EX-10.11



 Exhibit 10.11 

NOTICE OF AWARD OF 

STOCK-SETTLED RESTRICTED STOCK UNITS 

(WITH DIVIDEND EQUIVALENTS) 

AND 
 NON-QUALIFIED
STOCK OPTION 
 DATED             , 2014 

 
  

Pursuant to the Synchrony Financial 2014 Long-Term Incentive Plan (the “Plan”), you have been awarded (this “Award”)
(i) restricted stock units (“RSUs”), each of which entitles you to receive one share of common stock (each, a “Share”) of Synchrony Financial (“Synchrony”), and (ii) nonqualified stock options to purchase
Shares (“Options”), in each case, subject to the terms and conditions set forth in (A) the Plan, (B) this Notice, (C) the attached “Restricted Stock Unit and Non-Qualified Stock Option Terms and Conditions (the
“Terms and Conditions”), and (D) the information available on the website (the “Administrator Website”) maintained by the administrator of the Plan for these purposes . 

The Administrator Website identifies, among other things, (i) the number of RSUs granted pursuant to this Award, (ii) the number of
Shares subject to the Options granted pursuant to this Award, (iii) the exercise price applicable to such Options, and (iv) the effective date of this Award (the “Award Date”). As described in more detail in the Terms and
Conditions, the RSUs will be settled in Shares, and the RSUs include dividend equivalents. 
 The Terms and Conditions describe the vesting
conditions applicable to the RSUs and Options and other important information relating to your Award. 
  

 
 You must log
into your account on the Administrator Website prior to the date your Award first vests to view additional information about your Award and to accept your Award. If you do not accept your Award prior to the date your Award first vests (or prior
to the date your employment terminates for any reason, if earlier), your Award will be forfeited. Although Synchrony has completed the steps necessary to grant you this Award, you cannot receive any Shares or payments under the Award unless you
accept the Award before the deadline. 
 By your acceptance of this Award, you acknowledge and agree that this Award is governed by the
Terms and Conditions attached hereto and the Plan, which is available on the Administrator Website. You acknowledge that you have read and understand these documents as they apply to your Award. 

Please be sure to log into your account and accept your Award to avoid the risk that your Award will be forfeited for non-acceptance. 

SYNCHRONY FINANCIAL 







 SYNCHRONY FINANCIAL 

2014 LONG-TERM INCENTIVE PLAN 

RESTRICTED STOCK UNIT 

AND 
 NONQUALIFIED STOCK
OPTION 
 TERMS AND CONDITIONS 
  

 
 1. Award of
RSUs and Non-Qualified Stock Options. Pursuant to the Synchrony Financial 2014 Long-Term Incentive Plan (the “Plan”), Synchrony Financial (“Synchrony”) has awarded (the “Award”) to the employee Restricted Stock
Units (“RSUs”) and Non-Qualified Stock Options (“Options”), subject to the terms and conditions set forth herein (the “Terms and Conditions”) and in the Plan. 

2. Definitions and Coordination with the Plan. Capitalized terms used but not defined herein shall have the meanings assigned to them
in Exhibit A hereto or, if not so assigned in Exhibit A, the meaning assigned in the Plan. In the event of any inconsistency between the Plan and the Terms and Conditions, the terms in the Plan shall control unless the Terms and Conditions
specifically provides otherwise. References herein to employment with Synchrony shall include employment with any Affiliate of Synchrony. 

3. Information on the Administrator Website. The following information applicable to the Award is set forth on your account on the
website maintained by the administrator of the Plan (the “Administrator”) in connection with the Plan: 
 (a) The number of RSUs;

 (b) The number of Shares subject to the Options; 

(c) The exercise price per Share applicable to the Options; and 

(d) The effective date of the Award (the “Award Date”). 

4. Vesting.  

(a) General. Subject to the Terms and Conditions, and except as otherwise set forth below in this Section 4, the RSUs and Options
will vest, and the Period of Restriction applicable to the RSUs will end, upon the fourth (4th) anniversary of the Award Date (the “Vesting Date”) provided that the employee has
remained continuously employed by Synchrony through such fourth (4th) anniversary. No Option may be exercised after the tenth
(10th) anniversary of the Award Date (the “Expiration Date”). 

  
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Non-Qualified Stock Option 
 Terms and Conditions 

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 (b) RSUs—Effect of Termination of Employment. If the employee’s employment with
Synchrony ends for any reason before the end of the Period of Restriction, the employee shall immediately forfeit all RSUs (and, as a result, shall forfeit all Shares and cash that may otherwise have been delivered or paid pursuant to such RSUs),
subject to the following: 
 (i) Involuntary Termination after First Anniversary of Award Date. If the employee’s
employment is terminated by Synchrony without Cause on or after the first (1st) anniversary of the Award Date, the number of Shares subject to the RSUs shall be prorated based on the number
of full months the employee was employed by Synchrony after the Award Date divided by the number of months between the Award Date and the Vesting Date. The portion of the Award not attributable to the period of his or her employment with Synchrony
will be immediately forfeited, and, with respect to the portion attributable to his or her period of employment with Synchrony, the Period of Restriction shall end upon the Vesting Date. 

(ii) Retirement on or after the Second Anniversary of the Award Date. If the employee’s employment with Synchrony
terminates (other than for Cause) after both (A) the second (2nd) anniversary of the Award Date and (B) the employee is eligible for Retirement, the number of Shares subject to the
RSUs shall be prorated based on the number of full months the employee was employed by Synchrony after the Award Date divided by the number of months between the Award Date and the Vesting Date. The portion of the Award not attributable to the
period of his or her employment with Synchrony will be immediately forfeited, and, with respect to the portion attributable to his or her period of employment with Synchrony, the Period of Restriction shall end upon the Vesting Date. 

(iii) Disability or Death. If the employee’s employment with Synchrony terminates due to Disability or death, the
Period of Restriction for the RSUs shall end immediately. The amount payable (or Shares deliverable) for RSUs shall not be adjusted for any delay caused by time needed to validate the employee’s status as Disabled or dead, or to authenticate a
beneficiary. 
 (iv) Termination following Change in Control. If, in the event of a Change in Control, Synchrony (or
the successor to Synchrony) assumes the RSUs or replaces the RSUs with an award of substantially equivalent value, as determined by the Committee, and during the thirty (30) month period after such Change in Control, the employee’s
employment is terminated by Synchrony without Cause or the employee terminates his or her employment for Good Reason, the Period of Restriction for the RSUs shall end immediately upon such termination of employment and the RSUs shall be fully
vested, non-forfeitable and payable. 
 (c) Options—Effect of Termination of Employment. Following the employee’s
termination of employment with Synchrony, the Option shall vest and shall be exercisable only as follows: 
 (i)
Termination for Cause. If the employee’s employment is terminated for Cause, the Option shall immediately be forfeited and the employee shall have no right to exercise such Option, whether or not then vested. 

  
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Non-Qualified Stock Option 
 Terms and Conditions 

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 (ii) Voluntary Resignation. If employee terminates his or her employment,
he or she shall have the right to exercise the Option, to the extent vested as of the date of termination of employment, during the period ending on the earlier of (A) the three (3) month anniversary following such termination of
employment or (B) the Expiration Date. 
 (iii) Involuntary Termination after First Anniversary of Award Date. If
the employee’s employment is terminated by Synchrony without Cause on or after the first (1st) anniversary of the Award Date, the number of Shares subject to the Option shall be prorated
based on the number of full months the employee was employed by Synchrony after the Award Date divided by the number of months between the Award Date and the Vesting Date. The portion of the Award not attributable to his or her employment with
Synchrony will be immediately forfeited and the portion attributable to his or her period of employment with Synchrony will vest and be exercisable upon the Vesting Date. Following the Vesting Date, the employee shall have the right to exercise the
prorated Option until the earlier of (A) five (5) years from the date of termination of employment or (B) the Expiration Date. 

(iv) Retirement on or after the Second Anniversary of the Award Date. If the employee’s employment with Synchrony
terminates (other than for Cause) after both (A) the second (2nd) anniversary of the Award Date and (B) the employee is eligible for Retirement, the number of Shares subject to the
Option shall be prorated based on the number of full months the employee was employed by Synchrony after the Award Date divided by the number of months between the Award Date and the Vesting Date. The portion of the Award not attributable to his or
her employment with Synchrony will be immediately forfeited and the portion attributable to his or her period of employment with Synchrony will vest and be exercisable upon the Vesting Date. Following the Vesting Date, the employee shall have the
right to exercise the prorated Option until the earlier of (y) five (5) years from the date of termination of employment or (z) the Expiration Date. 

(v) Disability or Death. If the employee’s employment with Synchrony terminates (other than for Cause) due to
Disability or death, the Option will vest immediately and the employee (or, in the case of death, the executor or administrator of the employee’s estate or the person or persons to whom the employee shall have transferred such right by will or
by the laws of descent and distribution) shall have the right to exercise the Option as to all unexercised Shares until the Expiration Date. 

(vi) Termination following Change in Control. If, in the event of a Change in Control, Synchrony (or the successor to
Synchrony) assumes the Option or replaces it with an award of substantially equivalent value, as determined by the Committee, and during the thirty (30) month period after such Change in Control, the employee’s employment is terminated by
Synchrony without Cause or the employee terminates his or her employment for Good Reason, the Option will vest immediately upon such termination of employment and the employee shall have the right to exercise the Option as to all unexercised Shares
until the earlier of (A) five (5) years from the date of the termination of employment and (B) the Expiration Date. 

  
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Non-Qualified Stock Option 
 Terms and Conditions 

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 (d) Change in Control. If, in the event of a Change in Control, Synchrony
(or a successor to Synchrony) fails to: 
  

	 	(i)	Assume or replace the RSUs with an award of substantially equivalent value, as determined by the Committee, the Period of Restriction shall end immediately upon such Change in Control and the RSUs shall be fully vested,
non-forfeitable and payable, and the Shares underlying the RSUs shall be treated in the same manner as other Shares in the Change in Control; or 

  

	 	(ii)	Assume or replace the Option with an award of substantially equivalent value, as determined by the Committee, the Option, to the extent not then exercised, shall be cancelled upon the consummation of the Change in
Control and the employee shall be entitled to a cash payment equal to the product of (A) the excess, if any, of the Fair Market Value on the date of such cancellation less the exercise price of the Option, and (B) the number of unexercised
Shares subject to the Option. 

 (e) Waiver and Release. The right of an employee or his or her estate
to vest in any portion of an Award, to receive a payment with respect to an RSU, or to exercise an Option in any circumstance other than in connection with his or her continuous employment through the Vesting Date shall be subject to the employee or
his or her estate timely executing within forty-five (45) days following the employee’s termination of employment a waiver and release in a form provided by Synchrony, and not revoking such release. 

5. Settlement of RSUs. Upon the end of the Period of Restriction, Synchrony will issue to the employee the number of Shares for which
the applicable Period of Restriction has ended, less the number of Shares needed to satisfy required tax withholding. Except as otherwise provided in Section 4 or 14, or if the employee elects to defer all or a portion of the RSUs using the
deferral election form provided by Synchrony, such Shares shall be delivered within thirty (30) days after the Period of Restriction ends. Shares may be issued in the form of a stock certificate or a notification to the employee that the Shares
are held in a book-entry account on the employee’s behalf. The employee shall have no rights as a shareholder of Synchrony 

  
 Restricted Stock Unit and
Non-Qualified Stock Option 
 Terms and Conditions 

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unless and until a certificate for the Shares has been issued to the employee or the employee has been notified that the Shares are held in a book-entry account on the employee’s behalf.
Synchrony shall, within thirty (30) days after the Period of Restriction ends, make a cash payment to the employee for any fractional Shares to which the employee is entitled, based on the Fair Market Value of a Share on the date the Period of
Restriction lapsed. 
 6. Exercise of Option. 

(a) Subject to the Terms and Conditions set forth herein, the Option may be exercised by contacting the Administrator directly via the
Administrator Website. During the life of the employee, an Option shall be exercisable only by the employee. If the Option is being exercised pursuant to Section 4(c)(v) by any person or persons other than the employee, appropriate proof of the
right of such person or persons to exercise the Option, as determined by the Committee, must be provided. No Option may be exercised after the Expiration Date. 

(b) The exercise price for the number of Shares with respect to which the Option is being exercised shall be paid in full at the time of
exercise (i) in cash, (ii) by withholding Shares (“net share settlement”) or (iii) by any other method authorized by Synchrony at the time of exercise. Except as provided in Section 4(c), the Option may not be exercised
unless the employee is employed by Synchrony at all times from the Award Date through the date exercised. Shares may be issued in the form of a stock certificate or a notification to the employee that the Shares are held in a book-entry account on
the employee’s behalf. The employee shall have no rights as a shareholder of Synchrony unless and until a certificate for the Shares has been issued to the employee or the employee has been notified that the Shares are held in a book-entry
account on the employee’s behalf. 
 (c) Automatic Exercise. To the extent that the Option is exercisable and has not yet been
exercised, the Option shall be automatically exercised as of the Expiration Date if the following conditions are satisfied: (i) the employee’s employment with Synchrony has not been terminated for Cause and (ii) the Fair Market Value
of a Share as of the Expiration Date exceeds the exercise price thereof by at least $1.00. If the conditions in the immediately preceding sentence are satisfied, the employee shall be deemed to have delivered notice of exercise on the Expiration
Date, and the exercise price shall be paid through net share settlement, except as otherwise determined by Synchrony at the time of exercise; provided, however, that if net share settlement would violate applicable law in such circumstances, then
the Option shall expire unless the employee pays the applicable exercise price. 
 (d) Upon the receipt of all required payments from the
employee, Synchrony shall, without additional expense to the employee (other than any transfer or issue taxes if Synchrony so elects), deliver to the employee by mail or otherwise at such place as the employee may request a certificate or
certificates for such Shares or notify the employee that the Shares are held in a book-entry account on the employee’s behalf; provided, however, that the date of issuance or delivery may be postponed by Synchrony for such period as may be
required for it with reasonable diligence to comply with any applicable listing requirements of any national securities exchange and requirements under any law or regulation applicable to the issuance or transfer of such Shares. 

  
 Restricted Stock Unit and
Non-Qualified Stock Option 
 Terms and Conditions 

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 7. Alteration/Termination. The Committee may waive any conditions or rights under,
amend any terms of, or amend, alter, suspend, discontinue or terminate, the Award, prospectively or retroactively. No such amendment or alteration shall be made which would impair the rights of the employee under the Award without the
employee’s consent; provided, however, that no such consent shall be required with respect to any amendment or alteration if the Committee determines in its sole discretion that such amendment or alteration either (a) is required or
advisable in order for Synchrony, the Plan or the Award to satisfy or conform to any law or regulation or to meet the requirements of any accounting standard or (b) is not reasonably likely to significantly diminish the benefits provided under
the Award. 
 8. Adjustments. The number and type of Shares underlying any RSUs or Options awarded to the employee hereunder shall be
subject to adjustment pursuant to Section 4(b) of the Plan. 
 9. No Right to Employment. Nothing in these Terms and Conditions
constitutes an employment contract or gives the employee the right to continue in the employment of Synchrony, or affect any right that Synchrony may have to terminate the employment of the employee. 

10. Dispute Resolution. The parties will settle any dispute, controversy or claim arising out of or related to the Plan, the Award or
the Terms and Conditions in accordance with the terms of any then effective Synchrony alternative dispute resolution procedure (which may, from time to time, be referred to as “Solutions”). 

11. Non-Assignability. Neither this Award nor the RSUs or Options granted hereunder may be assigned or transferred by the employee,
except to the extent expressly permitted by the Plan. Tax withholding with respect to any RSU that is transferred or assigned shall be determined by Synchrony in accordance with applicable law (which may require the employee to pay taxes with
respect to a transferred RSU). Any Shares issued under an RSU or Option, once issued to the employee, shall be freely transferable. 
 12.
Voting. The employee shall not have voting rights with respect to the Shares underlying RSUs or Options unless and until Shares are issued to the employee. 

13. Dividend Equivalents. The Award entitles the employee to receive an amount equal to any cash dividend declared with respect to the
number of Shares represented by RSUs, but only to the extent that the RSUs have not been issued as Shares, converted to a cash payment amount or terminated or forfeited before the record date for such dividend. Dividend equivalents shall be
reinvested in additional RSUs (i.e., the cash dividends will be converted into the right to receive additional Shares, based on the Fair Market Value of a Share on the date the applicable dividend is paid to holders of Shares) and shall be subject
to the same Terms and Conditions as the Award. The dividend equivalents shall be reduced by the amount of any required tax withholding. 

14. Withholding Taxes. All payments and delivery of Shares in respect of the RSUs and Options shall be subject to required tax or other
withholding or garnishment obligations, if 

  
 Restricted Stock Unit and
Non-Qualified Stock Option 
 Terms and Conditions 

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any. Synchrony shall be authorized to withhold cash or Shares (as applicable) from any payment due or transfer the amount of withholding taxes due in respect of the Award or any payment or
transfer under the Award or the Plan to satisfy statutory withholding obligations for the payment of such taxes. The employee shall pay to or reimburse Synchrony for any federal, state, local or foreign taxes required to be withheld and paid over by
it, at such time and upon such terms and conditions as Synchrony may prescribe before Synchrony shall be required to deliver any Shares. 

15. Section 409A. Amounts payable, and Shares deliverable, pursuant to RSUs are intended to be exempt from Section 409A to
the maximum extent possible pursuant to a short-term deferral described in Treasury Regulation §1.409A-1(b)(4), and Options are intended to be exempt from Section 409A pursuant to Treasury Regulation §1.409A-1(b)(5), and the Plan and
the Terms and Conditions shall be interpreted and construed consistently with such intent. To the extent any amount payable, or Shares deliverable, pursuant to this Award constitutes nonqualified deferred compensation within the meaning of, and
subject to, Section 409A, then, with respect to such portion of this Award, (a) the Plan and this Terms and Conditions are intended to comply with the requirements of Section 409A, and shall be interpreted and construed consistently
with such intent, (b) all references in the Plan and this Terms and Conditions to the Employee’s termination of employment shall mean the Employee’s Termination of Employment within the meaning of Section 409A and Treasury
regulations promulgated thereunder, and (c) notwithstanding anything in the Plan or this Terms and Conditions to the contrary, any amount that is payable upon the employee’s Termination of Employment that would be payable prior to the
six-month anniversary of such Termination of Employment shall, to the extent necessary to comply with Section 409A, be delayed until the Six-Month Pay Date. In such event, any portion of the RSUs settled in cash shall be determined based on the
closing price of a Share (or a share of stock of the successor to Synchrony) as reported on the principal national stock exchange on which the Shares (or the shares of stock of the successor to Synchrony) are then traded on the last business day of
the last calendar month that ends before the Six-Month Pay Date; provided, however, that if it is not feasible to calculate the closing price as of the last business day of such month, the amount of cash shall be determined based on the last price
available. In the event that the Award or the Terms and Conditions would subject the employee to taxes under Section 409A (“409A Penalties”), the Award and the Terms and Conditions shall not be given effect to the extent it
causes such 409A Penalties and the related provisions of the Plan and/or the Terms and Conditions will be deemed modified, or, if necessary, suspended in order to comply with the requirements of Section 409A, in each case without the consent of
or notice to the employee; provided that in no event shall Synchrony or any of its Affiliates be responsible for any 409A Penalties that arise in connection with any amounts payable under the Plan or this Terms and Conditions. 

  
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Non-Qualified Stock Option 
 Terms and Conditions 

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 EXHIBIT A 

DEFINITIONS 

“Board” 

“Board” shall mean the Board of directors of Synchrony. 

“Cause” 

“Cause” shall mean, as determined by the Committee in its sole discretion: 
  


	 	(a)	a material breach by the employee of his or her duties and responsibilities (other than as a result of incapacity due to physical or mental illness) which is demonstrably willful and deliberate on the employee’s
part, which is committed in bad faith or without reasonable belief that such breach is in the best interests of Synchrony and, in the event of a breach that may be remedied, which is not remedied in a reasonable period of time after receipt of
written notice from Synchrony specifying such breach; 

  

	 	(b)	any act that would prohibit the employee from being employed by the Company and its subsidiaries (including, for the avoidance of doubt, Synchrony Bank) pursuant to the Federal Deposit Insurance Act of 1950, as amended,
or other applicable law; 

  

	 	(c)	the commission of or conviction in connection with a felony or any act involving fraud, embezzlement, theft or misrepresentation; or 


 

	 	(d)	any gross or willful misconduct, any violation of law or any violation of a policy of Synchrony or any of its Affiliates by the employee that results in or could result in substantial loss to Synchrony or any of its
Affiliates, or substantial damage to the business or reputation of Synchrony or any of its Affiliates, as determined by the Committee. 


“Change in Control” 

“Change in Control” means any of the following events which occurs after the Award Date, but only if such event constitutes a “change in
control event” for purposes of Treasury Regulation Section 1.409A-3(i)(5): 
  

	 	(a)	 the acquisition by any individual, entity or group (a “Person”), including any “person” within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either (i) the
then outstanding shares of common stock of Synchrony (the “Outstanding Common Stock”) or (ii) the combined voting power of the then outstanding securities of Synchrony entitled to vote generally in the election of directors (the
“Outstanding Voting Securities”); excluding, however, the following: (A) any acquisition directly from Synchrony (excluding any acquisition resulting from the exercise of an exercise, conversion or exchange privilege unless the
security being so exercised, converted or exchanged was 



  
 A-1 









	 	
acquired directly from Synchrony), (B) any acquisition by Synchrony, (C) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by Synchrony or any
corporation controlled by Synchrony, or (D) any acquisition by any corporation pursuant to a transaction which complies with clauses (i), (ii) and (iii) of subsection (c) of this definition below; provided further, that for
purposes of clause (B), if any Person (other than Synchrony or any employee benefit plan (or related trust) sponsored or maintained by Synchrony or any corporation controlled by Synchrony) shall become the beneficial owner of 30% or more of the
Outstanding Common Stock or 30% or more of the Outstanding Voting Securities by reason of an acquisition by Synchrony, and such Person shall, after such acquisition by Synchrony, become the beneficial owner of any additional shares of the
Outstanding Common Stock or any additional Outstanding Voting Securities and such beneficial ownership is publicly announced, such additional beneficial ownership shall constitute a Change in Control; 


 

	 	(b)	the cessation of individuals who, as of the Award Date, constitute the Board (the “Incumbent Board”) to constitute at least a majority of such Board; provided that any individual who becomes a director of
Synchrony subsequent to the Award Date whose election, or nomination for election by Synchrony’s stockholders, was approved by the vote of at least a majority of the directors then comprising the Incumbent Board shall be deemed a member of the
Incumbent Board; and provided further, that any individual who was initially elected as a director of Synchrony as a result of an actual or threatened solicitation by a Person other than the Board for the purpose of opposing a solicitation by any
other Person with respect to the election or removal of directors, or any other actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board shall not be deemed a member of the Incumbent Board; or


  

	 	(c)	 the consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of Synchrony (a
“Corporate Transaction”); excluding, however, a Corporate Transaction pursuant to which (i) all or substantially all of the individuals or entities who are the beneficial owners, respectively, of the Outstanding Common Stock and the
Outstanding Voting Securities immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than 50% of, respectively, the outstanding shares of common stock, and the combined voting power of the outstanding
securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Corporate Transaction (including, without limitation, a corporation which as a result of such transaction owns, directly
or indirectly, Synchrony or all or substantially all of Synchrony’s assets) in substantially the same proportions relative to each other as their ownership, immediately prior to such Corporate Transaction, of the Outstanding Common Stock and
the Outstanding Voting Securities, as the case may be, (ii) no Person (other than: Synchrony; any employee benefit plan (or related trust) sponsored or maintained by Synchrony or any corporation controlled by Synchrony; the corporation
resulting from such Corporate Transaction; and any Person which beneficially owned, immediately prior to such Corporate Transaction, directly or indirectly, 30% or more of the Outstanding Common Stock or the Outstanding Voting Securities, as the
case may be) will beneficially own, directly or indirectly, 30% or more of, respectively, the outstanding shares of common stock of the corporation resulting from such Corporate 



  
 A-2 









	 	
Transaction or the combined voting power of the outstanding securities of such corporation entitled to vote generally in the election of directors, and (iii) individuals who were members of
the Incumbent Board will constitute at least a majority of the members of the board of directors of the corporation resulting from such Corporate Transaction. 


Notwithstanding anything to the contrary in the foregoing, (i) for so long as General Electric Company and its affiliates beneficially own a majority of
the Outstanding Common Stock, no Change in Control shall be deemed to have occurred, (ii) any transaction pursuant to which common stock of Synchrony is transferred from one wholly-owned subsidiary of General Electric Company to another
wholly-owned subsidiary of General Electric Company shall not be deemed to be a Change in Control and (iii) the transactions pursuant to which General Electric Company and its affiliates reduce their ownership of common stock of Synchrony shall
not constitute a Change in Control; provided that in connection with any such transaction no other Person acquires beneficial ownership of common stock of Synchrony in an amount that would constitute a Change in Control pursuant to Section
(a) of this Change in Control definition. 
 “Disability” 

“Disability” shall mean an incapacity, disability or other condition that entitles the employee to long-term disability benefits under the long-term
disability benefit plan or arrangement applicable to Synchrony’s employees, as determined by the administrator of such plan or arrangement. An individual shall not be considered disabled unless the employee furnishes proof of the existence
thereof. Synchrony may require the existence or non-existence of a disability to be determined by a physician whose selection is mutually agreed upon by the employee (or his or her representatives) and Synchrony. 

“Good Reason” 

“Good Reason” shall mean, without the employee’s express written consent, the occurrence of any of the following events after a Change in
Control: 
  

	 	(a)	a material adverse change in the nature or scope of the employee’s authority, powers, functions, duties or responsibilities; 

  

	 	(b)	a material reduction by Synchrony in the employee’s rate of annual base salary or bonus opportunity; or 

  

	 	(c)	a change in the employee’s primary employment location to a location that is more than 50 miles from the primary location of the employee’s employment. 


Within thirty (30) days after the employee becomes aware of one or more actions or inactions described in this Good Reason definition, the employee shall
deliver written notice to Synchrony of the action(s) or inaction(s) (the “Good Reason Notice”). Synchrony shall have thirty (30) days after the Good Reason Notice is delivered to cure the particular action(s) or inaction(s). If
Synchrony so effects a cure, the Good Reason Notice will be deemed rescinded and of no further force and effect. 

  
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 “Period of Restriction” 

The “Period of Restriction” means, for any RSU, the period prior to the date on which such RSU vests and the employee becomes entitled to a Share in
respect thereof. The Period of Restriction shall not be deemed to have ended solely because the employee becomes eligible for Retirement. 

“Retirement” 
 The
employee is eligible for “Retirement” if the employee has attained age sixty (60) and has three (3) Years of Service. 

“Section 409A” 

Section 409A of the Internal Revenue Code of 1986, as amended. 

“Six-Month Pay Date” 

The “Six-Month Pay Date” is the earlier of (a) the first (1st) business day of the
seventh (7th) month that starts after the employee’s termination of employment or (b) a date determined by Synchrony that is within ninety (90) days after the employee’s
death. 
 “Termination of Employment” 

“Termination of Employment” shall mean “separation from service” within the meaning of Section 409A. 

“Years of Service” 

“Years of Service” means the number of years during which an individual has been deemed to be an employee of Synchrony (which shall include periods
during which such individual was employed by General Electric Company and its affiliates) according to its payroll or other systems of record, as determined by the Committee. 

  
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