Document:

Exhibit 10.2

 

CONFIDENTIALITY AND NON-COMPETITION
AGREEMENT

 

THIS CONFIDENTIALITY AND NON-COMPETITION
AGREEMENT (this “Agreement”) is made as of this 15th day of December, 2015, by and between VIRTUALSCOPICS,
INC., a Delaware corporation with its principal office at 500 Linden Oaks, Rochester, NY 14625 (the “Company”),
and RONALD WAY, an individual with a mailing address of 5127 North Road, Canandaigua, NY 14424 (“Executive
Officer”).

 

R E C I T A L S:

 

WHEREAS, the Company
is engaged in the business of providing of imaging solutions to accelerate drug and medical device development, including, but
not limited to, developing and providing a software platform for analysis and modeling of both structural and functional medical
images and image analysis tools used to, among other things, determine the efficacy of drugs, medical procedures and medical products
and seeks to use its technology to improve treatment planning for patients with cancer and other diseases (collectively, the “Business”);

 

WHEREAS, the Company
owns and continues to research and develop image analysis tools and other products and technologies used to determine the efficacy
of drugs, medical procedures and medical products and for other purposes in connection with its Business;

 

WHEREAS, the Company
and Executive Officer are parties to that certain Employment Agreement of even date herewith (the “Employment Agreement”),
pursuant to which the Company has employed Executive Officer as the COO of the Company;

 

WHEREAS, the Company
and Executive Officer recognize that in the course of performing services for the Company, Executive Officer will be exposed to
and have access to certain confidential information and that there is a need for the Company to protect such confidential information
from unauthorized use and disclosure; and

 

WHEREAS, Executive
Officer intends that any and all patent, patent rights, copyright, trade secrets and trademarks relating to the work that Executive
Officer will provide to the Company are to be owned and controlled by the Company.

 

P R O V I S I O N S:

 

NOW, THEREFORE,
in consideration of the mutual covenants and promises herein contained, and for other good and valuable consideration the receipt
and sufficiency of which are expressly acknowledged, the parties hereby agree as follows:

 

1. Confidential Information.

 

(a)Definition of Confidential
Information. “Confidential Information” means any and all proprietary information existing as of the date
of this Agreement, or thereafter developed, of the Company (and its affiliates or subsidiaries), not generally known in the industry,
about its or their technical data, trade secrets, know-how, services and products, including information related to research, development,
inventions and other intellectual property, finances, and marketing, including methods of distribution and customer information,
whether communicated orally, electronically or in writing, or obtained by Executive Officer as a result of his employment,
through observation or examination of Company’s Business or otherwise.

 

     

     

    

 

(b)Confidentiality Obligations.
Executive Officer acknowledges that irreparable injury and damage will result from disclosure of the Confidential Information to
third parties or its use for purposes other than those connected with Executive Officer’s employment. Executive Officer agrees,
indefinitely:

 

(i)To hold the Confidential Information
in strictest confidence.

 

(ii)Not to disclose Confidential
Information to any third party except as specifically authorized herein or as specifically authorized by Company, and to use all
precautions necessary to prevent the unauthorized disclosure of the Confidential Information, including without limitation, protection
of documents from theft, unauthorized duplication and discovery of contents, and restrictions on access by other persons to the
Confidential Information.

 

(iii)Not to make or use any copies,
synopses or summaries of oral or written material made available by Company to Executive Officer, except as are necessary to carry
out his duties and/or obligations as an employee of the Company.

 

(iv)In the event of disclosure
in accordance with Section 1(b)(ii) above, to limit disclosure to persons with a bona fide need to know the Confidential
Information, to communicate to all persons to whom such Confidential Information is made available the strictly confidential
nature of such Confidential Information and to obtain from all such persons agreement in writing to be bound by the restrictions
imposed by this Agreement.

 

(v)In the event Executive Officer
is required by law to disclose such Confidential Information, to provide Company with prompt written notice of such requirement
so that Company may seek a protective order or other appropriate remedy and/or waive compliance with the provisions of this Agreement;
in the event that such protective order or other remedy is not obtained, or that Company waives compliance with the provisions
of this Agreement in writing, to furnish only that portion of Confidential Information that is legally required and to use his
best efforts to obtain reliable assurance that confidential treatment will be accorded to that portion of the Confidential Information
to be disclosed.

 

(c)Return of Confidential Information.
Upon Company’s request or upon any termination of Executive Officer’s employment with the Company for any reason, Executive
Officer will promptly return to Company all written material and other documentation which includes any of the Confidential Information,
and will, at Company’s request, provide Company with a written certification that they have done so.

 

    	 	2	 

     

    

 

(d)Unauthorized Disclosure of
Confidential Information. If it appears that Executive Officer has disclosed, or has threatened to disclose, any Confidential
Information in violation of Section 1 of this Agreement, Company shall be entitled to an injunction to restrain Executive Officer
from disclosing, in whole or in part, such information as a result of Executive Officer’s violation of Section 1 of this
Agreement. Company shall not be prohibited by this provision from pursuing other remedies available at law, including a claim for
losses and damages.

 

2.Goodwill of Company and
Fiduciary Duties. Executive Officer acknowledges that the Company is engaged in the Business, which is highly competitive,
and that the Company has spent a great deal of time and resources to develop and maintain the Business and to otherwise create
good-will. Executive Officer further acknowledges that the services that have been and will be provided by Executive Officer are
an integral part of the total transaction and relationship between Company and its customers.

 

Executive Officer understands
and acknowledges that the Confidential Information is not available to the general public and is not readily ascertainable through
public sources, and is the Company’s proprietary trade secret and the Company’s unique and valuable asset. Therefore,
Executive Officer acknowledges that the value of the Business would be seriously diminished if Executive Officer was to engage
in certain conduct during a certain time period, as referenced below. Executive Officer further acknowledges that, but for his
employment relationship with the Company, Executive Officer would not have access to the Confidential Information or other trade
secrets and information of the Company.

 

Executive Officer further
acknowledges that he owes a fiduciary duty to the Company because of the Confidential Information he will create or be exposed
to. This duty encompasses a duty to act in good faith and to faithfully serve and be mindful of Company’s interests. It is
also understood that Executive Officer upon any termination of his employment with the Company would be in an advantageous position,
because of the Confidential Information and proprietary business information known to him, to obtain the business of and to serve
the Company’s customers; it is further agreed that the use of such Confidential Information and other proprietary information
to obtain the business of the Company’s customers would be a breach of Executive Officer’s fiduciary responsibilities
to the Company and of this Agreement.

 

The parties further
acknowledge that the financial hardship to the Company as a result of a breach of this Agreement may be difficult or impossible
to measure in dollars and that no remedy at law may be adequate to compensate the Company for such violation.

 

3.Restrictive Covenants.

 

(a)Based on the information in
Section 2 of this Agreement, and in consideration of the Company employing Executive Officer, it is agreed that during Executive
Officer’s employment with the Company and for a period of twelve (12) months thereafter (the “Restrictive Period”),
Executive Officer shall not, except on behalf of the Company, directly or indirectly, by himself, or through or on behalf of, or
in conjunction with, any other person, persons, company, partnership or other entity which Executive Officer is directly or indirectly
associated, own, operate, participate in the management or control of, be employed by, or act as a consultant to any enterprise
in the United States or Europe engaged in the business of performing services or producing and/or selling products which compete
directly with the Business, products or services of Company.

 

    	 	3	 

     

    

 

(b)Executive Officer agrees that
during the Restrictive Period, Executive Officer shall not directly or indirectly solicit or induce or attempt to solicit or induce
any employee, current or future, of the Company to leave the Company for any reason whatsoever or hire any current or future employees
of the Company.

 

(c)Executive Officer agrees that
during the Restrictive Period, Executive Officer shall not directly or indirectly solicit the trade of or trade with any customer
or prospective customer of the Company, except that during his period of employment Executive Officer may solicit customers for
legitimate business purposes for the benefit of the Company.

 

(d)Executive Officer agrees not
to take advantage of, use, acquire, or usurp any business opportunities of which Executive Officer is made aware during his employment
by the Company. All such business opportunities shall be for the sole benefit of the Company, and Executive Officer may not pursue
such business opportunities for anyone other than the Company, unless the Company expressly consents in writing or until one (1)
year after termination of Executive Officer’s employment by the Company.

 

(e)Executive Officer represents
and warrants that his experience and capabilities are such that the restrictive covenants set forth herein will not prevent him
from earning a livelihood and that Executive Officer will be fully able to earn an adequate livelihood for himself if any of such
provisions should be specifically enforced against Executive Officer.

 

(f)The parties agree that each
paragraph of this Section 3 of this Agreement constitutes an independent covenant, which shall be enforceable notwithstanding any
other right or remedy that the Company may have under any other provision of this Agreement or otherwise.

 

4.Intellectual Property Rights.

 

(a)Work Made For Hire. Executive
Officer agrees that all works that he produces, either solely or with others, during his employment (individually and collectively,
“Work”), have been or are prepared for the Company as part of and in the course of said employment, and constitute
a work made for hire as that term is defined in 17 U.S.C. Section 101 and as such, all right, title and interest in all Work, and
all intellectual property therein or resulting therefrom, shall be owned by the Company. In the event that all or any part of a
Work is for any reason deemed not to be a work made for hire, then Executive Officer hereby irrevocably and unconditionally assigns
to Company (or Company’s designee) all of his right, title and interest in and to such Work, and all intellectual property
therein or resulting therefrom, and related proprietary information or intellectual property.

 

    	 	4	 

     

    

 

(b)Assignment of Inventions.
Executive Officer agrees that Executive Officer shall not have any proprietary interest in any work product developed or used by
Executive Officer and arising out of his employment by the Company. Executive Officer shall, from time to time, as may be requested
by the Company, do all things which may be necessary to establish or document the Company’s ownership in any such work product
including, but not limited to, execution of appropriate copyright applications or assignments.

 

Executive Officer hereby
agrees to assign and does hereby assign to the Company his entire right, title and interest throughout the world in and to all
inventions, improvements, processes, techniques, discoveries and ideas (whether or not patentable) relating to any aspect of the
Company’s technology, products, production methods, service, proprietary information, research and/or development, or any
other aspect of the Company’s business or property (“Inventions”), which are made, conceived or first
reduced to practice by Executive Officer (alone or with others) during his employment, whether or not during normal working hours
and whether or not while on the Company’s premises, or, to the extent any such Inventions exist, which have been made, conceived
or first reduced to practice by him (alone or with others) prior to his employment by the Company but in contemplation of such
employment or the possibility thereof, or which result from or are suggested by any of the work that Executive Officer has performed
or may perform for or on behalf of the Company at any time. Executive Officer agrees not to assert any right with regard to any
Invention, whether or not Executive Officer perfected or acquired such right prior to his employment by the Company. Executive
Officer agrees to do all things which the Company determines are necessary or useful to apply for and/or obtain, extend or improve
Letters Patent in the United States and patent rights in such other jurisdictions as the Company may determine, and otherwise to
secure and protect all rights in and to all Inventions, all at Company’s expense. Executive Officer agrees and acknowledges
that the obligations in this regard will continue beyond the termination of this Agreement for any reason.

 

(c)Disclosure and Assignment
of Inventions. Executive Officer agrees to communicate to the Company promptly and fully in writing, in such form as the Company
may deem appropriate, all Inventions. Executive Officer agrees to make and maintain adequate permanent records of all Inventions,
in the form of memoranda, notebook entries, drawings, print-outs or reports relating thereto, and agree that these records, as
well as the Inventions themselves, shall be and remain the exclusive property of the Company.

 

Any Invention Executive
Officer discloses to a third person or which is described in a patent application filed by Executive Officer, by an assignee of
Executive Officer or on behalf of Executive Officer at any time during his employment and within twelve (12) months thereafter
and which meets any of the criteria in this Section 4 above, will be presumed to have been conceived or made by Executive Officer
during the period of his employment by the Company unless Executive Officer proves that he made or conceived such Invention following
the termination of engagement by the Company.

 

Further, Executive
Officer agrees, upon the request of the Company, to take all steps necessary to cause any third party to promptly and fully disclose
and assign all patents, copyrights and other intellectual property created by Executive Officer and such third party during the
period of Executive Officer’s employment by Company.

 

    	 	5	 

     

    

 

(d)Cooperation. Executive
Officer agrees to cooperate with the Company (or Company’s designee), during his employment and thereafter for a period of
five years, in securing and protecting patent, trademark, copyright or other similar rights in the United States and foreign countries,
in an Invention or Work. Executive Officer specifically agrees to execute any and all documents which the Company deems necessary,
and to otherwise assist the Company or its assigns, to protect its interests and to vest in the Company all right, title and interest
in all Inventions and Works, including assignments of copyrights and inventions, and to attain, enforce or defend for the Company’s
benefit, patents, copyrights or other legal protections from the Inventions and Works in any and all countries. Executive Officer
further agrees to provide such evidence and testimony as may be necessary to secure and enforce the Company’s rights. The
Company agrees to reimburse Executive Officer for all reasonable costs incurred in connection with his cooperation under this provision,
including travel, meals, and lost time/salary, if any.

 

5.Notices. All notices
required or permitted under this Agreement shall be in writing and shall be given by personal delivery or by certified mail, return
receipt requested, enclosed in a duly post-paid envelope and addressed to the post office address of the person to receive the
notice as set forth above or a different address provided by the person to receive notice or in the case of the Company, to the
attention of the Company’s Secretary at the Company’s principal office; and any notice mailed shall be deemed given
seventy-two (72) hours after mailing.

 

6.Survival. The covenants
contained in this Agreement shall remain in effect for an indefinite period of time and shall not be terminated by any event whatsoever
other than a writing signed by all parties to this Agreement which expressly terminates each covenant.

 

7.General.

 

(a)This Agreement:

 

(i) together with the Employment
Agreement, is the entire agreement between the parties, and this Agreement and the Employment Agreement supersede and replace all
other agreements oral and written with respect to their respective subject matter;

 

(ii) shall bind and benefit the
parties and their heirs, distributees, successors and assigns;

 

(iii) may not be modified, amended
or terminated except by a writing signed by all parties to it;

 

(iv) shall be governed and construed
in accordance with the internal laws of New York and venued in Monroe County, New York; and

 

(v) may not be assigned by Executive
Officer, but may be assigned by the Company.

 

    	 	6	 

     

    

 

(b)The parties acknowledge that
the financial hardship to a non-defaulting party as a result of breach of this Agreement may be difficult or impossible to measure
in dollars and that no remedy at law will be adequate to compensate the non-breaching party for such violation; therefore, in any
action to enforce this Agreement, a party shall be entitled to preliminary, temporary or permanent injunctive relief and the other
party waives the defense of adequate remedy at law, acknowledging that no such remedy exists.

 

(c)In the event of litigation to
enforce the terms and conditions of this Agreement, the losing party agrees to pay the substantially prevailing party’s costs
and expenses incurred including, without limitation, reasonable attorneys’ fees.

 

(d)Each and all of the rights and
remedies provided for in the Agreement shall be cumulative. No one right or remedy shall be exclusive of the others or any right
or remedy allowed in law or in equity. No waiver by Company of any failure by Executive Officer to keep or perform any promise
of condition of this Agreement shall be a waiver of any proceeding or succeeding breach of the same or any other promise or condition.
No waiver of Company of any right shall be construed as a waiver of any other right. The existence of any claims or causes of action
of Executive Officer against the Company shall not constitute a defense to the enforcement by the Company of the covenants contained
in this Agreement.

 

(e)If any provision of this Agreement
shall be held invalid or unenforceable by competent authority, such provision shall be construed so as to be limited or reduced
to be enforceable to the maximum extent compatible with the law as it shall then appear. The total invalidity or unenforceability
of any particular provision of this Agreement shall not affect the other provisions hereof and this Agreement shall be construed
in all respects as if such invalid or unenforceable provision were omitted.

 

 

[THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY
LEFT BLANK]

 

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IN WITNESS WHEREOF,
we have executed this Agreement to be effective as of the day and year first above written.

 

	VIRTUALSCOPICS, INC.
	 	 	 
	 	 	 
	By: 	/s/ Terence A. Walts	 
	 	Terence A. Walts	 
	 	Chairman, Compensation Committee	 
	 	to the Board of Directors	 

 

Dated: December 15, 2015

 

	RONALD WAY	 
	 	 
	/s/ Ronald Way	 

 

Dated: December 15, 2015

 

    	 	8EX-10.1

 Exhibit 10.1 

DISCOVER FINANCIAL SERVICES 

AMENDED AND RESTATED 2014 OMNIBUS INCENTIVE PLAN

 2015 SPECIAL AWARD CERTIFICATE FOR 

RESTRICTED STOCK UNITS 

  
 I 

 TABLE OF CONTENTS FOR
AWARD CERTIFICATE 
  

							
	1.	  	 Restricted Stock Units Generally.
	  	 	3	  
	2.	  	 Vesting Schedule and Conversion.
	  	 	3	  
	3.	  	 Special Provisions for Certain “Specified Employees”.
	  	 	4	  
	4.	  	 Dividend Equivalent Payments.
	  	 	4	  
	5.	  	 Death; Disability;.
	  	 	4	  
	6.	  	 Involuntary Termination.
	  	 	5	  
	7.	  	 Change in Control.
	  	 	5	  
	8.	  	 Termination of Employment.
	  	 	5	  
	9.	  	 Forfeiture/Cancellation/Clawback of RSU Awards Under Certain Circumstances.
	  	 	6	  
	10.	  	 Tax and Other Withholding Obligations.
	  	 	8	  
	11.	  	 Satisfaction of Obligations.
	  	 	8	  
	12.	  	 Nontransferability.
	  	 	8	  
	13.	  	 Designation of a Beneficiary.
	  	 	9	  
	14.	  	 Ownership and Possession.
	  	 	9	  
	15.	  	 Securities Law Matters.
	  	 	9	  
	16.	  	 Compliance with Laws and Regulations.
	  	 	9	  
	17.	  	 No Entitlements.
	  	 	10	  
	18.	  	 Consents Under Local Law.
	  	 	10	  
	19.	  	 Award Modification.
	  	 	10	  
	20.	  	 Severability.
	  	 	11	  
	21.	  	 Successors.
	  	 	11	  
	22.	  	 Governing Law.
	  	 	11	  
	23.	  	 Section 409A.
	  	 	11	  
	24.	  	 Defined Terms.
	  	 	12	  

  
 1 

 DISCOVER FINANCIAL SERVICES 

AMENDED AND RESTATED 2014 OMNIBUS INCENTIVE PLAN

 2015 SPECIAL AWARD CERTIFICATE FOR RESTRICTED
STOCK UNITS 
 Discover has awarded to you restricted stock units (“RSUs”) as part of your
discretionary long-term incentive compensation for services provided to the Company, from the Date of the Award through the Scheduled Vesting Date, as provided in this Award Certificate. This Award Certificate sets forth the general terms and
conditions of your restricted stock unit award (your “RSU Award”). Capitalized terms used in this Award Certificate that are not defined in the text have the meanings set forth in Section 25 below. 

The number of RSUs in your RSU Award has been communicated to you separately. If you are employed outside the United States, you
will also receive an “International Supplement” that contains supplemental terms and conditions for your RSU Award. This Award Certificate should be read in conjunction with the International Supplement, if applicable, in
order for you to understand the terms and conditions of your RSU Award. 
 Your RSU Award is made pursuant to the Plan.
References to “restricted stock units” or “RSUs” in this Award Certificate mean only those RSUs included in your RSU Award, and the terms and conditions herein apply only to such RSU Award. If you receive any other award under
the Plan or another equity compensation plan, it will be governed by the terms and conditions of the applicable award documentation, which may be different from those herein. 

The purpose of the RSU Award is, among other things, to align your interests with the interests of Discover and its stockholders and to reward
you for your continued Employment with the Company in the future and your compliance with the Company’s policies (including, without limitation, the Company’s risk policies and Code of Conduct), to protect the Company’s interests in
non-public, confidential and/or proprietary information, products, trade secrets, customer relationships, and other legitimate business interests, and to ensure an orderly transition of responsibilities. In view of these purposes, you will earn RSUs
included in your RSU Award only if you (1) remain in continuous Employment through the applicable Scheduled Vesting Date (subject to limited exceptions set forth herein), (2) are not found to be subject to the forfeiture, cancellation, or
clawback provisions set forth in Section 9 below, and (3) satisfy obligations you owe to the Company as set forth in Section 11 below. As the Company deems appropriate and in its sole discretion, the Company will require you to
provide a written certification or other evidence, from time to time, to confirm that none of the circumstances described in Section 9 below exist or have occurred, including upon a termination of Employment and/or during a specified period of
time prior to the applicable Scheduled Vesting Date. If you fail to timely provide any required certification or other evidence, the Company will cancel your RSU Award. It is your responsibility to provide the Human Resources Department with your
up-to-date contact information. 
  

	1.	Restricted Stock Units Generally. 

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

  
 2 

	2.	Vesting Schedule and Conversion. 

 (a) Vesting Schedule. Your RSUs will
vest according to the Scheduled Vesting Date set forth in Appendix A. Except as otherwise provided in this Award Certificate, each portion of your RSUs will vest only if you continue to provide future services to the Company by remaining in
continuous Employment through the applicable Scheduled Vesting Date. The special vesting terms set forth in Sections 5, 6 and 7 of this Award Certificate apply (1) if your Employment terminates by reason of your death or Disability, (2) if
the Company terminates your Employment in an involuntary termination under the circumstances described in Section 6, or (3) upon a Change in Control. Vested RSUs are subject to the tax withholding provisions set forth in Section 10 of
this Award Certificate. 
 (b) Conversion. 

(1) Except as otherwise provided in this Award Certificate, each of your vested RSUs will convert to one share of
Discover common stock on the applicable Scheduled Vesting Date. The special conversion provisions set forth in Sections 5, 6 and 7 of this Award Certificate apply (i) if your Employment terminates by reason of your death or Disability,
(ii) if the Company terminates your Employment in an involuntary termination under the circumstances described in Section 6, or (iii) upon a Change in Control. 

(2) Shares of Discover common stock to which you are entitled upon conversion of RSUs under any provision of this Award
Certificate shall be delivered as soon as administratively practicable thereafter and shall not be subject to any transfer restrictions, other than those that may arise under the securities laws or the Company’s policies, including, without
limitation, its stock ownership guidelines and/or Section 11 below, but will be subject to forfeiture, cancellation or clawback as set forth in Section 9 below. 

(c) Accelerated Conversion. The Committee, in its sole discretion, may determine that any RSUs may be converted to shares of Discover
common stock prior to the Scheduled Vesting Date subject to compliance with all Legal Requirements. In such case, the Committee may determine in its sole discretion that the shares may not be transferable and may remain subject to applicable
vesting, forfeiture, cancellation, clawback and withholding provisions. 
 (d) Rule of Construction for Timing of Conversion.
Whenever this Award Certificate provides for your RSUs to convert to shares of Discover common stock on the Scheduled Vesting Date or upon a different specified event or date, such conversion will be considered to have been timely made, and
neither you nor any of your beneficiaries or your 

  
 3 

 
estate shall have any claim against the Company for damages based on a delay in conversion of your RSUs (or delivery of shares of Discover common stock following conversion), and the Company
shall have no liability to you (or to any of your beneficiaries or your estate) in respect of any such delay, as long as conversion is made by December 31 of the year in which occurs the Scheduled Vesting Date or such other specified event or
date or, if later, by the 15th day of the third calendar month following such specified event or date. Similarly, neither you nor any of your beneficiaries or your estate shall have any claim against the Company for damages, and the Company shall
have no liability to you (or to any of your beneficiaries or your estate), based on any acceleration of the conversion of your RSUs pursuant to Section 2(c), as applicable. 

 

	3.	Special Provisions for Certain “Specified Employees”. 

 Notwithstanding
the other provisions of this Award Certificate, to the extent necessary to comply with Section 409A of the Internal Revenue Code, if Discover reasonably considers you to be one of its “specified employees” as defined in
Section 409A of the Internal Revenue Code at the time of the termination of your Employment, any RSUs to which you are entitled under this Award Certificate that constitute a deferred compensation arrangement under Section 409A of the
Internal Revenue Code and that are payable upon termination of your Employment will not convert to Discover common stock until the date that is six months after the termination of your Employment (or the date of your death, if such event occurs
earlier). 
  

	4.	Dividend Equivalent Payments. 

 Until your RSUs convert to shares of Discover
common stock, if Discover pays a regular or ordinary cash dividend on its common stock, you will be paid a dividend equivalent for your vested and unvested RSUs. The decision to pay a dividend and, if so, the amount of any such dividend, is
determined by Discover in its sole discretion. No dividend equivalents will be paid to you on any canceled RSUs. Discover will decide on the form of payment and may pay dividend equivalents in shares of Discover common stock, in cash or in a
combination thereof. Discover will pay the dividend equivalents as soon as administratively practicable after Discover pays the corresponding dividend on its common stock. Because dividend equivalent payments are considered part of your compensation
for income tax purposes, they will be subject to applicable tax and other withholding obligations, as summarized in Section 10. 
  

	5.	Death; Disability. 

 The following special vesting and payment terms apply to
your RSUs: 
 (a) Death. If your Employment terminates due to your death, all unvested RSUs subject to this Award Certificate will
vest on the date your Employment terminates. On that date, your RSUs will convert to shares of Discover common stock and be delivered to the beneficiary you have designated pursuant to Section 13 or the legal representative of your estate, as
applicable, as soon as administratively practicable after Discover receives appropriate notice of your death. After your death, the cancellation provisions set forth in Section 9(a) will no longer apply. 

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

  
 4 

	6.	Involuntary Termination. 

 If the Company terminates your Employment other
than for Cause, your unvested RSUs will vest on the date your Employment terminates, provided that you sign (and do not revoke) an agreement and release of claims satisfactory to the Company within 60 days following termination of your
Employment. Upon the Company’s acceptance of your fully and timely executed agreement and release of claims, your RSUs will convert to shares of Discover common stock and be delivered to you on the 60th day following your termination of
Employment, subject to Section 3 above. 
  

	7.	Change in Control. 

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

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

	8.	Termination of Employment. 

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

  
 5 

 (b) General Treatment of Vested RSU Awards. Except as otherwise provided in this Award
Certificate, your vested RSUs will convert to shares of Discover common stock on the applicable Scheduled Vesting Date. The tax and other withholding provisions as set forth in Section 10 of this Award Certificate will continue to apply until
the date the shares of Discover common stock are delivered. 
  

	9.	Forfeiture/Cancellation/Clawback of RSU Awards Under Certain Circumstances. 

 The
forfeiture, cancellation and/or clawback circumstances and events set forth in this Section 9 are designed, among other things, to incentivize compliance with the Company’s policies (including, without limitation, the Company’s risk
policies and Code of Conduct), to protect the Company’s interests in non-public, confidential and/or proprietary information, products, trade secrets, customer relationships, and other legitimate business interests, and to ensure an orderly
transition of responsibilities. This Section 9 shall apply notwithstanding any other terms of this Award Certificate (except where sections in this Award Certificate specifically provide that the circumstances set forth in this Section 9
no longer apply). 
 (a) Breach of Restrictive Covenants. Notwithstanding your satisfaction of the vesting conditions of this Award
Certificate, RSUs are not earned until the applicable Scheduled Vesting Date and, unless prohibited by applicable law, will be canceled prior to the applicable Scheduled Vesting Date in any of the circumstances set forth below. Although you will
become the beneficial owner of shares of Discover common stock following conversion of your RSUs, the Company may, upon notice, issue a transfer restriction with respect to your shares of Discover common stock following conversion of your RSUs
pending any investigation or other review that impacts the determination as to whether the RSUs are cancellable under the circumstances set forth below. The shares of Discover common stock underlying such RSUs shall be forfeited in the event the
Company determines that the RSUs were cancellable under the circumstances set forth below. Notwithstanding any provision of this Award Certificate to the contrary, in the event that at any time prior to one year after the termination of your
Employment or service with the Company, you (i) engage, in Competitive Activity; (ii) engage in Wrongful Solicitation or (iii) breach your obligations to the Company under a confidentiality, intellectual property or other restrictive
covenant, you shall be required to: 
 (1) pay to the Company an amount in cash equal to the value of the RSUs that
vested and converted to shares of Discover common stock net of taxes on or after, or within one year prior to, your termination of Employment, which value shall be determined using a valuation methodology established by the Company as of the date
your RSUs converted, were scheduled to convert, or otherwise became taxable, as applicable; or 
 (2) transfer to the
Company a number of shares of Discover common stock equal to the number of the RSUs that vested and converted to shares of Discover common stock net of taxes on or after, or within one year prior to, your termination of Employment. 

(b) Clawback. In the event and to the extent the Committee reasonably determines that the performance considered by the Committee, and
on the basis of which the 

  
 6 

 
amount of RSUs were granted, was based on Discover’s material noncompliance with any financial reporting requirement under the securities laws which requires Discover to file a restatement
of its financial statements within three years of the Date of the Award, you will be required to comply with paragraphs (1) and (2) (as applicable) below to repay to the Company an amount equal to the number of RSUs which were granted
hereunder less the number of RSUs that would have been granted had your RSUs been granted based on compliance with any such financial reporting requirement under the securities laws (such number of RSUs, the “Clawback RSUs,”
to be determined in each case by the Committee in its sole discretion and before satisfaction of tax or other withholding obligations pursuant to Section 10): 

(1) You shall forfeit a number of RSUs hereunder equal to the Clawback RSUs. In the event such forfeited RSUs are less
than the Clawback RSUs, then you shall comply with the following paragraph (2). 
 (2) You shall transfer to the
Company the shares of Discover common stock which resulted from the conversion of the RSUs hereunder net of taxes or their equivalent dollar value such that the forfeited RSUs under paragraph (1) above plus the shares of Discover common stock
or monies (excluding the impact of taxes) transferred under this paragraph (2) equals the value of the Clawback RSUs. The value of the Clawback RSUs shall be determined using a valuation methodology established by the Company, of Discover
common stock on the date your RSUs converted, were scheduled to convert, or otherwise became taxable, as applicable. 
 (c) Risk
Review. No RSUs will convert to shares of Discover common stock until the Chief Human Resources Officer receives confirmation from the Chief Risk Officer that a review has been completed by the Chief Risk Officer to determine whether you engaged
in any willful or reckless violation of the Company’s risk policies. If the Chief Risk Officer finds any such violation or breach, then the Company may determine that all or a portion of your RSUs will be forfeited. Additionally, if you are a
Covered Employee, the Chief Risk Officer will conduct Company and/or Business Unit risk reviews as well as evaluate your individual risk goals. Based on this assessment, the Company may determine that all or a portion of your RSUs will be forfeited.

 (d) Authorization. You authorize the Company to deduct any amount or amounts owed by you pursuant to this Section 9 from any
amounts payable by or on behalf of the Company to you, including, without limitation, any amount payable to you as salary, wages, vacation pay, bonus, severance, change in control severance or the settlement of any stock-based award. This right of
offset shall not be an exclusive remedy and the Company’s election not to exercise this right of offset with respect to any amount payable to you shall not constitute a waiver of this right of offset with respect to any other amount payable to
you or any other remedy. 
  

	10.	Tax and Other Withholding Obligations. 

 Subject to rules and procedures
established by Discover, you may be eligible to elect to satisfy the tax or other withholding obligations arising upon conversion of your RSUs or upon any taxable event by having Discover withhold shares of Discover common stock or by

  
 7 

 
tendering shares of Discover common stock, in each case in an amount sufficient to satisfy the tax or other withholding obligations. Shares of Discover common stock withheld or tendered will be
valued using the fair market value of Discover common stock on the date the shares of Discover common stock are scheduled to convert, or otherwise become taxable, as applicable, using a valuation methodology established by Discover. In order to
comply with applicable accounting standards or the Company’s policies in effect from time to time, Discover may limit the amount of shares of Discover common stock that you may have withheld or that you may tender. 

 

	11.	Satisfaction of Obligations. 

 Notwithstanding any other provision of this Award
Certificate, Discover may, in its sole discretion, take various actions affecting your RSUs in order to collect amounts sufficient to satisfy any obligation that you owe to the Company and any tax or other withholding obligations. Discover’s
determination of the amount that you owe the Company shall be conclusive. The fair market value of Discover common stock for purposes of the following provisions shall be determined using a valuation methodology established by Discover. The actions
that may be taken by Discover pursuant to this Section 11 include, but are not limited to, the following: 
 (a) Withholding of
Shares of Discover Common Stock. Upon conversion of RSUs, including any accelerated conversion pursuant to Sections 5, 6, or 7 above, or, if later, upon delivery of the shares of Discover common stock, Discover may withhold a number of shares of
Discover common stock sufficient to satisfy any obligation that you owe to the Company and any tax or other withholding obligations whether national, federal, state or local tax withholding obligations including any social insurance contributions or
employment tax obligation. The Company shall determine the number of shares of Discover common stock to be withheld by dividing the dollar value of your obligation to the Company and any tax or other withholding obligations by the fair market value
of Discover common stock on the date the shares of Discover common stock are scheduled to convert, or otherwise become taxable, as applicable. To the extent that the Company retains any shares of Discover common stock or reduces the number of RSUs
to cover the withholding obligations, it will do so at the minimum statutory rate. Should the Company withhold in excess of the actual tax withholding obligation, the Company will refund the excess amount to you within a reasonable period and
without any interest. 
 (b) Netting of Accelerated RSUs. In order to satisfy any taxes due upon an event which is earlier than
conversion, Discover may accelerate the vesting and conversion of a portion of your unvested RSUs. The Company shall determine the number of RSUs to be accelerated and converted by dividing the dollar value of your tax obligations upon such event by
the fair market value of Discover common stock on the date of accelerated conversion. Accelerated and converted RSUs shall not exceed the value of taxes due upon such event and the resulting shares of Discover common stock will be withheld by
Discover. 
 (c) Withholding of Other Compensation. Discover may withhold the payment of dividend equivalents on your RSUs or any
other compensation or payments due from Discover to ensure satisfaction of any obligation that you owe the Company or any tax or other withholding obligations or Discover may permit you to satisfy such tax or other withholding obligation by paying
such obligation in immediately available funds. 

  
 8 

 (d) Mobile Employees. You are liable and responsible for all taxes and social insurance
contributions owed in connection with the Award, regardless of any action the Company takes with respect to any tax withholding obligations that arise in connection with the Award. The Company does not make any representation or undertaking
regarding the tax treatment or the treatment of any tax withholding in connection with the grant, vesting or payment of the Award. The Company does not commit and is under no obligation to structure the Award to reduce or eliminate your tax
liability. Further, you may be subject to individual income taxation (and possibly social security or other applicable personal or payroll taxes) in each jurisdiction where you have performed services for the Company between the Award Date and the
Vesting Date. Taxes for which you are liable, if applicable, may be withheld and deposited by the Company in each jurisdiction in which you have performed services regardless of your status as a resident or non-resident in one or more of the
jurisdictions that have a right to impose taxation. You agree that you will comply with all United States and foreign individual income tax return filing obligations that may be imposed with respect to the Award. 

 

	12.	Nontransferability. 

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

	13.	Designation of a Beneficiary. 

 You may make a written designation of beneficiary
or beneficiaries to receive all or part of the shares of Discover common stock to be paid under this Award Certificate in the event of your death. To make a beneficiary designation, you must complete and file the form attached hereto as Appendix
B with the Human Resources Department. Any shares of Discover common stock that become payable upon your death, and as to which a designation of beneficiary is not in effect, will be distributed to your estate. If you previously filed a
designation of beneficiary form for your equity awards with the Human Resources Department, such form will also apply to the RSUs granted pursuant to this RSU Award. You may replace or revoke your beneficiary designation at any time. If there is any
question as to the legal right of any beneficiary to receive shares of Discover common stock under this RSU Award, Discover may determine in its sole discretion to deliver the shares in question to your estate. Discover’s determination shall be
binding and conclusive on all persons and it will have no further liability to anyone with respect to such shares. 
  

	14.	Ownership and Possession. 

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

  
 9 

 
or advisable to comply with Section 409A of the Internal Revenue Code, with respect to any provision of this Award Certificate that provides for vested RSUs to convert to shares of Discover
common stock on or as soon as administratively practicable after a specified event or date, such conversion will be made by the later of the end of the calendar year in which the specified event or date occurs or the 15th day of the third calendar month following the specified event or date. 
 (b)
Following Conversion. Subject to the terms and conditions of this Award Certificate, following conversion of your RSUs you will be the beneficial owner of the net shares of Discover common stock issued to you, and you will be entitled to all
rights of ownership, including voting rights and the right to receive cash or stock dividends or other distributions paid on such shares. 
  

	15.	Securities Law Matters. 

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

	16.	Compliance with Laws and Regulations. 

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

	17.	No Entitlements. 

 (a) No Right to Continued Employment. This RSU Award is
not an employment agreement, and nothing in this Award Certificate, the International Supplement, if applicable, or the Plan shall alter your status as an “at-will” employee of the Company or your Employment status at a Related Employer.
None of this Award Certificate, the International Supplement, if applicable, or the Plan shall be construed as guaranteeing your Employment by the Company or a Related Employer, or as giving you any right to continue in the employ of the Company or
a Related Employer, during any period (including without limitation the period between the Date of the Award and any of the Scheduled Vesting Date, or any portion of any of these periods), nor shall they be construed as giving you any right to be
reemployed by the Company or a Related Employer following any termination of Employment. 
 (b) No Right to Future Awards. This RSU
Award, and all other awards of RSUs and other equity-based awards, are discretionary. This RSU Award does not confer on you any right or entitlement to receive another award of RSUs, any other equity-based award or any other award at any time in the
future or in respect of any future period. 

  
 10 

 (c) No Effect on Future Employment Compensation. Discover has made this RSU Award to you
in its sole discretion. This RSU Award does not confer on you any right or entitlement to receive compensation in any specific amount for any future fiscal year, and does not diminish in any way the Company’s discretion to determine the amount,
if any, of your compensation. In addition, this RSU Award is not part of your base salary or wages and will not be taken into account in determining any other Employment-related rights you may have, such as rights to pension or severance pay, end of
service payments, bonuses, long-service awards or similar payments and in no event shall be considered as compensation for, or relating in any way to, past services for the Company. 

(d) Termination of Employment. In consideration of the grant of the Award, no claim or entitlement to compensation or damages
shall arise from termination of the Award or diminution in value of the Award or Shares acquired through vesting of the Award resulting from termination of your employment by the Company (for any reason whatsoever and whether or not in breach of
local labor laws) and you irrevocably release the Company and the Employer from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by signing this
Agreement, you will be deemed irrevocably to have waived your entitlement to pursue such claim; and in the event of termination of your employment (whether or not in breach of local labor laws), your right to receive the Award and vest in the Award
under the Plan, if any, will terminate effective as of the date that you are no longer actively employed and will not be extended by any notice period mandated under local law (e.g. active employment would not include a period of “garden
leave” or similar period pursuant to local law); Discover shall have the exclusive discretion to determine when you are no longer actively employed for purposes of your Award. 

(e) Language. If you have received this Agreement or any other document related to the Plan translated into a language other than
English and if the translated version is different that the English version, the English version will control. 
 (f) Award Terms
Control. In the event of any conflict between any terms applicable to equity awards in any employment agreement, offer letter or other arrangement that you have entered into with the Company and the terms set forth in this Award Certificate, the
latter shall control. In the event of any conflict between the terms set forth in this Award Certificate and the terms of the Plan, the latter shall control. 
  

	18.	Consents. 

 Your RSU Award is conditioned upon the making of all filings and the
receipt of all consents or authorizations required to comply with, or required to be obtained under, applicable local law. 
 In accepting
this RSU Award, you consent to the collection, use and transfer, in electronic or other form, of your personal data by and among, as applicable, the Company and any other possible recipients for the purpose of implementing, administering and
managing your participation in the Plan, as well as for the purpose of the Company’s compliance with applicable law, including, without limitation, Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act. You
understand that the recipients of your personal data may be 

  
 11 

 
located in the U.S. or elsewhere, and the recipients’ country may have different data privacy laws and protections than your country. You understand that you may request a list with the
names and addresses of any potential recipients of your personal data, view the personal data, request additional information about the storage of your personal data, require any necessary amendments to your personal data or refuse or withdraw your
consent by contacting your local human resources representative, in any case without cost. You understand, however, that refusing or withdrawing your consent may affect your ability to participate in the Plan. 

 

	19.	Electronic Delivery and Consent to Electronic Participation. 

 The Company may,
in its sole discretion, decide to deliver any documents related to the RSU Award and participation in the Plan or future RSU Awards by electronic means. You hereby consent to receive such documents by electronic delivery and to participate in the
Plan through an online or electronic system established and maintained by the Company or another third party designated by the Company, including the acceptance of RSU Awards and the execution of the RSU agreements through electronic signature. 

 

	20.	Award Modification. 

 The Committee reserves the right to modify or amend
unilaterally the terms and conditions of your RSUs, without first asking your consent, or to waive any terms and conditions that operate in favor of Discover. These amendments may include (but are not limited to) changes that the Committee considers
necessary or advisable as a result of changes in any, or the adoption of any new, Legal Requirement. The Committee may not modify your RSUs in a manner that would materially impair your rights in your RSUs without your consent; provided,
however, that the Committee may, without your consent, amend or modify your RSUs in any manner that the Committee considers necessary or advisable to comply with or reflect the application of any Legal Requirement or to ensure that your RSUs
are not subject to United States federal, state or local income tax or any equivalent taxes in territories outside the United States prior to payment. Discover will notify you of any amendment of your RSUs that affects your rights. Any amendment or
waiver of a provision of this Award Certificate (other than any amendment or waiver applicable to all recipients generally), which amendment or waiver operates in your favor or confers a benefit on you, must be in writing and signed by the Chief
Human Resources Officer to be effective. The Committee delegated the authority under this RSU Award issued under the Plan (other than for executive officers of the Company) moving from the U.S., United Kingdom or China to certain other non-U.S.
jurisdictions where the issuance of stock is not permitted or is administratively cumbersome by either (a) providing for the cash settlement of the RSU Award, or (b) accelerating the vesting and payment, in cash or shares, of the RSU
Award, in either case of (a) or (b) in his or her sole discretion and in a manner otherwise consistent with the RSU Award and the Plan.  
  

	21.	Severability. 

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

  
 12 

	22.	Successors. 

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

 

	23.	Governing Law. 

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

	24.	Section 409A. 

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

	25.	Defined Terms. 

 For purposes of this Award Certificate, the following terms
shall have the meanings set forth below: 
 (a) “Board” means the Board of Directors of Discover. 

(b) “Cause” means: 

(1) any act or omission which constitutes a material breach of your obligations to the Company or your failure or
refusal to perform satisfactorily any duties reasonably required of you, which breach, failure or refusal (if susceptible to cure) is not corrected (other than failure to correct by reason of your incapacity due to Disability) within ten
(10) business days after written notification thereof to you by the Company; 

  
 13 

 (2) any act or omission by you that constitutes (i) fraud or
intentional misrepresentation, (ii) embezzlement, misappropriation or conversion of assets of, or business opportunities considered by, the Company or (iii) any other act which has caused or may reasonably be expected to cause material
injury to the interest or business reputation of the Company; or 
 (3) your violation of any securities, commodities
or banking laws, any rules or regulations issued pursuant to such laws, or rules or regulations of any securities or commodities exchange or association of which the Company is a member or of any policy of the Company relating to compliance with any
of the foregoing. 
 (c) “Change in Control” means, except as provided otherwise below, the first to occur of
any of the following events: 
 (1) except as otherwise provided in clause (3) below, any person (as defined in
Section 3(a)(9) of the Securities Exchange Act of 1934 (the “Exchange Act”), as such term is modified in Sections 13(d) and 14(d) of the Exchange Act), other than (i) any employee plan established by the Company or any of its
Subsidiaries, (ii) any group of employees holding shares subject to agreements relating to the voting of such shares, (iii) the Company or any of its affiliates (as defined in Rule 12b-2 promulgated under the Exchange Act), (iv) an
underwriter temporarily holding securities pursuant to an offering of such securities, or (v) a corporation owned, directly or indirectly, by stockholders of the Company in substantially the same proportions as their ownership of the Company,
either (x) acquires ownership of stock of the Company that, together with stock held by such person (not including the stock owned by such person any stock acquired directly from the Company other than in connection with the acquisition by the
Company of a business), constitutes more than fifty percent (50%) of the total fair market value of the stock of the Company (but only if such person did not own more than 50% of the total fair market value of the stock of the Company prior to
the acquisition of additional stock), or (y) acquires (or has acquired during the twelve-month period ending on the date of the most recent acquisition by such person) ownership of the stock of the Company possessing thirty percent
(30%) or more of the total voting power of the stock of the Company (but only if such person did not own 30% or more of the total voting power of the stock of the Company prior to the acquisition of additional stock and not including the stock
owned by such person any stock acquired directly from the Company other than in connection with the acquisition by the Company of a business); 

(2) a change in the composition of the Board during any twelve-month period, such that individuals who, as of the Date
of the Award, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a member of the Board subsequent to the date of Date of the
Award whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of
the Incumbent Board; 

  
 14 

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

(4) the complete liquidation of the Company or the sale or disposition by the Company of all or substantially all of
the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to (i) a shareholder of the Company (immediately before the asset transfer) in exchange for or with respect to
the Company’s stock, (ii) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, either by the Company or by a person or more than one person acting as a group, that owns
fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the Company, or (iii) a person, or more than one person acting as a group, that owns, directly or indirectly, fifty percent (50%) or more
of the total value or voting power of all the outstanding stock of the Company; provided, however, that a Change in Control pursuant to this clause (4) shall not be deemed to have occurred unless a person (determined pursuant to clause
(1) above) or persons acting as a group acquires (or has acquired during the twelve-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value
equal to or more than forty percent (40%) of the total gross fair market value of all of the assets of the Company immediately before such acquisition or acquisitions. 

Notwithstanding the foregoing, with respect to a Change in Control of Discover, no Change in Control shall be deemed to have occurred if there
is consummated any transaction or series of integrated transactions immediately following which the beneficial holders of the Company’s common stock immediately prior to such transaction or series of transactions continue to have substantially
the same proportionate ownership in an entity which owns substantially all of the assets of the Company immediately prior to such transaction or series of transactions. 

  
 15 

 (d) “Chief Human Resources Officer” means the chief human
resources officer of Discover, any successor chief human resources officer, or any other individual or committee appointed by the chief executive officer of Discover with the power and authority of the chief human resources officer. 

(e) “Committee” means the Compensation and Leadership Development Committee of the Board, any successor
committee thereto or any other committee of the Board appointed by the Board with the powers of the Committee under the Plan, or any subcommittee appointed by such Committee. 

(f) “Company” means Discover and all of its Subsidiaries. 

(g) “Competitive Activity”means: 

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

(2) either alone or in concert with others, forming, or acquiring a 5% or greater equity ownership, voting interest or
profit participation in, a Competitor. 
 (3) The Committee delegated administrative authority under the Plan to the
Company’s Chief Human Resources Officer to determine, in his or her sole discretion, whether a current or former employee has engaged in Competitive Activity in violation of the restrictive covenants under this RSU Award issued under the Plan.

 (h) “Competitor” means any corporation, partnership or other entity that engages in (or that owns a
significant interest in any corporation, partnership or other entity that engages in) (1) the business of consumer lending, including, without limitation, credit card issuance or electronic payment services, or (2) any other business in
which you have been involved in or had significant knowledge of, which has been conducted by the Company at any time during your employment with the Company. For the avoidance of doubt, a competitor of any entity which results from a corporate
transaction involving the Company that constitutes a Change in Control shall be considered a Competitor for purposes of this Award Certificate. 

(i) “Chief Risk Officer” means the chief risk officer of Discover, any successor chief risk officer, or any other individual
or committee appointed by the chief executive officer of Discover with the power and authority of the chief risk officer. 

  
 16 

 (j) “Covered Employee” means an employee who, as of the Date of
the Award, has been identified as a covered employee by Corporate Risk Management. 
 (k) “Date of the Award”
means the date set forth in Appendix A. 
 (l) “Disability” means a “permanent and total
disability,” as defined in Section 22(e)(3) of the Internal Revenue Code. 
 (m) “Discover” means
Discover Financial Services, a Delaware corporation. 
 (n) “Employed” and “Employment” refer to
employment with the Company and/or Related Employment. 
 (o) “Good Reason”means the occurrence of any of the
following upon, or within six (6) months prior to or twenty-four (24) months after the occurrence of a Change in Control of Discover without your prior written consent: 

(1) any material diminution in your assigned duties, responsibilities and/or authority, including the assignment to you
of any duties, responsibilities or authority inconsistent with the duties, responsibilities and authority assigned to you, immediately prior to such assignment; 

(2) a material diminution in the authority, duties, or responsibilities of the supervisor to whom you are required to
report; 
 (3) any material reduction in your base compensation; provided, however, that Company-initiated
across-the-board reductions in compensation affecting substantially all eligible Company employees shall alone not be considered “Good Reason,” unless the compensation reductions exceed twenty percent (20%) of your base compensation;

 (4) A material diminution of the budget over which you have authority; 

(5) The Company’s requiring you to be based at a location that (i) is in excess of thirty-five
(35) miles from the location of your principal job location or office immediately prior to the Change in Control, or (ii) results in an increase in your normal daily commuting time by more than ninety (90) minutes, except for required
travel on Company’s business to an extent substantially consistent with your then present business travel obligations; or 

(6) Any other action or inaction that constitutes a material breach by the Company of any agreement pursuant to which
you provide services to the Company. 
 For purposes of paragraphs (1) through (6) above, the duties, responsibilities and/or
authority assigned to you shall be deemed to be the greatest of those in effect prior to or after the Change in Control. Unless you become Disabled, your right to terminate your Employment for Good Reason shall not be affected by your incapacity due
to physical or mental illness. Your 

  
 17 

 
continued Employment shall not constitute consent to, or a waiver of rights with respect to, any circumstance constituting Good Reason. Notwithstanding the foregoing, Good Reason shall not exist
unless you give the Company written notice thereof within 30 days after its occurrence and the Company shall not have remedied the action within 30 days after such written notice. 

(p) “Internal Revenue Code” means the United States Internal Revenue Code of 1986, as amended, and the rules,
regulations and guidance thereunder. 
 (q) “Legal Requirement” means any law, regulation, ruling, judicial
decision, accounting standard, regulatory guidance or other legal requirement (including any foreign legal requirements). 
 (r)
“Plan” means the Discover Financial Services Amended and Restated 2014 Omnibus Incentive Plan, as in effect from time to time. 

(s) “Related Employment” means your employment with an employer other than the Company (such employer, herein
referred to as a “Related Employer”), provided: (1) you undertake such employment at the written request or with the written consent of the Chief Human Resources Officer; (2) immediately prior to undertaking
such employment you were an employee of the Company or were engaged in Related Employment (as defined herein); and (3) such employment is recognized by the Company in its discretion as Related Employment; and, provided further that the
Company may (i) determine at any time in its sole discretion that employment that was recognized by the Company as Related Employment no longer qualifies as Related Employment, and (ii) condition the designation and benefits of Related
Employment on such terms and conditions as the Company may determine in its sole discretion. The designation of employment as Related Employment does not give rise to an employment relationship between you and the Company, or otherwise modify your
and the Company’s respective rights and obligations. 
 (t) “Scheduled Vesting Date” means the Scheduled
Vesting Date set forth in Appendix A as the context requires. 
 (u) “Subsidiary” means (i) a
corporation or other entity with respect to which Discover, directly or indirectly, has the power, whether through the ownership of voting securities, by contract or otherwise, to elect at least a majority of the members of such corporation’s
board of directors or analogous governing body, or (ii) any other corporation or other entity in which Discover, directly or indirectly, has an equity or similar interest and which the Committee designates as a Subsidiary for purposes of the
Plan. 
 (v) “Wrongful Solicitation” occurs upon either of the following events: 

(1) while Employed, including during any notice period applicable to you in connection with the termination of your
Employment, or within one year after the termination of your Employment, directly or indirectly in any capacity (including through any person, corporation, partnership or other business entity of any kind), you hire or solicit, recruit, induce,
entice, influence or encourage any Company employee to leave the Company or become hired or engaged by another firm; provided, however, that this clause shall apply only to employees with whom you worked or had professional or business contact, or
who worked in or with your business unit, during any notice period applicable to you in connection with the termination of your Employment or during the one year preceding notice of the termination of your Employment; or 

  
 18 

 (2) while Employed, including during any notice period applicable to you
in connection with the termination of your Employment, or within one year after the termination of your Employment, directly or indirectly in any capacity (including through any person, corporation, partnership or other business entity of any kind),
you solicit or entice away or in any manner attempt to persuade any client or customer, or prospective client or customer, of the Company (i) to discontinue or diminish his, her or its relationship or prospective relationship with the Company
or (ii) to otherwise provide his, her or its business to any person, corporation, partnership or other business entity which engages in any line of business in which the Company is engaged (other than the Company); provided, however, that this
clause shall apply only to clients or customers, or prospective clients or customers, that you worked for on an actual or prospective project or assignment during any notice period applicable to you in connection with the termination of your
Employment or during the one year preceding notice of the termination of your Employment. 
 (3) The Committee
delegated administrative authority under the Plan to the Company’s Chief Human Resources Officer to determine, in his or her sole discretion, whether a current or former employee has engaged in Wrongful Solicitation in violation of the
restrictive covenants under this RSU Award issued under the Plan. 
 IN WITNESS WHEREOF, Discover has duly executed and delivered
this Award Certificate as of the Date of the Award. 
  

	
	DISCOVER FINANCIAL SERVICES
	
	   

	By:
	Doug Rose
	Senior Vice President, Chief HR Officer

  
 19 

 APPENDIX A 

Summary of Award 
  

									
	Date of Award:	  	December 17, 2015	  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
	Vesting Schedule:	  	Scheduled Vesting Date	  	Vesting Amount	  		  	
		  		  		  		  	
		  	December 17, 2020	  	100%	  		  	

  
 20 

 APPENDIX B 

Designation of Beneficiary(ies) Under 

Discover Equity Compensation Plans 
 This
Designation of Beneficiary shall remain in effect with respect to all awards issued to me under any Discover equity compensation plan, including any awards that may be issued to me after the date hereof, unless and until I modify or revoke it by
submitting a later dated beneficiary designation. This Designation of Beneficiary supersedes all my prior beneficiary designations with respect to all my equity awards. 

I hereby designate the following beneficiary(ies) to receive any survivor benefits with respect to all my equity awards: 

 

											
	 	 	 Beneficiary(ies) Name
	 	 	  	 Relationship
	 	 	  	 Percentage

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

 Address(es) of Beneficiary(ies): 
  

							
	(1)	  		  		  	
				
	 (2)
	  		  		  	
				
	 (3)
	  		  		  	
				
	 (4)
	  		  		  	
		  		  		  	
	 	  	
		  		  		  	
	Name:   (please print)	  		  	Date	  	
		  		  		  	
	 	  		  		  	
		  		  		  	
	Signature	  		  		  	

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

  
 21

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