
of Sub-Servicer .  The Servicer hereby appoints Deere Credit
Services, Inc. as Sub‐Servicer and may at any time appoint a successor
Sub‐Servicer to perform all or any portion of its obligations as Servicer
hereunder; provided, however, that the Rating Agency Condition shall have been
satisfied in connection with the appointment of a successor Sub-Servicer;
provided further that the Servicer shall remain obligated and be liable to the
Issuing Entity, the Owner Trustee, the Indenture Trustee, the Certificateholder
and the Noteholders for the servicing and administering of the Receivables in
accordance with the provisions hereof without diminution of such obligation and
liability by virtue of the appointment of such Sub‐Servicer and to the same
extent and under the same terms and conditions as if the Servicer alone were
servicing and administering the Receivables.  The fees and expenses of the
Sub‐Servicer shall be as agreed between the Servicer and its Sub‐Servicer from
time to time and none of the Issuing Entity, the Owner Trustee, the Indenture
Trustee, the Certificateholder or the Noteholders shall have any responsibility
therefor.  If at any time the Sub-Servicer shall fail to comply with any of
its obligations under Section 4.16 of this Agreement during the period that the
Seller is required to file Exchange Act Reports with respect

         

         

         

        
          
            
            

          

          
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        to the Trust
and such failure is not remedied within the lesser of ten calendar days and the
period of time in which the related Exchange Act Report is required to be filed
(without taking into account any extensions), then the Seller may remove the
Sub-Servicer.

         

                               
SECTION 4.15   Information
to be Furnished in the Event of Resignation or Termination .  In
the event the Servicer, the Sub-Servicer, the Indenture Trustee or any Reporting
Subcontractor is terminated or resigns during the term of this Agreement, such
Person shall provide the documents and information pursuant to Section 4.10 and
Section 4.11 with respect to the period of time it was subject to this Agreement
or provided services with respect to the Issuing Entity or the
Receivables.  

         

                               
SECTION 4.16   Exchange Act
Reports .  (a)  So long as the Seller is required to file
Exchange Act Reports with respect to the Issuing Entity, no later than each
Payment Date, each of the Indenture Trustee, the Owner Trustee and the Servicer
shall notify (and the Servicer shall cause each Reporting Subcontractor and the
Sub-Servicer to notify ) the Seller of any Form 10-D Disclosure Item with
respect to such Person, together with a description of any such Form 10-D
Disclosure Item in form and substance reasonably acceptable to the Seller. 
In addition to such information as the Servicer is obligated to provide pursuant
to other provisions of this Agreement, if so requested by the Seller, the
Servicer shall provide (and shall cause the Sub-Servicer to provide) such
information which is available to the Servicer, without unreasonable effort or
expense, regarding the performance or servicing of the Receivables as is
reasonably required to facilitate preparation of distribution reports in
accordance with Item 1121 of Regulation AB.  Such information shall be
provided concurrently with the statements to Noteholders pursuant to Section
5.06, commencing with the first such report due not less than five Business Days
following such request.

         

                               
(b)  So long as the Depositor is required to file Exchange Act Reports with
respect to the Issuing Entity, each of the Indenture Trustee, the Owner Trustee
and the Servicer shall promptly notify the Seller, but in no event later than
one (1) Business Day after its occurrence, of any Reportable Event (in the case
of the Owner Trustee, only an event in clause (d) of the definition of
Reportable Event) of which such Person (or, in the case of the Indenture Trustee
or Owner Trustee, a Responsible Officer) has actual knowledge.  Each Person
shall be deemed to have actual knowledge of any such event to the extent that it
relates to such Person or any action or failure to act by such
Person.

         

                               
(c)  So long as the Depositor is required to file Exchange Act Reports, (i)
no later than January 1 of each year commencing in 2009, the Depositor shall
provide a list of the Item 1119 Parties to the Owner Trustee, Indenture Trustee
and Servicer and (ii) no later than January 15 of each year, commencing in 2009,
the Indenture Trustee, the Owner Trustee and the Servicer shall notify the
Depositor of any Form 10-K Disclosure Item, together with a description of any
such Form 10-K Disclosure Item in form and substance reasonably acceptable to
the Depositor.

         

                               
(d)  The Indenture Trustee, the Owner Trustee and the Servicer shall
reasonably cooperate with the Depositor in connection with the satisfaction of
the Depositor’s reporting requirements under the Exchange Act with respect to
the Trust.  In addition to the information specified in this Section 4.16,
if so requested by the Depositor for the purpose of satisfying its reporting
obligation under the Exchange Act, the Indenture Trustee, the Owner Trustee and
the

         

         

         

        
          
            
            

          

          
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        Servicer
shall provide the Depositor with (a) such information which is available to such
Person without unreasonable effort or expense and within such timeframe as may
be reasonably requested by the Depositor to comply with the Depositor’s
reporting obligations under the Exchange Act and (b) to the extent such Person
is a party (and the Depositor is not a party) to any agreement or amendment
required to be filed, copies of such agreement or amendment in EDGAR-compatible
form.  Each of the Servicer, the Indenture Trustee and the Owner Trustee
acknowledges that interpretations of the requirements of Regulation AB may
change over time, whether due to interpretive guidance provided by the
Commission or its staff, consensus among participants in the asset-backed
securities markets, advice of counsel, or otherwise, and agrees to comply with
reasonable requests made by the Depositor in good faith for delivery of
information under these provisions on the basis of evolving interpretations of
Regulation AB.

         

                               
(e)  Each of the Indenture Trustee and the Owner Trustee represents that
(i) there are no affiliations relating to such Person with respect to any 1119
Party, (ii) there are no relationships or transactions with respect to any 1119
Party and such Person that are outside the ordinary course of business or on
terms other than would be obtained in an arm’s length transaction with an
unrelated third party, apart from the transactions contemplated under the
transaction documents, and that are material to the investors’ understanding of
the Notes and (iii) there are no legal proceedings pending, or known to be
contemplated by governmental authorities, against such Person, or of which the
property of such Person is subject, that is material to the
Noteholders.

         

         

        ARTICLE V

Distributions; Reserve Account;
Statements
to the Certificateholder and Noteholders

         

                               
SECTION 5.01   Establishment of Trust Accounts .

         

                               
(a)  (i)  The Servicer, for the benefit of the Noteholders and
the Certificateholder, shall establish and maintain in the name of the Indenture
Trustee an Eligible Deposit Account (the “Collection Account”), bearing a
designation clearly indicating that the funds deposited therein are held for the
benefit of the Noteholders and the Certificateholder.  

         

                               
(ii)         The Servicer, for the
benefit of the Noteholders, shall establish and maintain in the name of the
Indenture Trustee an Eligible Deposit Account (the “Note Distribution Account”),
bearing a designation clearly indicating that the funds deposited therein are
held for the benefit of the Noteholders.

         

                               
(iii)        The Servicer, for the benefit of
the Noteholders and the Certificateholder, shall establish and maintain in the
name of the Indenture Trustee an Eligible Deposit Account (the “Reserve
Account”), bearing a designation clearly indicating that the funds deposited
therein are held for the benefit of the Noteholders and the
Certificateholder.

         

                               
(b)  Funds on deposit in the Collection Account, the Note Distribution
Account and the Reserve Account (collectively the “Trust Accounts”) shall be
invested by the Indenture 

         

         

         

        
          
            
            

          

          
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        Trustee
pursuant to the Servicer’s written instruction in Eligible Investments selected
by the Servicer; provided, however, it is understood and agreed that the
Indenture Trustee shall not be liable for any loss arising from such investment
in Eligible Investments; provided further none of the funds deposited in the
Trust Accounts shall be invested in an Eligible Investment or Eligible
Investments issued by the Servicer or the Seller for a period of 30 days
following the Closing Date.  All such Eligible Investments shall be held by
the Indenture Trustee for the benefit of the Noteholders and the
Certificateholder, as applicable; provided, however, that on each Payment Date
all interest and other investment income (net of losses and investment expenses)
on funds on deposit in the Trust Accounts shall be deposited into the Collection
Account and shall be deemed to constitute a portion of the Total Distribution
Amount.  Other than as permitted by the Rating Agencies, funds on deposit
in the Trust Accounts shall be invested in Eligible Investments that will mature
so that such funds (or in the case of the Special Payment Date, the portion of
such funds needed to make the final payment on the Class A-1 Notes pursuant to
Section 5.04(d)) will be available at the close of business on the Transfer Date
preceding the following Payment Date or, in the case of the Note Distribution
Account and the Reserve Account, the following Payment Date.  Funds
deposited in a Trust Account on a Transfer Date which immediately precedes a
Payment Date are not required to be invested overnight.

         

                               
(c)  (i)  The Indenture Trustee shall possess all right, title
and interest in all funds on deposit from time to time in the Trust Accounts and
in all proceeds thereof (including all income thereon) and all such funds,
investments, proceeds and income shall be part of the Trust Estate.  The
Trust Accounts shall be under the sole dominion and control of the Indenture
Trustee for the benefit of the Noteholders and the Certificateholder, as the
case may be.  If, at any time, any of the Trust Accounts ceases to be an
Eligible Deposit Account, the Indenture Trustee (or the Servicer on its behalf)
shall within 10 Business Days (or such longer period, not to exceed 30 calendar
days, as to which each Rating Agency may consent) establish a new Trust Account
as an Eligible Deposit Account and shall transfer any cash and/or any
investments to such new Trust Account.  So long as U.S. Bank National
Association is an Eligible Institution, any Trust Account shall be maintained
with it in an Eligible Deposit Account.  

         

                               
(ii)        With respect to the Trust
Account Property, the Indenture Trustee agrees, by its acceptance hereof,
that:

         

                               
(A) any Trust Account Property that is held in “deposit accounts” (as defined in
Section 9-102(a)(29) of the UCC) shall be held solely in the Eligible Deposit
Accounts and (1) each such Eligible Deposit Account shall be subject to the
exclusive custody and control of the Indenture Trustee, the Indenture Trustee
shall have sole signature authority with respect thereto and to the extent the
Indenture Trustee ceases to be an Eligible Institution, the Indenture Trustee
shall be the related Eligible Institution’s “customer” and shall have “control”
(in each case within the meaning of Section 9-104 of the UCC) with respect to
such Eligible Deposit Account, (2) the Eligible Institution at which such
Eligible Deposit Account is maintained shall be a “bank” as defined in Section
9-102(a)(8) of the UCC and shall agree to maintain such Eligible Deposit Account
as a “deposit account” as such term is defined in Section 9-102(a)(29) of the
UCC, and (3) the “bank’s jurisdiction” (within the meaning of Section 9-304 of
the UCC) with respect to such Eligible Deposit Account shall be the State of New
York;

         

         

         

        
          
            
            

          

          
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(B) any Trust Account Property that is held in “securities accounts” (as defined
in Section 8-501(a) of the UCC) shall be held solely in Eligible Deposit
Accounts; and (1) the Eligible Institution at which each such Eligible Deposit
Account is maintained shall be a “securities intermediary” as defined in Section
8-102(a)(14) of the UCC and shall agree to maintain such Eligible Deposit
Account as a “securities account” as such term is defined in Section 8-501(a) of
the UCC, (2) the Eligible Institution at which such Eligible Deposit Account is
maintained shall treat the Indenture Trustee as entitled to exercise the rights
that comprise any “financial asset” (as defined in Section 8-102(a)(9) of the
UCC) credited to the account, and if at any time such Eligible Institution shall
receive an “entitlement order” (within the meaning of Section 8-102(a)(8) of the
UCC) issued by the Indenture Trustee and relating to such Eligible Deposit
Account, such Eligible Institution shall comply with such entitlement order
without further consent by the Issuing Entity or any other Person, (3) the
Eligible Institution at which such Eligible Deposit Account is maintained shall
agree with the Indenture Trustee that each item of property (whether investment
property, financial asset, security, instrument or cash) credited to such
Eligible Deposit Account shall be treated as a “financial asset” within the
meaning of Section 8-102(a)(9) of the UCC, (4) the “securities intermediaries’
jurisdiction” (within the meaning of Section 8-110 of the UCC) with respect to
such Eligible Deposit Account shall be the State of New York and (5) the
Eligible Institution at which such Eligible Deposit Account is maintained shall
agree with the Indenture Trustee that in the event that such securities
intermediary has or subsequently obtains by agreement, by operation of law or
otherwise, a security interest in such Eligible Deposit Account or any financial
asset credited thereto, the securities intermediary agrees that such security
interest shall be subordinate to the security interest of the Indenture Trustee
and that the financial assets and other items deposited to such an Eligible
Deposit Account will not be subject to deduction, set-off, banker’s lien, or any
other right in favor of any person other than the Indenture
Trustee;

         

                               
(C) any Trust Account Property that is of the type described in paragraph (a) or
(b) of the definition of “Delivery” shall be delivered to the Indenture Trustee
in accordance with paragraph (a) or (b), as applicable, of the definition of
“Delivery”, and shall be held as described in such
paragraph;

         

                               
(D) any Trust Account Property that is a book‐entry security held through the
Federal Reserve System pursuant to Federal book-entry regulations shall be
delivered in accordance with paragraph (c) of the definition of “Delivery” and
shall be maintained by the Indenture Trustee, pending maturity or disposition,
through continued book-entry registration of such Trust Account Property as
described in such paragraph; and

         

                               
(E) any Trust Account Property that is an “uncertificated security” under
Article 8 of the UCC and that is not governed by clause (C) above shall be
delivered to the Indenture Trustee in accordance with paragraph (d) of the
definition of “Delivery” and shall be maintained by the Indenture Trustee,
pending maturity or disposition, through continued registration of the Indenture
Trustee’s (or its nominee’s) ownership of such security.

         

                               
(iii)       The Servicer shall have the
power, revocable by the Indenture Trustee or by the Owner Trustee with the
consent of the Indenture Trustee, to instruct the Indenture Trustee to make
withdrawals and payments from the Trust Accounts (to the extent such amounts are
property of the Issuing Entity) for the purpose of permitting the Servicer or
the Owner Trustee to

         

         

        
          
            
            

          

          
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        carry out its
respective duties hereunder or permitting the Indenture Trustee to carry out its
duties under the Indenture.

         

                               
SECTION 5.02   Collections .  So long as (i) JDCC is the Servicer,
(ii) a Servicer Default shall not have occurred and be continuing and (iii)
JDCC’s unsecured, non-guaranteed short term debt maintains a rating of at least
A-1 by Standard & Poor’s and Prime-1 by Moody’s, the Servicer shall remit to
the Collection Account all payments by or on behalf of the Obligors with respect
to the Receivables (other than Purchased Receivables), all Liquidation Proceeds
(exclusive of Recoveries, which shall be applied in accordance with Section
4.02) and collections (as collected during each Fiscal Month) to the Collection
Account, not less than one Business Day prior to the 15th day of the calendar
month following such Fiscal Month (or, if such Fiscal Month ends in the early
part of a calendar month, then the 15th day of such calendar month in which such
Fiscal Month ends), provided, that, in the event of a Special Payment Date, the
Servicer shall remit to the Collection Account such collections not less than
one Business Day prior to the Special Payment Date.  Otherwise, the
Servicer shall remit, such collections within two Business Days of receipt
thereof.  For purposes of this Article V the phrase “payments by or on
behalf of Obligors” shall mean payments made with respect to the Receivables by
persons other than the Servicer or JDCC.

         

                               
SECTION 5.03   Additional
Deposits .  The Servicer and the Seller shall deposit or cause to
be deposited in the Collection Account the aggregate Purchase Amount with
respect to Purchased Receivables and the Servicer shall deposit therein all
amounts to be paid under Section 9.01(a).  The Servicer will deposit the
aggregate Purchase Amount with respect to Purchased Receivables when such
obligations are due pursuant to Section 4.07, unless the Servicer shall not be
required to make deposits within two Business Days of the receipt of collections
from Obligors pursuant to Section 5.02, in which case deposits of Purchased
Amounts shall be made on the Transfer Date.

         

                               
SECTION 5.04   Distributions .

         

                               
(a)  On each Determination Date, the Servicer shall calculate the amounts
to be deposited in the Note Distribution Account and the Certificate
Distribution Account.

         

                               
(b)  On the second Business Day prior to each Payment Date, the Servicer
shall instruct the Indenture Trustee in writing in substantially the form of
Schedule G hereto (based on the information contained in the Servicer’s
Certificate delivered on the related Determination Date pursuant to Section
4.09) to make deposits and distributions to the Servicer or the Administrator or
distribute to the applicable Trust Account or Certificate Distribution Account
by 12:00 noon (New York time) in the case of the Trust Accounts and 11:00 A.M.
(New York time) in the case of the Certificate Distribution Account, in each
case on such Payment Date.  Distributions from the Total Distribution
Amount shall be made by the Indenture Trustee, to the extent available, in the
following order of priority:

         

             
   (i)         to the
Servicer (if JDCC or an Affiliate is not the Servicer), from the Total
Distribution Amount, the Servicing Fee and all unpaid Servicing Fees from prior
Collection Periods:

         

         

         

        
          
            
            

          

          
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(ii)        to the Administrator under the
Administration Agreement, from the Total Distribution Amount remaining after the
application of clause (i), the Administration Fee and all unpaid Administration
Fees from prior Collection Periods;

         

                
(iii)       to the Note Distribution Account, from
the Total Distribution Amount remaining after the application of clauses (i) and
(ii), the accrued and unpaid interest on the Notes for such Payment
Date;

         

                 (iv)      
to the Note Distribution Account, from the Total Distribution Amount remaining
after the application of clauses (i), (ii) and (iii), the Note Monthly Principal
Distributable Amount:

         

                
(v)        to the Reserve Account, from the
Total Distribution Amount remaining after the application of clauses (i), (ii),
(iii) and (iv) the amount, if any, necessary to increase the amounts on deposit
in the Reserve Account to the Specified Reserve Account
Balance;

         

                 (vi)      
to the Servicer (if JDCC or an Affiliate is the Servicer), from the Total
Distribution Amount remaining after the application of clauses (i), (ii), (iii),
(iv) and (v) the Servicing Fee and all unpaid Servicing Fees from prior
Collection Periods;

         

                
(vii)      to the Indenture Trustee, from the Total
Distribution Amount remaining after the application of clauses (i), (ii), (iii),
(iv), (v) and (vi), any unpaid amounts due to the Indenture Trustee under
Section 7.02 hereof and Section 6.07 of the Indenture;

         

                
(viii)      to the Owner Trustee, from the Total
Distribution Amount remaining after the application of clauses (i), (ii), (iii),
(iv), (v), (vi) and (vii), any unpaid amounts due to the Owner Trustee under
Section 7.02 hereof and Sections 8.01 and 8.02 of the Trust
Agreement;

         

                
(ix)       to the Certificate Distribution
Account, from the Total Distribution Amount remaining after the application of
clauses (i), (ii), (iii), (iv), (v), (vi), (vii) and (viii) the Certificate
Monthly Principal Distributable Amount, if any; and

         

                
(x)        to the Reserve Account, from the
Total Distribution Amount remaining after the application of clauses (i), (ii),
(iii), (iv), (v), (vi), (vii), (viii) and (ix) the Total Distribution Amount
remaining.

         

                               
(c)  With respect to any unpaid amount due to the Indenture Trustee or the
Owner Trustee, as applicable, for which payment is sought by the Indenture
Trustee or the Owner Trustee, as applicable, pursuant to Section 5.04(b)(vii) or
Section 5.04(b)(viii), respectively, the Indenture Trustee or the Owner Trustee,
as applicable, shall provide written notice to the Servicer at least five
Business Days prior to the Payment Date on which payment of such unpaid amount
is sought, together with such information regarding such unpaid amounts as the
Servicer may reasonably request.  Notwithstanding anything to the contrary
contained herein, no amount due to the Indenture Trustee or the Owner Trustee,
as applicable, will be eligible for payment under Section 5.04(b)(vii) or
Section 5.04(b)(viii), respectively, or this Section 5.04(c)
unless

         

         

         

        
          
            
            

          

          
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        such amount
remains unpaid for more than 30 calendar days after delivery to the Servicer by
the Indenture Trustee or the Owner Trustee, as applicable, of demand for
payment.

         

                               
(d)  Notwithstanding anything to the contrary contained herein, in the
event of a Special Payment Date, the instructions provided by the Servicer
pursuant to Section 5.04(b) shall (x) be given two Business Days prior to the
Special Payment Date and (y) specify that on the Special Payment Date
distributions shall be made to the Trust Accounts no later than 12:00 noon (New
York time) in respect of the Class A-1 Notes.  The portion of the Total
Distribution Amount deposited to the Trust Accounts in respect of the Class A-1
Notes on the Special Payment Date shall be calculated in the order and priority
set forth in Section 5.04(b) as though such amounts were distributed on the May
2009 Payment Date.

         

                               
SECTION 5.05   Reserve
Account .

         

                               
(a)  On the Closing Date, the Seller shall deposit the Reserve Account
Initial Deposit into the Reserve Account.  The Servicer shall determine the
Specified Reserve Account Balance for each Payment Date.

         

                               
(b)  (i)  If the amount on deposit in the Reserve Account on each
Payment Date (after giving effect to all deposits or withdrawals therefrom on
such Payment Date pursuant to Section 5.04 and Section 5.05(c)) is greater than
the Specified Reserve Account Balance for such Payment Date, the Servicer shall
instruct the Indenture Trustee to distribute such excess in the Reserve Account
to the Seller.  

         

                               
(ii)        on the date on which all interest
on and principal of the Notes have been paid in full, the Servicer shall
instruct the Indenture Trustee to distribute the Reserve Account balance to the
Seller.

         

                               
(iii)       Amounts properly distributed to the
Seller pursuant to this Section 5.05(b) shall be deemed released from the Trust
and the security interest therein granted to the Indenture Trustee, and the
Seller shall in no event thereafter be required to refund any such distributed
amounts.

         

                               
(c)  In the event that the Noteholders’ Distributable Amount for a Payment
Date exceeds the amount deposited into the Note Distribution Account pursuant to
Section 5.04(b)(iii) and (iv) on such Payment Date, the Servicer shall instruct
the Indenture Trustee to withdraw from the Reserve Account on such Payment Date,
to the extent of funds available therein, an amount equal to such excess and
deposit such amount into the Note Distribution Account.

         

                               
SECTION 5.06   Statements
to the Certificateholder and Noteholders .

         

                               
(a)  On the second Business Day preceding each Payment Date, the Servicer
shall provide to the Indenture Trustee (with a copy to the Rating Agencies), for
the Indenture Trustee to make available on its website at www.usbank.com/abs on
the Payment Date, and to the Owner Trustee, for the Owner Trustee to forward to
the Certificateholder of record, a statement substantially in the form of
Schedule E or Schedule F, as applicable, setting forth at least the following
information as to the Notes and the Certificate to the extent
applicable:

         

         

         

        
          
            
            

          

          
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(i)         the amount of such
distribution allocable to principal;

         

                (ii)       
the amount of such distribution allocable to interest;

         

                (iii)      
the Pool Balance, Note Value and Pool Face Amount as of the close of business on
the last day of the preceding Collection Period;

         

                (iv)      
(A) the outstanding principal balance of (1) the Class A-1 Notes, (2) the Class
A-2 Notes, (3) the Class A‐3 Notes and (4) the Class A-4 Notes and (B) the
Certificate Balance, in each case after giving effect to payments allocated to
principal reported under (i) above;

         

                (v)       
the amount of the Servicing Fee paid to the Servicer with respect to the related
Collection Period;

         

                (vi)      
the amount of the Administration Fee paid to the Administrator with respect to
such Collection Period;

         

                (vii)     
the aggregate amount of the Purchase Amounts for Purchased Receivables with
respect to the related Collection Period;

         

                (viii)     
the balance of the Reserve Account on such Payment Date, after giving effect to
distributions made on such Payment Date, and the Specified Reserve Account
Balance for such Payment Date;

         

                (ix)      
the amount of all Scheduled Payments in respect of Receivables 60 days or more
past due, and such amount as a percentage of the Pool Balance, as of the close
of business on the last day of the preceding Collection Period;
and

         

                (x)       
the Face Amount of Receivables with any Scheduled Payments 60 days or more past
due, and such amount as a percentage of the Pool Face Amount, as of the close of
business on the last day of the preceding Collection Period.

         

                               
(b)  Notwithstanding anything to the contrary contained herein, in the
event of a Special Payment Date, the certificate delivered pursuant to Section
5.06(a) shall be delivered two Business Days prior to the Special Payment Date
and shall reflect all amounts specified in Section 5.06(a) with respect to the
Special Payment Date and the May 2009 Payment Date.

         

                               
(c)  Each amount set forth pursuant to subclause (i), (ii) or (iv) of
clause 5.06(a) shall be expressed as a dollar amount per $1,000 of original
principal balance of a Note.  

         

                               
Within the prescribed period of time for tax reporting purposes after the end of
each calendar year during the term of the Indenture, the Indenture Trustee shall
mail to each Person who at any time during such calendar year shall have been a
Noteholder and received any payment thereon, a statement containing the amounts
described in (i) and (ii) (other than information relating to the Note Interest
Rates) above and any other information required by applicable tax laws, for the
purposes of such Noteholder’s preparation of Federal income tax
returns.

         

         

         

        
          
            
            

          

          
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The Indenture Trustee shall only be required to provide to the Noteholders the
information furnished to it by the Servicer.

         

                               
SECTION 5.07   Net
Deposits .  As an administrative convenience, unless the Servicer
is required to remit collections within two Business Days of their receipt, the
Servicer will be permitted to make the deposit of collections on the Receivables
and Purchase Amounts for or with respect to the Collection Period net of
distributions to be made to the Servicer with respect to the Collection
Period.  The Servicer, however, will account to the Owner Trustee, the
Indenture Trustee, the Noteholders and the Certificateholder as if all deposits,
distributions and transfers were made individually.

         

         

        ARTICLE VI

The Seller

         

                               
SECTION 6.01   Representations of Seller .  The Seller makes the
following representations on which the Issuing Entity is deemed to have relied
in acquiring the Receivables.  The representations speak as of the
execution and delivery of this Agreement and shall survive the sale of the
Receivables to the Issuing Entity and the pledge thereof to the Indenture
Trustee pursuant to the Indenture.

         

                               
(a)  Organization and Good Standing .  The Seller is
duly organized and validly existing as a corporation in good standing under the
laws of the State of Nevada, with the power and authority to own its properties
and to conduct its business as such properties are currently owned and such
business is presently conducted, and had at all relevant times, and has, the
power, authority and legal right to acquire and own the
Receivables.

         

                               
(b)  Due Qualification .  The Seller is duly qualified
to do business as a foreign corporation in good standing, and has obtained all
necessary licenses and approvals in all jurisdictions in which the failure to so
qualify or to obtain such license or approval would render any Receivable
unenforceable that would otherwise be enforceable by the Seller, the
Sub-Servicer or the Owner Trustee.

         

                               
(c)  Power and Authority .  The Seller has the power and
authority to execute and deliver this Agreement and to carry out its terms; the
Seller has full power and authority to sell and assign the property to be sold
and assigned to and deposited with the Issuing Entity and the Seller and shall
have duly authorized such sale and assignment to the Issuing Entity by all
necessary corporate action; and the execution, delivery and performance of this
Agreement have been duly authorized by the Seller by all necessary corporate
action.

         

                               
(d)  Binding Obligation .  This Agreement constitutes a
legal, valid and binding obligation of the Seller enforceable in accordance with
its terms except that such enforcement may be subject to bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect
relating to creditors’ rights generally and the remedy of specific performance
and injunctive relief may be subject to certain equitable defenses and to the
discretion of the court before which any proceeding therefor may be
brought.

         

         

         

        
          
            
            

          

          
            33

            
              

            

          

          
            
            

          

        

         

         

                               
(e)  No Violation .  The consummation of the
transactions contemplated by this Agreement and the fulfillment of the terms
hereof do not conflict with, result in any breach of any of the terms and
provisions of, nor constitute (with or without notice or lapse of time) a
default under, the articles of incorporation or by-laws of the Seller, or any
indenture, agreement or other instrument to which the Seller is a party or by
which it shall be bound; nor result in the creation or imposition of any Lien
upon any of its properties pursuant to the terms of any such indenture,
agreement or other instrument (other than pursuant to the Basic Documents); nor
violate any law or, to the best of the Seller’s knowledge, any order, rule or
regulation applicable to the Seller of any court or of any federal or State
regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over the Seller or its properties.

         

                               
(f)   No Proceedings .  To the Seller’s best knowledge,
there are no proceedings or investigations pending, or threatened, before any
court, regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Seller or its properties:  (i)
asserting the invalidity of this Agreement, the Indenture or any of the other
Basic Documents, the Notes or the Certificate, (ii) seeking to prevent the
issuance of the Notes or the Certificate or the consummation of any of the
transactions contemplated by this Agreement, the Indenture or any of the other
Basic Documents, (iii) seeking any determination or ruling that might materially
and adversely affect the performance by the Seller of its obligations under, or
the validity or enforceability of, this Agreement, the Indenture, any of the
other Basic Documents, the Notes or the Certificate or (iv) which involve the
Seller and which might adversely affect the Federal or state income tax
attributes of the Notes or the Certificate.

         

                               
SECTION 6.02   Corporate
Existence .

         

                               
(a)  During the term of this Agreement, the Seller will keep in full force
and effect its existence, rights and franchises as a corporation under the laws
of the jurisdiction of its incorporation and will obtain and preserve its
qualification to do business in each jurisdiction in which such qualification is
or shall be necessary to protect the validity and enforceability of this
Agreement, the Basic Documents and each other instrument or agreement necessary
or appropriate to the proper administration of this Agreement and the
transactions contemplated hereby.

         

                               
(b)  During the term of this Agreement, the Seller shall observe the
applicable legal requirements for the recognition of the Seller as a legal
entity separate and apart from its Affiliates, including as
follows:

         

                     
(i)         the Seller shall maintain
corporate records and books of account separate from those of its
Affiliates;

         

                    
 (ii)        except as otherwise
provided in this Agreement, the Seller shall not commingle its assets and funds
with those of its Affiliates;

         

                     
(iii)       the Seller shall hold such appropriate
meetings of its Board of Directors as are necessary to authorize all the
Seller’s corporate actions required by law to be authorized by the Board of
Directors, shall keep minutes of such meetings and of meetings of its
stockholder(s) and observe all other customary corporate formalities
(and

         

         

         

        
          
            
            

          

          
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        any successor
Seller not a corporation shall observe similar procedures in accordance with its
governing documents and applicable law);

         

                     
(iv)       the Seller shall at all times hold
itself out to the public under the Seller’s own name as a legal entity separate
and distinct from its Affiliates; and

         

                     
(v)        all transactions and dealings
between the Seller and its Affiliates will be conducted on an arm’s-length
basis.

         

                               
SECTION 6.03   Liability of
Seller; Indemnities .  The Seller shall be liable in accordance
herewith only to the extent of the obligations specifically undertaken by the
Seller under this Agreement.

         

                               
(a)  The Seller shall indemnify, defend and hold harmless the Issuing
Entity, the Owner Trustee and the Indenture Trustee and their officers,
directors and agents from and against any taxes that may at any time be asserted
against the Issuing Entity, the Owner Trustee or the Indenture Trustee or their
officers, directors, and agents with respect to the sale of the Receivables to
the Issuing Entity or the issuance and original sale of the Certificate and the
Notes, including any sales, gross receipts, general corporation, tangible
personal property, privilege or license taxes (but, in the case of the Issuing
Entity, not including any taxes asserted with respect to ownership of the
Receivables or Federal or other income taxes arising out of the transactions
contemplated by this Agreement) and costs and expenses in defending against the
same.

         

                               
(b)  The Seller shall indemnify, defend and hold harmless the Issuing
Entity, the Owner Trustee and the Indenture Trustee and their officers,
directors, and agents from and against any loss, liability or expense incurred
by reason of (i) the Seller’s willful misfeasance, bad faith or negligence in
the performance of its duties under this Agreement, or by reason of reckless
disregard of its obligations and duties under this Agreement and (ii) the
Seller’s or the Issuing Entity’s violation of Federal or State securities laws
in connection with the offering and sale of the Notes and the
Certificate.

         

                               
(c)  The Seller shall pay any and all state and local property taxes
(including taxes on intangibles), excise taxes, sales taxes and similar taxes
levied or assessed upon all or any part of the Owner Trust Estate including,
without limitation, the Receivables.

         

                               
(d)        Indemnification under this Section
shall survive the resignation or removal of the Owner Trustee or the Indenture
Trustee and the termination of this Agreement and shall include reasonable fees
and expenses of counsel and expenses of litigation.  If the Seller shall
have made any indemnity payments pursuant to this Section and the Person to or
on behalf of whom such payments are made thereafter shall collect any of such
amounts from others, such Person shall promptly repay such amounts to the
Seller, without interest.

         

                               
SECTION 6.04   Merger or
Consolidation of, or Assumption of the Obligations of, Seller . 
Any Person (a) into which the Seller may be merged or consolidated, (b) which
may result from any merger or consolidation to which the Seller shall be a party
or (c) which may succeed to the properties and assets of the Seller
substantially as a whole, which Person in any of the foregoing cases executes an
agreement of assumption to perform every obligation of the

         

         

         

        
          
            
            

          

          
            35

            
              

            

          

          
            
            

          

        

         

         

        Seller under
this Agreement, shall be the successor to the Seller hereunder without the
execution or filing of any document or any further act by any of the parties to
this Agreement; provided, however, that (i) immediately after giving effect to
such transaction, no representation or warranty made pursuant to Section 3.01
shall have been breached and no Servicer Default, and no event that, after
notice or lapse of time, or both, would become a Servicer Default shall have
occurred and be continuing, (ii) the Seller shall have delivered to the Owner
Trustee and the Indenture Trustee an Officers’ Certificate and an Opinion of
Counsel each stating that such consolidation, merger or succession and such
agreement of assumption comply with this Section and that all conditions
precedent, if any, provided for in this Agreement relating to such transaction
have been complied with, (iii) the Rating Agency Condition shall have been
satisfied with respect to such transaction and (iv) the Seller shall have
delivered to the Owner Trustee and the Indenture Trustee an Opinion of Counsel
either (A) stating that, in the opinion of such counsel, all financing
statements and continuation statements and amendments thereto have been executed
and filed that are necessary fully to preserve and protect the interest of the
Owner Trustee and Indenture Trustee, respectively, in the Receivables and
reciting the details of such filings, or (B) stating that, in the opinion of
such counsel, no such action shall be necessary to preserve and protect such
interests.  Notwithstanding anything herein to the contrary, the execution
of the foregoing agreement of assumption and compliance with clauses (i), (ii),
(iii) and (iv) above shall be conditions to the consummation of the transactions
referred to in clause (a), (b) or (c) above.

         

                               
SECTION 6.05   Limitation
on Liability of Seller and Others .  The Seller and any director
or officer or employee or agent of the Seller may rely in good faith on the
advice of counsel or on any document of any kind, prima facie properly executed
and submitted by any Person respecting any matters arising hereunder.  The
Seller shall not be under any obligation to appear in, prosecute or defend any
legal action that shall not be incidental to its obligations under this
Agreement, and that in its opinion may involve it in any expense or
liability.

         

                               
SECTION 6.06   Seller May
Own Notes; Retention of the Certificate .  The Seller and any
Affiliate thereof may in its individual or any other capacity become the owner
or pledgee of the Notes with the same rights as it would have if it were not the
Seller or an Affiliate thereof, except as expressly provided herein or in any
Basic Document.  The Seller shall retain and not transfer the
Certificate.

         

                               
SECTION 6.07   Right of
Seller to Repurchase Receivables .  As of the last day of any
Collection Period, the Seller has an option to repurchase any Receivable at a
purchase price equal to the Purchase Amount of such Receivable; provided that
the aggregate Principal Balance of all Receivables repurchased by the Seller
pursuant to this Section 6.07 shall not at any time in the aggregate exceed 2.0%
of the Initial Pool Balance.  To exercise such option, the Seller shall
deposit pursuant to Section 5.03 in the Collection Account an amount equal to
the aggregate Purchase Amount of the repurchased Receivables.  

         

         

        ARTICLE VII

The Servicer

         

         

         

        
          
            
            

          

          
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SECTION 7.01   Representations of Servicer .  The Servicer makes
the following representations on which the Issuing Entity is deemed to have
relied in acquiring the Receivables.  The representations speak as of the
execution and delivery of this Agreement (or as of the date a Person (other than
the Indenture Trustee) becomes Servicer pursuant to Sections 7.03 and 8.02, in
the case of a successor to the Servicer) and shall survive the sale of the
Receivables to the Issuing Entity and the pledge thereof to the Indenture
Trustee pursuant to the Indenture.

         

                               
(a)  Organization and Good Standing .  The Servicer is a
corporation duly organized, validly existing and in good standing under the laws
of the jurisdiction of its incorporation, and has the corporate power and
authority to own its properties and to conduct the business in which it is
currently engaged, and had at all relevant times, and has, the power, authority
and legal right to acquire, own, sell and service the Receivables and to hold
the Receivable Files as custodian.

         

                               
(b)  Power and Authority .  The Servicer has the
corporate power and authority to execute and deliver this Agreement and to carry
out its terms; and the execution, delivery and performance of this Agreement
have been duly authorized by the Servicer by all necessary corporate
action.

         

                               
(c)  Binding Obligation .  This Agreement constitutes a
legal, valid and binding obligation of the Servicer enforceable in accordance
with its terms except that such enforcement may be subject to bankruptcy,
insolvency, reorganization, moratorium or other similar laws now or hereafter in
effect relating to creditors’ rights generally and the remedy of specific
performance and injunctive relief may be subject to certain equitable defenses
and to the discretion of the court before which any proceeding therefor may be
brought.

         

                               
(d)  No Violation .  The consummation of the
transactions contemplated by this Agreement and the fulfillment of the terms
hereof shall not conflict with, result in any breach of any of the terms and
provisions of, nor constitute (with or without notice or lapse of time) a
default under, the articles of incorporation or by-laws of the Servicer, or any
indenture, agreement or other instrument to which the Servicer is a party or by
which it shall be bound; nor result in the creation or imposition of any Lien
upon any of its properties pursuant to the terms of any such indenture,
agreement or other instrument (other than this Agreement); nor violate any law
or, to the best of the Servicer’s knowledge, any order, rule or regulation
applicable to the Servicer of any court or of any Federal or State regulatory
body, administrative agency or other governmental instrumentality having
jurisdiction over the Servicer or its properties.

         

                               
(e)  No Proceedings .  To the Servicer’s best knowledge,
there are no proceedings or investigations pending, or threatened, before any
court, regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Servicer or its properties: 
(i) asserting the invalidity of this Agreement, the Indenture, any of the
other Basic Documents, the Notes or the Certificate, (ii) seeking to prevent the
issuance of the Notes or the Certificate or the consummation of any of the
transactions contemplated by this Agreement, the Indenture or any of the other
Basic Documents, (iii) seeking any determination or ruling that might materially
and adversely affect the performance by the Servicer of its obligations under,
or the validity or enforceability of, this Agreement, the Indenture, any of the
other Basic

         

         

         

        
          
            
            

          

          
            37

            
              

            

          

          
            
            

          

        

         

         

        Documents,
the Notes or the Certificate or (iv) relating to the Servicer and which might
adversely affect the Federal or state income tax attributes of the Notes or the
Certificate.

         

                               
(f)   No Insolvent Obligors .  As of the Cut-off Date, no
Obligor on a Receivable is shown on the Receivable Files as the subject of a
bankruptcy proceeding.

         

                               
SECTION 7.02   Indemnities
of Servicer .  The Servicer shall be liable in accordance
herewith only to the extent of the obligations specifically undertaken by the
Servicer under this Agreement.

         

                               
(a)  The Servicer shall defend, indemnify and hold harmless the Issuing
Entity, the Owner Trustee, the Indenture Trustee, the Noteholders, the
Certificateholder and the Seller and any of the officers, directors and agents
of the Issuing Entity, the Owner Trustee, the Indenture Trustee and the Seller
from and against any and all costs, expenses, losses, damages, claims and
liabilities, arising out of or resulting from the use, ownership or operation by
the Servicer or any Affiliate thereof of any Financed
Equipment.

         

                               
(b)  The Servicer shall indemnify, defend and hold harmless the Issuing
Entity, the Owner Trustee, the Indenture Trustee, and the Seller and their
respective officers, directors and agents from and against any taxes that may at
any time be asserted against any such Person with respect to the transactions
contemplated herein, including any sales, gross receipts, general corporation,
tangible personal property, privilege or license taxes (but, in the case of the
Issuing Entity, not including any taxes asserted with respect to, and as of the
date of, the sale of the Receivables to the Issuing Entity or the issuance and
original sale of the Certificate and the Notes, or asserted with respect to
ownership of the Receivables, or Federal or other income taxes arising out of
distributions on the Certificate or the Notes) and costs and expenses in
defending against the same.

         

                               
(c)  The Servicer shall indemnify, defend and hold harmless the Issuing
Entity, the Owner Trustee, the Indenture Trustee, the Seller, the
Certificateholder and the Noteholders and any of the officers, directors and
agents of the Issuing Entity, the Owner Trustee, the Indenture Trustee and the
Seller from and against any and all costs, expenses, losses, claims, damages and
liabilities to the extent that such cost, expense, loss, claim, damage or
liability arose out of, or was imposed upon any such Person through, the
negligence, willful misfeasance or bad faith of the Servicer in the performance
of its duties under this Agreement or by reason of reckless disregard of its
obligations and duties under this Agreement or on account of the failure of the
Servicer to be qualified to do business as a foreign corporation or to have
obtained a license or approval in any jurisdiction.

         

                               
(d)  The Servicer shall indemnify, defend and hold harmless the Owner
Trustee and the Indenture Trustee and their respective officers, directors and
agents from and against all costs, expenses, losses, claims, damages and
liabilities arising out of or incurred in connection with the acceptance or
performance of the trusts and duties herein and contained in the Trust
Agreement, in the case of the Owner Trustee, and contained in the Indenture, in
the case of the Indenture Trustee, except to the extent that such cost, expense,
loss, claim, damage or liability:  (i) shall be due to the willful
misfeasance, bad faith or negligence (except for errors in judgment) of the
Owner Trustee or the Indenture Trustee as applicable; or (ii) shall arise from
the breach by

         

         

        
          
            
            

          

          
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        the Owner
Trustee of any of its representations or warranties set forth in Section 7.03 of
the Trust Agreement.

         

                               
(e)  To the extent not indemnified by the Seller under Section 6.03, the
Servicer shall pay any and all taxes levied or assessed upon all or any part of
the Owner Trust Estate, other than any taxes asserted with respect to, and as of
the date of, the sale of the Receivables to the Issuing Entity or the issuance
and original sale of the Certificate and the Notes, or Federal or other income
taxes imposed on the Issuing Entity because of its classification or
reclassification for tax purposes, or Federal or other income taxes arising out
of distributions on the Certificate or the Notes, and the Servicer shall pay and
indemnify against any and all state and local property taxes (including taxes on
intangibles), excise taxes, sales taxes, franchise taxes (excluding franchise
taxes based on or measured by income) and similar taxes levied or assessed upon
all or any part of the Owner Trust Estate including, without limitation, the
Receivables.

         

                               
(f)   The Servicer shall pay the Indenture Trustee from time to time
reasonable compensation for all services rendered by the Indenture Trustee under
the Indenture (which compensation shall not be limited by any provision of law
in regard to the compensation of a trustee of an express
trust).

         

                               
(g)  The Servicer shall, except as otherwise expressly provided in the
Indenture, reimburse the Indenture Trustee upon its request for all reasonable
expenses, disbursements and advances incurred or made by the Indenture Trustee
in accordance with any provision of the Indenture (including, but not limited
to, the reasonable compensation, expenses and disbursements of its agents and
either in-house counsel or outside counsel, but not both) except any such
expense, disbursement or advance as may be attributable to its negligence or bad
faith.

         

                               
(h)        The Servicer shall pay (or cause
to be paid) when due and shall indemnify, defend and hold harmless the Issuing
Entity from and against all liability as a result of Treasury Regulation Section
1.1502-6(a) or similar provision under state or local law for income, franchise,
gross receipts or other doing business taxes of the Servicer and any other
corporation or entity (other than the Issuing Entity) that joins or has ever
joined (or is or has ever been required to join) with the Servicer or the Seller
in filing any consolidated, combined or unitary tax return, and costs and
expenses in defending against the same; provided, however, the Issuing Entity
shall be liable for and shall pay when due any and all taxes of the Issuing
Entity (including from ownership and collection of the Receivables) determined
on separate entity basis and no claim may be made and no amount indemnified
against under this Section 7.02(h) on account of taxes of the Issuing
Entity.

         

                               
For purposes of this Section 7.02, in the event of the termination of the rights
and obligations of JDCC (or any successor thereto pursuant to Section 7.03) as
Servicer pursuant to Section 8.01, or a resignation by such Servicer pursuant to
this Agreement, such Servicer shall be deemed to be the Servicer pending
appointment of a successor Servicer (other than the Indenture Trustee) pursuant
to Section 8.02.

         

                               
Indemnification under this Section shall survive the resignation or removal of
the Owner Trustee or the Indenture Trustee or the termination of this Agreement
and shall include reasonable fees and expenses of counsel and expenses of
litigation.  If the Servicer shall have

         

         

         

        
          
            
            

          

          
            39

            
              

            

          

          
            
            

          

        

         

         

        made any
indemnity payments pursuant to this Section and the Person to or on behalf of
whom such payments are made thereafter collects any of such amounts from others,
such Person shall promptly repay such amounts to the Servicer, without
interest.

         

                               
SECTION 7.03   Merger or
Consolidation of, or Assumption of the Obligations of,
Servicer .  Any Person (a) into which the Servicer may be merged
or consolidated, (b) which may result from any merger or consolidation to which
the Servicer shall be a party, (c) which may succeed to the properties and
assets of the Servicer substantially as a whole, or (d) with respect to the
Servicer’s obligations hereunder, which is a corporation 50% or more of the
voting stock of which is owned, directly or indirectly, by Deere, which Person
executed an agreement of assumption to perform every obligation of the Servicer
hereunder, shall be the successor to the Servicer under this Agreement without
further act on the part of any of the parties to this Agreement; provided,
however, that (i) immediately after giving effect to such transaction, no
Servicer Default, and no event which, after notice or lapse of time, or both,
would become a Servicer Default shall have occurred and be continuing, (ii) the
Servicer shall have delivered to the Owner Trustee and the Indenture Trustee an
Officers’ Certificate and an Opinion of Counsel each stating that such
consolidation, merger or succession and such agreement of assumption comply with
this Section and that all conditions precedent provided for in this Agreement
relating to such transaction have been complied with, (iii) the Rating Agency
Condition shall have been satisfied with respect to such transaction and (iv)
the Servicer shall have delivered to the Owner Trustee and the Indenture Trustee
an Opinion of Counsel either (A) stating that, in the opinion of such counsel,
all financing statements and continuation statements and amendments thereto have
been executed (if required) and filed that are necessary fully to preserve and
protect the interest of the Owner Trustee and the Indenture Trustee,
respectively, in the Receivables and reciting the details of such filings or (B)
stating that, in the opinion of such counsel, no such action shall be necessary
to preserve and protect such interests.  The Servicer shall provide the
Seller in writing with such information as reasonably requested by the Seller to
comply with its Exchange Act reporting obligations with respect to a successor
servicer.  Notwithstanding anything herein to the contrary, the execution
of the foregoing agreement of assumption and compliance with clauses (i), (ii),
(iii) and (iv) above shall be conditions to the consummation of the transactions
referred to in clause (a), (b), (c) or (d) above.

         

                               
SECTION 7.04   Limitation on Liability
of Servicer and Others .  Neither the Servicer nor the
Sub-Servicer nor any of the directors or officers or employees or agents of the
Servicer or the Sub-Servicer, as the case may be, shall be under any liability
to the Issuing Entity, the Noteholders or the Certificateholder, except as
provided under this Agreement, for any action taken or for refraining from the
taking of any action pursuant to this Agreement or for errors in judgment;
provided, however, that this provision shall not protect the Servicer, the
Sub-Servicer or any such person against any liability that would otherwise be
imposed by reason of willful misfeasance, bad faith or negligence in the
performance of duties or by reason of reckless disregard of obligations and
duties under this Agreement.  The Servicer, the Sub-Servicer and any
director or officer or employee or agent of the Servicer or the Sub-Servicer, as
the case may be, may rely in good faith on any document of any kind prima facie
properly executed and submitted by any person respecting any matters arising
under this Agreement.

         

                               
Except as provided in this Agreement, neither the Servicer nor the Sub-Servicer
shall be under any obligation to appear in, prosecute or defend any legal action
that shall not be 

         

         

         

        
          
            
            

          

          
            40

            
              

            

          

          
            
            

          

        

         

         

        incidental to
its duties to service the Receivables in accordance with this Agreement, and
that in its opinion may involve it in any expense or liability; provided,
however, that the Servicer or the Sub-Servicer may undertake any reasonable
action that it may deem necessary or desirable in respect of this Agreement and
the Basic Documents and the rights and duties of the parties to this Agreement
and the Basic Documents and the interests of the Certificateholder under this
Agreement and the Noteholders under the Indenture.

         

                               
SECTION 7.05   JDCC Not to
Resign as Servicer .  Subject to the provisions of Section 7.03,
JDCC shall not resign from the obligations and duties hereby imposed on it as
Servicer under this Agreement except upon determination that the performance of
its duties under this Agreement shall no longer be permissible under applicable
law.  Notice of any such determination permitting the resignation of JDCC
shall be communicated to the Owner Trustee and the Indenture Trustee at the
earliest practicable time (and, if such communication is not in writing, shall
be confirmed in writing at the earliest practicable time) and any such
determination shall be evidenced by an Opinion of Counsel to such effect
delivered to the Owner Trustee and the Indenture Trustee concurrently with or
promptly after such notice.  No such resignation shall become effective
until the Indenture Trustee or a successor Servicer shall have assumed the
responsibilities and obligations of JDCC in accordance with Section 8.02 and
provided the Seller in writing with such information as reasonably requested by
the Seller to comply with its Exchange Act reporting obligations with respect to
such resignation.

         

                               
SECTION 7.06   Servicer to
Act as Administrator .  In the event of the resignation or
removal of the Administrator and the failure of a successor Administrator to
have been appointed and to have accepted such appointment as successor
Administrator, the Servicer shall become the successor Administrator and shall
be bound by the terms of the Administration Agreement.

         

         

        ARTICLE
VIII

 Default 

         

                               
SECTION 8.01   Servicer
Default .  If any one of the following events (a “Servicer
Default”) shall occur and be continuing:

         

                (a) 
any failure by the Servicer to deliver to the Indenture Trustee for deposit in
any of the Trust Accounts or the Certificate Distribution Account any required
payment or to direct the Indenture Trustee to make any required distributions
therefrom that shall continue unremedied for a period of three Business Days
after written notice of such failure is received by the Servicer from the Owner
Trustee or the Indenture Trustee or after discovery of such failure by an
officer of the Servicer; or

         

                (b) 
failure on the part of the Servicer or the Seller, as the case may be, duly to
observe or to perform in any material respect any other covenants or agreements
of the Servicer or the Seller (as the case may be) set forth in this Agreement
or any other Basic Document, which failure shall (i) materially and adversely
affect the rights of Certificateholder or Noteholders and (ii) continue
unremedied for a period of 60 days after the date on which written notice of
such failure, requiring the same to be remedied,

         

         

         

        
          
            
            

          

          
            41

            
              

            

          

          
            
            

          

        

         

         

        shall have
been given (A) to the Servicer or the Seller (as the case may be) by the Owner
Trustee or the Indenture Trustee or (B) to the Servicer or the Seller (as the
case may be), and to the Owner Trustee and the Indenture Trustee by the Holders
of Notes evidencing not less than 25% of the Outstanding Amount of the Notes or
the Certificateholder (as defined in the Trust Agreement);
or

         

               
(c)  an Insolvency Event occurs with respect to the
Servicer;

         

        then, and in each
and every case, so long as the Servicer Default shall not have been remedied,
either the Indenture Trustee (so long as a Trust Officer of the Indenture
Trustee has received notice or has actual knowledge of such Servicer Default),
or the Holders of Notes evidencing not less than 25% of the Outstanding Amount
of the Notes, by notice then given in writing to the Servicer (and to the
Indenture Trustee and the Owner Trustee if given by the Noteholders) may
terminate all the rights and obligations (other than the obligations set forth
in Section 7.02 hereof) of the Servicer under this Agreement.  On or after
the receipt by the Servicer of such written notice, all authority and power of
the Servicer under this Agreement, whether with respect to the Notes, the
Certificate or the Receivables or otherwise, shall, without further action, pass
to and be vested in the Indenture Trustee or such successor Servicer as may be
appointed under Section 8.02; and, without limitation, the Indenture Trustee and
the Owner Trustee are hereby authorized and empowered to execute and deliver, on
behalf of the predecessor Servicer, as attorney-in-fact or otherwise, any and
all documents and other instruments, and to do or accomplish all other acts or
things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement of the Receivables
and related documents, or otherwise.  The predecessor Servicer shall
cooperate with the successor Servicer, the Indenture Trustee and the Owner
Trustee in effecting the termination of the responsibilities and rights of the
predecessor Servicer under this Agreement, including the transfer to the
successor Servicer for administration by it of all cash amounts that shall at
the time be held by the predecessor Servicer for deposit, or shall thereafter be
received by it with respect to a Receivable.  All reasonable costs and
expenses (including reasonable attorneys’ fees) incurred in connection with
transferring the Receivable Files to the successor Servicer and amending this
Agreement to reflect such succession as Servicer pursuant to this Section shall
be paid by the predecessor Servicer upon presentation of reasonable
documentation of such costs and expenses.  Upon receipt of notice of the
occurrence of a Servicer Default, the Owner Trustee shall give notice thereof to
the Rating Agencies.

         

                          SECTION 8.02  
 Appointment of Successor .

         

                                (a) 
Upon the Servicer’s receipt of notice of termination, pursuant to Section 8.01
or the Servicer’s resignation in accordance with the terms of this Agreement,
the predecessor Servicer shall continue to perform its functions as Servicer
under this Agreement, in the case of termination, only until the date specified
in such termination notice or, if no such date is specified in a notice of
termination, until receipt of such notice and, in the case of resignation, until
the earlier of (x) the date 45 days from the delivery to the Owner Trustee and
the Indenture Trustee of written notice of such resignation (or written
confirmation of such notice) in accordance with the terms of this Agreement and
(y) the date upon which the predecessor Servicer shall become unable to act as
Servicer, as specified in the notice of resignation and accompanying Opinion of
Counsel.  In the event of the Servicer’s termination hereunder,
the

         

         

         

        
          
            
            

          

          
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        Indenture
Trustee shall appoint a successor Servicer, and the successor Servicer shall
accept its appointment by a written assumption in form acceptable to the Owner
Trustee and the Indenture Trustee.  In the event that a successor Servicer
has not been appointed at the time when the predecessor Servicer has ceased to
act as Servicer in accordance with this Section, pending the appointment of and
acceptance by a successor Servicer, the Indenture Trustee without further action
shall automatically be appointed and serve as the successor Servicer and the
Indenture Trustee shall be entitled to the Servicing Fee; provided, however, the
provisions of Section 7.01 shall not apply and the provisions of Section 4.07
shall not apply in the case of a breach by a predecessor Servicer.  The
Indenture Trustee may delegate any of its servicing obligations to an Affiliate
or agent in accordance with Section 4.14.  The Indenture Trustee shall not
be liable for any action or failure to act on the part of the predecessor
Servicer.  Notwithstanding the above, the Indenture Trustee shall, if it
shall be unwilling or legally unable so to act, appoint or petition a court of
competent jurisdiction to appoint, any established institution, having a net
worth of not less than $50,000,000 and whose regular business shall include the
servicing of equipment receivables, as the successor to the Servicer under this
Agreement.

         

                               
(b)  Upon appointment, the successor Servicer (including the Indenture
Trustee acting as successor Servicer) shall be the successor in all respects to
the predecessor Servicer and shall be subject to all the responsibilities,
duties and liabilities arising thereafter relating thereto placed on the
predecessor Servicer and shall be entitled to the Servicing Fee and all the
rights granted to the predecessor Servicer by the terms and provisions of this
Agreement.

         

                               
(c)  Subject to the Indenture Trustee’s right to appoint a successor
Servicer pursuant to Section 8.02(a) after the Indenture Trustee has become the
Servicer, the Servicer may not resign unless it is prohibited from serving as
such by law.

         

                               
SECTION 8.03   Notification
to Noteholders and the Certificateholder .  Upon any termination
of, or appointment of a successor to the Servicer pursuant to this Article VIII,
the Owner Trustee shall give prompt written notice thereof to the
Certificateholder and the Indenture Trustee shall give prompt written notice
thereof to Noteholders and the Rating Agencies.

         

                               
SECTION 8.04   Waiver of
Past Defaults .  The Holders of Notes evidencing not less than a
majority of the Outstanding Amount of the Notes, on behalf of all Noteholders
(or the Holder (as defined in the Trust Agreement) of the Certificate, in the
case of any default which does not adversely affect the Indenture Trustee or the
Noteholders) may, waive in writing any default by the Servicer in the
performance of its obligations hereunder and its consequences, except a default
in making any required deposits to or payments from any of the Trust Accounts in
accordance with this Agreement.  Upon any such waiver of a past default,
such default shall cease to exist, and any Servicer Default arising therefrom
shall be deemed to have been remedied for every purpose of this Agreement. 
No such waiver shall extend to any subsequent or other default or impair any
right consequent thereto.

         

         

        ARTICLE
IX

Termination

         

                               
SECTION 9.01   Optional
Purchase of All Receivables and Termination .

         

         

         

        
          
            
            

          

          
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(a)  On the last day of any Collection Period immediately preceding a
Payment Date as of which the then outstanding Pool Balance is 10% or less of the
Initial Pool Balance, the Servicer shall have the option to purchase the Owner
Trust Estate, other than the Trust Accounts and the Certificate Distribution
Account; provided, however, that the Servicer may not effect any such purchase
so long as the rating on Deere’s long-term debt obligations is less than Baa3 by
Moody’s, unless the Owner Trustee and the Indenture Trustee shall have received
an Opinion of Counsel to the effect that such purchase would not constitute a
fraudulent conveyance; provided further that each Rating Agency shall receive a
copy of such Opinion of Counsel and shall have confirmed that the rating
assigned to the Notes by such Rating Agency shall not be withdrawn or downgraded
as a result of such purchase.  To exercise such option, the Servicer shall
deposit pursuant to Section 5.03 in the Collection Account an amount equal to
the aggregate Purchase Amount for the Receivables (including defaulted
Receivables) and shall succeed to all interests in and to the
Trust.

         

                               
(b)  Upon any sale of the assets of the Trust pursuant to Section 9.02 of
the Trust Agreement, the Servicer shall instruct the Indenture Trustee to
deposit the proceeds from such sale after all payments and reserves therefrom
have been made (the “Insolvency Proceeds”) in the Collection Account.  On
the Payment Date on which the Insolvency Proceeds are deposited in the
Collection Account (or, if such proceeds are not so deposited on a Payment Date,
on the Payment Date immediately following such deposit), the Servicer shall
instruct the Indenture Trustee to make the following deposits (after the
application on such Payment Date of the Total Distribution Amount and funds on
deposit in the Reserve Account pursuant to Sections 5.04 and 5.05) from the
Insolvency Proceeds and any funds remaining on deposit in the Reserve Account
(to the extent such amounts are property of the Issuing Entity) (including the
proceeds of any sale of investments therein as described in the following
sentence):

         

                (i)        
to the Note Distribution Account, any portion of the accrued but unpaid interest
on the Notes not otherwise deposited into the Note Distribution Account on such
Payment Date;

         

                (ii)       
to the Note Distribution Account, the outstanding principal balance of the Notes
(after giving effect to the reduction in the outstanding principal balance of
the Notes to result from the deposits made in the Note Distribution Account on
such Payment Date and on prior Payment Dates); and

         

                (iii)      
to the Certificate Distribution Account, the Certificate Balance (after giving
effect to the reduction in the Certificate Balance to result from the deposits
made in the Certificate Distribution Account on such Payment
Date).

         

        Any investments on
deposit in the Reserve Account and the Note Distribution Account (to the extent
such amounts are property of the Issuing Entity) which will not mature on or
before such Payment Date shall be sold by the Indenture Trustee at such time as
will result in the Indenture Trustee receiving the proceeds from such sale not
later than the Transfer Date preceding such Payment Date.  Any Insolvency
Proceeds remaining after the deposits described above shall be paid to the
Seller.

         

         

         

        
          
            
            

          

          
            44

            
              

            

          

          
            
            

          

        

         

                               
(c)  Notice of any termination of the Trust shall be given by the Servicer
to the Owner Trustee and the Indenture Trustee as soon as practicable after the
Servicer has received notice thereof.

         

                               
(d)  Following the satisfaction and discharge of the Indenture and the
payment in full of the principal of and interest on, and the cancellation of all
of, the Notes, the Certificateholder will succeed to the rights of the
Noteholders hereunder other than Section 5.06(a) and the Owner Trustee will
succeed to the rights of the Indenture Trustee pursuant to this
Agreement.

         

                               
(e)  This Agreement shall terminate upon the termination of the
Trust.

         

         

        ARTICLE X

Miscellaneous Provisions

         

                               
SECTION 10.01   Amendment .  This Agreement may be amended by the
Seller, the Servicer and the Owner Trustee, with the consent of the Indenture
Trustee, but without the consent of any of the Noteholders or the
Certificateholder, to cure any ambiguity, to correct or supplement any provision
in this Agreement or for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions in this Agreement or of
modifying in any manner the rights of the Noteholders or the Certificateholder;
provided, however, that such action shall not, adversely affect in any material
respect the interests of any Noteholder or Certificateholder; provided further
that 10 days prior written notice of any such amendment be given to each Rating
Agency and, if a Rating Agency notifies the Owner Trustee that such amendment
will result in a downgrading or withdrawal of the then current rating of any
class of the Notes or the Certificate, such amendment shall become effective
with the consent of the Holders of Notes evidencing not less than a majority of
the Outstanding Amount of the Notes and the consent of the Certificateholder;
provided further that any solicitation of such consent shall disclose the
downgrading or withdrawal that would result from such
amendment.

         

                               
This Agreement may also be amended from time to time, with 10 days prior notice
to each of the Rating Agencies, by the Seller, the Servicer and the Owner
Trustee, with the consent of the Indenture Trustee, the consent of the Holders
of Notes evidencing not less than a majority of the Outstanding Amount of the
Notes and the consent of the Holder of the Certificate, for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Agreement or of modifying in any manner the rights of the
Noteholders or the Certificateholder; provided, however, that no such amendment
shall (a) increase or reduce in any manner the amount of, or accelerate or delay
the timing of, collections of payments on Receivables or distributions that
shall be required to be made for the benefit of the Noteholders or the
Certificateholder or (b) reduce the aforesaid percentage of the Outstanding
Amount of the Notes and the Certificate Balance, the Holders of which are
required to consent to any such amendment, without the consent of the Holders of
all the outstanding Notes and the consent of the
Certificateholder.

         

         

         

        
          
            
            

          

          
            45

            
              

            

          

          
            
            

          

        

         

                               
Promptly after the execution of any such amendment or consent, the Owner Trustee
shall furnish written notification of the substance of such amendment or consent
to the Certificateholder.

         

                               
It shall not be necessary for the consent of the Certificateholder or the
Noteholders pursuant to this Section to approve the particular form of any
proposed amendment or consent, but it shall be sufficient if such consent shall
approve the substance thereof.

         

                               
Prior to the execution of any amendment to this Agreement, the Owner Trustee and
the Indenture Trustee shall be entitled to receive and rely upon an Opinion of
Counsel stating that the execution of such amendment is authorized or permitted
by this Agreement and the Opinion of Counsel referred to in Section 10.02(i)(1)
and that all conditions precedent have been satisfied.  The Owner Trustee
and the Indenture Trustee may, but shall not be obligated to, enter into any
such amendment which affects the Owner Trustee’s or the Indenture Trustee’s, as
applicable, own rights, duties or immunities under this Agreement or
otherwise.

         

                               
SECTION 10.02   Protection
of Title to Trust .

         

                               
(a)  The Seller shall file (and if required, authorize) such financing
statements and cause to be authorized and filed such continuation statements,
all in such manner and in such places as may be required by law fully to
preserve, maintain, and protect the interest of the Issuing Entity and the
interests of the Indenture Trustee in the Receivables and in the proceeds
thereof.  The Seller shall deliver (or cause to be delivered) to the Owner
Trustee and the Indenture Trustee file-stamped copies of, or filing receipts
for, any document filed as provided above, as soon as available following such
filing.

         

                               
(b)  Neither the Seller nor the Servicer shall change its name, identity,
corporate structure or jurisdiction of organization in any manner that would,
could or might make any financing statement or continuation statement filed in
accordance with paragraph (a) above seriously misleading within the meaning of
Section 9-506 of the UCC, unless it shall have given the Owner Trustee and the
Indenture Trustee at least five days’ prior written notice thereof and shall
have promptly filed appropriate new financing statements and/or amendments to
all previously filed financing statements or continuation
statements.

         

                               
(c)  Each of the Seller and the Servicer shall have an obligation to give
the Owner Trustee and the Indenture Trustee at least 60 days prior written
notice of any relocation of its jurisdiction of organization if, as a result of
such relocation, the applicable provisions of the UCC would require the filing
of any amendment of any previously filed financing or continuation statement or
of any new financing statement and shall promptly file any such amendment or new
financing statements as the case may be.  The Servicer shall at all times
maintain each office from which it shall service Receivables, and its
jurisdiction of organization, within the United States of
America.

         

                               
(d)  The Servicer shall maintain accounts and records as to each Receivable
accurately and in sufficient detail to permit (i) the reader thereof to know at
any time the status of such Receivable, including payments and recoveries made
and payments owing (and the nature of each) and (ii) reconciliation between
payments or recoveries on (or with respect to) each 

         

         

         

        
          
            
            

          

          
            46

            
              

            

          

          
            
            

          

        

         

         

        Receivable
and the amounts from time to time deposited in the Collection Account in respect
of such Receivable.

         

                               
(e)  The Servicer shall maintain its computer systems so that, from and
after the time of sale under this Agreement of the Receivables, the Servicer’s
master computer records (including any backup archives) that refer to a
Receivable shall indicate clearly the interest of the Issuing Entity and the
Indenture Trustee in such Receivable and that such Receivable is owned by the
Issuing Entity and has been pledged to the Indenture Trustee.  Indication
of the Issuing Entity’s and the Indenture Trustee’s interest in a Receivable
shall be deleted from or modified on the Servicer’s computer systems when, and
only when, the related Receivable shall have been paid in full, purchased or
repurchased.

         

                               
(f)   If at any time the Seller or the Servicer shall propose to sell,
grant a security interest in, or otherwise transfer any interest in equipment
receivables to any prospective purchaser, lender or other transferee, the
Servicer shall give to such prospective purchaser, lender or other transferee
computer tapes, records or printouts (including any restored from backup
archives) that, if they shall refer in any manner whatsoever to any Receivable,
shall indicate clearly that such Receivable has been sold and is owned by the
Issuing Entity and has been pledged to the Indenture Trustee. 

         

                               
(g)  The Servicer shall permit the Indenture Trustee and its agents at any
time during normal business hours to inspect, audit and make copies of and
abstracts from the Servicer’s records regarding any Receivable.  The
Indenture Trustee and its agents shall give reasonable notice of any such
inspection or audit and such inspection shall be conducted in a manner that does
not cause undue disruption or interference with the Servicer’s
business.

         

                               
(h)  Upon request, the Servicer shall furnish to the Owner Trustee or to
the Indenture Trustee, within five Business Days, a list of all Receivables (by
contract number and name of Obligor) then held as part of the Trust, together
with a reconciliation of such list to the Schedule of Receivables and to each of
the Servicer’s Certificates furnished before such request indicating removal of
Receivables from the Trust.

         

                               
(i)   The Servicer shall deliver to the Owner Trustee and the
Indenture Trustee:

         

                         
(1)  promptly after the execution and delivery of this Agreement and of
each amendment thereto, an Opinion of Counsel either (A) stating that, in the
opinion of such counsel, all financing statements and continuation statements
have been executed and filed that are necessary fully to preserve and protect
the interest of the Owner Trustee and the Indenture Trustee in the Receivables,
and reciting the details of such filings or referring to prior Opinions of
Counsel in which such details are given, or (B) stating that, in the opinion of
such counsel, no such action shall be necessary to preserve and protect such
interest; and

         

                         
(2)  within 90 days after the beginning of each calendar year beginning
with the first calendar year beginning more than three months after the Cut-off
Date, an Opinion of Counsel, dated as of a date during such 90-day period,
either (A) stating that, in the opinion of such counsel, all financing
statements and continuation statements have been 

         

         

         

        
          
            
            

          

          
            47

            
              

            

          

          
            
            

          

        

         

         

        executed and
filed that are necessary fully to preserve and protect the interest of the Owner
Trustee and the Indenture Trustee in the Receivables, and reciting the details
of such filings or referring to prior Opinions of Counsel in which such details
are given, or (B) stating that, in the opinion of such counsel, no such action
shall be necessary to preserve and protect such interest.

         

                               
Each Opinion of Counsel referred to in clause (1) or (2) above shall specify any
action necessary (as of the date of such opinion) to be taken in the following
year to preserve and protect such interest.

         

                               
(j)   The Seller shall, to the extent required by applicable law,
cause the Certificate and the Notes to be registered with the Commission
pursuant to Section 12(b) or Section 12 (g) of the Exchange Act within the time
periods specified in such sections.

         

                               
SECTION 10.03   Notices .  All demands, notices, instructions and
communications upon or to the Seller, the Servicer, the Owner Trustee, the
Indenture Trustee or the Rating Agencies under this Agreement shall be in
writing, personally delivered, sent by facsimile or mailed by certified mail,
return receipt requested, and shall be deemed to have been duly given upon
receipt (a) in the case of the Seller, to John Deere Receivables, Inc., 1 East
First Street, Suite 600, Reno, Nevada 89501, Attention:  Manager
(702-786-5914), with a copy to Assistant Treasurer, Deere & Company, One
John Deere Place, Moline, Illinois 61265-8098 (309-765-5697), (b) in the case of
the Servicer, to John Deere Capital Corporation, 1 East First Street, Suite 600,
Reno, Nevada 89501, Attention:  Manager (702-786-5527), with a copy to
Assistant Treasurer, Deere & Company, One John Deere Place, Moline, Illinois
61265-8098 (309-765-5697), (c) in the case of the Issuing Entity or the Owner
Trustee, at the Corporate Trust Office (as defined in the Trust Agreement) with
a copy to The Bank of New York, 101 Barclay Street, 8W, New York, NY 10286,
Attention:  Michael Burack, (d) in the case of the Indenture Trustee, at
the Corporate Trust Office, (e) in the case of Moody’s, to Moody’s Investors
Service, Inc., ABS Monitoring Department, 99 Church Street, New York, New York
10007, and (f) in the case of Standard & Poor’s, to Standard & Poor’s
Ratings Services, 55 Water Street, 40th Floor, New York, New York 10041,
Attention of Asset Backed Surveillance Department; or, as to each of the
foregoing, at such other address as shall be designated by written notice to the
other parties.

         

                               
SECTION 10.04   Assignment .  Notwithstanding anything to the
contrary contained herein, except as provided in Sections 6.04 and 7.03 and as
provided in the provisions of this Agreement concerning the resignation of the
Servicer, this Agreement may not be assigned by the Seller or the
Servicer.

         

                               
SECTION 10.05   Limitations
on Rights of Others .  The provisions of this Agreement are
solely for the benefit of the Seller, the Servicer, the Issuing Entity, the
Owner Trustee, the Certificateholder, the Indenture Trustee and the Noteholders
and nothing in this Agreement, whether express or implied, shall be construed to
give to any other Person any legal or equitable right, remedy or claim in the
Owner Trust Estate or under or in respect of this Agreement or any covenants,
conditions or provisions contained herein.

         

         

        
          
            
            

          

          
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SECTION 10.06   Severability .  Any provision of this Agreement
that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other
jurisdiction.

         

                               
SECTION 10.07   Separate
Counterparts .  This Agreement may be executed by the parties
hereto in separate counterparts, each of which when so executed and delivered
shall be an original, but all such counterparts shall together constitute but
one and the same instrument.

         

                               
SECTION 10.08   Headings .  The headings of the various Articles
and Sections herein are for convenience of reference only and shall not define
or limit any of the terms or provisions hereof.

         

                               
SECTION 10.09   Governing
Law .  THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK.

         

                               
SECTION 10.10   Assignment
to Indenture Trustee .  The Seller hereby acknowledges and
consents to any mortgage, pledge, assignment and grant of a security interest by
the Issuing Entity to the Indenture Trustee pursuant to the Indenture for the
benefit of the Noteholders of all right, title and interest of the Issuing
Entity in, to and under the Receivables and/or the assignment of any or all of
the Issuing Entity’s rights and obligations hereunder to the Indenture
Trustee.

         

                               
SECTION 10.11   Nonpetition
Covenants .

         

                               
(a)  Notwithstanding any prior termination of this Agreement, the Servicer
and the Seller shall not, prior to the date which is one year and one day after
the termination of this Agreement with respect to the Issuing Entity, acquiesce,
petition or otherwise invoke or cause the Issuing Entity to invoke the process
of any court or government authority for the purpose of commencing or sustaining
a case against the Issuing Entity 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 Issuing Entity
or any substantial part of its property, or ordering the winding up or
liquidation of the affairs of the Issuing Entity.

         

                               
(b)  Notwithstanding any prior termination of this Agreement, the Servicer
shall not, prior to the date which is one year and one day after there has been
paid in full all debt issued by any securitization vehicle in respect of which
the Seller holds any interest, acquiesce, petition or otherwise invoke or cause
the Seller to invoke the process of any court or government authority for the
purpose of commencing or sustaining a case against the Seller 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 Seller or any substantial part of its property, or ordering the winding
up or liquidation of the affairs of the Seller.

         

                               
SECTION 10.12   Limitation
of Liability of Owner Trustee and Indenture
Trustee .

         

         

         

        
          
            
            

          

          
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(a)  Notwithstanding anything contained herein to the contrary, this
Agreement has been countersigned by BNYM (Delaware) not in its individual
capacity but solely in its capacity as Owner Trustee of the Issuing Entity and
in no event shall BNYM (Delaware) in its individual capacity have any liability
for the representations, warranties, covenants, agreements or other obligations
of the Issuing Entity hereunder or in any of the certificates, notices or
agreements delivered pursuant hereto, as to all of which recourse shall be had
solely to the assets of the Issuing Entity.  For all purposes of this
Agreement, in the performance of its duties or obligations hereunder or in the
performance of any duties or obligations of the Issuing Entity hereunder, the
Owner Trustee shall be subject to, and entitled to the benefits of, the terms
and provisions of Articles VI, VII and VIII of the Trust
Agreement.

         

                               
(b)  Notwithstanding anything contained herein to the contrary, this
Agreement has been accepted by U.S. Bank National Association not in its
individual capacity but solely as Indenture Trustee and in no event shall U.S.
Bank National Association have any liability for the representations,
warranties, covenants, agreements or other obligations of the Issuing Entity
hereunder or in any of the certificates, notices or agreements delivered
pursuant hereto, as to all of which recourse shall be had solely to the assets
of the Issuing Entity.

         

                               
SECTION 10.13   Additional
Securities .  The issuance of any securities by John Deere
Receivables, Inc., other than the Notes and the Certificate, will require
satisfaction of the Rating Agency Condition.  

         

         

      

       

      
        
          
          

        

        
          50

          
            

          

        

        
          
          

        

      

       

                             
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective officers as of the day and year first above
written.

       

      
        

        
          	 
      	 
      	
                  JOHN
      DEERE OWNER TRUST 2008

                	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  By:

                	
                  BNYM
      (Delaware),

                  not
      in its individual capacity but solely as 

                  Owner
      Trustee on behalf of the Trust,

                	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  By:

                	
                  /s/
      Kristine Gullo

                	 
      
	 
      	 
      	 
      	
                  Name:  Kristine
      Gullo

                	 
      
	 
      	 
      	 
      	
                  Title:    Vice
      President

                	 
      
	 	 	 	 	 

        

        

        
          	 
      	 
      	
                  JOHN
      DEERE RECEIVABLES, INC.,

                	 
      
	 
      	 
      	
                  Seller,

                	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  By:

                	
                  /s/
      Larry J. Gant

                	 
      
	 
      	 
      	 
      	
                  Name:  Larry
      J. Gant

                	 
      
	 
      	 
      	 
      	
                  Title:    Assistant
      Secretary

                	 
      
	 
      	 
      	 
      	 
      	 
      

        

        

        
          	 
      	 
      	
                  JOHN
      DEERE CAPITAL CORPORATION,

                	 
      
	 
      	 
      	
                  Servicer,

                	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  By:

                	
                  /s/
      Gregory A. Van Bladel

                	 
      
	 
      	 
      	 
      	
                  Name:  Gregory
      A. Van Bladel

                	 
      
	 
      	 
      	 
      	
                  Title:    Assistant
      Secretary

                	 
      
	 
      	 
      	 
      	 
      	 
      

        

        

      

       

       

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    
      
        
          	
                  Acknowledged,
      Accepted and Agreed:

                	 
      
	 
      	 
      
	
                  BNYM
      (Delaware),

                	 
      
	
                    not
      in its individual

                	 
      
	
                    capacity
      but solely

                	 
      
	
                    as
      Owner Trustee,

                	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                  By:

                	
                  /s/
      Kristine K. Gullo

                	 
      
	 
      	
                  Name:  Kristine
      K. Gullo

                
	 
      	
                  Title:    Vice
      President

                
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                  Acknowledged,
      Accepted and Agreed:

                	 
      
	 
      	 
      
	
                  U.S.
      Bank National Association,

                	 
      
	
                    not
      in its individual

                	 
      
	
                    capacity
      but solely

                	 
      
	
                    as
      Indenture Trustee,

                	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                  By:

                	
                  /s/
      Melissa A. Rosal

                	 
      
	 
      	
                  Name:  Melissa
      A. Rosal

                
	 
      	
                  Title:    Vice
      President

                
	 
      	 
      

        

      

    

     

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
       

       

      SCHEDULE A

       

       

       

      Schedule of Receivables

       

       

      (Delivered to the Trust at the Closing)

       

       

       

       

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    
       

      SCHEDULE B

       

       

       

      Location of Receivable Files

       

       

      Suite
600

       

       

      1 East First Street

       

       

      Reno, Nevada
89501

       

       

       

       

       

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

       

      SCHEDULE C

       

       

       

      LIST OF FISCAL MONTHS

       

       

      FISCAL MONTH CUTOFF DATES (BY FISCAL YEAR)

       

       

       

       

       

      
        	 	 	 	 	 	 	 	 	 	 
	
                Fiscal

                 

              	
                Calendar

                 

              	
                2008

                 

              	
                2009

                 

              	
                2010

                 

              	
                2011

                 

              	
                2012

                 

              	
                2013

                 

              	
                2014

                 

              	
                2015

                 

              
	
                Month

                 

              	
                Month

                 

              	
                 

                 

              	
                 

                 

              	
                 

                 

              	
                 

                 

              	
                 

                 

              	
                 

                 

              	
                 

                 

              	
                 

                 

              
	
                1

                 

              	
                November

                 

              	
                 25-Nov-07

                 

              	
                 30-Nov-08

                 

              	
                 29-Nov-09

                 

              	
                28-Nov-10

                 

              	
                27-Nov-11

                 

              	
                25-Nov-12

                 

              	
                24-Nov-13

                 

              	
                30-Nov-14

                 

              
	
                2

                 

              	
                December

                 

              	
                23-Dec-07

                 

              	
                28-Dec-08

                 

              	
                27-Dec-09

                 

              	
                26-Dec-10

                 

              	
                25-Dec-11

                 

              	
                23-Dec-12

                 

              	
                22-Dec-13

                 

              	
                28-Dec-14

                 

              
	
                3

                 

              	
                January

                 

              	
                27-Jan-08

                 

              	
                01-Feb-09

                 

              	
                31-Jan-10

                 

              	
                30-Jan-11

                 

              	
                29-Jan-12

                 

              	
                27-Jan-13

                 

              	
                26-Jan-14

                 

              	
                1-Feb-15

                 

              
	
                4

                 

              	
                February

                 

              	
                24-Feb-08

                 

              	
                01-Mar-09

                 

              	
                28-Feb-10

                 

              	
                27-Feb-11

                 

              	
                26-Feb-12

                 

              	
                24-Feb-13

                 

              	
                23-Feb-14

                 

              	
                1-Mar-15

                 

              
	
                5

                 

              	
                March

                 

              	
                23-Mar-08 

                 

              	
                29-Mar-09 

                 

              	
                28-Mar-10 

                 

              	
                27-Mar-11

                 

              	
                25-Mar-12

                 

              	
                24-Mar-13

                 

              	
                23-Mar-14

                 

              	
                29-Mar-15

                 

              
	
                6

                 

              	
                April

                 

              	
                27-Apr-08

                 

              	
                03-May-09

                 

              	
                02-May-10

                 

              	
                01-May-11

                 

              	
                29-Apr-12

                 

              	
                28-Apr-13

                 

              	
                27-Apr-14

                 

              	
                3-May-15

                 

              
	
                7

                 

              	
                May

                 

              	
                25-May-08 

                 

              	
                31-May-09 

                 

              	
                30-May-10 

                 

              	
                29-May-11

                 

              	
                27-May-12

                 

              	
                26-May-13

                 

              	
                25-May-14

                 

              	
                31-May-15

                 

              
	
                8

                 

              	
                June

                 

              	
                22-Jun-08

                 

              	
                28-Jun-09

                 

              	
                27-Jun-10

                 

              	
                26-Jun-11

                 

              	
                24-Jun-12

                 

              	
                23-Jun-13

                 

              	
                22-Jun-14

                 

              	
                28-Jun-15

                 

              
	
                9

                 

              	
                July

                 

              	
                27-Jul-08

                 

              	
                02-Aug-09

                 

              	
                01-Aug-10

                 

              	
                31-Jul-11

                 

              	
                29-Jul-12

                 

              	
                28-Jul-13

                 

              	
                27-Jul-14

                 

              	
                2-Aug-15

                 

              
	
                10

                 

              	
                August

                 

              	
                24-Aug-08

                 

              	
                30-Aug-09

                 

              	
                29-Aug-10

                 

              	
                28-Aug-11

                 

              	
                26-Aug-12

                 

              	
                25-Aug-13

                 

              	
                24-Aug-14

                 

              	
                30-Aug-15

                 

              
	
                11

                 

              	
                September

                 

              	
                28-Sep-08

                 

              	
                27-Sep-09

                 

              	
                26-Sep-10

                 

              	
                25-Sep-11

                 

              	
                23-Sep-12

                 

              	
                22-Sep-13

                 

              	
                28-Sep-14

                 

              	
                27-Sep-15

                 

              
	
                12

                 

              	
                October

                 

              	
                31-Oct-08

                 

              	
                31-Oct-09

                 

              	
                31-Oct-10

                 

              	
                31-Oct-11

                 

              	
                31-Oct-12

                 

              	
                31-Oct-13

                 

              	
                31-Oct-14

                 

              	
                31-Oct-15

                 

              

      

    

    

    
       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      SCHEDULE D

       

       

      Servicer’s Certificate

       

       

                             
The undersigned hereby certify that (i) they are, respectively, a duly elected
Vice President and Assistant Secretary of John Deere Capital Corporation and
(ii) this Servicing Certificate complies with the requirements of, and is being
delivered pursuant to, Section 4.09 of the Sale and Servicing Agreement (the
“Sale and Servicing Agreement”) dated as of April 15, 2008 between John Deere
Owner Trust 2008, John Deere Receivables, Inc. and John Deere Capital
Corporation.

       

       

       

       

       

      
        	 Dated:	 	 	 
	
                 

              	
                 

              	
                Name:

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                Title:

              	
                Vice
      President

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              

      

       

       

      
        	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                Name:

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                Title:

              	
                Assistant
      Secretary

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              

      

       

       

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      Payment Date: 
__________________________________ 

       

      Scheduled Payment
Date:

      Actual
Payment Date:

      Collection Period Begin Date:

      Collection Period End Date:

      Days in
accrual period for Act/360:

      Days in
accrual period for 30/360:

       

      (1)  Total
Distribution Amount:

      (a)  Total
cash receipts during the month

      (b) 
Administrative repurchases during the month

      (c) 
Investment earnings on cash accounts

       

      (2)           (a)
Administration Fee:

      (b) Administration
Fee Shortfall:

       

      (3)        Noteholders’ Interest
Distributable Amount deposited into Note Distribution Account:

                  
Noteholders’ Interest Carryover Shortfall:

       

      (a)           (i)
Noteholders’ Interest Distributable Amount applicable to Class A-1
Notes:

      (ii) Noteholders’
Interest Carryover Shortfall applicable to Class A-1 Notes:

       

      (b)           (i)
Noteholders’ Interest Distributable Amount applicable to Class A-2
Notes:

      (ii) Noteholders’
Interest Carryover Shortfall applicable to Class A-2 Notes:

       

      (c)           (i)
Noteholders’ Interest Distributable Amount applicable to Class A-3
Notes:

      (ii) Noteholders’
Interest Carryover Shortfall applicable to Class A-3 Notes:

       

      (d)           (i)
Noteholders’ Interest Distributable Amount applicable to Class A-4
Notes:

      (ii) Noteholders’
Interest Carryover Shortfall applicable to Class A-4 Notes:

       

      (4)        Noteholders’ Monthly 
Principal Distributable Amount deposited into Note Distribution
Account:

                  
Noteholders’
Principal Carryover Shortfall:

       

      (a)           (i) Class
A-1 Noteholders’ Monthly Principal Distributable Amount:

      (ii) % of Principal
Distributable Amount applicable to Class A-1 Noteholders:

      (iii) Class A-1
Noteholders’ Principal Carryover Shortfall:

      (iv) Class A-1
Noteholders’ Principal Distributable Amount:

       

      (b)  
        (i) Class A-2 Noteholders’ Monthly
Principal Distributable Amount:

      (ii) % of Principal
Distributable Amount applicable to Class A-2 Noteholders:

      (iii) Class A-2
Noteholders’ Principal Carryover Shortfall:

      (iv) Class A-2
Noteholders’ Principal Distributable Amount:

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      (c)           (i)
Class A-3 Noteholders’ Monthly Principal Distributable Amount:

      (ii) % of Principal
Distributable Amount applicable to Class A-3 Noteholders:

      (iii) Class A-3
Noteholders’ Principal Carryover Shortfall:

      (iv) Class A-3
Noteholders’ Principal Distributable Amount:

       

      (d)
          (i) Class A-4
Noteholders’ Monthly Principal Distributable Amount:

      (ii) % of Principal
Distributable Amount applicable to Class A-4 Noteholders:

      (iii) Class A-4
Noteholders’ Principal Carryover Shortfall:

      (iv) Class A-4
Noteholders’ Principal Distributable Amount:

       

      (5) 
Noteholders’ Distributable Amount:

       

      (6)  Reserve
Account balance

      (a)  Beginning
balance

      (b)  Amount of
deposit from Collection Account to Reserve Account

      (i) Amount to
increase the amount on deposit in the Reserve Account to the Specified Reserve
Account Balance

      (ii) Amount of
excess to Reserve Account from Collection Account

      (c)  Amount to
be withdrawn from the Reserve Account and deposited into NoteDistribution
Account (5.05(c)):

      (i) Interest Amount
included above:

      (ii) Principal
Amount included above:

      (d)  Reserve
Account Balance over the Specified Reserve Account Balance (before any
distribution of excess)

      (e)  Ending
Balance (after giving effect to all distributions)

      (f)  Specified
Reserve Account Balance

       

      (7)        Servicing Fee:

      (a) Amount of
Servicing Fee earned:

      (b) Amount of
Servicing Fee paid:

      (c) Amount of
Servicing Fee Shortfall:

       

      (8)      
    (a) Certificateholders’ Monthly Principal Distributable
Amount applicable to current period:      

               
      (b) % of Principal Distribution Amount applicable
to Certificateholders:

                    
 (c) ‘Certificateholders’ Principal Carryover
Shortfall:        

       

      (9)        Excess Reserve Account
Balance Distributable to Seller (5.05(b)(i) or (ii)):

       

      (10)         (a) Pool Balance
(excluding accrued interest) as of close of business on the last day of the
related Collection Period:

      (b) Note Value as
of the end of the related Collection Period:

      (c) Number of Accounts at
the end of the related Collection Period:      

       

      (11)  After
giving effect to all distributions on such Payment Date:

      (a) (i) Outstanding
Principal Balance of Class A-1 Notes:

      (ii) Class A-1 Note
Pool Factor:

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

       

      (b) (i) Outstanding
Principal Balance of Class A-2 Notes:

      (ii) Class A-2 Note
Pool Factor:

       

      (c) (i) Outstanding
Principal Balance of Class A-3 Notes:

      (ii) Class A-3 Note
Pool Factor:

       

      (d) (i) Outstanding
Principal Balance of Class A-4 Notes:

      (ii) Class A-4 Note
Pool Factor:

       

      (e) (i) Outstanding
Principal Balance of the Certificates:

      (ii) 
Certificate Pool Factor:

       

      (12) 
Aggregate amount of Purchased Receivables for related Collection
Period:

       

      (13)
         (i) Aggregate amount of net losses
for the collection period :

                   
  (ii) Cumulative amount of net losses:

      (iii) Cumulative
net loss as a percent of Initial Pool Balance (Cumulative Net Loss
Ratio):

       

      (14)
        (i) Face Amount of Receivables 60 days or
more past due as a % of the Pool Balance

      (ii) Rolling three
month 60 days or more past due as a % of Pool Balance (Average Delinquency
Ratio):

       

      (15)  Collateral
Composition:    

      (a)  Number of
loans at the beginning of the period:

      (b)  Number of
loans at the end of the period    :

      (c)  Weighted
average remaining term on receivables:

      (d) Prepayment
amount – monthly:

      (e) 
Prepayment amount - life-to-date    :

      (f)  Weighted
average APR of the pool assets:

      (g)  Pool
Factor:

       

       

      
 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

       

      Officer’s Certificate

       

                             
The undersigned hereby certify that (i) they are, respectively, a duly elected
Vice President and Assistant Secretary of John Deere Capital Corporation, (ii)
Schedule E hereto complies with the requirements of, and is being delivered
pursuant to, Section 5.06(a) of the Sale and Servicing Agreement (the “Sale and
Servicing Agreement”) dated as of April 15, 2008 between John Deere Owner Trust
2008, John Deere Receivables, Inc. and John Deere Capital Corporation, (iii)
Schedule F hereto complies with the requirements of, and is delivered pursuant
to, Section 5.06(a) of the Sale and Servicing Agreement, and (iv) Schedule G
hereto complies with the requirements of, and is being delivered pursuant to,
Section 5.04(b) of the Sale and Servicing Agreement.

       

       

      
        	 Dated:	 	 	 
	
                 

                 

                 

              	 
      	
                 

                Name:

                 

              	 
      	 
      
	 
      	 
      	
                 

                Title:

                 

              	
                 

                Vice
      President

                 

              	 
      
	 
      	 
      	 
      	 
      	 
      

      

       

      
        	 
      	 
      	 
      	 
      
	 
      	 
      	
                 

                Name:

                 

              	 
      	 
      
	 
      	 
      	
                 

                Title:

                 

              	
                 

                Assistant
      Secretary

                 

              	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      

      

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

     

     

    SCHEDULE E

     

     

    Statement to
Certificateholder 
pursuant to Section 5.06(a)

     

    Payment Date:
 ______________________________

     

    (1)           Amount of
principal being paid or distributed:

     

    (a)        Class A-1
Notes:

                 per $1,000 original
principal amount:

     

    (b)        Class A-2
Notes:

         per $1,000 original
principal amount:

     

    (c)        Class A-3
Notes:

         per $1,000 original
principal amount:

     

    (d)        Class A-4
Notes:

         per $1,000 original
principal amount:

     

    (e)        Certificate:

         per $1,000 original
principal amount:

     

    (f)         Total:

     

    (2)          
(a)        Amount of interest being paid or
distributed:

     

    (i)         Class A-1
Notes:

         per $1,000 original
principal amount:

     

    (ii)        Class A-2
Notes:

         per $1,000 original
principal amount:

     

    (iii)       Class A-3 Notes:

         per $1,000 original
principal amount:

     

    (iv)       Class A-4 Notes:

        per $1,000 original
principal amount:

     

    (v)        Total:

     

    (3)          
(a)        Pool Balance at end of related
Collection Period:

     

    (b)        Note Value at end of
related Collection Period:

     

    (c)        Pool Face Amount at the end
of related Collection Period:

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

     

    (4)        After giving effect to
distributions on this Payment Date:

     

    (a)         
 (i)         Outstanding principal
amount of

    Class A-1
Notes:

     

                   
(i)         Outstanding principal amount
of Class A-2 Notes:

     

    (iii)       Outstanding principal amount of
Class A-3 Notes:

     

    (iv)       Outstanding principal amount of
Class A-4 Notes:

     

    (b)          
(i)         Certificate
Balance:

     

    (ii)        Certificate Pool
Factor

     

    (5)          
(a)            Amount
of Servicing Fee:

    (i)         per $1,000 original
principal amount of Notes and Certificate:

     

    (b)          Amount of
Servicing Fee earned:

     

    (c)          Amount of
Servicing Fee paid:

     

    (d)          Amount of
Servicing Fee shortfall:

     

    (6)           Amount of
Administration Fee:

     

    (7)           Aggregate
Purchase Amounts for Collection Period:

     

    (8)         
 (i)         Amount in Reserve
Account:

     

        (ii)        Specified Reserve Account
Balance:

     

    (9)         
 (i)         Scheduled Payments of
Receivables 60 days or more past due:

     

        (ii)        Scheduled Payments of
Receivables 60 days or more past due as a percent of the Pool Balance, at the
end of the related Collection Period:

     

    (10)        
(i)         Face Amount of Receivables
60 days or more past due:

     

           
(ii)        Face Amount of Receivables
60 days or more past due as a percent of the Pool Face Amount at the end of the
related Collection Period:

     

           
(iii)       Face Amount of Receivables 60
days or more past due as a percent of the Pool Balance at the end of the related
Collection Period:

     

           
(iv)       Rolling three month 60 days or
more past due as a percent of Pool Balance (Average Delinquency
Ratio):

     

    (11)        
(i)         Aggregate amount of net
losses for the collection period:

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

     

    (ii)       
Cumulative amount of net losses:

     

    (iii)      
Cumulative net losses as a percent of initial Pool Balance (Cumulative Net Loss
Ratio):

     

    (12)       
If the Payment Date is in April 2010 or October 2010:

     

    (i)         Average Delinquency
Ratio Test is met:     Yes     
No

     

    (ii)        Cumulative Net Loss Ratio
Test is met:      
Yes      No

     

    (iii)       Specified Reserve Reduction
Trigger is met:      Yes     
No

     

    (iv)       Reserve Account reduction as a
result of Specified Reserve Reduction Trigger:

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    SCHEDULE F

     

    Statement for
Noteholders 
pursuant to Section 5.06(a)

     

    Payment Date: 
_____________________________

     

    (1)         Before giving effect
to distributions on this Payment Date:

     

    (a)           (i)
        outstanding principal amount of Class
A-1 Notes:

    (ii)
       A-1 Note Pool Factor

     

    (b)           (i)
        outstanding principal amount of Class
A-2 Notes:

    (ii)
       A-2 Note Pool Factor

     

    (c)           (i)
        outstanding principal amount of Class
A-3 Notes:

    (ii)
       A-3 Note Pool Factor

     

    (d)           (i)
        outstanding principal amount of Class
A-4 Notes:

    (ii)
       A-4 Note Pool Factor

     

    (2)         Amount of principal being
paid on Notes:

     

    (a)           Class A-1
Notes:

             per $1,000 original
principal amount:

     

    (b)           Class A-2
Notes:

            
per $1,000
original principal amount:

     

    (c)           Class A-3
Notes:

            
per $1,000
original principal amount:

     

    (d)           Class A-4
Notes:

            
per $1,000
original principal amount:

     

    (e)        Total:

     

    (3)          
(a)        Amount of interest being paid on
Notes:

     

    (i)           
Class A-1 Notes:

    per $1,000 original
principal amount:

     

    (ii)           Class
A-2 Notes:

    per $1,000 original
principal amount:

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    (iii)          Class A-3
Notes:

    per $1,000 original
principal amount:

     

    (iv)          Class A-4
Notes:

    per $1,000 original
principal amount:

     

    (v)          
Total:

     

    (4)          
(a)            Pool
Balance (excluding accrued interest):

     

    (i)         at beginning of
related Collection Period:

     

    (ii)        at end of related
Collection Period:

     

    (b)           Note
Value:

     

    (i)         at beginning of
related Collection Period:

     

    (ii)        at end of related
Collection Period:

     

    (c)           Pool
Face Amount:

     

    (i)         at beginning of
related Collection Period:

     

    (ii)        at end of related
Collection Period:

     

    (5)          After giving
effect to distributions on this Payment Date:

     

    (a)          
(i)         Outstanding principal amount
of Class A-1 Notes:

     

    (ii)        Outstanding principal
amount of Class A-2 Notes:

     

    (iii)       Outstanding principal amount of
Class A-3 Notes:

     

    (iv)       Outstanding principal amount of
Class A-4 Notes:

     

    (b)          
Certificate Balance:

     

    (6)          
(a)           Amount of
Servicing Fee:

    per $1,000 original
principal amount of Notes and Certificate:

     

    (b)        Amount of Servicing Fee
earned:

     

    (c)        Amount of Servicing Fee
paid:

     

    (d)        Amount of Servicing Fee
shortfall:

     

    (7)         Amount of Administration
Fee:

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

     

    (8)          Aggregate
Purchase Amounts for Collection Period:

     

    (9)          
(i)         Amount in Reserve
Account:

     

    (ii)        Specified Reserve Account
Balance:

     

    (10)       
 (i)         Scheduled Payments of
Receivables 60 days or more past due:

     

    (ii)        Scheduled Payments of
Receivables 60 days or more past due as a percent of the Pool Balance, at the
end of the related Collection Period:

     

    (11)        
(i)         Face Amount of Receivables
60 days or more past due:

     

    (ii)        Face Amount of Receivables
60 days or more past due as a percent of the Pool Face Amount at the end of the
related Collection Period:

     

    (iii)       Face Amount of Receivables 60
days or more past due as a percent of the Pool Balance at the end of the related
Collection Period:

     

    (iv)       Rolling three month 60 days or
more past due as a percent of Pool Balance (Average Delinquency
Ratio):

     

    (12)       
 (i)         Aggregate amount of
net losses for the collection period:

     

    (ii)       
Cumulative amount of net losses:

     

    (iii)      
Cumulative net losses as a percent of initial Pool Balance (Cumulative Net Loss
Ratio):

     

    (13)     
If the Payment Date is in April 2010 or October 2010:

     

    (i)         Average Delinquency
Ratio Test is met:     Yes     
No

     

    (ii)        Cumulative Net Loss Ratio
Test is met:      
Yes      No

     

    (iii)       Specified Reserve Reduction
Trigger is met:      Yes     
No

     

    (iv)       Reserve Account reduction as a
result of Specified Reserve Reduction Trigger:

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      SCHEDULE G

       

       

       

      Instructions to the
Trustee for payments and deposits pursuant to Section 5.04 (b) of the Sale and
Servicing Agreement:

       

      Payment
Date:  ____________________

       

      (i)         Payment of Servicing
Fee (including any previously unpaid Servicing Fees) to Servicer:
 ____________________

       

      (ii)        Payment of Administration
Fee to Administrator:  ____________________

       

      (iii)      
Accrued and unpaid interest on the Notes for such Payment Date: 
____________________

       

      (iv)       Note Monthly Principal
Distributable Amount to be deposited into Note Distribution Account: 
____________________

       

      (v)        Deposit to Reserve Account
to increase the amounts on deposit in the Reserve Account to the Specified
Reserve Account Balance:  ____________________

       

      (vi)       Certificate Monthly Principal
Distributable Amount to be deposited into Certificate Distribution
Account:  ____________________

       

      (vii)      Deposit to Reserve Account: 
____________________

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
 

    

    APPENDIX A

     

     

    Servicing
Criteria

     

               
The assessment of compliance to be delivered by the Indenture Trustee shall
address the criteria identified below.

     

     

     

    
      	
              Reference

               

            	
              Servicing Criteria

               

            
	
              1122(d)(2)(ii)

            	
              Disbursements made
      via wire transfer on behalf of an obligor or to an investor are made only
      by authorized personnel. 

            
	
              1122(d)(2)(iv)

            	
              The related accounts
      for the transaction, such as cash reserve accounts or accounts established
      as a form of overcollateralization, are separately maintained (e.g., with
      respect to commingling of cash) as set forth in the transaction
      agreements. 

            
	
              1122(d)(2)(v)

            	
              Each custodial
      account is maintained at a federally insured depository institution as set
      forth in the transaction agreements. For purposes of this criterion,
      “federally insured depository institution” with respect to a foreign
      financial institution means a foreign financial institution that meets the
      requirements of Rule 13k-1(b)(1) of the Securities Exchange Act.
      

            
	
              1122(d)(3)(ii)

            	
              Amounts due to
      investors are allocated and remitted in accordance with timeframes,
      distribution priority and other terms set forth in the transaction
      agreements.

            
	
              1122(d)(3)(iii)

            	
              Disbursements made
      to an investor are posted within two business days to the Servicer’s
      investor records, or such other number of days specified in the
      transaction agreements.

            
	
              1122(d)(3)(iv)

            	
              Amounts remitted to
      investors per the investor reports agree with cancelled checks, or other
      form of payment, or custodial bank statements.EX-4.5

 

Exhibit 4.5

Reuters Group PLC

Discretionary Stock Option Plan Rules

Adopted by Board resolution on 5 October 2000,

amended by the Board on 12 February 2001,

Approved at the Extraordinary General Meeting of

Shareholders 24 April 2001 and further amended

by the Board on 2 October 2001 and [    ] February 2008

 

 

			
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	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [    ] February 2008

Contents

	 	 	 	 	 	 	 
	1

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	2

	 	Grant of Options
	 	 	8	 
	 
	 	 	 	 	 	 
	3

	 	Limitations on Grant
	 	 	11	 
	 
	 	 	 	 	 	 
	4

	 	Exercise of Options
	 	 	12	 
	 
	 	 	 	 	 	 
	5

	 	Trade sales, Reconstructions,
Liquidations and Option Exchanges
	 	 	15	 
	 
	 	 	 	 	 	 
	6

	 	Variation of Share Capital
	 	 	19	 
	 
	 	 	 	 	 	 
	7

	 	Manner of Exercise of Options
	 	 	20	 
	 
	 	 	 	 	 	 
	8

	 	Administration and Amendment
	 	 	23	 
	 
	 	 	 	 	 	 
	9

	 	Miscellaneous
	 	 	25	 

 

 

			
	kpmg
	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [    ] February 2008

	1	 	Definitions
	 
	1.1	 	In these Rules the following words and expressions shall have, where the context so admits,
the following meanings:

	 	 	 	 
	 	“Adoption Date”

	 	the date on which the Plan is adopted by
resolution of the Board;
	 	 
	 	 
	 	“Associated Company”

	 	a company is to be treated as another
company’s associated company if at that time
one of the two has Control of the other, or
both are under the Control of the same person
or persons;
	 	 
	 	 
	 	“Auditors”

	 	the auditors for the time being of the Company
(acting as experts and not as arbitrators);
	 
	 	 
	 	“Board”

	 	the board of Directors of the Company or a
duly constituted committee thereof at which a
quorum is present;
	 
	 	 
	 	“the Company”

	 	Reuters Group PLC or, save for Rules 1, 2, 3
and 8.3, such company as shall be at any time
the “Acquiring Company” as defined in Rule
5.5;
	 
	 	 
	 	“Compromise or Arrangement”

	 	a compromise or arrangement (including a
reorganisation of the Company’s share capital
by the consolidation of shares of different
classes or by the division of shares into
shares of different classes or by both of
those methods) between the Company and its
members or creditors or any class of either
which has been approved by not less than 75%
in value of the creditors or members (based on
the value of the interests as at the last
record date) or such class of either who vote
on such compromise or arrangement and which
has been sanctioned by the Court;
	

	 	 
	 	“Control”

	 	in relation to a body corporate the power of a
person which is a member of that Body
Corporate (the “Body Corporate”) to secure:
	

	 	 
	 	 

	 	 (a)   by the
holding of shares or the possession of voting power in
or in relation to the Body Corporate or any other body
corporate; or

1

 

			
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	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [    ] February 2008

	 	 	 	 
	 	 

	 	(b)   by virtue of
its right to appoint or remove a majority of the board
of directors of that Body Corporate; or

	 
	 	 
	 	 

	 	(c)   by virtue of
any power conferred by the certificate of
incorporation, articles of association, bye laws,
membership agreement or other document regulating the
Body Corporate or any other body corporate

	 
	 	 
	 	 

	 	that the affairs of the Body Corporate are conducted in
accordance with the wishes of that person;
	 
	 	 
	 	“Date of Grant”

	 	the date on which an Option is granted to an Eligible
Employee under the Plan or which is treated as being
granted pursuant to Rule 2.6;
	 
	 	 
	 	“Director”

	 	any person occupying the office of director of the
Company, by whatever name called;
	 
	 	 
	 	“Eligible Employee”

	 	an employee (whether contracted to work full time or
part time) of any Participating Company but not
including any Director of the Company unless and
until this Plan has been approved by the shareholders
of the Company in general meeting and not including
any non Executive Director;
	 	 
	 	 
	 	“Exercise Price”

	 	the amount as determined by the Company which an
Option Holder shall pay to acquire a Share on the
exercise of an Option being, subject to Rule 2.6 and
Rule 6, in the case of an Option to Subscribe not less
than the higher of:
	 
	 	 
	 	 

	 	 (a)    Market Value;
and

	 
	 	 
	 	 

	 	 (b)    the nominal
value of a Share on the Date of Grant;

	 
	 	 
	 	 

	 	and in the case of an Option to Purchase not less than the
Market Value of a Share on the Date of Grant
	 
	 	 
	 	“Form of Renunciation”

	 	the form of renunciation in the form agreed by
the Board or the Plan Committee from time to
time;
	 
	 	 
	 	“Grantor”

	 	in the case of an Option to Subscribe, the
Company and in the case of an Option to
Purchase, the Trustee;

2

 

			
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	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [    ] February 2008

	 	 	 	 
	 	“Group”

	 	the Company and its Subsidiaries and the phrase
“Group Company” shall be construed accordingly;
	 
	 	 
	 	“Ill Health or Disability”

	 	the cessation of employment or office by reason
of ill health or disability provided the Group
Company which employs the relevant individual
is satisfied, on production of such evidence as
it may reasonably require:
	 
	 	 
	 	 

	 	(a)   that that
individual has ceased to exercise and, by reason of
ill health or disability, is incapable of exercising
that office or employment; and

	 
	 	 
	 	 

	 	(b)   that that
individual is likely to remain so incapable for the
foreseeable future and is unlikely to return to
employment with the Group.

	 
	 	 
	 	“Letter of Grant”

	 	the letter or other communication (which may include
electronic communication) in the form agreed by the
Board or the Plan Committee from time to time;
	 
	 	 
	 	“Market Value”

	 	on any day, the average closing middle market quotation
of a Share as derived from the Daily Official List of
the London Stock Exchange plc on the three dealing days
which immediately precede that day;
	 
	 	 
	 	“Model Code”

	 	the Model Code for transactions in securities by
Directors issued from time to time by the UK Listing
Authority and/or any code of practice adopted by the
Board in addition to or replacement of such publication;
	 
	 	 
	 	“New Option”

	 	an option over shares in the Acquiring Company (as
defined in Rule 5.5 ) granted in consideration of the
release of a Subsisting Option and which shall satisfy
the following conditions:
	 
	 	 
	 	 

	 	(a)   that it is a
right to acquire such number of shares in the
Acquiring Company as has on the acquisition of the New
Option an aggregate Market Value equal to the
aggregate Market Value of the Shares subject to the
Subsisting Option on its release; and

3

 

			
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	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [    ] February 2008

	 	 	 	 
	 	 

	 	(b)   that it has
an exercise price per share such that the aggregate
price payable on the complete exercise equals the
aggregate price which would have been payable on
complete exercise of the Subsisting Option;

	 
	 	 
	 	“Notice of Exercise”

	 	the notice of exercise in the form agreed by the
Board or the Plan Committee from time to time;
	 
	 	 
	 	“Option”

	 	a right to acquire Shares granted or to be
granted pursuant to Rules 2.1 or 2.6 and the
term “Option” shall be construed to mean either
“Option to Purchase” or “Option to Subscribe” or
both as the context requires;
	 
	 	 
	 	“Option Certificate”

	 	the option certificate in the form agreed by the
Board or the Plan Committee from time to time;
	 
	 	 
	 	“Option Holder”

	 	an Eligible Employee who has been granted and
remains entitled to a Subsisting Option or
(where the context admits) his legal personal
representative(s) or transferee;
	 
	 	 
	 	“Option to Purchase”

	 	an Option to acquire Shares granted by the
Trustee with the intention that it be satisfied
by the transfer of Shares by or at the direction
of the Trustee;
	 
	 	 
	 	“Option to Subscribe”

	 	an Option to acquire Shares granted by the
Company, with the intention that it be satisfied
by the issue of new Shares by the Company;
	 
	 	 
	 	“Other Plan”

	 	any plan (other than this Plan and Plan 2000 and
its sub-plans adopted on 21 April 1998) which
provides for the subscription of Shares by or on
behalf of employees of a Group Company;
	 
	 	 
	 	“Participating Companies”

	 	the Company and any other Group Company wherever
incorporated except for those Group Companies
which are designated from time to time by the
Plan Committee as non Participating Companies
for the purposes of the Plan;
	 
	 	 
	 	“Performance Condition”

	 	any condition imposed by the Plan Committee in
its discretion pursuant to Rule 2.3.2 whereby an
Option is granted on the basis that it may not
be exercised in whole or in part until and to the extent that
the condition has been satisfied;

4

 

			
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	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [    ] February 2008

	 	 	 	 
	 	“Plan”

	 	this Plan constituted and governed by the Rules with and
subject to any amendments thereto properly effected;
	 
	 	 
	 	“Plan Committee”

	 	the Board or a duly authorised committee appointed by the
Board to oversee the operation of this Plan, provided
that in the case of options granted or to be granted to
executive Directors, this committee shall be the
Remuneration Committee;
	 
	 	 
	 	“Redundancy”

	 	the cessation of office or employment by reason of:
	 
	 	 
	 	

	 	(a)   the cessation
or intended cessation by an employing company of the
business in which the relevant individual was
employed; or

	 
	 	 
	 	 

	 	(a)   the cessation
or reduction in the requirements of an employing
company for employees to carry out work of a
particular kind (including carrying out work in a
particular location)

	 
	 	 
	 	“Remuneration Committee”

	 	the Board or a duly constituted committee of the Board delegated
with the authority to consider the remuneration of Directors and senior employees of the Group in accordance with any
prevailing code of practice operated by the Company;
	 
	 	 
	 	“Retirement”

	 	the cessation of employment or office by reason of retirement at normal
retirement age or at such other age as may be agreed by the Group Company which employs the relevant individual provided
that a cessation of employment or office at an age less than 50 years shall not for the purposes of this Plan be or be
considered to be Retirement;
	 
	 	 
	 	“Rules”

	 	the rules of this Plan as amended from time to time and “Rule” shall be construed
accordingly;
	 
	 	 
	 	“Share”

	 	an Ordinary Share in the capital of the Company which is, was or will be fully paid
on issue;
	 
	 	 
	 	“Subsidiary”

	 	a company which is under the Control of another company;
	 
	 	 
	 	“Subsisting Option”

	 	an Option which has been granted and which has not been surrendered,
renounced, or exercised in full nor otherwise lapsed;

5

 

			
	kpmg
	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [    ] February 2008

	 	 	 	 
	 	“Trust”

	 	any employee share ownership trust which has been or may be established from time
to time by the Company or any other Group Company to operate in conjunction with this Plan;
	 
	 	 
	 	“Trustees”

	 	the trustee or trustees for the time being of the Trust;
	 
	 	 
	 	“UK Listing Authority”

	 	the Financial Services Authority acting in its capacity as the
competent authority for the purposes of Part IV of the Financial Services Act 1986 and in the exercise of its functions in
respect of admission to the Official List.
	 
	 	 
	 	“Vesting”

	 	an Option becoming, subject to Rule 4, capable of exercise in accordance
with the Vesting Schedule specified in its Option Certificate and, the Performance Condition (if any) having been satisfied
and the expression “Vest and “Vested” shall have a corresponding meaning;

	1.2	 	In these Rules, except insofar as the context otherwise requires:
	 
	(i)	 	words denoting the singular shall include the plural and vice versa;
	 
	(ii)	 	words importing a gender shall include every gender and references to a person shall include
bodies corporate and unincorporated and vice versa;
	 
	(iii)	 	reference to any enactment shall be construed as a reference to that enactment as from time
to time amended, modified, extended or re-enacted and shall include any orders, regulations,
instruments or other sub-ordinate legislation made under the relevant enactment; and
	 
	(iv)	 	headings and captions are provided for reference only and shall not be considered as part of
the Plan.

6

 

			
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	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [    ] February 2008

	2	 	Grant of Options
	 
	2.1	 	The Plan Committee may in its absolute discretion select any number of individuals who shall
at the intended Date of Grant be Eligible Employees and recommend the grant of Options to
them.
	 
	2.2	 	Options may be granted at any time when it is permitted to do so in accordance with the
Model Code. Options shall not be granted later than the tenth anniversary of the Adoption
Date.
	 
	2.3.1	 	The exercise of any Option shall be made subject to a Vesting Schedule as determined by the
Plan Committee prior to the Date of Grant and specified on or in a schedule referred to in the
Option Certificate relating to that Option.

	 	 	 	 	 
	2.3.2

	 	(a)
	 	The exercise of an Option granted pursuant to Rule 2.1
may also be made subject to the satisfaction of a
Performance Condition determined by the Plan Committee
prior to the Date of Grant.
	 
	 	 	 	 
	 

	 	(b)
	 	Any such Performance Condition must be based on
objective conditions and shall be:
	 
	 	 	 	 
	 

	 	 	 	 (i)    set out in full in the Option Certificate or in a
schedule referred to in the Option Certificate;

	 
	 	 	 	 
	 

	 	 	 	(ii)   such that rights to exercise an Option after the
fulfilment or attainment of such objective conditions
shall not be dependent upon

  the further discretion of
any person; and

	 
	 	 	 	 
	 

	 	 	 	 (a)   not capable of amendment or waiver unless events
happen which cause the Plan Committee to consider that
the Performance

 Condition has ceased to be appropriate
whereupon the Plan Committee may at any time amend,
relax or waive the Performance

 Condition provided that
in the reasonable opinion of the Plan Committee the
varied Performance Condition is materially no

 more
difficult to satisfy than when originally imposed or
last amended as the case may be.

7

 

			
	kpmg
	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [    ] February 2008

	 	(c)	 	For the avoidance of any doubt the Plan Committee when granting an
Option shall have complete discretion on whether or not to impose a
Performance Condition.

	2.4	 	To the extent that it is, or becomes lawful to do so, an Option may be granted subject to a
condition (including a requirement that an Option Holder enter into an irrevocable election in
a form agreed by the Inland Revenue with the relevant Group Company) that any liability of a
Group Company to pay employer social security contributions or secondary National Insurance
contributions in respect of the exercise of that Option shall be a liability of the relevant
Option Holder and payable by or recoverable from that Option Holder in accordance with Rule
7.6.
	 
	2.5	 	Any Option may be renounced in whole or in part by the Option Holder by completing and
returning the appropriate Form of Renunciation together with the Option Certificate to the
Company within 90 days of the Date of Grant in which case the Option shall for all purposes be
taken never to have been granted.
	 
	2.6	 	Where the circumstances noted in Rule 5.5 apply, New Options may be granted in consideration
for the release of Subsisting Options granted under the Plan. Such New Options are deemed to
be equivalent to the old Options and to have been granted within the terms of this Plan.
	 
	2.7	 	Subject to the proviso to this Rule 2.7 no Option may be transferred, assigned or charged and
any purported transfer, assignment or charge shall be void ab initio Each Option Certificate
shall carry a statement to this effect. For the avoidance of doubt, this Rule 2.7 shall not
prevent the Option of a deceased Option Holder being exercised by personal representative(s)
within the terms of these Rules. Provided that the Trustee and the Plan Committee may agree
that a particular Option is capable of being transferred and, in giving any such agreement,
the Trustee and the Plan Committee may also specify the person or category of persons to whom
the Option Holder may transfer the Option and the terms on which it is capable of being
transferred, including terms to ensure that any transferee of the Option agrees to be bound by
the terms of these Rules and terms to prohibit any further transfer by that transferee of the
Options in question.

8

 

			
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	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [    ] February 2008

	2.8	 	Options shall be granted to Eligible Employees by deed. A Letter of Grant and an Option
Certificate evidencing the grant shall be despatched as soon as practicable after the Date of
Grant to each Participant. The Option Certificate and the Letter of Grant shall specify the
Grantor, the Date of Grant, the number of Shares subject to the Option, the Exercise Price and
the Vesting Schedule (if any).
	 
	2.9	 	Options may be granted by the Trustee only with the prior approval of the Company. Options
to Subscribe shall not be granted and/or the satisfaction of Options to Purchase by the issue
of new Shares in accordance with Rule 7.2 shall not take place unless and until this Plan has
been approved by the shareholders of the Company in general meeting.
	 
	2.10	 	Notwithstanding anything to the contrary herein expressly or impliedly contained no Option
shall be granted to a person who is a Director unless and until the shareholders of the
Company in general meeting have approved and/or ratified the Plan.

9

 

			
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	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [    ] February 2008

	3	 	Limitations on Grant
	 
	3.1	 	Subject to Rule 2.9, Options may be granted pursuant to Rule 2 above provided that such grant
does not result in the aggregate of:
	 
	3.1.1	 	the number of Shares which would remain issuable on the exercise of Subsisting Options to
Subscribe granted within the preceding ten years;
	 
	3.1.2	 	the number of Shares which have been issued pursuant to the exercise of Options to Subscribe
granted within the preceding ten years; and
	

	 
	3.1.3	 	the number of Shares which have been issued or which remain issuable pursuant to rights
granted under any Other Plan within the preceding ten years, exceeding 10% of the Shares in issue on the working day immediately preceding the Date of
Grant.
	

	 
	3.2	 	To the extent that the Company has procured pursuant to Rule 7.3 that the Trustee transfers
Shares to satisfy an Option to Subscribe such Option shall not be treated as an Option to
Subscribe for the purposes of this Rule 3.
	 
	3.3	 	The aggregate number of Shares held at any one time in Trusts shall not in aggregate exceed
10% of the Company’s issued share capital at that time.

10

 

			
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	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [ ] February 2008

	4	 	Exercise of Options
	 
	4.1	 	Subject to each of the succeeding sections of this Rule 4, Rule 5 and Rule 7 below a
Subsisting Option may be exercised in whole or in part by the Option Holder or, if deceased,
by his personal representatives in whole or in part on or after Vesting
	 
	4.2	 	A Subsisting Option which has not yet Vested in accordance with its normal Vesting
requirements or such part thereof as shall not have so Vested shall:
	 
	4.2.1	 	Subject to any specific terms to the contrary in the conditions to which that Option is
subject as noted in the Option Certificate, Vest in full immediately on the Option Holder
ceasing to be a Director or employee of any Group Company (so as to hold no office or
employment with any Group Company) as a result of death, Ill health or Disability, or
Redundancy;*1
	 
	4.2.2	 	not become capable of Vesting or further Vesting (as the case may be) in the event of the
cessation of the Option Holder’s office or employment with any Group Company for any reason
other than those specified in Rule 4.2.1 above unless the Plan Committee shall, prior to such
cessation otherwise determine and in making such determination the Plan Committee shall
specify whether the whole or part of the Option which had not Vested prior to such cessation
shall Vest.
	 
	4.3	 	An Option which has not Vested in accordance with its normal Vesting requirements or Rule 4.2
above or such part thereof as shall not have so Vested shall lapse on the earliest of the
following dates:
	 
	4.3.1	 	the surrender of the Option by the Option Holder;
	 
	4.3.2	 	the date prior to Vesting on which the Option Holder ceases to be a Director or employee of
any Group Company (so as to hold no office or employment with any Group Company) unless

	 	(a)	 	Rule 4.2.1 applies; or

 

			
	*1	 	The words: “Subject to any .... Option Certificate”
were inserted by Board resolution dated 2 October 2001.

11

 

			
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	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [ ] February 2008

	 	(a)	 	the Plan Committee has exercised its discretion under Rule 4.2.2 above, provided that if the
Plan Committee has specified that an Option shall Vest in part only then the balance of the
Option shall lapse on the date of cessation of office or employment.

	4.3.3	 	on the date (if any) specified in the Performance Condition relating to that Option as being
the lapse date in the event that the Performance Condition had not been achieved (or, as the
case may be, achieved in part) by that stated lapse date; and
	 
	4.3.4	 	the date of lapse determined in accordance with Rule 5.
	 
	4.4	 	A Vested Subsisting Option or such part thereof as shall have Vested shall lapse on the
earliest of the following:
	 
	4.4.1	 	the tenth anniversary of the Date of Grant or such earlier date specified at the Date of
Grant;
	 
	4.4.2	 	the surrender of that Option by the Option Holder;
	 
	4.4.3	 	the first anniversary of the Option Holder’s death or twelve months following the cessation
of office or employment due to Ill health, Disability, Retirement, Redundancy or in
circumstances where the Plan Committee has made a Rule 4.2.2 determination in respect of that
Option;
	 
	4.4.4	 	the day falling six months after the date of cessation of the Option Holder’s office or
employment with any Group Company (so as to hold no office or employment with any Group
Company) for any reason other than those mentioned in Rule 4.4.3 or 4.4.5.
	 
	4.4.5	 	on the date that an Option Holder ceases to be a Director and/or employee of any Group
Company (so as to hold no office or employment with any Group Company) as a result of being
dismissed for cause. For the purposes of this Plan a statement by the Plan Committee that an
Option Holder has been dismissed for cause (including dishonesty or gross misconduct) shall be
conclusive;

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	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [ ] February 2008

	4.4.6	 	on the date on which an Option Holder, being a former officer or employee of a Group Company
who holds a Subsisting Option, is notified that the Plan Committee considers he has committed
an act of post employment misconduct. Post employment misconduct includes;

	 	(a)	 	any unauthorised use or disclosure of confidential information or trade secrets
of the Company or any Group Company acquired whilst that Option Holder was employed by a
Group Company;
	 
	 	(b)	 	any other misconduct which is deemed by the Plan Committee to be intentional misconduct
adversely affecting the business or affairs of the Company or any Group Company; or
	 
	 	(c)	 	any breach of a covenant not to compete with or take up employment with a company in material
competition with the Company or any Group Company which that Option Holder entered into
before or at the time of his cessation of office or employment with a Group Company.

	 	 	For the purposes of this Rule 4.4.6 a statement by the Plan Committee that an Option Holder has
committed an act of post employment misconduct shall be conclusive; and
	 
	4.4.7	 	the date of lapse determined in accordance with Rule 5.
	 
	4.5	 	For the avoidance of any doubt an Option shall, at the latest, lapse on the date specified at
the Date of Grant to be the latest lapse date of that Option;

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	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [ ] February 2008

	5	 	Trade sales, Reconstructions, Liquidations and Option Exchanges
	 
	5.1	 	If any person obtains Control of the Company as a result of making:

	 	(a)	 	an offer (whether a general offer or not) to acquire the whole of the issued
share capital of the Company (other than that which is already owned by him) which is
unconditional or which is made on a condition such that if it is satisfied the person
making the offer will have Control of the Company; or
	

	 
	 	(b)	 	an offer (whether a general offer or not) to acquire all the shares (other than
shares which are already owned by him) in the Company which are of the same class as
Shares subject to a Subsisting Option
	

	 	 	then, subject to Rule 5.4, the Board shall notify all Option Holders as soon as is
practicable of the offer in accordance with Rule 8.5. All Subsisting Options whether Vested
or not may be exercised, from 21 days after the date of the receipt of that notification up
to the expiry of a period ending six months from the time when the person making the offer
has obtained Control of the Company and any condition subject to which the offer is made has
been satisfied. To the extent that any Subsisting Option is unexercised or has not been
exchanged for a New Option in accordance with Rule 5.4 at the end of such period, it shall
thereupon lapse.
	 
	5.2	 	If a Compromise or Arrangement in relation to the Company takes place then, subject to Rule
5.4 all Subsisting Options whether Vested or not may be exercised from the date of the Court
sanction of such Compromise or Arrangement up to the expiry of a period of six months of that
date. To the extent that any Subsisting Option remains unexercised or has not been exchanged
for a New Option in accordance with Rule 5.4 at the end of such period it shall thereupon
lapse.
	 
	5.3	 	If any person becomes bound or entitled to acquire Shares in the Company under sections 428
to 430 of the Companies Act 1985 (the period during which the person remains so bound or
entitled being referred to as the “Relevant Period”) then, subject to Rule 5.4, all Subsisting
Options whether Vested or not may be exercised from 21 days after the beginning of the
Relevant Period up to the expiry of the Relevant Period and to the extent that any Subsisting
Option is unexercised or has not been exchanged for a New Option in accordance with Rule 5.4
at the end of the Relevant Period, it shall thereupon lapse.

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	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [ ] February 2008

	5.4	 	Notwithstanding Rules 5.1, 5.2 and 5.3 if, following an event specified in Rules 5.1, 5.2 or
a circumstance specified in Rule 5.3 (“the Relevant Event” being; the date of the offer, the
date the Court sanction the Compromise or Arrangement or the first day of the Relevant Period
respectively) the Board procures that all Subsisting Options can be exchanged pursuant to Rule
5.5 the Board may, in its discretion, determine by written resolution that:
	 
	5.4.1	 	Subsisting Options do not become exercisable as a result of the Relevant Event and any
Subsisting Option which is already exercisable ceases to be exercisable as from the Relevant
Event; and
	 
	5.4.2	 	that all Subsisting Options shall be released in consideration of the Grant of a New Option
in accordance with Rules 5.5 and 5.6.
	 
	 	 	Provided that if the company which is the Acquiring Company in respect of the Relevant Event fails
to grant or to make a binding contractual commitment to grant the New Options pursuant to Rule 5.5
within 40 days of the Relevant Event such resolution of the Board will cease to be effective and
all Subsisting Options will be exercisable pursuant to Rule 5.1, 5.2 or 5.3 (as the case may be).
	 
	5.5	 	If, as a result of the events specified in Rules 5.1 or 5.2 the Board has required the
release of a Subsisting Option in consideration of the grant of a New Option or a company has
obtained Control of the Company, or if a person has become bound or entitled as mentioned in
Rule 5.3, the Option Holder may, and in the case of a Board resolution under Rule 5.4 shall,
if that other company (“the Acquiring Company”) so agrees, release any Subsisting Option he
holds in consideration of the grant of a New Option by the Acquiring Company, and the
following shall apply:
	 
	5.5.1	 	a New Option shall be evidenced by an Option Certificate which shall import the relevant
provisions of these Rules;
	 
	5.5.2	 	a New Option shall, for all other purposes of this Plan, be treated as having been acquired
at the same time as the corresponding released Option.
	 
	5.6	 	For the purpose of any application of the provisions of this Plan following a release of a
Subsisting Option and the grant of a New Option:

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	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [ ] February 2008

	5.6.1	 	in the case of a release of a Subsisting Option and the grant of a New Option in
circumstances where the Board has not made a determination in accordance with Rule 5.4, Rules
1, 4.3 and 5 to 9 (inclusive) shall apply and be deemed always to have applied to the New
Option;
	 
	5.6.2	 	in the case of a release of a Subsisting Option and the grant of a new Option in
circumstances where the Board has made a determination under Rule 5.4, all the Rules of this
Plan shall apply mutatis mutandis to such New Option subject only to such amendments as the
Board shall consider are necessary or appropriate to reflect the change in identity of the
company over whose shares the New Options subsist or similar consequential changes. For the
avoidance of doubt, following a determination under Rule 5.4, an Option Holder’s New Option
shall have the same Vested or unVested status immediately following the release and new grant
as the corresponding Options released by that Option Holder and any determination made by the
Board to accelerate Vesting in accordance with Rules 5.1, 5.2 or 5.3 shall be deemed not to
have been made.
	 
	5.7	 	If notice is duly given of a general meeting at which a resolution will be proposed for the
voluntary winding-up of the Company, a Subsisting Option shall whether or not previously
Vested be exercisable in whole or in part (but so that any exercise hereunder shall be
conditional upon such resolution being passed) at any time thereafter until the resolution is
duly passed or defeated or the general meeting is concluded or adjourned, whichever shall
first occur. Immediately after any such resolution is passed any Subsisting Options shall, to
the extent that they are unexercised, thereupon lapse.
	 
	5.8	 	If notice is duly given of a general meeting at which a resolution will be proposed whereby:
	 
	5.8.1	 	the class of shares for the time being constituting Shares will be altered; or
	 
	5.8.2	 	the rights attaching to shares which for the time being constitute Shares will be altered
such that shares will cease to be Shares.

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	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [ ] February 2008

	

	 	 
	 	 	Subsisting Options may at the discretion of the Board be exercisable and the Board in its
discretion may specify whether this provision shall apply to Subsisting Options which are at the
date of such notice Vested and unVested or to Vested Options only
(but so that any exercise hereunder shall be conditional upon such resolution being passed) at any time thereafter
until such resolution is duly passed or defeated or the general meeting concluded or adjourned,
whichever shall first occur. Immediately after any such resolution is passed all Subsisting
Options (whether or not the Option was exercisable prior to the passing of such resolution) shall,
to the extent that they are unexercised, thereupon lapse unless the Board shall have resolved to
the contrary prior to the date of such resolution.
	

	 	 
	5.9	 	For the purpose of this Rule 5 other than Rule 5.5 a person shall be deemed to have obtained
Control of a company if he and others acting in concert with him have together obtained
Control of it.
	 
	5.10	 	The exercise of an Option pursuant to the preceding provisions of this Rule 5 shall be
subject to the provisions of Rule 7 below.
	 
	5.11	 	A New Option shall not be exercisable by virtue of the event on which it was granted.
	 
	5.12	 	For the purposes of exercising any discretions conferred upon the Board under this Rule 5,
any member of the Board who is an Option Holder shall not be entitled to vote, and such
discretions may only be exercised by members of the Board who are not Option Holders and, in
the absence of a question or in the case of a tie, the Chairman of the Company’s Remuneration
Committee shall have a casting vote.

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	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [ ] February 2008

	6	 	Variation of Share Capital
	 
	6.1	 	In the event of any variation of the share capital of the Company, including, but without
prejudice to the generality of the preceding words, any demerger (whether qualifying or not),
capitalisation or rights issue or any consolidation, sub-division or reduction of capital the
number of Shares subject to any Subsisting Option and the Exercise Price may be adjusted
(including retrospective adjustments) by the Board provided that the Exercise Price for a
Share subject to an Option to Subscribe shall not be reduced below its nominal value unless
the Board gives an undertaking that upon exercise of such Options arrangements will be made
for the capitalisation (in accordance with the Company’s Articles of Association) of
undistributed profits or reserves of the Company of an amount equal to the difference on any
such exercise between the aggregate Exercise Price and the aggregate nominal value of the
Shares to be issued upon such exercise.
	 
	6.2	 	Such adjustment shall be deemed to be effective, from the record date at which the respective
variation applied to other shares of the same class as the Shares. Any Options exercised
within that period shall be treated as exercised with the benefit of the variation.
	 
	6.3	 	The Grantor shall take such steps as it considers necessary to notify Option Holders of any
adjustment made under Rule 6.1 and to call in, cancel, endorse, issue or reissue any Option
Certificate consequent upon such adjustment.

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	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [ ] February 2008

	7	 	Manner of Exercise of Options
	 
	7.1	 	An Option shall be exercised in whole or in part by the Option Holder or, as the case may be,
his personal representatives giving notice in writing to the Company or its agent by the
Notice of Exercise accompanied by the appropriate payment and the relevant Option Certificate
and shall be effective on the date of the receipt of the appropriate payment and paperwork by
the Company or its agent.
	 
	7.2	 	Subject to Rule 7.6 where an Option to Purchase is exercised the Shares subject thereto shall
be transferred to or as directed by the Option Holder within 30 days of the date of exercise
(or, if such transfer in such period would be prohibited by the Model Code, at the earliest
practicable time after such prohibition is lifted) and the Trustee shall arrange for the
delivery of a definitive share certificate or other evidence of title in respect thereof.
Subject to Rule 2.9 on the exercise of an Option to Purchase, the Trustees may procure that
the Company issues sufficient Shares to or as directed by the Option Holder as provided for in
Rule 7.3.
	 
	7.3	 	Subject to Rule 7.6 on the exercise of an Option to Subscribe, the number of Shares specified
in the Notice of Exercise given in accordance with Rule 7.1 shall be allotted and issued
credited as fully paid to or as directed by the Option Holder within 30 days of the date of
exercise (or, if such allotment in such period would be prohibited by the Model Code at the
earliest practicable time after such prohibition is lifted) and the Company shall arrange for
the delivery of a definitive share certificate or other evidence of title in respect thereof.
On the exercise of an Option to Subscribe the Company may procure the transfer of sufficient
Shares from the Trustee or another shareholder in the Company (in lieu of the issue of Shares
by the Company) to or as directed by the Option Holder to satisfy the Option in full provided
that such transfer must take place within 30 days of the date of exercise (or, if such
transfer in such period would be prohibited as aforesaid, at the earliest practicable time
after such prohibition is lifted) and the Company shall arrange for the delivery of a
definitive share certificate or other evidence of title in respect thereof.
	 
	7.4	 	Save for any rights determined by reference to a record date preceding the date of allotment
or transfer, such Shares shall rank pari passu with the other shares of the same class as
Shares then in issue.

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	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [ ] February 2008

	7.5	 	The Company shall apply for Shares in respect of which an Option has been exercised to be
admitted to listing, if they are not so admitted already.
	 
	7.6	 	If, in respect of any Option Holder, any Group Company or third party shall be:

	 	(a)	 	required by the law of any jurisdiction to deduct or withhold any amounts in
respect of tax and/or social security and/or employees’ National Insurance contributions
in respect of or on account of that Option Holder’s liability for the same by reason of
the Options granted to him, (whether any such requirement arises at the Date of Grant of
the Options or at the date of exercise of the Option or at some other date); or
	 
	 	(b)	 	if the Option Holder shall be liable personally to account for tax and/or social
security and/or employees’ National Insurance contributions in respect thereof; and/or
	 
	 	(c)	 	if it shall be or become lawful for the liability of an Option Holder’s employing
company in respect of employer’s social security or secondary national insurance
contributions arising as a result of the exercise of his Option to be met or refunded in
whole or in part by that Option holder;

	 	 	then in any such case as specified by the Option Holder either:
	 
	7.6.1	 	the Option Holder shall grant to the Company the irrevocable authority, as agent of the
Option Holder and on his behalf, to sell and/or retain and sell subsequently and/or procure
the sale of such number of Shares subject to the Option as is sufficient to realise net
proceeds sufficient to enable the relevant Group Company or third party (as the case may be)
to account for such amount of tax and/or social security and/or employees’ National Insurance
contributions including where it is lawful, the relevant Group Company’s liability for the
same arising as a result of the exercise of that Option and, in the case of a sale, the Shares
issued or transferred to the Option Holder upon exercise of an Option shall be reduced by the
number of such Shares as have been sold or retained as mentioned above; or
	 
	7.6.2	 	the Option Holder shall pay to the Company in pounds sterling or in such other currency as
may be required by the Company, (whether by cheque or by banker’s draft) the amount necessary
to satisfy such liabilities.

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	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [ ] February 2008

	7.7	 	For the avoidance of doubt:
	 
	7.7.1	 	where in relation to Rule 7.6 the Option Holder opts in accordance with Rule 7.6.1 the
Company shall account to the relevant Group Company or third party (as the case may be) with
the net proceeds of sale for the Shares in order to enable the tax and/or social security
and/or National Insurance liabilities to be settled and if, following such sale, there shall
be any balance of the proceeds of sale not required to meet such liabilities, such balance
shall be paid by the Company to the Option Holder for his own use and benefit absolutely;
	 
	7.7.2	 	if the Option Holder on exercise fails to specify either Rule 7.6.1 or Rule 7.6.2 or, if
having specified Rule 7.6.2 he fails to make the required payment within 15 days of the date
of that exercise, he shall be deemed for all purposes to have given an irrevocable authority
within Rule 7.6.1.
	 
	7.8	 	If an Option Holder exercises an Option the Trustee or the Company may in lieu of
transferring or allotting Shares in accordance with Rule 7.2 or 7.3:
	 
	7.8.1	 	allot or transfer such number of Shares as could, subject to Rule 7.6, be acquired at Market
Value on the relevant date of exercise with an amount of cash equal to the difference between
the Market Value of a Share on the date of exercise and the Exercise Price under the Option
multiplied by the number of Shares over which that Option has been exercised provided that
this Rule shall in normal circumstances only be applied to facilitate the operation of the
Plan in jurisdictions where by reason of exchange control or similar restrictions or
regulations it is not permitted or is not practicable for an Option Holder to transfer funds
outside that jurisdiction;
	 
	7.8.2	 	make other arrangements, including arrangements with a third party broker, to facilitate
cashless exercises.
	 
	 	 	Provided that if an allotment, transfer of Shares or cashless exercise arrangement is made to or
implemented for an Option Holder pursuant to this Rule 7.8, such Option Holder shall have no
further rights in respect of the Shares subject to that Option.

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	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [ ] February 2008

	8	 	Administration and Amendment
	 
	8.1	 	The Plan shall be administered by the Board whose decision shall be final.
	 
	8.2	 	Option Holders shall not be entitled to:
	 
	8.2.1	 	receive copies of accounts, circulars or notices sent to holders of Shares;
	 
	8.2.2	 	exercise voting rights; or
	 
	8.2.3	 	receive dividends,
	 
	 	 	in respect of Shares which have not been issued or transferred to such Option Holders on the
exercise of Options in accordance with these Rules.
	 
	8.3	 	The Board may from time to time amend these Rules provided that:
	 
	8.3.1	 	no amendment shall be effective which would materially prejudice the interests of Option
Holders in relation to Options already granted to them unless such prior consent or sanction
of Option Holders is obtained as would be required under the provisions for the alteration of
class rights contained in the Articles of Association of the Company for the time being if the
Shares to be allotted or transferred on the exercise of the Options constituted a separate but
single class of shares and such Shares were entitled to such right;
	 
	8.3.2	 	after the Plan has been approved by the Company in general meeting, the provisions relating
to:

	 	(a)	 	Option Holders;
	 
	 	(b)	 	limitations in Rule 3 on the number of Shares subject to the Plan;
	 
	 	(c)	 	the basis for determining an Option Holder’s entitlement under the Plan, the terms of
such entitlement and the provisions for the adjustment of the same under the terms of Rule
6;
	 
	 	(d)	 	limitations in Rules 2.9 and 2.10,

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	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [ ] February 2008

	 	 	cannot be altered to the material advantage of Option Holders without the prior approval of the
Company in general meeting (except for minor amendments to benefit the administration of the Plan,
to take account of a change in legislation or to obtain or maintain favourable tax, exchange
control or regulatory treatment for Option Holders, or for Participating Companies);
	 
	8.4	 	The Board may, subject to Rules 8.3.1 and 8.3.2 create sub-plans to this Plan in which it may
make such amendments to the Rules as it considers necessary or desirable to operate the Plan
in any jurisdictions in which Eligible Employees are situated and may implement such sub-plans
in the form of schedules to the Plan applicable to the specified jurisdiction.
	 
	8.5	 	The cost of establishing and operating the Plan shall be borne by the Group Companies which
employ the Option Holders in such proportions as the Board shall determine.
	 
	8.6	 	Any notice or other communication under or in connection with the Plan may be given by the
Grantor either personally or by post or fax or e-mail or intranet, and to the Grantor either
personally or by post or fax or e-mail to the Secretary of the Grantor; items sent by post
shall be pre-paid and shall in the case of notices or communications to the Grantor be treated
as received on the day actually received by the Grantor and in the case of notices from the
Grantor shall be deemed to have been received 48 hours after posting.
	 
	8.7	 	The Board may exercise its discretion where it considers that it is necessary or desirable to
do so, to provide that such Eligible Employees so designated by the Board shall receive awards
which entitle them to receive a cash payment instead of Shares. Such awards will be granted on
substantially the same terms as Options (save that there shall be no entitlement to receive
Shares) subject to such modifications as considered appropriate by the Plan Committee.
	 
	8.8	 	The Board may determine at any time that no further Options be granted and may from time to
time modify or at any time suspend or terminate the Plan (but without prejudice to Options
already granted).

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	kpmg
	 	Reuters Group PLC
	 
	 	Discretionary Stock Option Plan Rules
	 
	 	Rules as at [ ] February 2008

	9	 	Miscellaneous
	 
	9.1	 	The rights and obligations of any individual under the terms of his office or employment with
any Group Company shall not, except as specifically provided under the Plan, be affected by
his participation in the Plan or any right which he may have to participate therein, and an
individual who participates therein shall waive any and all rights to compensation or damages
in consequence of the termination of his office or employment for any reason whatsoever
insofar as those rights arise or may arise from his ceasing to have rights under or be
entitled to exercise any Option under the Plan as a result of such termination.
	 
	9.2	 	The existence of Options shall not affect in any way the right or power of the Company or
its shareholders to make or authorise any or all adjustments, recapitalisation,
reorganisations, reductions of capital, purchase or redemption of its own shares or other
changes in the Company’s capital structure or its business, or any merger or consolidation of
the Company, or any issue of bonds, debentures, preferred or prior preference stock ahead of
or convertible into, or otherwise affecting the Shares or the rights thereof, or the
dissolution or liquidation of the Company, or any sale or transfer of all or any part of its
assets or business, or any other corporate act or proceeding, whether of a similar character
or otherwise.
	 
	9.3	 	Neither the grant of an Option nor any benefit which may accrue to an Option Holder on the
exercise thereof shall form part of that Option Holder’s pensionable remuneration for the
purposes of any pension scheme or similar arrangement which may be operated by any Group
Company.

24

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