Document:

EX-4.1

 Exhibit 4.1 

FISCAL AND PAYING AGENCY AGREEMENT 

Between 
 DISCOVER BANK

 Issuer 

and 
 U.S. BANK NATIONAL
ASSOCIATION 
 Fiscal and Paying Agent 
  

 
 Dated as of
February 6, 2020 
  
  

2.700% Notes Due 2030 
  

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 ARTICLE 1 APPOINTMENT
	  	 	1	
			
	 Section 1.1.
	 	Appointment of Fiscal and Paying Agent	  	 	1	
		
	 ARTICLE 2 THE NOTES
	  	 	1	
			
	 Section 2.1.
	 	Form of Notes	  	 	1	
	 Section 2.2.
	 	Certifications of Authorized Representatives of the Bank	  	 	2	
	 Section 2.3.
	 	Authentication and Delivery	  	 	2	
	 Section 2.4.
	 	Denominations; Issuance of Certificated Securities	  	 	3	
	 Section 2.5.
	 	Principal Amount; Reopening	  	 	4	
	 Section 2.6.
	 	Security Register; Registration of Transfer and Exchange	  	 	4	
	 Section 2.7.
	 	Persons Deemed Owners	  	 	5	
	 Section 2.8.
	 	Cancellation of Unissued Global Notes	  	 	5	
	 Section 2.9.
	 	Mutilated, Stolen or Destroyed Notes	  	 	5	
	 Section 2.10.
	 	Redemption	  	 	5	
		
	 ARTICLE 3 THE FISCAL AND PAYING AGENT
	  	 	6	
			
	 Section 3.1.
	 	Payment of Notes	  	 	6	
	 Section 3.2.
	 	Information Regarding Amounts Payable	  	 	6	
	 Section 3.3.
	 	Deposit of Funds	  	 	6	
	 Section 3.4.
	 	Disposition of Funds Held for Payment of Notes	  	 	7	
	 Section 3.5.
	 	Receipt and Delivery of Notices	  	 	7	
	 Section 3.6.
	 	Additional Responsibilities	  	 	7	
	 Section 3.7.
	 	Miscellaneous	  	 	7	
		
	 ARTICLE 4 LIABILITY AND INDEMNIFICATION
	  	 	8	
			
	 Section 4.1.
	 	Liability	  	 	8	
	 Section 4.2.
	 	Indemnification	  	 	9	
	 Section 4.3.
	 	Agents and Advisors	  	 	9	
		
	 ARTICLE 5 RESIGNATION OR REMOVAL OF FISCAL AND PAYING AGENT; SUCCESSION
	  	 	10	
			
	 Section 5.1.
	 	Resignation or Removal	  	 	10	
	 Section 5.2.
	 	Successor Fiscal and Paying Agent	  	 	10	
	 Section 5.3.
	 	Successor by Merger, Etc.	  	 	10	
		
	 ARTICLE 6 MISCELLANEOUS
	  	 	11	
			
	 Section 6.1.
	 	Compensation of the Fiscal and Paying Agent	  	 	11	
	 Section 6.2.
	 	Reliance on Opinions of Counsel or Officer’s Certificate	  	 	11	

  
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	 Section 6.3.
	 	 Notes Held by Fiscal and Paying Agent
	  	 	11	 
	 Section 6.4.
	 	 Notices
	  	 	11	 
	 Section 6.5.
	 	 Parties
	  	 	12	 
	 Section 6.6.
	 	 Governing Law
	  	 	12	 
	 Section 6.7.
	 	 Separability
	  	 	12	 
	 Section 6.8.
	 	 Effect of Headings
	  	 	13	 
	 Section 6.9.
	 	 Amendments
	  	 	13	 
	 Section 6.10.
	 	 Events of Default; Rescission
	  	 	14	 
	 Section 6.11.
	 	 Actions Due on Saturdays, Sundays and Holidays
	  	 	14	 
	 Section 6.12.
	 	 Agreement to Pay Attorneys’ Fees and Other Expenses
	  	 	14	 
	 Section 6.13.
	 	 Survival
	  	 	14	 
	 Section 6.14.
	 	 No Implied Waivers
	  	 	14	 
	 Section 6.15.
	 	 Counterparts
	  	 	15	 
	 Section 6.16.
	 	 Term
	  	 	15	 
	 Section 6.17.
	 	 Complete Agreement
	  	 	15	 

  

  
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 This FISCAL AND PAYING AGENCY AGREEMENT (the “Agreement”) is entered into as of
February 6, 2020 by and between Discover Bank, as Issuer (the “Bank”), and U.S. Bank National Association as Fiscal and Paying Agent (the “Fiscal and Paying Agent”). 

W I T N E S S E T H: 

WHEREAS, the Bank proposes to issue and sell $500,000,000 of its 2.700% Notes Due 2030 (the “Notes”) in minimum denominations of
$250,000 to certain institutional accredited investors in an offering that is exempt from registration with the Securities and Exchange Commission; and 

WHEREAS, the Bank desires to appoint the Fiscal and Paying Agent as fiscal and paying agent of the Bank with respect to the preparation,
authentication, delivery, registration and payment of the Notes; 
 NOW, THEREFORE, in consideration of the mutual promises, covenants,
conditions and agreements set forth herein, the parties hereby agree as follows: 
 ARTICLE 1 

APPOINTMENT 

Section 1.1. Appointment of Fiscal and Paying Agent. The Fiscal and Paying Agent is hereby appointed as fiscal and paying
agent for the Notes on the terms and conditions specified in this Agreement and in the Notes, and the Fiscal and Paying Agent hereby accepts such appointment. The Bank hereby appoints the Fiscal and Paying Agent as registrar for the Notes. 

ARTICLE 2 
 THE NOTES

 Section 2.1. Form of Notes. The Notes will be represented by one or more global certificates, each such
certificate hereinafter called a “Global Note.” All Global Notes shall be registered in the name of The Depository Trust Company (“DTC”), as depository, or its nominee or a successor depository or nominee. All Global Notes shall
be in substantially the form attached hereto as Exhibit A and may have such appropriate insertions, omissions, variations or substitutions as are required or permitted by, and not inconsistent with, this Agreement, and may also have such
letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required to comply with any applicable law or with any applicable rules or regulations made pursuant thereto or with the rules or regulations
of any securities exchange or governmental agency or as may, consistently herewith, be determined by the officers of the Bank executing such Global Notes, as evidenced by their execution thereof. Beneficial interests in the Global Notes will be
shown on, and transfers thereof will be effected only through, records maintained by DTC or its nominee and its participants. 

 Section 2.2. Certifications of Authorized Representatives of the Bank.

 (a) Any instruction given by the Bank to the Fiscal and Paying Agent under this Agreement shall be in the form of an Officer’s
Certificate. For the purposes of this Agreement, “Officer’s Certificate” means a certificate signed by an Authorized Representative (defined below) and delivered to the Fiscal and Paying Agent. 

(b) On or before the original issue date, the Bank shall furnish the Fiscal and Paying Agent with an Officer’s Certificate of the Bank
certifying the incumbency and specimen signatures of the representatives of the Bank who are authorized to instruct the Fiscal and Paying Agent regarding the completion and delivery of the Global Notes and take other actions hereunder (each an
“Authorized Representative”). The Bank shall notify the Fiscal and Paying Agent promptly in writing if any of such persons ceases to be so authorized or if any additional person becomes so authorized together, in the case of an additional
authorized person, with evidence satisfactory to the Fiscal and Paying Agent that such person has been so authorized and any such change shall become effective on the Business Day (as hereinafter defined) on which the Fiscal and Paying Agent
receives notice thereof. 
 Section 2.3. Authentication and Delivery. 

(a) All Notes shall be issued and delivered in accordance with the terms of this Agreement, the Global Notes and the Letter of Representations
from the Bank to DTC dated November 11, 2009. All instructions regarding the completion and delivery of Notes shall be given in writing by an Authorized Representative by telex, telecopy, electronic transmission or other means acceptable to the
Fiscal and Paying Agent. Upon receipt of such written instructions as described in the preceding sentence, the Fiscal and Paying Agent shall: 

(i) manually authenticate such Global Note or Global Notes by any one of the officers of the Fiscal and Paying Agent duly authorized and
designated by it for such purpose; and 
 (ii) deliver such Global Note or Global Notes to DTC or its nominees or retain and hold such
Global Note or Global Notes as custodian for DTC pursuant to DTC’s instructions. 
 (b) Each Note shall bear an original issue date
which shall remain the same for all Notes subsequently issued upon transfer, exchange or substitution of such original Note regardless of the date of issuance of any such subsequently issued Note. 

(c) All instructions given by the Bank pursuant to this Section 2.3 must be received by the Fiscal and Paying Agent
by 11 a.m., New York City time, on the Business Day (except as indicated in Sections 3.1(b) and 6.11) preceding the original issue date for the Global Notes. For all purposes under this Agreement, the term
“Business Day” shall mean any day that is not a Saturday or Sunday and that, in The City of New York, New York, is not a day on which banking institutions are generally authorized or required by law to be closed. The Fiscal and Paying
Agent shall not be required to perform any duties on any day that is not a Business Day. 

  
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 (d) The Fiscal and Paying Agent shall have no responsibility to the Bank to determine by
whom a facsimile signature of the Bank shall be affixed on the Global Notes, or whether a signature of an Authorized Representative is genuine, if such signature resembles the specimen signature of such Authorized Representative on the
Officer’s Certificate delivered pursuant to Section 2.2(b). The Fiscal and Paying Agent shall incur no liability to the Bank in acting or refraining from taking any action hereunder upon instructions contemplated
hereby which the recipient thereof believed in good faith to have been given by an Authorized Representative. In the event a discrepancy exists between the instructions as originally received by the Fiscal and Paying Agent and any subsequent
instruction relating to the same subject matter, the original instructions will be deemed controlling if action has already been taken in reliance thereon. The Fiscal and Paying Agent agrees to give notice to the Bank of such discrepancy reasonably
promptly upon the discovery by the Fiscal and Paying Agent of such discrepancy. 
 (e) Each instruction given to the Fiscal and Paying Agent
in accordance with this Section 2.3 shall constitute a representation and warranty to the Fiscal and Paying Agent by the Bank that (i) the issuance and delivery of the Global Notes to which the instruction relates have
been duly and validly authorized by the Bank, (ii) such Global Notes, when completed, authenticated and delivered pursuant hereto, will constitute valid and legally binding obligations of the Bank and (iii) the Fiscal and Paying
Agent’s appointment to act for the Bank hereunder has been duly authorized by all necessary corporate action of the Bank. 
 (f) The
Bank further represents and warrants to the Fiscal and Paying Agent that the Bank is free to enter into this Agreement and to perform the terms hereof. 

Section 2.4. Denominations; Issuance of Certificated Securities. 

(a) Except as provided in paragraph (b) of this Section 2.4, the Notes shall be issuable only in book-entry form, without coupons, in denominations of $250,000 and any amount in excess thereof which is an integral multiple of $1,000. 

(b) If at any time (i) DTC notifies the Bank in writing that it is unwilling or unable to act as depository for the Notes or if DTC ceases
to be a clearing agency registered pursuant to Section 17A of the Securities Exchange Act of 1934, as amended, and a successor depository is not appointed by the Bank within 90 days after the effective date of DTC’s ceasing to act as
depository for the Notes, (ii) the Bank, at its option, notifies the Fiscal and Paying Agent in writing that it elects to cause the issuance of Notes in definitive form or (iii) any event shall have happened and be continuing which, after
notice or lapse of time, or both, would constitute an Event of Default as defined in the Notes, the Bank will execute, and the Fiscal and Paying Agent will, upon the execution of the then standard form of the Fiscal and Paying Agent’s agreement
for certificated securities and upon receipt of instructions in writing from the Bank, authenticate and deliver Notes of like tenor and terms in definitive form in an aggregate principal amount equal to the principal amount of the Global Notes then
outstanding in exchange for such Global Notes. Any such certificated Notes will be issued in fully registered form to the persons identified by DTC as the beneficial owners thereof, without coupons, in denominations of $250,000 or any amount in
excess thereof which is an integral multiple of $1,000. Such certificated Notes may not subsequently be exchanged by a holder for Notes in denominations of less than $250,000. If Notes are issued in definitive form hereunder, payment and other terms
related to such Notes will be as set forth on the face thereof. 

  
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 Section 2.5. Principal Amount; Reopening. The aggregate principal amount
of the Notes that may be authenticated and issued under this Agreement is initially limited to $500,000,000, except for Notes authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes pursuant to
Sections 2.4, 2.6 or 2.9; provided, however, that the Bank may, so long as no Event of Default (as defined in the Notes) has occurred and is continuing, reopen the Notes to issue additional Notes on the same
terms and conditions (except for issue date and offering price), with the same CUSIP number as the Notes and which shall form a single series with the originally issued Notes, without the consent of the holders of the Notes; provided,
however, that such additional Notes must be fungible with the originally issued Notes for U.S. federal income tax purposes. As used herein, the term “Notes” includes any such additional Notes. 

Section 2.6. Security Register; Registration of Transfer and Exchange. 

(a) The Fiscal and Paying Agent shall, so long as any of the Notes remain outstanding, maintain records in accordance with its customary
practices, including all forms of transfer for the Notes and shall: (i) keep at its corporate trust office or the office of its affiliate in New York City, a register (the “Security Register”) in such form as the Fiscal and Paying
Agent may determine, in which, subject to such reasonable requirements as it may prescribe, it shall provide for the registration of the Global Notes and of any exchanges or transfers thereof and (ii) maintain records showing for each
outstanding Note issued in definitive form under Section 2.4(b), the principal amount, maturity date, interest rate and other terms thereof, the date of original issue and all subsequent transfers and consolidations or
exchanges. 
 (b) All Notes presented for transfer shall be duly endorsed or be accompanied by a written instrument of transfer with such
evidence of due authorization and guarantee of signature as may reasonably be required by the Fiscal and Paying Agent. Upon receipt by the Bank of a Note submitted for transfer, the Bank will execute, and the Fiscal and Paying Agent will
authenticate, one or more new Notes of like tenor and terms in an aggregate principal amount equal to the principal amount of the Note presented for transfer in accordance with the transfer instructions accompanying same. The Fiscal and Paying Agent
shall date its signature on the date it signs such Notes. No service charge (other than any cost of delivery) shall be imposed by the Fiscal or Paying Agent for any exchange or registration of transfer of a Note but the Bank or Fiscal and Paying
Agent may require the payment of a sum sufficient to cover any stamp or other tax or governmental charge that may be imposed in connection therewith or presentation of evidence that such tax or charge has been paid. Notwithstanding anything to the
contrary set forth herein, no registration or transfer shall be made on or after the fifteenth day immediately preceding the Maturity Date (as defined in the Note). 

(c) Notwithstanding anything in this Agreement to the contrary, unless Notes are issued in definitive form under
Section 2.4(b) hereof, beneficial ownership of the Notes will only be shown on, and transfers thereof will be effected only through, records maintained by DTC, its nominees or its participants (as defined in the offering
circular dated February 3, 2020 relating to the offering of the Notes). The Fiscal and Paying Agent shall have no responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership
interests in a Global Note or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests, and it shall be fully protected in acting or refraining from acting on any such information provided by DTC with
respect thereto. 

  
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 Section 2.7. Persons Deemed Owners. Prior to due presentment of a Note
for registration or transfer, the Bank, the Fiscal and Paying Agent and any agent of the Bank or the Fiscal and Paying Agent may treat the person in whose name such Note is registered as the owner of such Note for the purpose of receiving payments
of principal and interest, if any, and for all other purposes whatsoever, whether or not such Note be overdue, and neither the Bank nor the Fiscal and Paying Agent shall be affected by notice to the contrary. 

Section 2.8. Cancellation of Unissued Global Notes. Promptly upon the written request of the Bank, the Fiscal and Paying
Agent shall cancel and return to the Bank all unissued Global Notes in its possession. 
 Section 2.9. Mutilated, Stolen or
Destroyed Notes. In case a Note shall at any time become mutilated, destroyed, lost or stolen and such Note or evidence satisfactory to the Bank or the Fiscal and Paying Agent of the loss, theft, or destruction thereof (together with
indemnity satisfactory to the Bank and the Fiscal and Paying Agent and such other documents of proof as may be required by them) shall be delivered to the Bank, a new Note of like tenor will be issued by the Bank in exchange for the Note so
mutilated, or in lieu of the Note so destroyed or lost or stolen. The Fiscal and Paying Agent will authenticate any such substituted Note and deliver the same on the written request or authorization of an Authorized Representative. All expenses and
reasonable charges associated with procuring the indemnity referred to above and with the preparation, authentication and delivery of a new Note shall be borne by the holder of the Note so mutilated, destroyed, lost or stolen. If any Note which has
matured or is about to mature shall become mutilated, destroyed, lost or stolen, the Bank may, instead of issuing a substitute Note, pay or authorize the payment of the same (without surrender thereof except in the case of a mutilated Note) upon
compliance by the holder thereof with the provisions of this Section 2.9 (including delivery of an indemnity satisfactory to the Bank and the Fiscal and Paying Agent and such other documents of proof as may be required by them). 

Section 2.10. Redemption. 

(a) No sinking fund will be provided for the Notes. 

(b) The Notes are subject to redemption at the option of the Bank, at any time on or after November 6, 2029, in whole or in part on no
less than 10 nor more than 60 days’ prior notice delivered to the Holders. The Notes will be redeemable at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest. If fewer than all
of the Notes are to be redeemed, the Fiscal and Paying Agent will select the Notes for redemption on a pro rata basis, by lot or by such other method in accordance with the Depository’s procedures. The Notes will be redeemed in denominations of
$250,000 and integral multiples of $1,000 in excess thereof. If any Notes are to be redeemed in part only, the notice of redemption that relates to the Notes will state the portion of the Notes to be redeemed. Unless the Bank defaults in payment of
the redemption price, on and after the redemption date, interest will cease to accrue on the Notes or the portions of the Notes called for redemption. 

  
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 ARTICLE 3 

THE FISCAL AND PAYING AGENT 

Section 3.1. Payment of Notes. 

(a) Payments of principal and interest payable at the Maturity Date will be made by wire transfer in immediately available funds to the bank
accounts in the United States designated by the holders of the Notes, provided that the Notes are presented to the Fiscal and Paying Agent in time for the Fiscal and Paying Agent to make such payments in such funds in accordance with its normal
procedures and subject to Section 3.3 hereof. 
 (b) Payments of interest (other than interest payable at Maturity
Date) will be made on February 6 and August 6 of each year, commencing on August 6, 2020 to the holders of the Notes entitled thereto as of the close of business on January 22 or July 22, as the case may be (whether or not
such day is a Business Day) (each such date, a “Regular Record Date”) immediately preceding the interest payment date, by wire transfer of immediately available funds to the bank accounts in the United States designated by such holders in
a written notice received by the Fiscal and Paying Agent not later than the applicable Regular Record Date and subject to Section 3.3 hereof. 

(c) The Fiscal and Paying Agent is authorized and, subject to its prior receipt of funds in respect thereof, will pay amounts falling due in
respect of any Note duly presented for payment as provided in paragraph (a) of this Section 3.1 as long as the Global Note representing such Note has been authenticated by one of the Fiscal and Paying Agent’s
officers who was duly designated and authorized for such purpose at the time of such authentication, notwithstanding that said officer is no longer so designated or the authority of said officer has been terminated between the time of execution and
the time of payment. 
 (d) The Fiscal and Paying Agent shall have no obligation to use its own funds for any payment of principal or
interest on the Notes or for any other purpose pursuant to this Agreement. 
 Section 3.2. Information Regarding Amounts
Payable. The Fiscal and Paying Agent shall, as soon as practicable after each record date for the payment of interest on the Notes (other than interest payable on the Maturity Date), but not later than five days preceding the related
interest payment date, notify the Bank of the amount of interest to be paid on the Notes on the related interest payment date. 

Section 3.3. Deposit of Funds. The Bank shall deposit with the Fiscal and Paying Agent by 10 a.m., New
York City time (i) on each interest payment date (other than the Maturity Date) an amount in immediately available funds sufficient to pay the interest due on the Notes on such date and (ii) on the Maturity Date an amount in immediately
available funds sufficient to pay the full principal amount of the Notes and all unpaid interest accrued thereon to the Maturity Date. 

  
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 Section 3.4. Disposition of Funds Held for Payment of Notes. 

(a) In acting under this Agreement and in connection with the Notes, the Fiscal and Paying Agent is acting solely as agent of the Bank and does
not assume any obligation or relationship of agency or trust with the holders of the Notes or the beneficial owners of the Global Notes, except that, subject to the provisions of subsection (b) of this Section 3.4, all
money deposited with the Fiscal and Paying Agent pursuant to Section 3.3 shall be held by it on behalf of the holders of the Notes and the beneficial holders of the Global Notes entitled thereto until such money is
disbursed to the holders of the Notes (subject to escheat and other unclaimed property laws) in accordance with the provisions of the Notes and this Agreement or otherwise. Money deposited with the Fiscal and Paying Agent need not be segregated from
other funds of the Fiscal and Paying Agent, except to the extent required by law. The Fiscal and Paying Agent agrees that it shall not exercise any right of set-off, lien or similar claim in respect of such
money deposited with the Fiscal and Paying Agent. 
 (b) Any money deposited with the Fiscal and Paying Agent for the payment of the
principal of or interest on any Note that remains unclaimed or unpaid for two years after such principal or interest has become due and payable, shall be remitted by the Fiscal and Paying Agent to the Bank and the holders of the Notes entitled
thereto shall thereafter, as unsecured general creditors, look only to the Bank for payment thereof as successor fiscal and paying agent, and all liability of the Fiscal and Paying Agent with respect to such money shall thereupon cease. 

Section 3.5. Receipt and Delivery of Notices. 

(a) Forthwith upon the receipt by the Fiscal and Paying Agent of a demand or notice from any holder of a Note in accordance with the provisions
hereof, the Fiscal and Paying Agent shall promptly forward a copy thereof to the Bank. 
 (b) On behalf of and at the request and expense of
the Bank, the Fiscal and Paying Agent shall cause to be delivered to the holders of the Notes all notices required to be given by the Bank to such holders in accordance with the provisions hereof. 

Section 3.6. Additional Responsibilities. If the Bank shall ask the Fiscal and Paying Agent to perform any duties not
specifically set forth in this Agreement as duties of the Fiscal and Paying Agent (the “Additional Responsibilities”) and the Fiscal and Paying Agent chooses to perform such Additional Responsibilities, the Fiscal and Paying Agent shall be
held to the same standard of care and shall be entitled to all the protective provisions (including, but not limited to, indemnification) set forth herein with respect to such Additional Responsibilities unless the Fiscal and Paying Agent has
entered into a separate written agreement which specifically addresses the standard of care with respect to such Additional Responsibilities. 

Section 3.7. Miscellaneous. Notwithstanding anything to the contrary herein: 

(a) in paying principal and interest on the Notes hereunder, the Fiscal and Paying Agent shall be acting as a conduit and shall not be paying
such principal or interest for its own account. In the absence of written notice from the Bank to the contrary, the Fiscal and Paying Agent shall be entitled to assume that any Note presented to it, or deemed presented to it, for payment, is
entitled to be so paid; 

  
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 (b) the Fiscal and Paying Agent shall not be required to invest any moneys delivered to it
pursuant to this Agreement and shall have no liability for interest on any moneys received or held by it hereunder; 
 (c) the Fiscal and
Paying Agent shall not be responsible for the accuracy of any recital of any party (other than the Fiscal and Paying Agent) that is stated herein or in the Notes or in any offering materials relating thereto and makes no representations as to the
validity or enforceability of the Notes and shall incur no responsibility in respect thereto; 
 (d) the Fiscal and Paying Agent shall be
protected in acting or refraining from acting upon any notice, order, requisition, request, consent, certificate, order, opinion (including an opinion of counsel, Officer’s Certificate or both), affidavit, letter, telegram or other paper or
document deemed by it in good faith to be genuine and correct and to have been signed or sent by the proper person or persons; and 
 (e) any
action taken by the Fiscal and Paying Agent pursuant to this Agreement upon the request or authority or consent of any person who at the time of making such request or giving such authority or consent is the holder of a Note shall be conclusive and
binding upon (i) all future holders of the same Note and any Note issued in exchange therefor or in place thereof, (ii) all beneficial owners of the same Note and (iii) all holders of the same Note issued in definitive form pursuant
to Section 2.4(b) hereof. 
 ARTICLE 4 

LIABILITY AND INDEMNIFICATION 

Section 4.1. Liability. 

(a) The duties and obligations of the Fiscal and Paying Agent are ministerial in nature and such duties and obligations shall be determined
solely by the express provisions of this Agreement. The Fiscal and Paying Agent will not have any fiduciary duties. The Fiscal and Paying Agent shall not be liable to the Bank, the holders of Notes or the beneficial owners of the Global Notes except
for the performance of such duties and obligations as are specifically set forth herein and no implied covenants shall be read into this Agreement against it. 

(b) The Fiscal and Paying Agent shall not be required to ascertain whether any action taken by the Bank hereunder, including (i) the
offering and sale of Notes, (ii) the issuance of such Notes or (iii) any amendment or termination of this Agreement, has been duly authorized by the Bank or is in compliance with any other agreement to which the Bank is a party (whether or
not the Fiscal and Paying Agent is also a party to such other agreements) or any law or governmental regulation to which the Bank is subject. The Fiscal and Paying Agent shall have no responsibility in the case of any default by the Bank in the
performance of the Notes. 

  
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 (c) The Fiscal and Paying Agent shall not have any liability hereunder except in the case of
its gross negligence, bad faith, willful misconduct or failure to perform in accordance with this Agreement (which failure constitutes gross negligence, bad faith or willful misconduct). NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, IN NO
EVENT SHALL THE FISCAL AND PAYING AGENT BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES. THIS LIMITATION OF LIABILITY WILL APPLY REGARDLESS OF THE FORM OF ACTION, INCLUDING, WITHOUT LIMITATION, BREACH OF THIS CONTRACT OR
TORT. 
 (d) In no event shall the Fiscal and Paying Agent be responsible or liable for any failure or delay in the performance of its
obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Fiscal and Paying Agent shall use reasonable efforts which are consistent
with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances. 
 Section 4.2.
Indemnification. The Bank agrees to indemnify and hold harmless the Fiscal and Paying Agent, its officers, directors, employees and agents (each an “Indemnified Party”) from and against all losses,
liabilities, obligations, claims, damages, costs and expenses of any kind or nature whatsoever (including, without limitation, reasonable legal fees and expenses and court costs) relating to or arising out of the performance of its duties under this
Agreement, except to the extent they are caused by the negligence, bad faith or willful misconduct of such Indemnified Party or failure of such Indemnified Party to perform in accordance with this Agreement as finally adjudicated by a court of
competent jurisdiction. In the event of resignation or removal of the Fiscal and Paying Agent, any successor to the performance of the obligations of the Fiscal and Paying Agent as specified in this Agreement shall be entitled to rely upon this
indemnity. These indemnification obligations shall survive the termination of this Agreement, including any termination pursuant to any applicable federal or state bankruptcy law, to the extent enforceable under applicable law, and shall survive the
resignation or removal of the Fiscal and Paying Agent while remaining applicable to any action taken or omitted by the Fiscal and Paying Agent while acting pursuant to this Agreement. 

Section 4.3. Agents and Advisors. The Fiscal and Paying Agent may execute any of the powers hereunder or perform any duties
hereunder either directly or by or through agents or advisors selected by it in good faith and with due care as it may reasonably require and will not be responsible for any negligence or misconduct on the part of any of them so selected by the
Fiscal and Paying Agent. 

  
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 ARTICLE 5 

RESIGNATION OR REMOVAL OF FISCAL AND PAYING AGENT; SUCCESSION 

Section 5.1. Resignation or Removal. The Fiscal and Paying Agent may at any time resign from its duties hereunder by giving
written notice of resignation to the Bank specifying the date on which such resignation shall become effective; provided, however, that such date shall not be less than 60 Business Days after such notice is given to the Bank. The Bank may at any
time remove the Fiscal and Paying Agent by giving written notice of removal to the Fiscal and Paying Agent specifying the date on which such removal shall be effective; provided, however, that such date shall not be less than 30 Business Days after
such notice is given to the Fiscal and Paying Agent. Any termination or resignation hereunder shall not affect the Fiscal and Paying Agent’s right to the payment of fees earned or charges incurred through the effective date of such termination
or resignation, as the case may be. 
 Section 5.2. Successor Fiscal and Paying Agent. Upon the effective date of such
resignation or removal, the Fiscal and Paying Agent shall deliver any money then held by it pursuant to Section 3.4(a) to the successor appointed by the Bank to serve as fiscal and paying agent for the Notes and all
liability of the Fiscal and Paying Agent with respect to such money shall thereupon cease. The Fiscal and Paying Agent shall also provide such successor with a copy of its records relating to the Notes as such successor shall reasonably request.
However, the Fiscal and Paying Agent may retain copies of any records turned over for archival purposes. If such successor has not been appointed by the effective date of such resignation or removal, the Fiscal and Paying Agent shall pay such money
and deliver such records to the Bank with the same effect as though such payment were made pursuant to Section 3.4(b); it being understood and agreed that the Bank may undertake to perform any of the functions of the Fiscal
and Paying Agent. The delivery, transfer and assignment of such moneys and records by the Fiscal and Paying Agent to its successor or the Bank, as the case may be, shall be sufficient, without the requirement of any additional act or the requirement
of any indemnity to be given by the Fiscal and Paying Agent, to relieve the Fiscal and Paying Agent of all further responsibility for the exercise of the rights or the performance of the obligations vested in the Fiscal and Paying Agent pursuant to
this Agreement. The Bank shall notify, or cause the Fiscal and Paying Agent to notify, each holder of Global Notes of the appointment of any successor Fiscal and Paying Agent or the undertaking of the Bank to perform the functions of the Fiscal and
Paying Agent. 
 Section 5.3. Successor by Merger, Etc. Any corporation or association into which the
Fiscal and Paying Agent may be converted or merged, or with which it may be consolidated, or to which it may sell or transfer its corporate trust and agency business as a whole, or any corporation or association resulting from any such conversion,
sale, merger, consolidation or transfer to which it is a party, shall be and become successor Fiscal and Paying Agent hereunder and shall be invested with all of the rights, powers, trusts, duties and obligations of the Fiscal and Paying Agent
hereunder, without the execution or filing of any instrument or any further act. The Fiscal and Paying Agent shall provide notice to the Bank of any such conversion, merger, consolidation, sale or transfer as soon as practicable after the Fiscal and
Paying Agent obtains knowledge that such event will occur or has occurred. 

  
 10 

 ARTICLE 6 

MISCELLANEOUS 

Section 6.1. Compensation of the Fiscal and Paying Agent. The Bank agrees to pay the Fiscal and Paying Agent compensation
for all services rendered by the Fiscal and Paying Agent hereunder in such amounts as set forth on the Fee Schedule attached hereto and payable at such times as the Bank and the Fiscal and Paying Agent may agree to and to promptly reimburse the
Fiscal and Paying Agent for all reasonable out-of-pocket expenses (including reasonable outside attorneys’ fees), disbursements and advances incurred or made by the
Fiscal and Paying Agent in the performance of its duties hereunder. The obligation of the Bank pursuant to this Section 6.1 shall survive the termination of this Agreement, including any termination pursuant to any federal
or state bankruptcy law, to the extent enforceable under applicable law. 
 Section 6.2. Reliance on Opinions of Counsel or
Officer’s Certificate. 
 (a) The Fiscal and Paying Agent may, at any time, request and receive an
opinion of counsel (including its in-house counsel) concerning its duties hereunder. The Fiscal and Paying Agent shall be free to act upon the advice contained in such opinion and shall have no liability to
the Bank, the holders of the Notes or the beneficial owners of the Global Notes in respect of an action taken or omitted by the Fiscal and Paying Agent in good faith in reliance on a written opinion of such counsel (including its in-house counsel). 
 (b) The Fiscal and Paying Agent shall have no liability to the Bank, the holders of
the Notes or the beneficial owners of the Global Notes in respect of an action taken or omitted by the Fiscal and Paying Agent in good faith in reliance on an Officer’s Certificate. 

Section 6.3. Notes Held by Fiscal and Paying Agent. The Fiscal and Paying Agent, in its individual or other capacity, may
become a purchaser, holder, transferor, pledgee or may otherwise own, hold or transfer any beneficial interest in any Notes and may commence or join in any action which a beneficial owner of a Note is entitled to take without any conflict with its
responsibilities pursuant to this Agreement. 
 Section 6.4. Notices. Notices and other communications hereunder shall
(except to the extent otherwise expressly provided) be in writing or given via electronic media and shall be addressed as follows, or to such other addresses as the parties hereto shall specify from time to time. 

  
 11 

					
	If to the Bank:	  	Discover Bank
		  	12 Read’s Way
		  	New Castle, Delaware 19720
		  	Attention:	  	Patricia S. Hall
		  	Telephone:	  	(302) 323-7474
		  	Telecopy:	  	(302) 323-7393
		  	Email: patriciahall@discover.com
		
	With a copy to:	  	Discover Financial Services
		  	2500 Lake Cook Road
		  	Riverwoods, Illinois 60015
		  	Attention:	  	D. Christopher Greene
		  	Telephone:	  	(224) 405-0330
		  	Telecopy:	  	(224) 405-4073
		  	Email: christophergreene@discover.com
		
	If to the Fiscal	  	U.S. Bank National Association
	And Paying Agent	  	100 Wall Street – Suite 1600
		  	New York, NY 10005
		  	Attention:	  	Corporate Trust Services
		  	Telephone:	  	212-951-8561
		  	Telecopy:	  	212-509-3384

 All notices shall be deemed given when received. All notices required to be given to the holders of Notes shall be in writing
and sent by first-class mail to such holders at their respective addresses shown in the Security Register. 

Section 6.5. Parties. Except for rights arising under Section 3.4(a),
this Agreement is solely for the benefit of the parties hereto and their successors and assigns and nothing herein, express or implied, shall grant any benefit or any legal or equitable right, remedy or claim under this Agreement to any other person
including, without limitation, any holder of a Note or any beneficial owner of a Global Note. 
 Section 6.6. Governing
Law. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND, WHERE APPROPRIATE, THE LAWS OF THE UNITED STATES. 

Section 6.7. Separability. In case any provision in this Agreement shall be held to be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

  
 12 

 Section 6.8. Effect of Headings. The article
and section headings herein are for convenience of reference only and shall not affect the construction hereof. 
 Section 6.9.
Amendments. 
 (a) Without the consent of the holders of the Notes, the Bank and the Fiscal and Paying Agent, at any time and
from time to time, may amend the terms of this Agreement and the Notes, including amendments to the terms of the Notes designed to cure ambiguities, defects or inconsistencies; except, however, that the consent of all holders of Notes is required in
order to: 
 (i) change the Maturity Date of any Note, extend the time of payment on any overdue principal amount, change the coin or
currency in which any Note or the interest thereon is payable, change the definition of interest payment date contained in the Notes, reduce the principal amount of or the rate of interest on any Note, change the method of payment specified in the
Notes to other than wire transfer in immediately available funds, or impair the right of a holder of the Notes to institute suit for the enforcement of any payments of principal of or interest or other amounts on such Notes; 

(ii) reduce the percentage in principal amount of Notes outstanding, the consent of whose holders is required for any such amendment to this
Agreement or the Notes; or 
 (iii) modify any of the provisions of this Section 6.9, except to increase any such
percentage or to provide that certain other provisions of this Agreement or the Notes cannot be modified or waived without the consent of the holder of each outstanding Note. 

If the consent of the holders of the Notes is required hereunder, the Bank and the Fiscal and Paying Agent shall request such consent and the
Fiscal and Paying Agent will deliver to each holder of Notes an explanation provided to it by (or on behalf of) the Bank of such amendment and the terms thereof. It shall not be necessary under this Section 6.9 for the
holders of the Notes to approve the precise form of any proposed amendment. 
 (b) Upon the execution of any amendment to this Agreement
under this Section 6.9 by the Bank and the Fiscal and Paying Agent, this Agreement shall be modified in accordance therewith, such amendment shall form a part of this Agreement for all purposes and each holder of Notes
theretofore or thereafter authenticated and delivered hereunder shall be bound thereby. The Fiscal and Paying Agent, on behalf of the Bank, shall promptly transmit by mail to each holder of Notes a notice setting forth the general terms of any
amendment to this Agreement executed under this Section 6.9. 
 (c) Before entering into any amendment to this
Agreement, the Fiscal and Paying Agent shall receive and be fully protected in relying upon an Officer’s Certificate and an opinion from counsel to the Bank that such amendment has been duly authorized, executed and delivered by the Bank and
that all conditions precedent in connection with the execution of such amendment have been satisfied. 

  
 13 

 Section 6.10. Events of Default; Rescission. 

(a) Upon the occurrence of an Event of Default (as defined in the Notes) or the curing of an Event of Default, the Bank will promptly notify in
writing the Fiscal and Paying Agent thereof, and the Fiscal and Paying Agent will promptly notify, by first-class mail, postage prepaid, the holders of the Notes thereof. If an Event of Default shall occur and
be continuing, the holder of a Note, upon written notice to the Bank and the Fiscal and Paying Agent, may, at its option, declare such Note to be, and, on the day such declaration shall have been delivered to the Bank and the Fiscal and Paying
Agent, unless the Fiscal and Paying Agent shall have received notice from the Bank that all Events of Default have been cured by the Bank prior to receipt by the Fiscal and Paying Agent of such declaration, such Note shall become, immediately due
and payable at its principal amount, together with accrued and unpaid interest thereon to the date of payment. 
 (b) At any time after the
delivery to the Fiscal and Paying Agent of a declaration of an Event of Default and acceleration pursuant to the provisions of a Note, the holder of a Note, by written notice evidencing its ownership interest to the Bank and the Fiscal and Paying
Agent, may rescind and annul such declaration of an Event of Default and its consequences with respect to such Note. No such rescission shall affect any subsequent Event of Default or impair any right consequent thereto. 

(c) The holder of a Note may waive any past Event of Default and its consequences with respect to such Note. No such waiver shall affect any
subsequent Event of Default or impair any right consequent thereto. 
 Section 6.11. Actions Due on Saturdays, Sundays and
Holidays. If any date on which a payment, notice or other action required by this Agreement falls is other than a Business Day, then that action or payment need not be taken or made on such date, but may be taken
or made on the next succeeding Business Day on which the Fiscal and Paying Agent is open for business with the same force and effect as if made on such date. 

Section 6.12. Agreement to Pay Outside Attorneys’ Fees and Other
Expenses. In the event the Bank shall default under any of the provisions of this Agreement and the Fiscal and Paying Agent shall employ outside attorneys or incur other expenses for the enforcement of performance
or observance or any such obligation or agreement, the Bank agrees that it will on demand pay to the Fiscal and Paying Agent the reasonable fees and expenses of such attorneys and such other reasonable expenses incurred by the Fiscal and Paying
Agent. 
 Section 6.13. Survival. The Fiscal and Paying Agent’s rights to compensation,
reimbursement and indemnification shall survive the termination of this Agreement, including any termination pursuant to any federal or state bankruptcy law, to the extent enforceable under applicable law. 

Section 6.14. No Implied Waivers. The right of any party under any provision of this Agreement
shall not be affected by its prior failure to require the performance by any other party under such provision or any other provision of this Agreement, nor shall the waiver by any party of a breach of any provision hereof constitute a waiver of any
succeeding breach of the same or any other provision or constitute a waiver of the provision itself or any other provision. 

  
 14 

 Section 6.15. Counterparts. This Agreement
may be executed in two or more counterparts, each of which shall constitute an original but both or all of which, when taken together, shall constitute but one instrument, and shall become effective when copies hereof which, when taken together,
bear the signatures of each of the parties hereto, shall be delivered to each of the parties hereto. 
 Section 6.16.
Term. This Agreement shall remain in full force and effect until the earlier to occur of (i) such time as the principal of and interest on all the Notes shall have been paid, (ii) the effective
date of the resignation or removal of the Fiscal and Paying Agent or (iii) the payment of funds to the Bank in accordance with Section 3.4(b). 

Section 6.17. Complete Agreement. This Agreement and any appendix hereto contain the entire
understanding of the parties with respect to the subject hereof (except for any separate confidentiality agreement between the Bank and the Fiscal and Paying Agent applicable to this Agreement), and no waiver, alteration or modification of any of
the provisions hereof, shall be binding unless in writing and signed by a duly authorized representative of all parties hereto. 
 IMPORTANT INFORMATION
ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT 
 The parties hereto acknowledge that in accordance with Section 326 of the U.S.A. Patriot
Act, the Fiscal and Paying Agent, like all financial institutions and in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity that
establishes a relationship or opens an account with the Fiscal and Paying Agent. The parties to this Agreement agree that they will provide the Fiscal and Paying Agent with such information as it may request in order for the Fiscal and Paying Agent
to satisfy the requirements of the U.S.A. Patriot Act. 
 [Signature Page Follows] 

  
 15 

 IN WITNESS WHEREOF, the undersigned have executed this Agreement on the date first set forth
above. 
  

			
	DISCOVER BANK,
	as Issuer of the Notes
		
	By:	 	 /s/ Timothy J. Schmidt

	Name: Timothy J. Schmidt
	Title: Senior Vice President and Treasurer
	
	U.S. BANK NATIONAL ASSOCIATION,
	as Fiscal and Paying Agent
		
	By:	 	 /s/ K. Wendy Kumar

	Name: K. Wendy Kumar
	Title: Vice President

  
 16 

 EXHIBIT A 

FORM OF GLOBAL NOTE 
 THIS NOTE IS NOT
REQUIRED TO BE, AND IS NOT, REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). 
 THIS OBLIGATION IS NOT A DEPOSIT
AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (THE “FDIC”) OR ANY OTHER GOVERNMENT AGENCY OR INSTRUMENTALITY AND IS SUBJECT TO INVESTMENT RISK, INCLUDING POSSIBLE LOSS OF PRINCIPAL. THE OBLIGATIONS OF
DISCOVER BANK (THE “BANK”) EVIDENCED BY THIS NOTE ARE UNSECURED AND UNSUBORDINATED INDEBTEDNESS OF THE BANK AND RANK PARI PASSU AMONG THEMSELVES AND OTHER UNSECURED AND UNSUBORDINATED INDEBTEDNESS OF THE BANK BUT THEY ARE SUBORDINATE AND
JUNIOR IN RIGHT OF PAYMENT TO THE BANK’S OBLIGATIONS TO ITS DEPOSITORS AND OTHER OBLIGATIONS ENTITLED TO ANY PRIORITIES OR PREFERENCES, ARE INELIGIBLE AS COLLATERAL FOR A LOAN BY THE BANK AND ARE NOT SECURED. 

THIS NOTE IS AN OBLIGATION SOLELY OF THE BANK AND WILL NOT BE AN OBLIGATION OF, OR OTHERWISE GUARANTEED BY, DISCOVER FINANCIAL SERVICES OR ANY OF THE
BANK’S OTHER AFFILIATES. 
 THIS NOTE IS ISSUABLE ONLY IN FULLY REGISTERED FORM IN MINIMUM DENOMINATIONS OF $250,000 AND INTEGRAL MULTIPLES OF $1,000
IN EXCESS THEREOF. EACH OWNER OF A BENEFICIAL INTEREST IN THIS NOTE MUST BE AN INSTITUTIONAL INVESTOR WHO IS AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501 UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND IS REQUIRED TO HOLD A
BENEFICIAL INTEREST IN A $250,000 PRINCIPAL AMOUNT OR ANY INTEGRAL MULTIPLE OF $1,000 IN EXCESS THEREOF OF THIS NOTE AT ALL TIMES. 

Registered Principal Amount: $500,000,000 

No.: 1 
 CUSIP No.:
25466AAR2 
 ISIN No.: US25466AAR23 

  
 A-1 

 DISCOVER BANK 

2.700% Note Due 2030 
 This 2.700% Note Due 2030
(the “Security”) is registered in the name of CEDE & CO., the nominee of The Depository Trust Company (the “Depository”), 55 Water Street, New York, New York, and may not be transferred except as a whole by the nominee
of the Depository to another nominee of the Depository or to the Depository or by the Depository or any such nominee to a successor Depository or a nominee of such successor Depository unless and until this Security is exchanged in whole or in part
for Securities in definitive form. Unless this certificate is presented by an authorized representative of the Depository to the Corporate Trust Department of U.S. Bank National Association, as Fiscal and Paying Agent or any duly appointed successor
Fiscal and Paying Agent (the “Fiscal and Paying Agent”), and any certificate issued is registered in the name of Cede & Co. or such other name as is requested in writing by an authorized representative of the Depository (and any
payment is made to Cede & Co. or to such other entity as is requested in writing by an authorized representative of the Depository), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE OR TO ANY PERSON IS WRONGFUL, inasmuch as
the registered owner hereof, Cede & Co., has an interest herein. 
 The Bank, for value received, hereby promises to pay to CEDE & CO., or
registered assigns, the principal amount of FIVE HUNDRED MILLION DOLLARS ($500,000,000) on February 6, 2030 (the “Maturity Date”) and to pay interest from February 6, 2020, or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, at the rate of 2.700% per annum (calculated on the basis of a 360-day year of twelve 30-day months), on the unpaid principal
hereof until said principal amount has been paid in full or duly made available for payment, semiannually in arrears on February 6 and August 6 of each year, commencing August 6, 2020 and on the Maturity Date (each, an “Interest
Payment Date”). Payments will include interest accrued to (but excluding) the relevant Interest Payment Date. All payments on this Security shall be applied first to accrued interest and the balance, if any, to principal. 

If the Maturity Date or any other Interest Payment Date falls on a day that is not a Business Day (as defined below), the related payment shall be made on the
next succeeding Business Day with the same force and effect as if made on the day such payment was due, and no interest shall accrue on the amount so payable for the period from and after such Maturity Date or Interest Payment Date, as the case may
be. The term “Business Day” means any day that is not a Saturday or Sunday and that is not a day on which banking institutions are generally authorized or required to be closed in The City of New York, New York. 

Reference is made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same
effect as though fully set forth at this place. 
 Unless the certificate of authentication hereon has been executed by the Fiscal and Paying Agent by the
manual signature of one of its authorized signatories, this Security shall not be valid or obligatory for any purpose. 

  
 A-2 

 IN WITNESS WHEREOF, the Bank has caused this Security to be duly executed and its corporate seal to be
hereunto affixed and attested. 
  

			
		  	 DISCOVER BANK

		
	 (CORPORATE SEAL)
	  	 By:
                                         
           

  

			
	Attest:	 	
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 

			
	This is one of the Securities referred to in the within-mentioned Fiscal and Paying Agency Agreement:
	
	U.S. BANK NATIONAL ASSOCIATION, as Fiscal and Paying Agent

			
		
	By:	 	  

			
	
	Dated: February 6, 2020

  
 A-3 

 Form of Reverse Side of Note 

1. This Security is one of a duly authorized issue of securities of the Bank, designated as its “2.700% Notes Due 2030” (the
“Securities”), initially limited in aggregate principal to $500,000,000. The Bank may, so long as no Event of Default (as defined below) has occurred and is continuing and without the consent of the Holders (as defined below) hereof, issue
additional Securities and thereby increase such aggregate principal amount in the future, on the same terms and conditions (except for issue date and offering price) and with the same CUSIP number as this Security; provided, however, that
such additional Securities shall be consolidated and form a single series with this Security only if such additional Securities are fungible with this Security for U.S. federal income tax purposes. The Bank, for the benefit of the registered holders
from time to time of the Securities (collectively, the “Holders”), has entered into a Fiscal and Paying Agency Agreement, dated as of February 6, 2020 (as the same may be amended, supplemented or otherwise modified from time to time,
the “Fiscal and Paying Agency Agreement”), between the Bank and the Fiscal and Paying Agent. Reference is hereby made to the Fiscal and Paying Agency Agreement (copies of which are on file and available for inspection during normal
business hours at the offices of the Fiscal and Paying Agent at U.S. Bank National Association, 100 Wall Street – Suite 1600, New York, NY 10005, Attention: Corporate Trust Administration, or at such other place or places as the Fiscal and
Paying Agent shall designate by notice to the Holder in whose name this Security is registered on the Security Register (as defined in Section 3 of this Security)), for a statement of the further rights of the Holders and the further rights,
limitations of rights, duties and indemnities thereunder of the Bank and the Fiscal and Paying Agent and of the terms upon which the Securities are, and are to be, authenticated and delivered. 

Payment of the principal and interest payable on the Maturity Date will be made by wire transfer in immediately available funds to a bank
account in the United States designated by the Holder, upon presentation and surrender of this Security at the office of the Fiscal and Paying Agent or its affiliate in New York City or at such other place or places as the Fiscal and Paying Agent
shall designate by notice to the Holder, provided that this Security is presented to the Fiscal and Paying Agent in time for the Fiscal and Paying Agent to make such payments in such funds in accordance with its normal procedures and subject to the
deposit by the Bank of sufficient funds to enable the Fiscal and Paying Agent to make such payments. Payments of interest (other than interest payable on the Maturity Date) shall be made by wire transfer in immediately available funds to a bank
account in the United States designated by the Holder in a written notice received by the Fiscal and Paying Agent not later than the applicable Record Date (as defined below). Interest payable on any Interest Payment Date (other than the Maturity
Date) shall be payable to the Holder in whose name this Security is registered at the close of business on January 22 or July 22, as the case may be (whether or not a Business Day), immediately preceding the Interest Payment Date (each
such date being referred to herein as a “Regular Record Date”), notwithstanding the cancellation of this Security after such Regular Record Date and prior to or on such Interest Payment Date. Any interest so payable, but not punctually
paid or made available for payment, on any Interest Payment Date will forthwith cease to be payable to the Holder on such Regular Record Date and such defaulted interest will be paid to the Person in whose name this Security is registered at the
close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Bank (a “Special Record Date”), notice of which shall be given to the Holder of this Security not less than 10 days prior to such
Special Record Date (the Regular Record Date and Special Record Date are referred to herein collectively as “Record 

  
 A-4 

 
Dates”). Interest payable on this Security on the Maturity Date will be payable to the Holder to whom the principal of this Note is payable on such date. To the extent permitted by
applicable law, interest shall accrue, at the rate at which interest accrues on the principal of this Security, on any amount of principal of or interest on this Security not paid when due. All payments on this Security shall be applied first to
accrued interest and the balance, if any, to principal. 
 2. Payments of principal of and interest on this Security shall be made in such
coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts. Until the date on which all of the Securities shall have been surrendered or delivered to the Fiscal and
Paying Agent for cancellation or destruction, or become due and payable and a sum sufficient to pay the principal of and interest on all of the Securities shall have been made available for payment and either paid or returned to the Bank as provided
herein and in the Fiscal and Paying Agency Agreement, the Fiscal and Paying Agent or its affiliate shall at all times maintain an office or agency in New York City, where Securities may be presented or surrendered for payment; provided that, any
successor Fiscal and Paying Agent appointed by the Bank as permitted by Section 10 of this Security, or the Bank upon undertaking the performance of the functions of Fiscal and Paying Agent, shall not be required to maintain an office in New
York City but shall be required to maintain an office or agency the location of which shall be communicated promptly to the Holder of this Security. 

3. Except as otherwise provided on the face of this Security, this Security is transferable in whole or in part, and may be exchanged for a
like aggregate principal amount of Securities of other authorized denominations, by the Holder in person, or by his, her or its attorney duly authorized in writing, at the office of the Fiscal and Paying Agent or its affiliate in New York City. The
Fiscal and Paying Agent shall maintain a register providing for the registration of the Securities and any exchange or transfer thereof (the “Security Register”). Upon surrender or presentation of this Security for exchange or registration
of transfer, the Bank shall execute and the Fiscal and Paying Agent shall authenticate and deliver in exchange therefor a Security or Securities, each in a denomination of $250,000 or any amount in excess thereof which is an integral multiple of
$1,000 which has or have an aggregate denomination equal to the denomination of this Security and is or are registered in such name or names requested by the Holder. Any Security presented or surrendered for registration of transfer or for exchange
shall (if so required by the Fiscal and Paying Agent) be duly endorsed, or accompanied by a written instrument of transfer with such evidence of due authorization and guarantee of signature as may reasonably be required by the Fiscal and Paying
Agent in form satisfactory to the Fiscal and Paying Agent, duly executed by the Holder or his, her or its attorney duly authorized in writing, and with such tax identification number or other information for each person in whose name a Security is
to be issued as the Fiscal and Paying Agent may reasonably request to comply with applicable law. No exchange or registration of transfer of this Security shall be made on or after the fifteenth day immediately preceding the Maturity Date. 

No service charge (other than any cost of delivery) shall be imposed for any exchange or registration of transfer of this Security, but the
Bank or Fiscal and Paying Agent may require the payment of a sum sufficient to cover any stamp or other tax or governmental charge that may be imposed in connection therewith (or presentation of evidence that such tax or charge has been paid). 

  
 A-5 

 Prior to due presentment of this Security for registration of transfer, the Bank, the Fiscal
and Paying Agent and their respective agents may treat the Holder in whose name this Security is registered in the Security Register as the absolute owner of this Security for the purpose of receiving payments of principal of and interest on this
Security and for all other purposes whatsoever, whether or not this Security be overdue, and the Bank and the Fiscal and Paying Agent shall not be affected by any notice to the contrary. 

4. This Security is not subject to repayment at the option of the Holder prior to the Maturity Date and is not subject to any sinking fund.

 5. This Security is subject to redemption at the option of the Bank, at any time on or after November 6, 2029, in whole or in part on
no less than 10 nor more than 60 days’ prior notice delivered to the Holders. This Security will be redeemable at a redemption price equal to 100% of the principal amount of this Security to be redeemed, plus accrued and unpaid interest. If
fewer than all of the Securities are to be redeemed, the Fiscal and Paying Agent will select the Securities for redemption on a pro rata basis, by lot or by such other method in accordance with the Depository’s procedures. This Security will be
redeemed in denominations of $250,000 and integral multiples of $1,000 in excess thereof. If any Securities are to be redeemed in part only, the notice of redemption that relates to such Securities will state the portion of such Securities to be
redeemed. Unless the Bank defaults in payment of the redemption price, on and after the redemption date, interest will cease to accrue on such Securities or the portions of such Securities called for redemption. 

6. The indebtedness of the Bank evidenced by this Security, including the principal and interest, is unsecured and unsubordinated but it is
subordinate and junior in right of payment to the Bank’s obligations to its depositors and other obligations that are entitled to any priorities or preferences, such as its obligations under bankers’ acceptances and letters of credit and
its obligations to any Federal Reserve Bank or the Federal Deposit Insurance Corporation (“FDIC”) and to any rights acquired by the FDIC as a result of loans made by the FDIC to the Bank or the purchase or guarantee of any of its assets by
the FDIC pursuant to the provisions of 12 U.S.C. Section 1823(c), (d) or (e), in each case whether outstanding at the date of this Security or hereafter incurred (except any such obligations which rank on a parity with or junior to this
Security). In the case of any insolvency proceedings, receivership, conservatorship, reorganization, readjustment of debt, marshalling of assets and liabilities or similar proceedings or any liquidation, dissolution or
winding-up of the Bank, whether voluntary or involuntary, all such obligations, except obligations that expressly rank on a parity with or junior to this Security, shall be entitled to be paid in full before
any payment shall be made on account of the principal of, or interest on, this Security. In the event of any such proceeding, after payment in full of all sums owing with respect to such prior obligations, the Holder of this Security, together with
the holders of any other obligations of the Bank ranking on a parity with this Security, shall be entitled to be paid from the remaining assets of the Bank, the unpaid principal of, and the unpaid interest on, this Security or such other obligations
before any payment or other distribution, whether in cash, property or otherwise, shall be made on account of any capital stock or any obligations of the Bank ranking junior to this Security. Nothing herein shall impair the obligation of the Bank,
which is absolute and unconditional, to pay the principal of and any interest on this Security in accordance with its terms. 

  
 A-6 

 7. Notwithstanding any other provisions of this Security, including specifically those set
forth in the sections relating to events of default and covenants of the Bank, it is expressly understood and agreed that the FDIC or any other receiver or conservator of the Bank shall have the right in the performance of his or her legal duties,
and as part of any transaction or plan of reorganization or liquidation designed to protect or further the continued existence of the Bank or the rights of any parties or agencies with an interest in, or claim against, the Bank or its assets, to
transfer or direct the transfer of the obligations of this Security to any national banking association, state bank or bank holding company selected by him or her which shall expressly assume the obligation of the due and punctual payment of the
unpaid principal and interest on this Security and the due and punctual performance of all covenants and conditions hereof; and that the completion of such transfer and assumption shall serve to supersede and void any default, acceleration or
subordination which may have occurred, or which may occur due or related to such transaction, plan, transfer or assumption, pursuant to the provisions of this Security, and shall serve to return the Holder to the same position, other than for
substitution of the obligor, it would have occupied had no default, acceleration or subordination occurred; except that any interest and principal previously due, other than by reason of acceleration, and not paid shall, in the absence of a contrary
agreement by the Holder of this Security, be deemed to be immediately due and payable as of the date of such transfer and assumption, together with the interest from its original due date at the rate provided for herein. 

8. Any depository institution, as that term is defined in Section 3(c)(1) of the Federal Deposit Insurance Act, which holds this Security
(or beneficial interest herein) shall be deemed to have agreed by acquiring this Security (or beneficial interest herein) that any rights of such institution to offset all or any portion of the indebtedness represented by this Security (or
beneficial interest herein) against any indebtedness or other obligations of such institution to the Bank are waived by such institution. 

9. All notices to the Bank under this Security shall be in writing and addressed to the Bank at Discover Bank, 12 Read’s Way, New Castle,
Delaware 19720, Attention: Patricia S. Hall, Vice President, Chief Financial Officer and Assistant Treasurer, with a copy to Discover Financial Services, 2500 Lake Cook Road, Riverwoods, IL 60015, Attention: D. Christopher Greene, Vice President,
Secretary and Deputy General Counsel, or to such other address as the Bank may notify to the Holder. All notices to the Fiscal and Paying Agent shall be in writing and addressed to the Fiscal and Paying Agent at the office of the Fiscal and Paying
Agent at U.S. Bank National Association, 100 Wall Street—Suite 1600, New York, NY 10005, Attention: Corporate Trust Operations. All notices to the Holder shall be in writing and sent by first-class mail
to the Holder at his or its address as set forth in the Security Register. 
 10. In acting under the Fiscal and Paying Agency Agreement, the
Fiscal and Paying Agent is acting solely as the agent of the Bank and does not assume any obligation or relationship of agency or trust with the Holder except money deposited with the Fiscal and Paying Agent will be held on behalf of the Holders
until disbursed to the Holders, except as provided in the Fiscal and Paying Agency Agreement. Under the terms of the Fiscal and Paying Agency Agreement, the Bank may remove any Fiscal and Paying Agent and appoint a new Fiscal and Paying Agent in
respect of the Securities, or may remove any Fiscal and Paying Agent and undertake to perform at the Bank any or all of the functions of the Fiscal and Paying Agent under the Fiscal and Paying Agency Agreement. The Bank shall notify, or cause the
Fiscal and Paying Agent to notify, the Holder of this Security of the appointment of any successor Fiscal and Paying Agent or the undertaking of the Bank to perform at the Bank the functions of the Fiscal and Paying Agent. 

  
 A-7 

 11. The Securities are issuable only as fully registered Securities without interest coupons
in denominations of $250,000 or any amount in excess thereof which is an integral multiple of $1,000. 
 12. The term “Event of
Default,” as used in this Security, means any of the following events (whatever the reason for such event and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any
court or any decree, order, rule or regulation of any governmental agency or body): 
 (i) default in the payment of any interest with
respect to the Securities when due, which continues for 30 calendar days; 
 (ii) default in the payment of any principal of the Securities
when due; 
 (iii) the entry by a court having jurisdiction in the premises of: 

 

	 	a.	 a decree or order for relief in respect of the Bank in an involuntary case or proceeding under any applicable
United States federal or state bankruptcy, insolvency, reorganization or other similar law; or 

  

	 	b.	 a decree or order appointing a conservator, receiver, liquidator, assignee, trustee, sequestrator or any other
similar official of the Bank, or of substantially all of the property of the Bank, or ordering the winding up or liquidation of the affairs of the Bank; 

and the continuance of any such decree or order for relief or any such other decree or order unstayed and in effect for a period of 60
consecutive days; 
  

	 	(iv)	 the commencement by the Bank of a voluntary case or proceeding under any applicable United States federal or
state bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated as bankrupt or insolvent, or the consent by the Bank to the entry of a decree or order for relief in an involuntary case or
proceeding under any applicable United States federal or state bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding, or the filing by the Bank of a petition or answer
or consent seeking reorganization or relief under any applicable United States federal or state bankruptcy, insolvency, reorganization or similar law, or the consent by the Bank to the filing of such petition or to the appointment of or taking
possession by a custodian, conservator, receiver, liquidator, assignee, trustee, sequestrator or similar official of the Bank or of substantially all of the property of the Bank, or the making by the Bank of an assignment for the benefit of
creditors, or the taking of corporate action by the Bank in furtherance of any such action. 

  
 A-8 

 The Fiscal and Paying Agency Agreement provides that the Bank will promptly notify the
Fiscal and Paying Agent, and the Fiscal and Paying Agent will promptly notify by first-class mail, postage prepaid, the Holders of the Securities, upon the occurrence of an Event of Default. 

13. If an Event of Default shall occur and be continuing, the Holder may, at its option, by written notice to the Bank and the Fiscal and
Paying Agent, declare this Security to be, and on the day of such declaration shall have been delivered to the Bank and the Fiscal and Paying Agent, unless the Fiscal and Paying Agent shall have received notice from the Bank that all Events of
Default have been cured by the Bank prior to receipt by the Fiscal and Paying Agent of such declaration, such Security shall become, immediately due and payable at its principal amount, together with accrued and unpaid interest thereon to the date
of payment. 
 The Fiscal and Paying Agency Agreement provides that the Holder of this Security may rescind a declaration of an Event of
Default and acceleration with respect to this Security under certain circumstances and may waive any past Event of Default and its consequences. 

14. Subject to Section 7 hereof, the Bank shall not consolidate with or merge into any other person or convey, transfer or lease its
properties and assets substantially as an entirety to any person, unless the person formed by such consolidation or into which the Bank is merged or the person which acquires by conveyance or transfer, or which leases, the properties and assets of
the Bank substantially as an entirety shall be a corporation, partnership or other entity organized and validly existing under the laws of the United States of America, any State thereof or the District of Columbia and shall expressly assume the due
and punctual payment of the principal of and interest on this Security and the performance or observance of every provision of this Security on the part of the Bank to be performed or observed. 

15. The Fiscal and Paying Agency Agreement provides that the Bank and the Fiscal and Paying Agent may amend the Fiscal and Paying Agency
Agreement and the Securities, including amendments to the terms of the Securities designed to cure ambiguities, defects or inconsistencies, without the consent of the Holders of the Securities, except that the consent of all Holders of Securities is
required in order to change the Maturity Date of any Security, to extend the time of payment on any overdue principal amount, to change the coin or currency in which any Security or the interest thereon is payable, to change the definition of
Interest Payment Date, to reduce the principal amount of or rate of interest on any Security, to change the method of payment to other than wire transfer in immediately available funds, to impair the right of the Holder of this Security to institute
suit for the enforcement of payments of principal of or interest or other amounts on the Securities, to reduce the percentage in principal amount of Securities outstanding the consent of whose Holders is required to amend the Fiscal and Paying
Agency Agreement or the Securities or to modify the provisions of the Fiscal and Paying Agency Agreement governing the amendment thereof and of the Securities. If the consent of the Holders of Securities is required, the Bank and the Fiscal and
Paying Agent shall request such consent and will deliver to each Holder of Securities an explanation of such amendment and the terms thereof. It shall not be necessary for the Holders of Securities to approve the precise form of any proposed
amendment. 
 Any consent or waiver given by the Holder of this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 

  
 A-9 

 16. No reference herein to the Fiscal and Paying Agency Agreement and no provision of this
Security shall alter or impair the obligation of the Bank, which is absolute and unconditional, to pay the principal of and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed. No failure or delay
on the part of the Holder in exercising any right under this Security shall operate as a waiver of, or impair, any such right. No waiver of any such rights shall be effective unless given in writing. 

17. No recourse shall be had for the payment of principal of or interest on this Security for any claim based hereon, or otherwise in respect
hereof, against any shareholder, employee, agent, officer or director, as such, past, present or future, of the Bank or of any successor organization, either directly or through the Bank or any successor organization, whether by virtue of any
constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released. 

18. This Security is a debt of the Bank only and is not an obligation of Discover Financial Services or any of its affiliates other than the
Bank. 
 19. THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK AND,
WHERE APPROPRIATE, THE LAWS OF THE UNITED STATES. 

  
 A-10 

 FEE SCHEDULE 

  
 [Fee
Schedule]mmm_Ex4-3

		
			EXHIBIT 4.3
		

		
			 
		

		
			 
		

		
			DESCRIPTION OF THE REGISTRANT’S SECURITIES 
		

		
			REGISTERED PURSUANT TO SECTION 12 OF THE 
		

		
			SECURITIES EXCHANGE ACT OF 1934 
		

		
			 
		

		
			DESCRIPTION OF COMMON STOCK
		

		
			 
		

		
			The following description of our Common Stock is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to our Certificate of Incorporation (the “Certificate of Incorporation”) and our Amended and Restated Bylaws (the “Bylaws”), each of which are incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4.1 is a part. We encourage you to read our Certificate of Incorporation, our Bylaws and the applicable provisions of Delaware General Corporation Law for additional information. 
		

		
			 
		

		
			General
		

		
			 
		

		
			We are authorized to issue up to 3,000,000,000 shares of common stock, par value $0.01 per share, and 10,000,000 shares of preferred stock without par value.
		

		
			 
		

		
			Voting Rights
		

		
			 
		

		
			Each holder of our common stock is entitled to one vote per share on all matters to be voted upon by the stockholders.
		

		
			 
		

		
			Dividends
		

		
			 
		

		
			Subject to preferences that may be applicable to any outstanding preferred stock, the holders of our common stock are entitled to receive ratably such dividends, if any, as may be declared from time to time by the board of directors out of funds legally available for that purpose.
		

		
			 
		

		
			Rights Upon Liquidation
		

		
			 
		

		
			In the event of our liquidation, dissolution or winding up, the holders of our common stock are entitled to share ratably in all assets remaining after payment of liabilities, subject to prior distribution rights of preferred stock, if any, then outstanding.
		

		
			 
		

		
			Preemptive or Conversion Rights
		

		
			 
		

		
			The holders of our common stock have no preemptive or conversion rights or other subscription rights.  There are no redemption or sinking fund provisions applicable to the common stock.
		

		
			 
		

		
			Preferred Stock
		

		
			 
		

		
			The board of directors has the authority, without action by the stockholders, to designate and issue preferred stock in one or more series and to designate the rights, preferences and privileges of each series, which may be greater than the rights of the common stock.  It is not possible to state the actual effect of the issuance of any shares of preferred stock upon the rights of holders of the common stock until the board of directors determines the specific rights of the holders of such preferred stock.  However, the effects might include, among other things:
		

		
			 
		

		
			                  restricting dividends on the common stock,
		

		
			 
		

		
			                  diluting the voting power of the common stock,
		

		
			 
		

		
			                  impairing the liquidation rights of the common stock, or
		

		
			 
		

		
			                  delaying or preventing a change in control of us without further action by the stockholders.
		

		
			 
		

		
			No shares of preferred stock are outstanding, and we have no present plans to issue any shares of preferred stock.
		

		
			

		 

		

		
			 
		

		
			Anti-Takeover Effects of Our Certificate of Incorporation and Bylaws and Delaware Law
		

		
			 
		

		
			Some provisions of Delaware law and our Certificate of Incorporation and Bylaws, summarized below, are expected to discourage coercive takeover practices and inadequate takeover bids.  These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our board.  We believe that these provisions give our board the flexibility to exercise its fiduciary duties in a manner consistent with the interests of our shareholders.
		

		
			 
		

		
			                  STOCKHOLDER MEETINGS.  Under our bylaws, the board of directors or the chairman of the board, the chief executive officer or the secretary (with the concurrence of a majority of the board) may call special meetings of stockholders; in addition, record holders of 25% or more of the total 3M shares entitled to vote on the matter or matters to be brought before a special meeting may also cause the meeting to be held, but, if the Company’s board of directors determines in good faith that the business specified in the stockholders’ request will be included in an upcoming annual meeting of stockholders within 90 days after the request, the special meeting will not be held.
		

		
			 
		

		
			                  REQUIREMENTS FOR ADVANCE NOTIFICATION OF STOCKHOLDER NOMINATIONS AND PROPOSALS.  Our bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of the board of directors or a committee of the board of directors.
		

		
			 
		

		
			                  DELAWARE LAW.  We are subject to Section 203 of the Delaware General Corporation Law.  In general, Section 203 prohibits a publicly-held Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a period of three years following the date the person became an interested stockholder, unless the “business combination” or the transaction in which the person became an interested stockholder is approved in a prescribed manner.  Generally, a “business combination” includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the interested stockholder.  Generally, an “interested stockholder” is a person who, together with affiliates and associates, owns or within three years prior to the determination of interested stockholder status, did own, 15% or more of a corporation’s voting stock.  The existence of this provision may have an anti-takeover effect with respect to transactions not approved in advance by the board of directors, including discouraging attempts that might result in a premium over the market price for the shares of common stock held by stockholders.
		

		
			 
		

		
			                  ELIMINATION OF STOCKHOLDER ACTION BY WRITTEN CONSENT.  Our Certificate of Incorporation eliminates the right of stockholders to act by written consent without a meeting.
		

		
			 
		

		
			                  ELIMINATION OF CUMULATIVE VOTING.  Our Certificate of Incorporation and Bylaws do not provide for cumulative voting in the election of directors.
		

		
			 
		

		
			                  UNDESIGNATED PREFERRED STOCK.  The authorization of undesignated preferred stock makes it possible for the board of directors to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change control of us.  These and other provisions may have the effect of deferring hostile takeovers or delaying changes in control or management of us.
		

		
			 
		

		
			Transfer Agent and Registrar
		

		
			 
		

		
			The transfer agent and registrar for our common stock is EQ Shareowner Services.
		

		
			 
		

		
			Exchange Listing
		

		
			 
		

		
			Our common stock is traded on the New York Stock Exchange, our primary exchange, under the symbol “MMM.” Our common stock is also listed on the Chicago Stock Exchange under the same symbol.
		

		
			 
		

		
			DESCRIPTION OF THE NOTES
		

		
			 
		

		
			The following description of our 1.500% Notes due 2026 (the “2026 Notes”), our Floating Rate Notes due 2020 (the “2020 Notes”), our 0.950% Notes due 2023 (the “2023 Notes”), our 1.750% Notes due 2030 (the “2030 Notes”), our 0.375% Notes due 2022 (the “2022 Notes”), and our 1.500% Notes due 2031 (the “2031 Notes”) is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to the indenture, dated as of November 17, 2000, as amended on July 29, 2011, between us 

		 

and The Bank of New York Mellon Trust Company, N.A., as successor trustee (the “Indenture”).  Each of the notes is part of our medium-term notes, Series F, registered with the Securities and Exchange Commission.
		

		
			 
		

		
			We encourage you to read the above referenced indenture, as supplemented, for additional information.
		

		
			 
		

		
			 
		

		
			General
		

		
			 
		

		
			The notes are our unsecured and unsubordinated obligations and rank equally with all of our other existing and future unsecured and unsubordinated indebtedness. The Indenture does not limit the amount of notes, debentures or other evidence of indebtedness that we may issue under the Indenture or otherwise and provides that debt securities under the Indenture may be issued from time to time in one or more series. Our company, without the consent of Holders of any debt securities, may issue additional debt securities with terms different from those of debt securities previously issued, and it may reopen a previous series of debt securities and issue additional debt securities of that series.
		

		
			 
		

		
			Principal and Maturity
		

		
			 
		

		
			We initially issued €750 million aggregate principal amount of the 2026 notes, which remains the aggregate principal amount outstanding.  The 2026 notes mature on November 9, 2026.
		

		
			 
		

		
			We initially issued €650 million aggregate principal amount of the 2020 notes, which remains the aggregate principal amount outstanding.  The 2020 notes mature on May 15, 2020.
		

		
			 
		

		
			We initially issued €600 million aggregate principal amount of the 2023 notes, which remains the aggregate principal amount outstanding.  The 2023 notes mature on May 15, 2023.
		

		
			 
		

		
			We initially issued €500 million aggregate principal amount of the 2030 notes, which remains the aggregate principal amount outstanding.  The 2030 notes mature on May 15, 2030.
		

		
			 
		

		
			We initially issued €500 million aggregate principal amount of the 2022 notes, which remains the aggregate principal amount outstanding.  The 2022 notes mature on February 22, 2022.
		

		
			 
		

		
			We initially issued €500 million aggregate principal amount of the 2031 notes, which remains the aggregate principal amount outstanding.  The 2031 notes mature on February 15, 2031.
		

		
			 
		

		
			The notes were issued in minimum denominations of €100,000 and integral multiples of €1,000 in excess thereof.
		

		
			 
		

		
			CERTAIN PROVISIONS RELATING TO THE 2026 NOTES
		

		
			 
		

		
			Interest
		

		
			 
		

		
			The 2026 notes mature on November 9, 2026 and accrue interest at a rate per year equal to 1.500%.  Interest on the 2026 notes accrued from the last interest payment date on which interest was paid or duly provided for, or, if no interest has been paid or duly provided for, from their date of ongoing issuance.  Interest on the 2026 notes is payable annually in arrears on November 9 of each year.
		

		
			 
		

		
			Interest on the 2026 notes is computed on the basis of the actual number of days in the period for which interest is being calculated and the actual number of days from and including the last date on which interest was paid on the 2026 notes (on the date of original issuance (November 12, 2014), if no interest has been paid on the 2026 notes), to but excluding the next scheduled interest payment date.  
		

		
			 
		

		
			If any interest payment date, the maturity date for the notes or earlier date of redemption falls on a day that is not a Business Day, the required payment will be made on the next Business Day as if it were made on the date the payment was due and no interest will accrue on the amount so payable for the period from and after that interest payment date, that maturity date or that date of redemption, as the case may be.  For purposes of the 2026 notes, “Business Day” means any day other than a Saturday or Sunday, (1) which is not a day on which banking institution in The City of New York or London are authorized or required by law, regulation or executive order to close and (2) on which the TARGET2 system, or any successor thereto, is open.
		

		
			

		 

		

		
			 
		

		
			Optional Redemption 
		

		
			The 2026 notes are redeemable, in whole but not in part at our option, at any time at a redemption price equal to the greater of (i) 100% of the principal amount of such 2026 notes or (ii) as determined by the Quotation Agent (as defined below), the sum of the present values of the remaining scheduled payments of principal and interest thereon (not including any portion of such payments of interest accrued as of the date of redemption) discounted to the redemption date on an annual basis (based on the actual number of days elapsed divided by 365 (or, if any of those days elapsed fall in a leap year, the sum of (x) the number of those days falling in a leap year divided by 366 and (y) the number of those days falling in a non-leap year divided by 365)) at the Reference Dealer Rate (as defined below), plus in each case, accrued interest thereon to the date of redemption. 
		

		
			        For the purposes of this "Optional Redemption" section, 
		

		
			        "Business Day" means, in relation to any place, a day on which commercial banks and foreign exchange markets settle payments in that place. 
		

		
			        "Quotation Agent" means the Reference Dealer (as defined below). 
		

		
			        "Reference Dealer" means any of Credit Suisse Securities (Europe) Limited, Deutsche Bank AG, London Branch, J.P. Morgan Securities plc or their respective successors. 
		

		
			        "Reference Dealer Rate" means with respect to the Reference Dealer and any redemption date, the price, expressed as a percentage (rounded to three decimal places, 0.0005 being rounded upwards), at which the gross redemption yield (as calculated by the Reference Dealer) on the 2026 notes, if they were to be purchased at such price on the third Business Day prior to the date fixed for redemption, would be equal to the gross redemption yield on such Business Day of the Reference Bond on the basis of the middle market price of the Reference Bond prevailing at 11:00 a.m. (London time) on such Business Day as determined by the Reference Dealer. 
		

		
			        "Reference Bond" means, in relation to the Reference Dealer Rate, at the discretion of the Reference Dealer, an European government bond whose maturity is closest to the maturity of the 2026 notes, or such other European government bond as the Reference Dealer, may, with the advice of three brokers of, or market makers in, European government bonds selected by the Reference Dealer, determine to be appropriate for determining the Reference Dealer Rate. 
		

		
			        Notice of any redemption will be given to the holders of the 2026 notes at least 30 days but not more than 60 days before the redemption date. Unless we default in payment of the redemption price, on and after the redemption date, interest will cease to accrue on the 2026 notes called for redemption. 
		

		
			        The 2026 notes are also subject to redemption prior to maturity if certain events occur involving United States taxation. If any of these special tax events do occur, the notes may be redeemed at a redemption price of 100% of their principal amount plus accrued and unpaid interest to, but not including, the date fixed for redemption. See "—Redemption for Tax Reasons." 
		

		
			Payment of Additional Interest 
		

		
			        We will, subject to the exceptions and limitations set forth below, pay as additional interest to a noteholder that is a United States Alien (as defined below) such amounts as may be necessary so that every net payment on the 2026 notes after deduction or withholding for or on account of any present or future tax, assessment or other governmental charge of whatever nature imposed upon or as a result of such payment by the United States (or any political subdivision or taxing authority thereof or therein), will not be less than the amount provided for in the 2026 notes to be then due and payable. However, we will not be required to make any payment of additional interest for or on account of: 
		

			
	
			
				 (a)
			

			
	
			
			any tax, assessment or other governmental charge that would not have been imposed but for (i) the existence of any present or former connection between such holder (or between a fiduciary, settlor or beneficiary of, or a person holding a power over, such holder, if such holder is an estate or a trust, or a member or shareholder of such holder, if such holder is a partnership or corporation) and the United States, including, without limitation, such holder (or such 

		 

	fiduciary, settlor, beneficiary, person holding a power, member or shareholder) being or having been a citizen or resident or treated as a resident thereof or being or having been engaged in trade or business or present therein or having or having had a permanent establishment therein, or (ii) the presentation by the holder of a note for payment more than 15 days after the date on which such payment became due and payable or on which payment thereof was duly provided for, whichever occurs later; 

		
			 
		

			
	
			
				 (b)
			

			
	
			
			any estate, inheritance, gift, sales, transfer, personal property or any similar tax, assessment or other governmental charge; 

		
			 
		

		
			 
		

			
	
			
				 (c)
			

			
	
			
			any tax, assessment or other governmental charge that would not have been imposed but for such holder's past or present status as a controlled foreign corporation, passive foreign investment company (including a qualified election fund) or foreign private foundation or other tax exempt organization with respect to the United States or as a corporation that accumulates earnings to avoid United States Federal income tax; 

		
			 
		

			
	
			
				 (d)
			

			
	
			
			any tax, assessment or other governmental charge that is payable otherwise than by deduction or withholding from a payment on a note; 

		
			 
		

		
			 
		

			
	
			
				 (e)
			

			
	
			
			any tax, assessment or other governmental charge required to be deducted or withheld by any paying agent from any payment on a note, if such payment can be made without such deduction or withholding by any other paying agent; 

		
			 
		

			
	
			
				 (f)
			

			
	
			
			any tax, assessment or other governmental charge that would not have been imposed but for the holder's failure to comply with any applicable certification, information, documentation or other reporting requirement concerning the nationality, residence, identity or connection with the United States of the holder or beneficial owner of a note if, without regard to any tax treaty, such compliance is required by statute or regulation of the United States as a precondition to relief or exemption from such tax, assessment or other governmental charge; 

		
			 
		

		
			 
		

			
	
			
				 (g)
			

			
	
			
			any tax, assessment or other governmental charge imposed by reason of the holder (i) owning or having owned, directly or indirectly, actually or constructively, 10% or more of the total combined voting power of all classes of stock of the Company entitled to vote, (ii) receiving interest described in Section 881(c)(3)(A) of the United States Internal Revenue Code or (iii) being a controlled foreign corporation with respect to the United States that is related to the Company by actual or constructive stock ownership; 

		
			 
		

			
	
			
				 (h)
			

			
	
			
			any tax, assessment or other governmental charge that is imposed on a payment pursuant to Sections 1471 through 1474 of the United States Internal Revenue Code (FATCA), any Treasury regulations and official interpretations thereof, and any regulations or official law, agreement or interpretations thereof implementing an intergovernmental approach thereto; or 

		
			 
		

			
	
			
				 (i)
			

			
	
			
			any combination of items (a), (b), (c), (d), (e), (f) (g) and (h); 

		
			nor shall such additional interest be paid with respect to any payment on a note to a holder that is a fiduciary or partnership or other than the sole beneficial owner of such payment to the extent a beneficiary or settlor with respect to such fiduciary or a member of such partnership or a beneficial owner would not have been entitled to the additional interest had such beneficiary, settlor, member or beneficial owner been the holder of the 2026 notes.  
		

		
			        For purposes of the foregoing, the holding of or the receipt of any payment with respect to a note shall not constitute a connection between the holder (or between a fiduciary, settlor, beneficiary, member or shareholder of, or a person having power over, such holder if such holder is an estate, a trust, a partnership or a corporation) and the United States. 
		

		
			        The term "United States Alien" means any person who, for United States Federal income tax purposes, is a foreign corporation, a non-resident alien individual, a non-resident alien fiduciary of a foreign estate or trust, or a foreign partnership one or more of the 

		 

members of which is, for United States Federal income tax purposes, a foreign corporation, a nonresident alien individual or a non-resident alien fiduciary of a foreign estate or trust. 
		

		
			Redemption for Tax Reasons 
		

		
			        If, in the written opinion of independent counsel chosen by the Company, there is a substantial probability that the Company has or will become obligated to pay additional interest on the 2026 notes as described above under the heading "—Payment of Additional Interest", as a result of any of the following events occurring on or after November 12, 2014 (a) any change in, or amendment to, the laws (or any regulations or rulings promulgated thereunder) of the United States or any political subdivision or taxing authority thereof or therein affecting taxation, or any change in official position regarding the application or interpretation of such laws, regulations or rulings, (b) any action taken by a taxing authority of the United States or any political subdivision thereof or therein affecting taxation, which action is generally applied or is taken with respect to the Company, (c) a decision rendered by a court of competent jurisdiction in the United States or any political subdivision thereof or therein, whether or not such decision was rendered with respect to the Company, (d) a private letter ruling or technical advice memorandum issued by the National Office of the United States Internal Revenue Service on substantially the same facts as those affecting the Company or (e) any change, amendment, application, interpretation or execution of the laws of the United States (or any regulations or rulings promulgated thereunder) shall have been officially proposed, which change, amendment, action, application, interpretation or execution would have effect after November 12, 2014 and the Company determines that such obligation cannot be avoided by the use of reasonable measures then available to the Company, then the Company may, at its option, upon not less than 30 nor more than 60 days' prior notice to the holders for the time being of the notes, redeem the notes in whole, but not in part, at a redemption price equal to 100%. of the principal amount thereof plus accrued interest, if any, to the date fixed for redemption, provided that no such notice of redemption shall be given earlier than 90 days prior to the earliest date on which the Company would be obligated to pay such additional interest if a payment in respect to the notes were due on such date and, at the time such notification of redemption is given, such obligation to pay such additional interest remains in effect. Prior to the publication of any notice of redemption pursuant to this paragraph, the Company shall deliver to the Trustee (i) a certificate stating that the Company is entitled to effect such redemption and that the conditions precedent to the right of the Company to so redeem have occurred and (ii) an opinion of independent counsel chosen by the Company to the effect that there is a substantial probability that the Company has or will become obligated to pay additional interest on the notes. 
		

		
			CERTAIN PROVISIONS RELATING TO THE 2020 NOTES, THE 2023 NOTES AND THE 2030 NOTES 
		

		
			The 2020 Notes 
		

		
			        The 2020 notes bear interest at a rate equivalent to the 3-month EURIBOR (as defined below) (the "Base Rate") plus 0.23% per year; provided, however, that the minimum interest rate shall be zero. The 2020 notes bear interest from their date of original issuance (May 20, 2015) or from the immediately preceding interest payment date to which interest has been paid. Interest on the 2020 notes is payable quarterly in arrears on February 15, May 15, August 15 and November 15, (the "Floating Rate Interest Payment Date"). The interest rate on the 2020 notes will be reset quarterly on February 15, May 15, August 15 and November 15. The interest rate on the 2020 notes will be determined on the second TARGET business day preceding the interest reset date (a "EURIBOR Interest Determination Date"). Interest on a Floating Rate Interest Payment Date will be paid to the persons, or "holders," in whose names the 2020 notes are registered on the security register at the close of business on the regular record date. The regular record date will be the fifteenth calendar day, whether or not a Business Day, immediately preceding the related Floating Rate Interest Payment Date. Interest on the 2020 notes will be computed on the basis of a 360-day year and the actual number of days in the period for which interest is being calculated. 
		

		
			        The 2020 notes bear interest at a base rate equal to the interest rate for deposits in euros designated as "EURIBOR" and sponsored jointly by the European Banking Federation and ACI—the Financial Market Association (or any company established by the joint sponsors for purposes of compiling and publishing that rate) on a EURIBOR Interest Determination Date, and will be determined in accordance with the following provisions:
		

			
	
			
				 ·
			

			
	
			
			EURIBOR will be the offered rate for deposits in euros having a maturity of three months beginning on such interest reset date, as that rate appears on Reuters Page EURIBOR01 as of 11:00 A.M., Brussels time, on the relevant EURIBOR Interest Determination Date.

		
			 
		

		
			

		 

		

			
	
			
				 ·
			

			
	
			
			If the rate described above does not appear on Reuters Page EURIBOR01, EURIBOR will be determined on the basis of the rates, at approximately 11:00 A.M., Brussels time, on the relevant EURIBOR Interest Determination Date, at which deposits of the following kind are offered to prime banks in the Euro-zone interbank market by the principal Euro-zone office of each of four major banks in that market selected by us: euro deposits having a maturity of three months and in a principal amount of not less than €1,000,000 that is representative for a single transaction in such market at such time. The Paying and Calculation Agent will request the principal Euro-zone office of each of these banks to provide a quotation in writing of its rate. If at least two quotations are provided in writing, EURIBOR for such EURIBOR Interest Determination Date will be the arithmetic mean (rounded upwards) of such quotations.

		
			 
		

			
	
			
				 ·
			

			
	
			
			If fewer than two quotations are provided as described above, EURIBOR for the relevant EURIBOR Interest Determination Date will be the arithmetic mean of the rates for loans of the following kind to leading Euro-Zone banks quoted in writing, at approximately 11:00 A.M., Brussels time, on such EURIBOR Interest Determination Date, by three major banks in the Euro-Zone selected by us: loans of euros having a maturity of three months and in a principal amount of not less than €1,000,000 that is representative for a single transaction in such market at such time.

		
			 
		

			
	
			
				 ·
			

			
	
			
			If fewer than three banks selected by us are quoting as described above, EURIBOR shall be the EURIBOR in effect on such EURIBOR Interest Determination Date.

		
			        If any Floating Rate Interest Payment Date, maturity date or earlier date of redemption falls on a day that is not a Business Day, the required payment will be made on the next Business Day as if it were made on the date the payment was due and no interest will accrue on the amount so payable for the period from and after that Floating Rate Interest Payment Date, that maturity date or that date of redemption, as the case may be. For purposes of the notes, "Business Day" means any day other than a Saturday or Sunday, (1) which is not a day on which banking institutions in The City of New York or London are authorized or required by law, regulation or executive order to close and (2) on which the Trans-European Automated Real Time Gross Settlement Express Transfer system (the TARGET2 system), or any successor thereto, is open. 
		

		
			The 2023 Notes 
		

		
			        The 2023 notes bear interest at 0.950% per year from May 20, 2015 or from the immediately preceding interest payment date to which interest has been paid. Interest on the 2023 notes is payable annually in arrears on May 15, commencing May 15, 2016 (the "2023 Interest Payment Date"). Interest on a 2023 Interest Payment Date will be paid to the persons, or "holders," in whose names the 2023 notes are registered on the security register at the close of business on the regular record date. The regular record date for the 2023 notes will be the fifteenth calendar day, whether or not a Business Day, immediately preceding the related 2023 Interest Payment Date. Interest on the 2023 notes will be computed on the basis of the actual number of days in the period for which interest is being calculated and the actual number of days from and including the last date on which interest was paid on the 2023 notes (or May 20, 2015, if no interest has been paid on the 2023 notes), to but excluding the next scheduled interest payment date. This payment convention is referred to as ACTUAL/ACTUAL (ICMA) as defined in the rulebook of the International Capital Market Association. 
		

		
			        If any 2023 Interest Payment Date, the Maturity Date for the 2023 notes or earlier date of redemption falls on a day that is not a Business Day, the required payment will be made on the next Business Day as if it were made on the date the payment was due and no interest will accrue on the amount so payable for the period from and after that 2023 Interest Payment Date, that Maturity Date or that date of redemption, as the case may be. For purposes of the 2023 notes, "Business Day" means any day other than a Saturday or Sunday, (1) which is not a day on which banking institutions in The City of New York or London are authorized or required by law, regulation or executive order to close and (2) on which the TARGET2 system, or any successor thereto, is open. 
		

		
			The 2030 Notes 
		

		
			        The 2030 notes bear interest at 1.750% per year from May 20, 2015 or from the immediately preceding interest payment date to which interest has been paid. Interest on the 2030 notes is payable annually in arrears on May 15, commencing May 15, 2016 (the "2030 Interest Payment Date"). Interest on a 2030 Interest Payment Date will be paid to the persons, or "holders," in whose names the 2030 notes are registered on the security register at the close of business on the regular record date. The regular record date for the 2030 notes will be the fifteenth calendar day, whether or not a Business Day, immediately preceding the related 2030 Interest Payment Date. Interest on the 2030 notes will be computed on the basis of the ACTUAL/ACTUAL (ICMA) payment convention described above under "Description of Notes—2023 Notes." 
		

		
			

		 

		

		
			        If any 2030 Interest Payment Date, the Maturity Date for the 2030 notes or earlier date of redemption falls on a day that is not a Business Day, the required payment will be made on the next Business Day as if it were made on the date the payment was due and no interest will accrue on the amount so payable for the period from and after that 2030 Interest Payment Date, that Maturity Date or that date of redemption, as the case may be. For purposes of the 2030 notes, "Business Day" means any day other than a Saturday or Sunday, (1) which is not a day on which banking institutions in The City of New York or London are authorized or required by law, regulation or executive order to close and (2) on which the TARGET2 system, or any successor thereto, is open. 
		

		
			Optional Redemption 
		

		
			        The 2023 notes and the 2030 notes are redeemable, in whole but not in part at our option, at any time at a redemption price equal to the greater of (i) 100% of the principal amount of the notes of the applicable tranche or (ii) as determined by the Quotation Agent (as defined below), the sum of the present values of the remaining scheduled payments of principal and interest thereon (not including any portion of such payments of interest accrued as of the date of redemption) discounted to the redemption date on an annual basis (based on the actual number of days elapsed divided by 365 (or, if any of those days elapsed fall in a leap year, the sum of (x) the number of those days falling in a leap year divided by 366 and (y) the number of those days falling in a non-leap year divided by 365)) at the Reference Dealer Rate (as defined below), plus, in the case of the 2023 notes, 10 basis points, and in the case of the 2030 notes, 15 basis points, plus in each case, accrued interest thereon to the date of redemption. 
		

		
			        For the purposes of this "Optional Redemption" section, 
		

		
			        "Business Day" means, in relation to any place, a day on which commercial banks and foreign exchange markets settle payments in that place. 
		

		
			        "Quotation Agent" means the Reference Dealer (as defined below). 
		

		
			        "Reference Dealer" means any of Barclays Bank PLC, Citigroup Global Markets Limited, Deutsche Bank AG, London Branch or their respective successors. 
		

		
			        "Reference Dealer Rate" means with respect to the Reference Dealer and any redemption date, the price, expressed as a percentage (rounded to three decimal places, 0.0005 being rounded upwards), at which the gross redemption yield (as calculated by the Reference Dealer) on the notes to be redeemed, if they were to be purchased at such price on the third Business Day prior to the date fixed for redemption, would be equal to the gross redemption yield on such Business Day of the Reference Bond on the basis of the middle market price of the Reference Bond prevailing at 11:00 a.m. (London time) on such Business Day as determined by the Reference Dealer. 
		

		
			        "Reference Bond" means, in relation to the Reference Dealer Rate, at the discretion of the Reference Dealer, an European government bond whose maturity is closest to the maturity of the notes to be redeemed, or such other European government bond as the Reference Dealer, may, with the advice of three brokers of, or market makers in, European government bonds selected by the Reference Dealer, determine to be appropriate for determining the Reference Dealer Rate. 
		

		
			        Notice of any redemption will be given to the Noteholders at least 30 days but not more than 60 days before the redemption date. Unless we default in payment of the redemption price, on and after the redemption date, interest will cease to accrue on the 2023 notes and the 2030 notes called for redemption. 
		

		
			        The notes are also subject to redemption prior to maturity if certain events occur involving United States taxation. If any of these special tax events do occur, the notes may be redeemed at a redemption price of 100% of their principal amount plus accrued and unpaid interest to, but not including, the date fixed for redemption. See "—Redemption for Tax Reasons." 
		

		
			Payment of Additional Interest 
		

		
			        We will, subject to the exceptions and limitations set forth below, pay as additional interest to a noteholder of the 2020 notes, the 2023 notes or the 2030 notes that is a United States Alien (as defined below) such amounts as may be necessary so that every net payment on such note after deduction or withholding for or on account of any present or future tax, assessment or other governmental charge of whatever nature imposed upon or as a result of such payment by the United States (or any political subdivision or taxing 

		 

authority thereof or therein), will not be less than the amount provided for in such note to be then due and payable. However, we will not be required to make any payment of additional interest for or on account of: 
		

			
	
			
				 (a)
			

			
	
			
			any tax, assessment or other governmental charge that would not have been imposed but for (i) the existence of any present or former connection between such holder (or between a fiduciary, settlor or beneficiary of, or a person holding a power over, such holder, if such holder is an estate or a trust, or a member or shareholder of such holder, if such holder is a partnership or corporation) and the United States, including, without limitation, such holder (or such fiduciary, settlor, beneficiary, person holding a power, member or shareholder) being or having been a citizen or resident or treated as a resident thereof or being or having been engaged in trade or business or present therein or having or having had a permanent establishment therein, or (ii) the presentation by the holder of a note for payment more than 15 days after the date on which such payment became due and payable or on which payment thereof was duly provided for, whichever occurs later; 

		
			 
		

			
	
			
				 (b)
			

			
	
			
			any estate, inheritance, gift, sales, transfer, personal property or any similar tax, assessment or other governmental charge; 

		
			 
		

			
	
			
				 (c)
			

			
	
			
			any tax, assessment or other governmental charge that would not have been imposed but for such holder's past or present status as a controlled foreign corporation, passive foreign investment company (including a qualified election fund) or foreign private foundation or other tax exempt organization with respect to the United States or as a corporation that accumulates earnings to avoid United States Federal income tax; 

		
			 
		

			
	
			
				 (d)
			

			
	
			
			any tax, assessment or other governmental charge that is payable otherwise than by deduction or withholding from a payment on a note; 

		
			 
		

			
	
			
				 (e)
			

			
	
			
			any tax, assessment or other governmental charge required to be deducted or withheld by any paying agent from any payment on a note, if such payment can be made without such deduction or withholding by any other paying agent; 

		
			 
		

			
	
			
				 (f)
			

			
	
			
			any tax, assessment or other governmental charge that would not have been imposed but for the holder's failure to comply with any applicable certification, information, documentation or other reporting requirement concerning the nationality, residence, identity or connection with the United States of the holder or beneficial owner of a note if, without regard to any tax treaty, such compliance is required by statute or regulation of the United States as a precondition to relief or exemption from such tax, assessment or other governmental charge; 

		
			 
		

			
	
			
				 (g)
			

			
	
			
			any tax, assessment or other governmental charge imposed by reason of the holder (i) owning or having owned, directly or indirectly, actually or constructively, 10% or more of the total combined voting power of all classes of stock of the Company entitled to vote, (ii) receiving interest described in Section 881(c)(3)(A) of the United States Internal Revenue Code or (iii) being a controlled foreign corporation with respect to the United States that is related to the Company by actual or constructive stock ownership; 

		
			 
		

			
	
			
				 (h)
			

			
	
			
			any tax, assessment or other governmental charge that is imposed on a payment pursuant to Sections 1471 through 1474 of the United States Internal Revenue Code (FATCA), any Treasury regulations and official interpretations thereof, and any regulations or official law, agreement or interpretations thereof implementing an intergovernmental approach thereto; or 

		
			 
		

			
	
			
				 (i)
			

			
	
			
			any combination of items (a), (b), (c), (d), (e), (f) (g) and (h); 

		
			nor shall such additional interest be paid with respect to any payment on a note to a holder that is a fiduciary or partnership or other than the sole beneficial owner of such payment to the extent a beneficiary or settlor with respect to such fiduciary or a member of such partnership or a beneficial owner would not have been entitled to the additional interest had such beneficiary, settlor, member or beneficial owner been the holder of such note. 
		

		
			        For purposes of the foregoing, the holding of or the receipt of any payment with respect to a note shall not constitute a connection between the holder (or between a fiduciary, settlor, beneficiary, member or shareholder of, or a person having power over, such holder if such holder is an estate, a trust, a partnership or a corporation) and the United States. 
		

		
			

		 

		

		
			        The term "United States Alien" means any person who, for United States Federal income tax purposes, is a foreign corporation, a non-resident alien individual, a non-resident alien fiduciary of a foreign estate or trust, or a foreign partnership one or more of the members of which is, for United States Federal income tax purposes, a foreign corporation, a nonresident alien individual or a non-resident alien fiduciary of a foreign estate or trust. 
		

		
			Redemption for Tax Reasons 
		

		
			        If, in the written opinion of independent counsel chosen by the Company, there is a substantial probability that the Company has or will become obligated to pay additional interest on 2020 notes, the 2023 notes or the 2030 notes the notes as described above under the heading "—Payment of Additional Interest," as a result of any of the following events occurring on or after May 13, 2015 (a) any change in, or amendment to, the laws (or any regulations or rulings promulgated thereunder) of the United States or any political subdivision or taxing authority thereof or therein affecting taxation, or any change in official position regarding the application or interpretation of such laws, regulations or rulings, (b) any action taken by a taxing authority of the United States or any political subdivision thereof or therein affecting taxation, which action is generally applied or is taken with respect to the Company, (c) a decision rendered by a court of competent jurisdiction in the United States or any political subdivision thereof or therein, whether or not such decision was rendered with respect to the Company, (d) a private letter ruling or technical advice memorandum issued by the National Office of the United States Internal Revenue Service on substantially the same facts as those affecting the Company or (e) any change, amendment, application, interpretation or execution of the laws of the United States (or any regulations or rulings promulgated thereunder) shall have been officially proposed, which change, amendment, action, application, interpretation or execution would have effect after May 13, 2015 and the Company determines that such obligation cannot be avoided by the use of reasonable measures then available to the Company, then the Company may, at its option, upon not less than 30 nor more than 60 days' prior notice to the holders for the time being of the notes, redeem the notes in whole, but not in part, at a redemption price equal to 100%. of the principal amount thereof plus accrued interest, if any, to the date fixed for redemption, provided that no such notice of redemption shall be given earlier than 90 days prior to the earliest date on which the Company would be obligated to pay such additional interest if a payment in respect to the notes were due on such date and, at the time such notification of redemption is given, such obligation to pay such additional interest remains in effect. Prior to the publication of any notice of redemption pursuant to this paragraph, the Company shall deliver to the Trustee (i) a certificate stating that the Company is entitled to effect such redemption and that the conditions precedent to the right of the Company to so redeem have occurred and (ii) an opinion of independent counsel chosen by the Company to the effect that there is a substantial probability that the Company has or will become obligated to pay additional interest on the notes. 
		

		
			CERTAIN PROVISIONS RELATING TO THE 2022 NOTES AND THE 2031 NOTES
		

		
			The 2022 Notes 
		

		
			        The 2022 notes bear interest at 0.375% per year from May 31, 2016 or from the immediately preceding interest payment date to which interest has been paid. Interest on the 2022 notes is payable annually in arrears on February 15, commencing February 15, 2017 (the "2022 Interest Payment Date"). Interest on a 2022 Interest Payment Date will be paid to the persons, or "holders," in whose names the 2022 notes are registered on the security register at the close of business on the regular record date. The regular record date for the 2022 notes will be the fifteenth calendar day, whether or not a Business Day, immediately preceding the related 2022 Interest Payment Date. Interest on the 2022 notes will be computed on the basis of the actual number of days in the period for which interest is being calculated and the actual number of days from and including the last date on which interest was paid on the 2022 notes (or May 31, 2016, if no interest has been paid on the 2022 notes), to but excluding the next scheduled interest payment date. This payment convention is referred to as ACTUAL/ACTUAL (ICMA) as defined in the rulebook of the International Capital Market Association. 
		

		
			        If any 2022 Interest Payment Date, the Maturity Date for the 2022 notes or earlier date of redemption falls on a day that is not a Business Day, the required payment will be made on the next Business Day as if it were made on the date the payment was due and no interest will accrue on the amount so payable for the period from and after that 2022 Interest Payment Date, that Maturity Date or that date of redemption, as the case may be. For purposes of the 2022 notes, "Business Day" means any day other than a Saturday or Sunday, (1) which is not a day on which banking institutions in The City of New York or London are authorized or required by law, regulation or executive order to close and (2) on which the TARGET2 system, or any successor thereto, is open. 
		

		
			The 2031 Notes 
		

		
			        The 2031 notes bear interest at 1.500% per year from May 31, 2016 or from the immediately preceding interest payment date to which interest has been paid. Interest on the 2031 notes is payable annually in arrears on June 2, commencing June 2, 2017 (the "2031 

		 

Interest Payment Date"). Interest on a 2031 Interest Payment Date will be paid to the persons, or "holders," in whose names the 2031 notes are registered on the security register at the close of business on the regular record date. The regular record date for the 2031 notes will be the fifteenth calendar day, whether or not a Business Day, immediately preceding the related 2031 Interest Payment Date. Interest on the 2031 notes will be computed on the basis of the ACTUAL/ACTUAL (ICMA) payment convention described above under "Description of Notes—2022 Notes." 
		

		
			        If any 2031 Interest Payment Date, the Maturity Date for the 2031 notes or earlier date of redemption falls on a day that is not a Business Day, the required payment will be made on the next Business Day as if it were made on the date the payment was due and no interest will accrue on the amount so payable for the period from and after that 2031 Interest Payment Date, that Maturity Date or that date of redemption, as the case may be. For purposes of the 2031 notes, "Business Day" means any day other than a Saturday or Sunday, (1) which is not a day on which banking institutions in The City of New York or London are authorized or required by law, regulation or executive order to close and (2) on which the TARGET2 system, or any successor thereto, is open. 
		

		
			Further Issuances 
		

		
			        We may, from time to time, without the consent of or notice to existing note holders, create and issue further notes having the same terms and conditions as the notes of either tranche in all respects, except for issue date, issue price and, to the extent applicable, the first payment of interest. Additional notes issued in this manner will be consolidated with and will form a single tranche of debt securities with the related previously outstanding notes of the related tranche; provided,  however, that the issuance of such additional notes will not be so consolidated for United States federal income tax purposes unless such issuance constitutes a "qualified reopening" within the meaning of the Internal Revenue Code of 1986, as amended (the "Code"), and the Treasury regulations promulgated thereunder. 
		

		
			Optional Redemption 
		

		
			        The notes of each tranche are redeemable, in whole but not in part at our option, at any time prior to November 15, 2021, in the case of the 2022 notes (three months prior to the maturity date of such notes), and March 2, 2031 in the case of the 2031 notes (three months, prior to the maturity of such notes), at a redemption price equal to the greater of (i) 100% of the principal amount of the notes of the applicable tranche or (ii) as determined by the Quotation Agent (as defined below), the sum of the present values of the remaining scheduled payments of principal and interest thereon (not including any portion of such payments of interest accrued as of the date of redemption) discounted to the redemption date on an annual basis (based on the actual number of days elapsed divided by 365 (or, if any of those days elapsed fall in a leap year, the sum of (x) the number of those days falling in a leap year divided by 366 and (y) the number of those days falling in a non-leap year divided by 365)) at the Reference Dealer Rate (as defined below), plus, in the case of the 2022 notes, 12.5 basis points, and in the case of the 2031 notes, 20 basis points, plus in each case, accrued interest thereon to the date of redemption. 
		

		
			        In addition, at any time on or after November 15, 2021, in the case of the 2022 notes (three months prior to the maturity date of such notes), and March 2, 2031 in the case of the 2031 notes (three months prior to the maturity date of such notes), the notes will be redeemable, in whole but not in part at our option, at a redemption price equal to 100% of the principal amount of the notes of the applicable tranche plus accrued interest thereon to the date of redemption. 
		

		
			        For the purposes of this "Optional Redemption" section, 
		

		
			        "Business Day" means, in relation to any place, a day on which commercial banks and foreign exchange markets settle payments in that place. 
		

		
			        "Quotation Agent" means the Reference Dealer (as defined below) specified by us. 
		

		
			        "Reference Dealer" means any of Barclays Bank PLC, Credit Suisse Securities (Europe) Limited and Deutsche Bank AG, London Branch or their respective successors. 
		

		
			        "Reference Dealer Rate" means with respect to the Reference Dealer and any redemption date, the price, expressed as a percentage (rounded to three decimal places, 0.0005 being rounded upwards), at which the gross redemption yield (as calculated by the Reference Dealer) on the notes to be redeemed, if they were to be purchased at such price on the third Business Day prior to the date fixed for redemption, would be equal to the gross redemption yield on such Business Day of the Reference Bond on the basis of 

		 

the middle market price of the Reference Bond prevailing at 11:00 a.m. (London time) on such Business Day as determined by the Reference Dealer. 
		

		
			        "Reference Bond" means, in relation to the Reference Dealer Rate, at the discretion of the Reference Dealer, an European government bond whose maturity is closest to the maturity of the notes to be redeemed, or such other European government bond as the Reference Dealer, may, with the advice of three brokers of, or market makers in, European government bonds selected by the Reference Dealer, determine to be appropriate for determining the Reference Dealer Rate. 
		

		
			        Notice of any redemption will be given to the noteholders at least 30 days but not more than 60 days before the redemption date. Unless we default in payment of the redemption price, on and after the redemption date, interest will cease to accrue on the notes called for redemption. 
		

		
			        The notes are also subject to redemption prior to maturity if certain events occur involving United States taxation. If any of these special tax events do occur, the notes may be redeemed at a redemption price of 100% of their principal amount plus accrued and unpaid interest to, but not including, the date fixed for redemption. See "—Redemption for Tax Reasons." 
		

		
			Payment of Additional Interest 
		

		
			        We will, subject to the exceptions and limitations set forth below, pay as additional interest to a noteholder that is a United States Alien (as defined below) such amounts as may be necessary so that every net payment on such note after deduction or withholding for or on account of any present or future tax, assessment or other governmental charge of whatever nature imposed upon or as a result of such payment by the United States (or any political subdivision or taxing authority thereof or therein), will not be less than the amount provided for in such note to be then due and payable. However, we will not be required to make any payment of additional interest for or on account of: 
		

			
	
			
				 (a)
			

			
	
			
			 any tax, assessment or other governmental charge that would not have been imposed but for (i) the existence of any present or former connection between such holder (or between a fiduciary, settlor or beneficiary of, or a person holding a power over, such holder, if such holder is an estate or a trust, or a member or shareholder of such holder, if such holder is a partnership or corporation) and the United States, including, without limitation, such holder (or such fiduciary, settlor, beneficiary, person holding a power, member or shareholder) being or having been a citizen or resident or treated as a resident thereof or being or having been engaged in trade or business or present therein or having or having had a permanent establishment therein, or (ii) the presentation by the holder of a note for payment more than 15 days after the date on which such payment became due and payable or on which payment thereof was duly provided for, whichever occurs later; 

		
			 
		

			
	
			
				 (b)
			

			
	
			
			any estate, inheritance, gift, sales, transfer, personal property or any similar tax, assessment or other governmental charge; 

		
			 
		

			
	
			
				 (c)
			

			
	
			
			any tax, assessment or other governmental charge that would not have been imposed but for such holder's past or present status as a controlled foreign corporation, passive foreign investment company (including a qualified election fund) or foreign private foundation or other tax exempt organization with respect to the United States or as a corporation that accumulates earnings to avoid United States federal income tax; 

		
			 
		

			
	
			
				 (d)
			

			
	
			
			any tax, assessment or other governmental charge that is payable otherwise than by deduction or withholding from a payment on a note

		
			 
		

			
	
			
				 (e)
			

			
	
			
			any tax, assessment or other governmental charge required to be deducted or withheld by any paying agent from any payment on a note, if such payment can be made without such deduction or withholding by any other paying agent; 

		
			 
		

			
	
			
				 (f)
			

			
	
			
			any tax, assessment or other governmental charge that would not have been imposed but for the holder's failure to comply with any applicable certification, information, documentation or other reporting requirement concerning the nationality, residence, identity or connection with the United States of the holder or beneficial owner of a note if, without regard to any tax treaty, such compliance is required by statute or regulation of the United States as a precondition to relief or exemption from such tax, assessment or other governmental charge; 

		
			 
		

		
			

		 

		

			
	
			
				 (g)
			

			
	
			
			any tax, assessment or other governmental charge imposed by reason of the holder (i) owning or having owned, directly or indirectly, actually or constructively, 10% or more of the total combined voting power of all classes of stock of the Company entitled to vote, (ii) receiving interest described in Section 881(c)(3)(A) of the United States Internal Revenue Code or (iii) being a controlled foreign corporation with respect to the United States that is related to the Company by actual or constructive stock ownership; 

		
			 
		

			
	
			
				 (h)
			

			
	
			
			any tax, assessment or other governmental charge that is imposed on a payment pursuant to Sections 1471 through 1474 of the United States Internal Revenue Code (FATCA), any Treasury regulations and official interpretations thereof, and any regulations or official law, agreement or interpretations thereof implementing an intergovernmental approach thereto; or 

		
			 
		

			
	
			
				 (i)
			

			
	
			
			any combination of items (a), (b), (c), (d), (e), (f) (g) and (h); 

		
			nor shall such additional interest be paid with respect to any payment on a note to a holder that is a fiduciary or partnership or other than the sole beneficial owner of such payment to the extent a beneficiary or settlor with respect to such fiduciary or a member of such partnership or a beneficial owner would not have been entitled to the additional interest had such beneficiary, settlor, member or beneficial owner been the holder of such note. 
		

		
			        For purposes of the foregoing, the holding of or the receipt of any payment with respect to a note shall not constitute a connection between the holder (or between a fiduciary, settlor, beneficiary, member or shareholder of, or a person having power over, such holder if such holder is an estate, a trust, a partnership or a corporation) and the United States. 
		

		
			        The term "United States Alien" means any person who, for United States Federal income tax purposes, is a foreign corporation, a non-resident alien individual, a non-resident alien fiduciary of a foreign estate or trust, or a foreign partnership one or more of the members of which is, for United States federal income tax purposes, a foreign corporation, a nonresident alien individual or a non-resident alien fiduciary of a foreign estate or trust. 
		

		
			Redemption for Tax Reasons 
		

		
			        If, in the written opinion of independent counsel chosen by the Company, there is a substantial probability that the Company has or will become obligated to pay additional interest on the notes as described above under the heading "—Payment of Additional Interest," as a result of any of the following events occurring on or after May 23, 2016 (a) any change in, or amendment to, the laws (or any regulations or rulings promulgated thereunder) of the United States or any political subdivision or taxing authority thereof or therein affecting taxation, or any change in official position regarding the application or interpretation of such laws, regulations or rulings, (b) any action taken by a taxing authority of the United States or any political subdivision thereof or therein affecting taxation, which action is generally applied or is taken with respect to the Company, (c) a decision rendered by a court of competent jurisdiction in the United States or any political subdivision thereof or therein, whether or not such decision was rendered with respect to the Company, (d) a private letter ruling or technical advice memorandum issued by the National Office of the United States Internal Revenue Service on substantially the same facts as those affecting the Company or (e) any change, amendment, application, interpretation or execution of the laws of the United States (or any regulations or rulings promulgated thereunder) shall have been officially proposed, which change, amendment, action, application, interpretation or execution would have effect after May 23, 2016 and the Company determines that such obligation cannot be avoided by the use of reasonable measures then available to the Company, then the Company may, at its option, upon not less than 30 nor more than 60 days' prior notice to the holders for the time being of the notes, redeem the notes in whole, but not in part, at a redemption price equal to 100% of the principal amount thereof plus accrued interest, if any, to the date fixed for redemption, provided that no such notice of redemption shall be given earlier than 90 days prior to the earliest date on which the Company would be obligated to pay such additional interest if a payment in respect to the notes were due on such date and, at the time such notification of redemption is given, such obligation to pay such additional interest remains in effect. Prior to the publication of any notice of redemption pursuant to this paragraph, the Company shall deliver to the Trustee (i) a certificate stating that the Company is entitled to effect such redemption and that the conditions precedent to the right of the Company to so redeem have occurred and (ii) an opinion of independent counsel chosen by the Company to the effect that there is a substantial probability that the Company has or will become obligated to pay additional interest on the notes. 
		

		
			 
		

		
			 
		

		
			GENERAL PROVISIONS OF OUR INDENTURE APPLICABLE TO ALL NOTES 
		

		
			 
		

		
			

		 

		

		
			Events of Default
		

		
			 
		

		
			An event of default with respect to any of the notes will occur under the indenture if:
		

		
			 
		

		
			                  we fail to pay interest on any debt security of that series for 30 days after the payment is due,
		

		
			 
		

		
			                  we fail to pay the principal of or any premium on any debt security of that series when due,
		

		
			 
		

		
			                  we fail to deposit any sinking fund payment when due on debt securities of that series,
		

		
			 
		

		
			                  we fail to perform any other covenant in the indenture that applies to debt securities of that series for 90 days after we have received written notice of the failure to perform in the manner specified in the indenture,
		

		
			 
		

		
			                  we default under any Indebtedness for borrowed money, including other series of debt securities, or under any mortgage, lien or other similar encumbrance, indenture or instrument, including the indenture, which secures any Indebtedness for borrowed money, and which results in acceleration of the maturity of an outstanding principal amount of Indebtedness greater than $200 million, unless this acceleration is rescinded (or the Indebtedness is discharged) within 10 days after we have received written notice of the default in the manner specified in the indenture,
		

		
			 
		

		
			                  commencement of voluntary or involuntary bankruptcy, insolvency or reorganization, or
		

		
			 
		

		
			                  any other event of default that may be specified for the debt securities of that series when that series is created occurs.  (Section 501)
		

		
			 
		

		
			If an event of default for any series of debt securities occurs and continues, the trustee or the Holders of at least 25% in aggregate principal amount of the outstanding debt securities of the series may declare the entire principal of all the debt securities of that series to be due and payable immediately.  If such a declaration occurs, the Holders of a majority of the aggregate principal amount of the outstanding debt securities of that series can, subject to the specific payment conditions set forth in the indenture, rescind the declaration.  (Section 502)
		

		
			 
		

		
			The prospectus supplement relating to each series of debt securities which are original issue discount securities will describe the particular provisions that relate to the acceleration of maturity of a portion of the principal amount of that series when an event of default occurs and continues.
		

		
			 
		

		
			An event of default for a particular series of debt securities does not necessarily constitute an event of default for any other series of debt securities issued under the indenture.  The indenture requires us to file a certificate with the trustee each year that states the nature of the default if any default exists under the terms of the indenture.  (Section 1011) The trustee must transmit notice to the Holders of debt securities of any default, except that no such notice to Holders shall be given until at least 30 days after the occurrence of a default in the performance, or breach, of any covenant or warranty of the Company in the indenture, and continuance of such default or breach for a period of 90 days after there has been given to the Company by the trustee, or to the Company and the trustee by Holders of at least 25% in aggregate principal amount of the outstanding debt securities of that series, written notice of such default or breach.  (Section 602)
		

		
			 
		

		
			Other than its duties in the case of a default, a trustee is not obligated to exercise any of its rights or powers under the indenture at the request, order or direction of any Holders, unless the Holders offer the trustee reasonable indemnification.  (Sections 601, 603) If reasonable indemnification is provided, then, subject to other rights of the trustee provided in the indenture, the Holders of a majority in principal amount of the outstanding debt securities of any series may, with respect to the debt securities of that series, direct the time, method and place of:
		

		
			 
		

		
			                  conducting any proceeding for any remedy available to the trustee, or
		

		
			 
		

		
			                  exercising any trust or power conferred upon the trustee.  (Sections 512, 603)
		

		
			 
		

		
			The Holder of a debt security of any series will have the right to begin any proceeding with respect to the indenture or for any remedy only if:
		

		
			 
		

		
			                  the Holder has previously given the trustee written notice of a continuing event of default with respect to that series,
		

		
			

		 

		

		
			 
		

		
			                  the Holders of at least 25% in aggregate principal amount of the outstanding debt securities of that series have made a written request of, and offered reasonable indemnification to, the trustee to begin the proceeding,
		

		
			 
		

		
			                  the trustee has not started the proceeding within 60 days after receiving the request, and
		

		
			 
		

		
			                  the trustee has not received directions inconsistent with the request from the Holders of a majority in aggregate principal amount of the outstanding debt securities of that series during those 60 days.  (Section 507)
		

		
			 
		

		
			However, the Holder of any debt security will have an absolute right to receive payment of principal of and any premium and interest on the debt security when due and to institute suit to enforce this payment.  (Section 508)
		

		
			 
		

		
			Defeasance
		

		
			 
		

		
			Defeasance and Discharge.  At the time that we establish a series of debt securities under the indenture, we can provide that the debt securities of that series are subject to the defeasance and discharge provisions of the indenture.  If we so provide, we will be discharged from our obligations on the debt securities of that series if we
		

		
			deposit with the trustee, in trust, sufficient money or Government Obligations, as defined below, to pay the principal, interest, any premium and any other sums due on the debt securities of that series, such as sinking fund payments, on the dates these payments are due under the indenture and the terms of the debt securities.  (Section 403) As used above, “ Government Obligations ” mean:
		

		
			 
		

		
			                  securities of the same government which issued the currency in which the series of debt securities are denominated and/or in which interest is payable, or
		

		
			 
		

		
			                  securities of government agencies backed by the full faith and credit of the government.  (Section 101)
		

		
			 
		

		
			In the event that we deposit funds in trust and discharge our obligations under a series of debt securities as described above, then:
		

		
			 
		

		
			                  the indenture will no longer apply to the debt securities of that series, except for the obligations to compensate, reimburse and indemnify the trustee, to register the transfer and exchange of debt securities, to replace lost, stolen or mutilated debt securities and to maintain paying agencies and the trust funds; and
		

		
			 
		

		
			                  Holders of debt securities of that series can only look to the trust fund for payment of principal, any premium and interest on the debt securities of that series.  (Section 403)
		

		
			 
		

		
			Under federal income tax law, that deposit and discharge may be treated as an exchange of the related debt securities for an interest in the trust mentioned above.  Each holder might be required to recognize gain or loss equal to the difference between:
		

		
			 
		

		
			                  the holder’s cost or other tax basis for the debt securities, and
		

		
			 
		

		
			                  the value of the holder’s interest in the trust.
		

		
			 
		

		
			Holders might be required to include in income a share of the income, gain or loss of the trust, including gain or loss recognized in connection with any substitution of collateral, as described in this section under the heading “—Substitution of Collateral” below.
		

		
			 
		

		
			 
		

		
			Defeasance of Covenants and Events of Default.  At the time that we establish a series of debt securities under the indenture, we can provide that the debt securities of that series are subject to the covenant defeasance provisions of the indenture.  If we so provide and we make the deposit described in this section under the heading “—Defeasance and Discharge” above:
		

		
			 
		

		
			                  we will not have to comply with the following restrictive covenants contained in the indenture:  Consolidation, Merger or Sale or Lease of Property as Entirety (Sections 801, 803, 804); Restrictions on Secured Debt (Section 1008); Maintenance of Properties (Section 1005); Payment of Taxes and Other Claims (Section 1007); Restrictions on Sale and Lease-Back Transactions (Section 1009); Classification of Restricted and Unrestricted Subsidiaries (Section 1010); and any other covenant we designate when we establish the series of debt securities; and
		

		
			 
		

		
			

		 

		

		
			                  we will not have to treat the events described in the fourth bullet point under the heading “—Events of Default” as they relate to the covenants listed above that have been defeased and no longer are in effect and the events described in the fifth, sixth and seventh bullet points under the heading “—Events of Default” as events of default under the indenture in connection with that series.
		

		
			 
		

		
			In the event of a defeasance, our obligations under the indenture and the debt securities, other than with respect to the covenants and the events of default specifically referred to above, will remain in effect.  (Section 1501)
		

		
			  
		

		
			If we exercise our option not to comply with the covenants listed above and the debt securities of that series become immediately due and payable because an event of default has occurred, other than as a result of an event of default specifically referred to above, the amount of money and/or Government Obligations on deposit with the trustee will be sufficient to pay the principal, interest, any premium and any other sums due on the debt securities of that series, such as sinking fund payments, on the date the payments are due under the indenture and the terms of the debt securities, but may not be sufficient to pay amounts due at the time of acceleration.  However, we would remain liable for the balance of the payments.  (Section 1501)
		

		
			 
		

		
			Substitution of Collateral.  At the time that we establish a series of debt securities under the indenture, we can provide for our ability to, at any time, withdraw any money or Government Obligations deposited pursuant to the defeasance provisions described above if we simultaneously substitute other money and/or Government Obligations which would satisfy our payment obligations on the debt securities of that series pursuant to the defeasance provisions applicable to those debt securities.  (Section 402)

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