Document:

Amendment No. 3 among borrowers and lenders and JPMorgan Chase Bank

 Exhibit 10.1 
 AMENDMENT NO. 3, dated as of September 21, 2010, to the Credit Agreement referred to below, among DISCOVER FINANCIAL SERVICES, a Delaware corporation, DISCOVER BANK, a Delaware banking
corporation, the SUBSIDIARY BORROWERS party from time to time thereto, the LENDERS party thereto and JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the
“Administrative Agent”). 
 The Borrowers, the Lenders and the Administrative Agent are parties to a Credit
Agreement dated as of June 6, 2007 (as amended by Amendment No. 1 dated as of February 29, 2008 and Amendment No. 2 dated as of March 11, 2009 and as modified and supplemented and in effect from time to time, the
“Credit Agreement”), providing, subject to the terms and conditions thereof, for extensions of credit to be made by or on behalf of said Lenders to the Borrowers in an aggregate principal amount not to exceed $2,500,000,000. The
Borrowers, the Lenders and the Administrative Agent wish to amend the Credit Agreement in certain respects and, accordingly, the parties hereto hereby agree as follows: 
 Section 1. Definitions. Except as otherwise defined in this Amendment No. 3, terms defined in the Credit Agreement (as amended hereby) are used herein as defined therein. 

Section 2. Amendments. Effective as of the date hereof as provided in Section 4 of this Amendment No. 3, the Credit
Agreement is hereby amended as follows: 
 2.01. References in the Credit Agreement to “this Agreement” (and indirect
references such as “hereunder”, “hereby”, “herein” and “hereof”) shall be deemed to be references to the Credit Agreement as amended hereby. 

2.02. Indebtedness. 
 (a) Section 6.01 of the Credit Agreement is hereby amended by deleting the word “and” at the end of clause (i) thereof. 

(b) Section 6.01 of the Credit Agreement is hereby amended by deleting the existing clause (j) and adding a new clause
(j) to read in its entirety as follows: 
 “(j) Indebtedness secured by Liens permitted pursuant to
Section 6.02(k); and” 
 (c) Section 6.01 of the Credit Agreement is hereby amended by adding a new clause
(k) to read in its entirety as follows: 
 “(k) other Indebtedness in an aggregate principal amount not
exceeding $250,000,000 at any time outstanding.” 
 2.03. Liens. 

(a) Section 6.02 of the Credit Agreement is hereby amended by deleting the word “and” at the end of clause
(j) thereof. 
 (b) Section 6.02 of the Credit Agreement is hereby amended by deleting the existing clause (k)
and adding a new clause (k) to read in its entirety as follows: 
 “(k) Liens on financial instruments
constituting a portion of either Company’s or any Subsidiary’s liquidity pool that such Company or Subsidiary is obligated to purchase under any repurchase agreement entered into for liquidity management purposes; and” 

 (c) Section 6.02 of the Credit Agreement is hereby amended by adding a new clause
(l) to read in its entirety as follows: 
 “(l) other Liens securing obligations in an aggregate amount
not to exceed $100,000,000 at any time outstanding.” 
 2.04. Mergers, Consolidations, Sales of Assets, Etc.
Section 6.03(a) of the Credit Agreement is hereby amended by replacing the words “(other than dispositions of assets pursuant to a Permitted Securitization or in connection with participation in a Department of Education Loan Participation
Program)” therein with the words “(other than (x) dispositions of assets pursuant to a Permitted Securitization or in connection with participation in a Department of Education Loan Participation Program and (y) dispositions of
financial instruments constituting a portion of either Company’s or any Subsidiary’s liquidity pool by way of any repurchase agreement entered into for liquidity management purposes)”. 

2.05. Restrictive Agreements. Section 6.07 of the Credit Agreement is hereby amended by replacing the words “without
reference to Section 6.02(k)” therein with the words “without reference to Section 6.02(l)”. 

Section 3. Representations and Warranties. Each Borrower hereby represents and warrants to the Administrative Agent and the
Lenders that (i) the representations and warranties of such Borrower set forth in Article III of the Credit Agreement are, on the date hereof, true and complete as if made on the date hereof (and after giving effect to this Amendment
No. 3) and as if each reference in said Article III to “this Agreement” includes reference to this Amendment No. 3 and (ii) both immediately before and after giving effect to the amendments under Section 2 hereof, no
Default has occurred and is continuing. 
 Section 4. Conditions Precedent. The amendments to the Credit Agreement
set forth in Section 2 of this Amendment No. 3 shall become effective, as of the date hereof, upon the satisfaction of each of the following conditions precedent: 

(i) receipt by the Administrative Agent of one or more counterparts of this Amendment No. 3 duly executed and
delivered by each of the Borrowers and the Required Lenders; and 
 (ii) payment by the Companies to the
Administrative Agent of all amounts due and payable on or prior to the date this Amendment No. 3 becomes effective, including amounts, to the extent invoiced, for the reimbursement or payment of all out-of-pocket expenses required to be
reimbursed by the Companies. 
 Section 5. Miscellaneous. Except as herein provided, the Credit Agreement shall
remain unchanged and in full force and effect and is hereby ratified and confirmed. This Amendment No. 3 may be executed in any number of counterparts, all of which taken together shall constitute one and the same agreement and any of the
parties hereto may execute this Amendment No. 3 by signing any such counterpart. This Amendment No. 3 shall be governed by, and construed in accordance with, the laws of the State of New York. 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 3 to be duly
executed and delivered as of the day and year first above written. 
  

			
	DISCOVER FINANCIAL SERVICES
		
	 By:
	 	 /s/ Steven E. Cunningham

		 	Name: Steven E. Cunningham
		 	Title: Senior Vice President and Treasurer
	
	U.S. Federal Tax Identification No.: 36-2517428
	
	DISCOVER BANK
		
	 By:
	 	 /s/ Michael F. Rickert

		 	Name: Michael F. Rickert
		 	Title: V.P., Chief Financial Officer
	
	 U.S. Federal Tax Identification No.: 51-0020270

	
	 JPMORGAN CHASE BANK, N.A.,

	 individually and as Administrative Agent,

		
	 By:
	 	 /s/ John J. Coffey

		 	Name: John J. Coffey
		 	Title: Managing Director
	
	LENDERS
	
	 U.S. BANK NATIONAL ASSOCIATION

		
	 By:
	 	 /s/ Jeffrey S. Johnson

		 	Name: Jeffrey S. Johnson
		 	Title: Vice President
	
	 UBS LOAN FINANCE LLC

		
	 By:
	 	 /s/ Mary E. Evans

		 	Name: Mary E. Evans
		 	Title: Associate Director
		
	 By:
	 	 /s/ Irja R. Otsa

		 	Name: Irja R. Otsa
		 	Title: Associate Director
	
	 ROYAL BANK OF CANADA

		
	 By:
	 	 /s/ Tim Stephens

		 	Name: Tim Stephens
		 	Title: Director

			
	 PNC BANK, NATIONAL ASSOCIATION

		
	 By:
	 	 /s/ Cara Gentile

		 	Name: Cara Gentile
		 	Title: Vice President
	
	 CITIBANK, N.A.

		
	 By:
	 	 /s/ Paul A. Decarlo

		 	Name: Paul A. Decarlo
		 	Title: SVP/SCO
	
	 WILLIAM STREET CREDIT CORPORATION

		
	 By:
	 	 /s/ Allison O’Connor

		 	Name: Allison O’Connor
		 	Title: Authorized Signatory
	
	BARCLAYS BANK PLC
		
	 By:
	 	 /s/ Alicia Borys

		 	 Name: Alicia Borys

		 	 Title: Assistant Vice President

	
	WELLS FARGO BANK, NATIONAL ASSOCIATION
		
	 By:
	 	 /s/ Grainne M. Pergolini

		 	 Name: Grainne M. Pergolini

		 	 Title: Director

	
	THE ROYAL BANK OF SCOTLAND PLC
		
	 By:
	 	RBS Securities Inc., as agent for The Royal Bank of Scotland plc
		
	 By:
	 	 /s/ Karen Beatty

		 	 Name: Karen Beatty

		 	 Title: Vice President

	
	DEUTSCHE BANK AG NEW YORK BRANCH
		
	 By:
	 	 /s/ Robert Chesley

		 	 Name: Robert Chesley

		 	 Title: Director

		
	 By:
	 	 /s/ John S. McGill

		 	 Name: John S. McGill

		 	 Title: Director

			
	BNP PARIBAS
		
	 By:
	 	 /s/ Marguerite L. Lebon

		 	 Name: Marguerite L. Lebon

		 	 Title: Vice President

		
	 By:
	 	 /s/ Indra D. Kish

		 	 Name: Indra D. Kish

		 	 Title: Director

	
	LEHMAN COMMERCIAL PAPER INC.
		
	 By:
	 	 /s/ Steve Shirreffs

		 	 Name: Steve Shirreffs

		 	 Title: Authorized Signatory

	
	SOCIETE GENERALE
		
	 By:
	 	 /s/ William Aishton

		 	 Name: William Aishton

		 	 Title: Director

	
	THE BANK OF TOKYO MITSUBISHI UFJ, LTD. NEW YORK BRANCH
		
	 By:
	 	 /s/ Chimie T. Pemba

		 	 Name: Chimie T. Pemba

		 	 Title: Authorized Signatory

	
	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH
		
	 By:
	 	 /s/ Jay Chall

		 	 Name: Jay Chall

		 	 Title: Director

		
	 By:
	 	 /s/ Vipul Dhadda

		 	 Name: Vipul Dhadda

		 	 Title: AssociateForm of Award Certificate for Restricted Stock Units

 Exhibit 10.4 
 DISCOVER FINANCIAL SERVICES 

AMENDED AND RESTATED 2007 OMNIBUS INCENTIVE
PLAN 
 [year] 
 AWARD CERTIFICATE FOR 
 RESTRICTED STOCK UNITS 

 TABLE OF CONTENTS FOR
AWARD CERTIFICATE 
  

							
	1.	  	 Stock units generally
	  	 	3	  
			
	2.	  	 Vesting schedule and conversion
	  	 	3	  
			
	3.	  	 Special provisions for certain employees
	  	 	3	  
			
	4.	  	 Dividend equivalent payments
	  	 	4	  
			
	5.	  	 Death and Disability and Retirement
	  	 	4	  
			
	6.	  	 Reduction in Force
	  	 	5	  
			
	7.	  	 Change in Control
	  	 	5	  
			
	8.	  	 Termination of Employment and cancellation of awards
	  	 	6	  
			
	9.	  	 Cancelation of Awards under Certain Circumstances
	  	 	6	  
			
	10.	  	 Tax and other withholding obligations
	  	 	7	  
			
	11.	  	 Satisfaction of obligations
	  	 	7	  
			
	12.	  	 Nontransferability
	  	 	8	  
			
	13.	  	 Designation of a beneficiary
	  	 	8	  
			
	14.	  	 Ownership and possession
	  	 	9	  
			
	15.	  	 Securities law matters
	  	 	9	  
			
	16.	  	 Compliance with laws and regulations
	  	 	9	  
			
	17.	  	 No entitlements
	  	 	10	  
			
	18.	  	 Consents under local law
	  	 	10	  
			
	19.	  	 Award modification
	  	 	11	  
			
	20.	  	 Severability
	  	 	11	  
			
	21.	  	 Successors
	  	 	11	  
			
	22.	  	 Governing law
	  	 	11	  
			
	23.	  	 Section 409A
	  	 	11	  
			
	24.	  	 Defined terms
	  	 	12	  

  
 1 

 DISCOVER FINANCIAL SERVICES 

OMNIBUS INCENTIVE PLAN 

[YEAR] 
 AWARD CERTIFICATE FOR RESTRICTED STOCK UNITS 

Discover has awarded to you restricted stock units as part of your discretionary long-term incentive compensation for services provided
to the Company, from the Date of the Award through the Scheduled Vesting Dates, as provided in this Award Certificate. This Award Certificate sets forth the general terms and conditions of your [year] restricted stock unit award. 

The number of restricted stock units in your award has been communicated to you separately in writing delivered to you. If you are
Employed outside the United States, you will also receive an “International Supplement” that contains supplemental terms and conditions for your [year] restricted stock unit award. This Award Certificate should be read in
conjunction with the International Supplement, if applicable, in order for you to understand the terms and conditions of your restricted stock unit award. 
 Your restricted stock unit award is made pursuant to the Plan. References to “restricted stock units” in this Award Certificate mean only those restricted stock units included in your [year]
restricted stock unit award, and the terms and conditions herein apply only to such award. If you receive any other award under the Plan or another equity compensation plan, it will be governed by the terms and conditions of the applicable award
documentation, which may be different from those herein. 
 The purpose of the restricted stock unit award is, among other
things, to align your interests with the interests of the Company and to reward you for your continued Employment and service to the Company in the future. In view of these purposes, you will earn each portion of your [year] restricted stock unit
award only if you remain in continuous Employment through the applicable Scheduled Vesting Date. 
 Section 409A of the
Internal Revenue Code imposes rules relating to the taxation of deferred compensation, including your [year] restricted stock unit award. The Company reserves the right to modify the terms of your [year] restricted stock unit award, including,
without limitation, the payment provisions applicable to your restricted stock units, to the extent necessary or advisable to comply with Section 409A of the Internal Revenue Code. 

Capitalized terms used in this Award Certificate that are not defined in the text have the meanings set forth in Section 24 below.
Capitalized terms used in this Award Certificate that are not defined in the text or in Section 24 below have the meanings set forth in the Plan. 

  
 2 

	1.	Stock units generally. 

 Each of your restricted stock units corresponds to one share of Discover common stock. A restricted stock unit constitutes an unsecured promise by Discover to pay you one share of Discover common stock on
the conversion date for the restricted stock unit. As the holder of restricted stock units, you have only the rights of a general unsecured creditor of Discover. You will not be a stockholder with respect to the shares of Discover common stock
underlying your restricted stock units unless and until your restricted stock units convert to shares. 
  

	2.	Vesting schedule and conversion. 

 (a) Vesting schedule. 
 Your restricted stock units will vest
according to the following schedule: (i) 25% of your restricted stock units will vest on the First Scheduled Vesting Date, (ii) 25% of your restricted stock units will vest on the Second Scheduled Vesting Date, (iii) 25% of your
restricted stock units will vest on the Third Scheduled Vesting Date and (iv) the remaining 25% of your restricted stock units will vest on the Fourth Scheduled Vesting Date. Any fractional restricted stock units resulting from the application
of the vesting schedule will be aggregated and will vest on the First Scheduled Vesting Date. Except as otherwise provided in this Award Certificate, each portion of your restricted stock units will vest only if you continue to provide future
services to the Company by remaining in continuous Employment through the applicable Scheduled Vesting Date and providing value added services to the Company during this timeframe. The special vesting terms set forth in Sections 5, 6 and 7 of this
Award Certificate apply (i) if your Employment terminates by reason of your death, Disability, or Retirement, (ii) if the Company terminates your Employment in an involuntary termination under the circumstances described in Section 6,
or (iii) upon a Change in Control. Vested restricted stock units are subject to the tax withholding provisions set forth in this Award Certificate. 
 (b) Conversion. 
 (1) Except as otherwise provided in
this Award Certificate, each of your vested restricted stock units will convert to one share of Discover common stock on the applicable Scheduled Vesting Date. 
 (2) Shares to which you are entitled upon conversion of restricted stock units under any provision of this Award Certificate shall be delivered as soon as administratively practicable thereafter
and shall not be subject to any transfer restrictions, other than those that may arise under the securities laws or Discover’s policies. 
  

	3.	Special provisions for certain employees. 

 (a) Six-month delay for specified employees. Notwithstanding the other provisions of this Award Certificate, to the extent necessary to comply with
Section

  
 3 

 
409A of the Internal Revenue Code, if Discover reasonably considers you to be one of its “specified employees” as defined in Section 409A of the Internal Revenue Code at the time
of the termination of your Employment, any restricted stock units to which you are entitled under this Award Certificate that constitute a deferred compensation arrangement under section 409A of the Internal Revenue Code will not convert to Discover
common stock until the date that is six months after the termination of your Employment. 
  

	4.	Dividend equivalent payments. 

 Until your restricted stock units convert to shares, if Discover pays a regular or ordinary cash dividend on its common stock, you will be paid a dividend equivalent for your vested and unvested
restricted stock units. No dividend equivalents will be paid to you with respect to any canceled restricted stock units. 

Discover will decide on the form of payment and may pay dividend equivalents in shares of Discover common stock, in cash or in a
combination thereof. Discover will pay the dividend equivalents as soon as administratively practicable after Discover pays the corresponding dividend on its common stock. 
 Because dividend equivalent payments are considered part of your compensation for income tax purposes, they will be subject to applicable tax and other withholding obligations. 

 

	5.	Death and Disability and Retirement. 

 The following special vesting and payment terms apply to your restricted stock units: 
 (a) Death. 
 If your Employment terminates due to your death,
all unvested restricted stock units subject to this Award Certificate will vest on the date your Employment terminates. On that date, your restricted stock units will convert to shares of Discover common stock and be delivered to the beneficiary you
have designated pursuant to Section 13 or the legal representative of your estate, as applicable, as soon as administratively practicable after Discover receives appropriate notice of your death. 

(b) Disability. 
 If your Employment terminates due to Disability, all unvested restricted stock units subject to this Award Certificate will vest on the date your Employment terminates. On that date, your restricted stock
units will convert to shares of Discover common stock and be delivered to you, subject to Section 3(a) above, as soon as administratively practicable thereafter. 
 (c) Retirement. 

  
 4 

 If your Employment terminates due to your Retirement, all of your unvested stock units will
vest on the date your Employment terminates. On that date, your restricted stock units will convert to shares of Discover common stock and be delivered to you, subject to Section 3(a) above, as soon as administratively practicable thereafter.

  

	6.	Reduction in Force. 

If the Company terminates your Employment due to a reduction in force or an elimination of your position, each as determined by Discover
in its sole discretion, your unvested restricted stock units will vest on the date your Employment terminates, provided that you sign an agreement and release satisfactory to Discover. As soon as practicable after Discover’s acceptance
of your fully executed agreement and release, your restricted stock units will convert to shares of Discover common stock and be delivered to you, subject to Section 3(a) above. 

 

	7.	Change in Control. 

(a) If the Company terminates your Employment, or if you terminate your Employment for Good Reason, other than for Cause,
within six months prior to or within 24 months after a Change in Control, all your restricted stock units will immediately vest upon such Change in Control. On the later of the date of a Change in Control and the date of your termination following a
Change in Control, as applicable, your restricted stock units will vest and convert to shares of Discover common stock and be delivered as soon as administratively practicable thereafter. 

(b) In the event of a Change in Control which results from a transaction pursuant to which the shareholders of Discover
receive shares of common stock of an acquiring entity (the “Acquirer”) that are registered under Section 12 of the Exchange Act (as defined in Section 24(c)(1)), unless otherwise determined by the Committee, in its sole
discretion prior to such Change in Control, there shall be substituted for each share of Discover common stock subject to this certificate the number and class of shares of common stock of the Acquirer into which each outstanding share of Discover
common stock shall be converted pursuant to such Change in Control transactions; and this Award Certificate shall otherwise continue in effect. 
 (c) In the event of a Change in Control which results from a transaction pursuant to which the shareholders of Discover receive consideration other than shares of common stock of the
Acquirer that are registered under Section 12 of the Exchange Act, the value of the restricted stock units hereunder shall, unless otherwise determined by the Committee, in its sole discretion prior to such Change in Control, be converted into
a right to receive the cash or other consideration received by the shareholders of Discover in such transaction, and this Award Certificate shall otherwise continue in effect. 

  
 5 

	8.	Termination of Employment and cancellation of awards. 

 (a) Cancellation of unvested awards. 
 Your unvested
restricted stock units will be canceled if your Employment terminates for any reason other than under the circumstances set forth in this Award Certificate for death, Disability, and Retirement described in Section 5 or an involuntary
termination by the Company described in Section 6 or in connection with a Change in Control as provided in Section 7. 

(b) General treatment of vested awards. 
 Except as otherwise provided in this Award Certificate, your vested restricted stock units will convert to shares of Discover common stock on the applicable Scheduled Vesting Date. The tax and other
withholding provisions set forth in this Award Certificate will continue to apply until the date the shares of Discover common stock are delivered. 
  

	9.	Cancellation of Awards under Certain Circumstances. 

 The cancellation events set forth in this Section 9 are designed, among other things, to incentivize compliance with the Company’s policies (including, without limitation, the Company’s
risk policy and Code of Conduct), to protect the Company’s interests in non-public, confidential and/or proprietary information, products, trade secrets, customer relationships, and other legitimate business interests, and to ensure an orderly
transition of responsibilities. This Section 9 shall apply notwithstanding any other terms of this Award Certificate (except where sections in this Award Certificate specifically provide that the cancellation events set forth in this
Section 9 no longer apply). 
 Notwithstanding your satisfaction of the vesting conditions of this Award Certificate,
restricted stock units are not earned until the applicable Scheduled Vesting Date and, unless prohibited by applicable law, will be canceled prior to the applicable Scheduled Vesting Date in any of the circumstances set forth below in
Section 9(1). Although you will become the beneficial owner of shares of Discover common stock following conversion of your restricted stock units, the Company may, upon notice, issue a transfer restriction with respect to your shares following
conversion of your restricted stock units pending any investigation or other review that impacts the determination as to whether the restricted stock units are cancellable under the circumstances set forth below. The shares underlying such
restricted stock units shall be forfeited in the event the Company determines that the restricted stock units were cancellable under the circumstances set forth below. 
 (1) Notwithstanding any provision of this Award Certificate to the contrary, in the event that at any time prior to one year after the termination of your Employment or service with the Company,
you (a) engage, in Competitive Activity; (b) engage in Wrongful Solicitation or (c) breach your obligations to the Company under a 

  
 6 

 
confidentiality, intellectual property or other restrictive covenant, you shall be required to: 
 (i) pay to the Company an amount in cash equal to the value of the restricted stock units that vested and converted to Discover shares of common stock net of taxes on or after, or within one year prior
to, your termination of Employment, which value shall be determined as of the date your restricted stock units converted to shares of Company common stock; or 
 (ii) transfer a number of shares of Discover common stock equal to the number of the restricted stock units that vested and converted to Discover shares of common stock net of taxes on or after, or within
one year prior to, your termination of Employment. 
 You authorize the Company to deduct any amount or amounts owed by you
pursuant to this Section 9 from any amounts payable by or on behalf of the Company to you, including, without limitation, any amount payable to you as salary, wages, vacation pay, bonus, severance, change in control severance or the settlement
of any stock-based award. This right of offset shall not be an exclusive remedy and the Company’s election not to exercise this right of offset with respect to any amount payable to you shall not constitute a waiver of this right of offset with
respect to any other amount payable to you or any other remedy. 
  

	10.	Tax and other withholding obligations. 

 Pursuant to rules and procedures that Discover establishes, you may elect to satisfy the tax or other withholding obligations arising upon conversion of your restricted stock units by having Discover
withhold shares of Discover common stock or by tendering shares of Discover common stock, in each case in an amount sufficient to satisfy the tax or other withholding obligations. Shares withheld or tendered will be valued using the fair market
value of Discover common stock on the date the shares of Discover common stock are scheduled to convert, using a valuation methodology established by Discover. 
 In order to comply with applicable accounting standards or the Company’s policies in effect from time to time, Discover may limit the amount of shares that you may have withheld or that you may
tender. 
  

	11.	Satisfaction of obligations. 

 Notwithstanding any other provision of this Award Certificate, Discover may, in its sole discretion, take various actions affecting your restricted stock units in order to collect amounts sufficient to
satisfy any obligation that you owe to the Company and any tax or other withholding obligations. These actions include the following: 
 (a) Upon conversion of restricted stock units, including any accelerated conversion pursuant to Sections 5, 6 or 7 above, or, if later, upon delivery of the shares of Discover common stock,
Discover may withhold a number of shares 

  
 7 

 
sufficient to satisfy any obligation that you owe to the Company and any tax or other withholding obligations. The Company shall determine the number of shares to be withheld by dividing the
dollar value of your obligation to the Company and any tax or other withholding obligations by the fair market value of Discover common stock on the date the shares of Discover common stock are scheduled to convert. 

(b) Discover may withhold the payment of dividend equivalents on your restricted stock units or other compensation to
ensure satisfaction of any obligation that you owe the Company or any tax or other withholding obligations or Discover may permit you to satisfy such tax or other withholding obligation by paying such obligation in immediately available funds.

 Discover’s determination of the amount that you owe the Company shall be conclusive. The fair market value of Discover common stock for
purposes of the foregoing provisions shall be determined using a valuation methodology established by Discover. 
  

	12.	Nontransferability. 

You may not sell, pledge, hypothecate, assign or otherwise transfer your restricted stock units, other than as provided in Section 13
(which allows you to designate a beneficiary or beneficiaries in the event of your death) or by will or the laws of descent and distribution. This prohibition includes any assignment or other transfer that purports to occur by operation of law or
otherwise. During your lifetime, payments relating to the restricted stock units will be made only to you. 
  

	13.	Designation of a beneficiary. 

 You may make a written designation of beneficiary or beneficiaries to receive all or part of the shares to be paid under this Award Certificate in the event of your death. To make a beneficiary
designation, you must complete and file the form attached hereto as Appendix A with the Human Resources Department. 

Any shares that become payable upon your death, and as to which a designation of beneficiary is not in effect, will be distributed to
your estate. 
 If you previously filed a designation of beneficiary form for your equity awards with the Human Resources
Department, such form will also apply to the restricted stock units granted pursuant to this award. You may replace or revoke your beneficiary designation at any time. If there is any question as to the legal right of any beneficiary to receive
shares under this award, Discover may determine in its sole discretion to deliver the shares in question to your estate. Discover’s determination shall be binding and conclusive on all persons and it will have no further liability to anyone
with respect to such shares. 

  
 8 

	14.	Ownership and possession. 

 (a) Generally.  
 Generally, you will not have any rights as
a stockholder in the shares of Discover common stock corresponding to your restricted stock units prior to conversion of your restricted stock units. 
 Prior to conversion of your restricted stock units, however, you will receive dividend equivalent payments, as set forth in Section 4 of this Award Certificate. 

To the extent necessary or advisable to comply with Section 409A of the Internal Revenue Code, with respect to
any provision of this Award Certificate that provides for vested restricted stock units to convert to shares of Discover common stock on or as soon as administratively practicable after a specified event or date, such conversion will be made by the
later of the end of the calendar year in which the specified event or date occurs or the 15th day of the third calendar month following the specified event or date. 

(b) Following conversion.  
 Following conversion of your restricted stock units you will be the beneficial owner of the net shares issued to you, and you will be entitled to all rights of ownership, including voting rights and the
right to receive cash or stock dividends or other distributions paid on the shares. 
  

	15.	Securities law matters. 

 Shares of Discover common stock issued upon conversion of your restricted stock units may be subject to restrictions on transfer by virtue of the Securities Act of 1933, as amended. Discover may advise
the transfer agent to place a stop order against such shares if it determines that such an order is necessary or advisable. Because Discover common stock will only be maintained in book-entry form, you will not receive a stock certificate
representing your interest in such shares. 
  

	16.	Compliance with laws and regulations. 

 Any sale, assignment, transfer, pledge, mortgage, encumbrance or other disposition of shares issued upon conversion of your restricted stock units (whether directly or indirectly, whether or not for
value, and whether or not voluntary) must be made in compliance with any applicable constitution, rule, regulation, or policy of any of the exchanges or associations or other institutions with which the Company or a Related Employer has membership
or other privileges, and any applicable law, or applicable rule or regulation of any governmental agency, self-regulatory organization or state or federal regulatory body. 

  
 9 

	17.	No entitlements. 

(a) No right to continued Employment.  
 This restricted stock unit award is not an employment agreement, and nothing in this Award Certificate, the International Supplement, if applicable, or the Plan shall alter your status as an
“at-will” employee of the Company or your Employment status at a Related Employer. None of this Award Certificate, the International Supplement, if applicable, or the Plan shall be construed as guaranteeing your Employment by the Company
or a Related Employer, or as giving you any right to continue in the employ of the Company or a Related Employer, during any period (including without limitation the period between the Date of the Award and any of the First Scheduled Vesting Date,
the Second Scheduled Vesting Date, the Third Scheduled Vesting Date, the Fourth Scheduled Vesting Date, or any portion of any of these periods), nor shall they be construed as giving you any right to be reemployed by the Company or a Related
Employer following any termination of Employment. 
 (b) No right to future awards.  

This award, and all other awards of restricted stock units and other equity-based awards, are discretionary. This award does not confer
on you any right or entitlement to receive another award of restricted stock units or any other equity-based award at any time in the future or in respect of any future period. 

(c) No effect on future employment compensation.  

Discover has made this award to you in its sole discretion. This award does not confer on you any right or entitlement to receive
compensation in any specific amount for any future fiscal year, and does not diminish in any way the Company’s discretion to determine the amount, if any, of your compensation. In addition, this award is not part of your base salary or wages
and will not be taken into account in determining any other Employment-related rights you may have, such as rights to pension or severance pay. 
 (d) In the event of any conflict between any terms applicable to equity awards in any employment agreement, offer letter or other arrangement that you have entered into with the Company and
the terms set forth in this Award Certificate, the latter shall control. In the event of any conflict between the terms set forth in this Award Certificate and the terms of the Plan, the latter shall control. 

 

	18.	Consents under local law. 

 Your award is conditioned upon the making of all filings and the receipt of all consents or authorizations required to comply with, or required to be obtained under, applicable local law. 

  
 10 

	19.	Award modification. 

The Committee reserves the right to modify or amend unilaterally the terms and conditions of your restricted stock units, without first
asking your consent, or to waive any terms and conditions that operate in favor of Discover. These amendments may include (but are not limited to) changes that the Committee considers necessary or advisable as a result of changes in any, or the
adoption of any new, Legal Requirement. The Committee may not modify your restricted stock units in a manner that would materially impair your rights in your restricted stock units without your consent; provided, however, that the
Committee may, without your consent, amend or modify your restricted stock units in any manner that the Committee considers necessary or advisable to comply with any Legal Requirement or to ensure that your restricted stock units are not subject to
United States federal, state or local income tax or any equivalent taxes in territories outside the United States prior to payment. Discover will notify you of any amendment of your restricted stock units that affects your rights. Any amendment or
waiver of a provision of this Award Certificate (other than any amendment or waiver applicable to all recipients generally), which amendment or waiver operates in your favor or confers a benefit on you, must be in writing and signed by
Discover’s Head of Human Resources (or if such positions no longer exist, by the holder of an equivalent position) to be effective. 
  

	20.	Severability. 

 In
the event the Committee determines that any provision of this Award Certificate would cause you to be in constructive receipt for United States federal or state income tax purposes of any portion of your award, then such provision will be considered
null and void and this Award Certificate will be construed and enforced as if the provision had not been included in this Award Certificate as of the date such provision was determined to cause you to be in constructive receipt of any portion of
your award. 
  

	21.	Successors. 

 This
Award Certificate shall be binding upon and inure to the benefit of any successor or successors of Discover and any person or persons who shall, upon your death, acquire any rights hereunder in accordance with this Award Certificate or the Plan.

  

	22.	Governing law. 

This Award Certificate and the related legal relations between you and Discover will be governed by and construed in accordance with the
laws of the State of Delaware, without regard to any conflicts or choice of law, rule or principle that might otherwise refer the interpretation of the award to the substantive law of another jurisdiction. 

 

	23.	Section 409A. 

 This Award
Certificate and your RSU Award (including all adjustments, substitutions, dividends, valuations and distributions, and deferrals hereunder) are intended to be 

  
 11 

 
exempt from or comply with Section 409A of the Internal Revenue Code pursuant to the guidance issued thereunder by the U.S. Internal Revenue Service in all respects and shall be administered
in a manner consistent with such intent. If an unintentional operational failure occurs with respect to requirements under Section 409A of the Internal Revenue Code, you or your beneficiary shall fully cooperate with Discover to correct the
failure, to the extent possible, in accordance with any correction procedure established by the U.S. Internal Revenue Service. Any reference herein to Section 409A of the Internal Revenue Code shall be interpreted to refer to any successor
section of the Internal Revenue Code or other guidance issued by the U.S. Internal Revenue Service, or other agency with jurisdiction, as appropriate. To the extent that full or partial payment of your RSU Award that constitutes a deferral of
compensation subject to Section 409A of the Internal Revenue Code is made upon a termination of Employment, a termination of Employment shall be deemed to occur only if it is a “separation from service” for purposes of
Section 409A of the Internal Revenue Code, and references in this Award Certificate to “termination,” “termination of Employment,” or like terms shall mean a “separation from service.” 

 

	24.	Defined terms. 

For purposes of this Award Certificate, the following terms shall have the meanings set forth below: 

(a) “Board” means the Board of Directors of Discover. 

(b) “Cause” means: 

(1) any act or omission which constitutes a material breach of your obligations to the Company or your failure or
refusal to perform satisfactorily any duties reasonably required of you, which breach, failure or refusal (if susceptible to cure) is not corrected (other than failure to correct by reason of your incapacity due to Disability) within ten
(10) business days after written notification thereof to you by the Company; 
 (2) any act or
omission by you that constitutes (x) fraud or intentional misrepresentation, (y) embezzlement, misappropriation or conversion of assets of, or business opportunities considered by, the Company or (z) any other act which has caused or
may reasonably be expected to cause material injury to the interest or business reputation of the Company; or 

(3) your violation of any securities, commodities or banking laws, any rules or regulations issued pursuant to such
laws, or rules or regulations of any securities or commodities exchange or association of which the Company is a member or of any policy of the Company relating to compliance with any of the foregoing. 

  
 12 

 (c) A “Change in Control” means, except as provided
otherwise below, the first to occur of any of the following events: 
 (1) except as otherwise provided in
clause (3) below, any person (as defined in Section 3(a)(9) of the Securities Exchange Act of 1934 (the “Exchange Act”), as such term is modified in Sections 13(d) and 14(d) of the Exchange Act), other than (i) any employee
plan established by the Company or any of its Subsidiaries, (ii) any group of employees holding shares subject to agreements relating to the voting of such shares, (iii) the Company or any of its affiliates (as defined in Rule 12b-2
promulgated under the Exchange Act), (iv) an underwriter temporarily holding securities pursuant to an offering of such securities, or (v) a corporation owned, directly or indirectly, by stockholders of the Company in substantially the
same proportions as their ownership of the Company, either (x) acquires ownership of stock of the Company that, together with stock held by such person (not including the stock owned by such person any stock acquired directly from the Company
other than in connection with the acquisition by the Company of a business), constitutes more than fifty percent (50%) of the total fair market value of the stock of the Company (but only if such person did not own more than 50% of the total
fair market value of the stock of the Company prior to the acquisition of additional stock), or (y) acquires (or has acquired during the twelve-month period ending on the date of the most recent acquisition by such person) ownership of the
stock of the Company possessing thirty percent (30%) or more of the total voting power of the stock of the Company (but only if such person did not own 30% or more of the total voting power of the stock of the Company prior to the acquisition
of additional stock and not including the stock owned by such person any stock acquired directly from the Company other than in connection with the acquisition by the Company of a business); 

(2) a change in the composition of the Board during any twelve-month period, such that individuals who, as of the
Date of the Award, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a member of the Board subsequent to the date of
Date of the Award whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a
member of the Incumbent Board; 
 (3) the consummation of a merger or consolidation of the Company with
any other corporation or other entity, or the issuance of voting securities in connection with a merger or consolidation of the Company (or any direct or indirect subsidiary of the Company) pursuant to applicable stock exchange requirements, other
than (i) a merger or consolidation which results in the securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into securities of the surviving entity or
any parent thereof), in 

  
 13 

 
combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its subsidiaries, at least fifty percent (50%) of
the combined voting power of the voting securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no person (determined pursuant to clause (1) above) is or becomes the beneficial owner, directly or indirectly, of securities of the Company (not including in the securities
beneficially owned by such person any securities acquired directly from the Company or its affiliates other than in connection with the acquisition by the Company or its affiliates of a business) representing thirty percent (30%) or more of the
total voting power of the stock of the Company (but only if such person did not own 30% or more of the total voting power of the stock of the Company prior to the acquisition of additional securities); 

(4) the complete liquidation of the Company or the sale or disposition by the Company of all or substantially all
of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to (i) a shareholder of the Company (immediately before the asset transfer) in exchange for or with respect
to the Company’s stock, (ii) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, either by the Company or by a person or more than one person acting as a group, that
owns fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the Company, or (iii) a person, or more than one person acting as a group, that owns, directly or indirectly, fifty percent (50%) or
more of the total value or voting power of all the outstanding stock of the Company; provided, however, that a Change in Control pursuant to this clause (4) shall not be deemed to have occurred unless a person (determined pursuant to clause
(1) above) or persons acting as a group acquires (or has acquired during the twelve-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value
equal to or more than forty percent (40%) of the total gross fair market value of all of the assets of the Company immediately before such acquisition or acquisitions. 
 Notwithstanding the foregoing, with respect to a Change in Control of Discover, no Change in Control shall be deemed to have occurred if there is consummated any transaction or series of integrated
transactions immediately following which the beneficial holders of the Company’s common stock immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity which
owns substantially all of the assets of the Company immediately prior to such transaction or series of transactions. 

(d) “Committee” means the Compensation Committee of the Board, any successor committee thereto or
any other committee of the Board appointed by the 

  
 14 

 
Board with the powers of the Committee under the Plan, or any subcommittee appointed by such Committee. 
 (e) The “Company” means Discover and all of its Subsidiaries. 
 (f) “Competitive Activity” means: 

(1) becoming, or entering into any arrangement as, an employee, officer, partner, member, proprietor, director, independent
contractor, consultant, advisor, representative or agent of, or serving in any similar position or capacity with, a Competitor, where you will be responsible for providing, or managing or supervising others who are providing, services (x) that
are similar or substantially related to the services that you provided to the Company, or (y) that you had direct or indirect managerial or supervisory responsibility for at the Company, or (z) that call for the application of the same or
similar specialized knowledge or skills as those utilized by you in your services for the Company, in each such case, at any time during the year preceding the termination of your employment with the Company; or 

(2) either alone or in concert with others, forming, or acquiring a 5% or greater equity ownership, voting interest or profit
participation in, a Competitor. 
 (g) “Competitor” means any corporation, partnership or other
entity that engages in (or that owns a significant interest in any corporation, partnership or other entity that engages in) (i) the business of consumer lending, including, without limitation, credit card issuance or electronic payment
services, or (ii) any other business in which you have been involved in or had significant knowledge of, which has been conducted by the Company at any time during your employment with the Company. For the avoidance of doubt, a competitor of
any entity which results from a corporate transaction involving the Company that constitutes a Change in Control shall be considered a Competitor for purposes of this Award Certificate. 

(h) “Date of the Award” means [year]. 

(i) “Disability” means a “permanent and total disability,” as defined in
Section 22(e)(3) of the Internal Revenue Code. 
 (j) “Discover” means Discover
Financial Services, a Delaware corporation. 
 (k) “Employed” and
“Employment” refer to employment with the Company and/or Related Employment. 
 (l)
“First Scheduled Vesting Date” means [year]. 
 (m) “Fourth Scheduled Vesting
Date” means [year]. 

  
 15 

 (n) “Good Reason” means the occurrence of any of the
following upon, or within six (6) months prior to or twenty-four (24) months after the occurrence of a Change in Control of Discover without your prior written consent: 

(1) (A) any material diminution in your assigned duties, responsibilities and/or authority, including the
assignment to you of any duties, responsibilities or authority inconsistent with the duties, responsibilities and authority assigned to you, immediately prior to such assignment, or (B) a material diminution in the authority, duties, or
responsibilities of the supervisor to whom you are required to report; 
 (2) any material reduction in
your base compensation; provided, however, that Company-initiated across-the-board reductions in compensation affecting substantially all eligible Company employees shall alone not be considered “Good Reason,” unless the
compensation reductions exceed twenty percent (20%) of your base compensation; 
 (3) A material
diminution of the budget over which you have authority; 
 (4) The Company’s requiring you to be
based at a location that (A) is in excess of thirty-five (35) miles from the location of your principal job location or office immediately prior to the Change in Control, or (B) results in an increase in your normal daily commuting
time by more than ninety (90) minutes, except for required travel on Company’s business to an extent substantially consistent with your then present business travel obligations; or 

(5) Any other action or inaction that constitutes a material breach by the Company of any agreement pursuant to
which you provide services to the Company. 
 For purposes of Sections 24(n)(1) through (5) above, the duties, responsibilities and/or
authority assigned to you shall be deemed to be the greatest of those in effect prior to or after the Change in Control. Unless you become Disabled, your right to terminate your Employment for Good Reason shall not be affected by your incapacity due
to physical or mental illness. Your continued Employment shall not constitute consent to, or a waiver of rights with respect to, any circumstance constituting Good Reason. Notwithstanding the foregoing, Good Reason shall not exist unless you give
the Company written notice thereof within 30 days after its occurrence and the Company shall not have remedied the action within 30 days after such written notice. 
 (o) “Internal Revenue Code” means the United States Internal Revenue Code of 1986, as amended, and the rules, regulations and guidance thereunder.

 (p) “Legal Requirement” means any law, regulation, ruling, judicial decision,
accounting standard, regulatory guidance or other legal requirement. 

  
 16 

 (q) “Plan” means the Discover Financial
Services Omnibus Incentive Plan, as in effect from time to time. 
 (r) “Related
Employment” means your employment with an employer other than the Company (such employer, herein referred to as a “Related Employer”), provided: (i) you undertake such employment at the written
request or with the written consent of Discover’s Head of Human Resources; (ii) immediately prior to undertaking such employment you were an employee of the Company or were engaged in Related Employment (as defined herein); and
(iii) such employment is recognized by the Company in its discretion as Related Employment; and, provided further that the Company may (1) determine at any time in its sole discretion that employment that was recognized by the
Company as Related Employment no longer qualifies as Related Employment, and (2) condition the designation and benefits of Related Employment on such terms and conditions as the Company may determine in its sole discretion. The designation of
employment as Related Employment does not give rise to an employment relationship between you and the Company, or otherwise modify your and the Company’s respective rights and obligations. 

(s) “Retirement” means the termination of your Employment by you or by the Company for any reason
other than for Cause and other than due to your death or Disability, on or after the date on which: 
 (1)
you have attained age 55 and completed at least 5 years of service with the Company; or 
 (2) you
have attained age 65, whichever occurs first. 
 (t) “Scheduled Vesting Date” means the
First Scheduled Vesting Date, the Second Scheduled Vesting Date, the Third Scheduled Vesting Date and/or the Fourth Scheduled Vesting Date as the context requires. 
 (u) “Second Scheduled Vesting Date” means [year]. 
 (v) “Subsidiary” means (i) a corporation or other entity with respect to which Discover, directly or indirectly, has the power, whether through the ownership of
voting securities, by contract or otherwise, to elect at least a majority of the members of such corporation’s board of directors or analogous governing body, or (ii) any other corporation or other entity in which Discover, directly or
indirectly, has an equity or similar interest and which the Committee designates as a Subsidiary for purposes of the Plan. 

(w) “Third Scheduled Vesting Date” means [year]. 

(x) “Wrongful Solicitation” occurs upon either of the following events: 

(1) while Employed, including during any notice period applicable to you in connection with the termination of your
Employment, or 

  
 17 

 
within one year after the termination of your Employment, directly or indirectly in any capacity (including through any person, corporation, partnership or other business entity of any kind), you
hire or solicit, recruit, induce, entice, influence or encourage any Company employee to leave the Company or become hired or engaged by another firm; provided, however, that this clause shall apply only to employees with whom you
worked or had professional or business contact, or who worked in or with your business unit, during any notice period applicable to you in connection with the termination of your Employment or during the one year preceding notice of the termination
of your Employment; or 
 (2) while Employed, including during any notice period applicable to you in
connection with the termination of your Employment, or within one year after the termination of your Employment, directly or indirectly in any capacity (including through any person, corporation, partnership or other business entity of any kind),
you solicit or entice away or in any manner attempt to persuade any client or customer, or prospective client or customer, of the Company (i) to discontinue or diminish his, her or its relationship or prospective relationship with the Company
or (ii) to otherwise provide his, her or its business to any person, corporation, partnership or other business entity which engages in any line of business in which the Company is engaged (other than the Company); provided,
however, that this clause shall apply only to clients or customers, or prospective clients or customers, that you worked for on an actual or prospective project or assignment during any notice period applicable to you in connection with the
termination of your Employment or during the one year preceding notice of the termination of your Employment. 

  
 18 

 IN WITNESS WHEREOF, Discover has duly executed and delivered this Award Certificate
as of the Date of the Award. 
  

			
	DISCOVER FINANCIAL SERVICES
		
	By:  	 	 
	
	

  
 19 

 APPENDIX A 
 Designation of Beneficiary(ies) Under 
 Discover Equity Compensation Plans

 This Designation of Beneficiary shall remain in effect with respect to all awards issued to me under any Discover equity compensation
plan, including any awards that may be issued to me after the date hereof, unless and until I modify or revoke it by submitting a later dated beneficiary designation. This Designation of Beneficiary supersedes all my prior beneficiary designations
with respect to all my equity awards. 
 I hereby designate the following beneficiary(ies) to receive any survivor benefits with respect to all
my equity awards: 
  

													
	 	  	 Beneficiary(ies) Name
	  	 	  	 Relationship
	  	 	 	  	 Percentage

	 (1)
	  	 	  		  	 	  				  	 
	 (2)
	  	 	  		  	 	  				  	 
	 (3)
	  	 	  		  	 	  				  	 
	 (4)
	  	 	  		  	 	  				  	 

 Address(es) of Beneficiary(ies):

 (1) 
 (2) 

(3) 
 (4) 

 

							
				
	 	 	 	 	 	 	
	Name: (please print)	 		 	Date	 	

	
	
	  
	Signature

 Please sign and return this form to the
Human Resources Department, Discover Financial Services, 2500 Lake Cook Road, Riverwoods, IL 60015.

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