Document:

Exhibit 10.1

 

NEKTAR THERAPEUTICS

 

AMENDED AND RESTATED 2017 PERFORMANCE
INCENTIVE PLAN

 

		1.	PURPOSE OF PLAN

 

The purpose of this Nektar Therapeutics Amended and
Restated 2017 Performance Incentive Plan (this “Plan”) of Nektar Therapeutics, a Delaware corporation (the “Corporation”),
is to promote the success of the Corporation and to increase stockholder value by providing an additional means through the grant
of awards to attract, motivate, retain and reward selected employees and other eligible persons.

 

		2.	ELIGIBILITY

 

The Administrator (as such term is defined in Section 3.1)
may grant awards under this Plan only to those persons that the Administrator determines to be Eligible Persons. An “Eligible
Person” is any person who is either: (a) an officer (whether or not a director) or employee of the Corporation or
one of its Subsidiaries; (b) a director of the Corporation or one of its Subsidiaries; or (c) an individual consultant
or advisor who renders or has rendered bona fide services (other than services in connection with the offering or sale of securities
of the Corporation or one of its Subsidiaries in a capital-raising transaction or as a market maker or promoter of securities of
the Corporation or one of its Subsidiaries) to the Corporation or one of its Subsidiaries and who is selected to participate in
this Plan by the Administrator; provided, however, that a person who is otherwise an Eligible Person under clause (c) above
may participate in this Plan only if such participation would not adversely affect either the Corporation’s eligibility to
use Form S-8 to register under the Securities Act of 1933, as amended (the “Securities Act”), the offering and
sale of shares issuable under this Plan by the Corporation or the Corporation’s compliance with any other applicable laws.
An Eligible Person who has been granted an award (a “participant”) may, if otherwise eligible, be granted additional
awards if the Administrator shall so determine. As used herein, “Subsidiary” means any corporation or other
entity a majority of whose outstanding voting stock or voting power is beneficially owned directly or indirectly by the Corporation;
and “Board” means the Board of Directors of the Corporation.

 

		3.	PLAN ADMINISTRATION

 

		3.1	The Administrator. This Plan shall be administered by and all awards under this Plan
shall be authorized by the Administrator. The “Administrator” means the Board or one or more committees appointed by
the Board or another committee (within its delegated authority) to administer all or certain aspects of this Plan. Any such committee
shall be comprised solely of one or more directors or such number of directors as may be required under applicable law. A committee
may delegate some or all of its authority to another committee so constituted. The Board or a committee comprised solely of directors
may also delegate, to the extent permitted by Section 157(c) of the Delaware General Corporation Law and any other applicable
law, to one or more officers of the Corporation, its powers under this Plan (a) to designate the officers and employees of
the Corporation and its Subsidiaries who will receive grants of awards under this Plan, and (b) to determine the number of
shares subject to, and the other terms and conditions of, such awards. The Board may delegate different levels of authority to
different committees with administrative and grant authority under this Plan. Unless otherwise provided in the Bylaws of the Corporation
or the applicable charter of any Administrator: (a) a majority of the members of the acting Administrator shall constitute
a quorum, and (b) the vote of a majority of the members present assuming the presence of a quorum or the unanimous written
consent of the members of the Administrator shall constitute action by the acting Administrator.

 

With respect to awards previously intended to satisfy
the requirements for performance-based compensation under Section 162(m) of the Internal Revenue Code of 1986, as amended
(the “Code”), this Plan shall be administered by a committee consisting solely of two or more outside directors
(as this requirement is applied under Section 162(m) of the Code); provided, however, that the failure to satisfy such requirement
shall not affect the validity of the action of any committee otherwise duly authorized and acting in the matter. Award grants,
and transactions in or involving awards, intended to be exempt under Rule 16b-3 under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), must be duly and timely authorized by the Board or a committee consisting solely of two
or more non-employee directors (as this requirement is applied under Rule 16b-3 promulgated under the Exchange Act). To the extent
required by any applicable listing agency, this Plan shall be administered by a committee composed entirely of independent directors
(within the meaning of the applicable listing agency).

 

    

     

    

 

		3.2	Powers of the Administrator. Subject to the express provisions of this Plan, the
Administrator is authorized and empowered to do all things necessary or desirable in connection with the authorization of awards
and the administration of this Plan (in the case of a committee or delegation to one or more officers, within the authority delegated
to that committee or person(s)), including, without limitation, the authority to:

 

		(a)	determine eligibility and, from among those persons determined to be eligible, the particular Eligible
Persons who will receive an award under this Plan;

 

		(b)	grant awards to Eligible Persons, determine the price at which securities will be offered or awarded
and the number of securities to be offered or awarded to any of such persons, determine the other specific terms and conditions
of such awards consistent with the express limits of this Plan, establish the installments (if any) in which such awards shall
become exercisable or shall vest (which may include, without limitation, performance and/or time-based schedules), or determine
that no delayed exercisability or vesting is required, establish any applicable performance targets, and establish the events of
termination or reversion of such awards;

 

		(c)	approve the forms of award agreements (which need not be identical either as to type of award or
among participants);

 

		(d)	construe and interpret this Plan and any agreements defining the rights and obligations of the
Corporation, its Subsidiaries, and participants under this Plan, further define the terms used in this Plan, and prescribe, amend
and rescind rules and regulations relating to the administration of this Plan or the awards granted under this Plan;

 

		(e)	cancel, modify, or waive the Corporation’s rights with respect to, or modify, discontinue,
suspend, or terminate any or all outstanding awards, subject to any required consent under Section 8.6.5;

 

		(f)	accelerate or extend the vesting or exercisability or extend the term of any or all such outstanding
awards (in the case of options or stock appreciation rights, within the maximum ten-year term of such awards) in such circumstances
as the Administrator may deem appropriate (including, without limitation, in connection with a termination of employment or services
or other events of a personal nature) subject to any required consent under Section 8.6.5;

 

		(g)	adjust the number of shares of Common Stock subject to any award, adjust the price of any or all
outstanding awards or otherwise change previously imposed terms and conditions, in such circumstances as the Administrator may
deem appropriate, in each case subject to Sections 4 and 8.6 (and subject to the no repricing provision below);

 

		(h)	determine the date of grant of an award, which may be a designated date after but not before the
date of the Administrator’s action (unless otherwise designated by the Administrator, the date of grant of an award shall
be the date upon which the Administrator took the action granting an award);

 

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		(i)	determine whether, and the extent to which, adjustments are required pursuant to Section 7
hereof and authorize the termination, conversion, substitution or succession of awards upon the occurrence of an event of the type
described in Section 7;

 

		(j)	acquire or settle (subject to Sections 7 and 8.6) rights under awards in cash, stock of equivalent
value, or other consideration (subject to the no repricing provision below); and

 

		(k)	determine the fair market value of the Common Stock or awards under this Plan from time to time
and/or the manner in which such value will be determined.

 

Notwithstanding the foregoing and except for an adjustment
pursuant to Section 7.1 or a repricing approved by stockholders, in no case may the Administrator (1) amend an outstanding
stock option or stock appreciation right to reduce the exercise price or base price of the award, (2) cancel, exchange, or
surrender an outstanding stock option or stock appreciation right in exchange for cash or other awards for the purpose of repricing
the award, or (3) cancel, exchange, or surrender an outstanding stock option or stock appreciation right in exchange for an
option or stock appreciation right with an exercise or base price that is less than the exercise or base price of the original
award.

 

		3.3	Binding Determinations. Any action taken by, or inaction of, the Corporation, any
Subsidiary, or the Administrator relating or pursuant to this Plan and within its authority hereunder or under applicable law shall
be within the absolute discretion of that entity or body and shall be conclusive and binding upon all persons. Neither the Board
nor any Board committee, nor any member thereof or person acting at the direction thereof, shall be liable for any act, omission,
interpretation, construction or determination made in good faith in connection with this Plan (or any award made under this Plan),
and all such persons shall be entitled to indemnification and reimbursement by the Corporation in respect of any claim, loss, damage
or expense (including, without limitation, attorneys’ fees) arising or resulting therefrom to the fullest extent permitted
by law and/or under any directors and officers liability insurance coverage that may be in effect from time to time.

 

		3.4	Reliance on Experts. In making any determination or in taking or not taking any action
under this Plan, the Administrator may obtain and may rely upon the advice of experts, including employees and professional advisors
to the Corporation. No director, officer or agent of the Corporation or any of its Subsidiaries shall be liable for any such action
or determination taken or made or omitted in good faith.

 

		3.5	Delegation. The Administrator may delegate ministerial, non-discretionary functions
to individuals who are officers or employees of the Corporation or any of its Subsidiaries or to third parties.

 

		4.	SHARES OF COMMON STOCK SUBJECT TO THE PLAN; SHARE LIMITS

 

		4.1	Shares Available. Subject to the provisions of Section 7.1, the capital stock
that may be delivered under this Plan shall be shares of the Corporation’s authorized but unissued Common Stock and any shares
of its Common Stock held as treasury shares. For purposes of this Plan, “Common Stock” shall mean the common
stock of the Corporation and such other securities or property as may become the subject of awards under this Plan, or may become
subject to such awards, pursuant to an adjustment made under Section 7.1.

 

		4.2	Share Limits. Subject to Section 7.1, the maximum number of shares of Common Stock
that may be delivered pursuant to awards granted to Eligible Persons under this Plan (the “Share Limit”) is
equal to:

 

		(1)	19,200,000 shares of
Common Stock, less

 

		(2)	The number of any shares subject to awards granted under the Corporation’s
2012 Performance Incentive Plan (the “2012 Plan”) on or after March 31, 2017. 

 

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Shares issued
in respect of any “Full-Value Award” granted under this Plan shall be counted against the foregoing Share Limit as
1.5 shares for every one share issued in connection with such award (the “Full-Value Award Ratio”). (For example, if
a stock bonus of 100 shares of Common Stock is granted under this Plan, 150 shares shall be charged against the Share Limit in
connection with that award.) For this purpose, a “Full-Value Award” means any award under this Plan that is not a stock
option grant or a stock appreciation right grant.

 

The following limits also apply
with respect to awards granted under this Plan:

 

		(a)	The maximum number of shares of Common Stock that may be delivered pursuant to options qualified as incentive stock options
granted under this Plan is 19,200,000 shares.

 

		(b)	The maximum number of shares of Common Stock subject to options and stock appreciation rights that are granted during any calendar
year to any individual under this Plan is 3,000,000 shares.

 

		(c)	Additional limits with respect to performance-based awards are set forth in Section 5.2.2.

 

		(d)	The aggregate value of cash compensation and the grant date fair value (computed in accordance with generally accepted accounting
principles) of shares of Common Stock that may be paid or granted during any calendar year to any non-employee director shall not
exceed $1,200,000 for existing non-employee directors and $2,200,000 for new non-employee directors.

 

Each of the foregoing numerical limits is subject
to adjustment as contemplated by Section 4.3, Section 7.1, and Section 8.10.

 

		4.3	Awards Settled in Cash, Reissue of Awards and Shares. Except as provided in the next
sentence, shares that are subject to or underlie awards granted under this Plan or the 2012 Plan, the Corporation’s 2008 Equity
Incentive Plan, the Corporation’s 2000 Non-Officer Equity Incentive Plan, or the Corporation’s 2000 Equity Incentive Plan (collectively,
the “Prior Plans”), which expire or for any reason are cancelled or terminated, are forfeited, fail to vest,
or for any other reason are not paid or delivered under this Plan or a Prior Plan shall again be available for subsequent awards
under this Plan (with any such shares increasing the Share Limit based on the Full-Value Award Ratio specified in Section 4.2
or, with respect to awards granted under a Prior Plan, the Full-Value Award Ratio as specified in such Prior Plan). Shares that
are exchanged by a participant or withheld by the Corporation as full or partial payment in connection with any award under this
Plan, as well as any shares exchanged by a participant or withheld by the Corporation or one of its Subsidiaries to satisfy the
tax withholding obligations related to any award, shall not be available for subsequent awards under this Plan. To the extent that
an award granted under this Plan or a Prior Plan is settled in cash or a form other than shares of Common Stock, the shares that
would have been delivered had there been no such cash or other settlement shall again be available for subsequent awards under
this Plan (with any such shares increasing the Share Limit based on the Full-Value Award Ratio specified in Section 4.2 or,
with respect to awards granted under a Prior Plan, the Full-Value Award Ratio as specified in such Prior Plan). In the event that
shares of Common Stock are delivered in respect of a dividend equivalent right granted under this Plan, the number of shares delivered
with respect to the award shall be counted against the share limits of this Plan (including, for purposes of clarity, the limits
of Section 4.2 of this Plan). (For purposes of clarity, if 1,000 dividend equivalent rights are granted and outstanding when
the Corporation pays a dividend, and 50 shares are delivered in payment of those rights with respect to that dividend, 75 shares
(after giving effect to the Full-Value Award premium counting rules) shall be counted against the share limits of this Plan). To
the extent that shares of Common Stock are delivered pursuant to the exercise of a stock appreciation right or stock option granted
under this Plan, the number of underlying shares as to which the exercise related shall be counted against the applicable share
limits under Section 4.2, as opposed to only counting the shares issued. (For purposes of clarity, if a stock appreciation
right relates to 100,000 shares and is exercised at a time when the payment due to the participant is 15,000 shares, 100,000 shares
shall be charged against the applicable share limits under Section 4.2 with respect to such exercise.) Refer to Section 8.10
for application of the foregoing share limits with respect to assumed awards.

 

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		4.4	Reservation of Shares; No Fractional Shares; Minimum Issue. The Corporation shall
at all times reserve a number of shares of Common Stock sufficient to cover the Corporation’s obligations and contingent
obligations to deliver shares with respect to awards then outstanding under this Plan (exclusive of any dividend equivalent obligations
to the extent the Corporation has the right to settle such rights in cash). No fractional shares shall be delivered under this
Plan. The Administrator may pay cash in lieu of any fractional shares in settlements of awards under this Plan. The Administrator
may from time to time impose a limit (of not greater than 100 shares) on the minimum number of shares that may be purchased or
exercised as to awards granted under this Plan unless (as to any particular award) the total number purchased or exercised is the
total number at the time available for purchase or exercise under the award.

 

		5.	AWARDS

 

		5.1	Type and Form of Awards. The Administrator shall determine the type or types of award(s)
to be made to each selected Eligible Person. Awards may be granted singly, in combination or in tandem. Awards also may be made
in combination or in tandem with, in replacement of, as alternatives to, or as the payment form for grants or rights under any
other employee or compensation plan of the Corporation or one of its Subsidiaries. The types of awards that may be granted under
this Plan are (subject, in each case, to the no repricing provisions of Section 3.2):

 

5.1.1       Stock Options. A stock option is the grant of a right to purchase a specified number of shares
of Common Stock during a specified period as determined by the Administrator. An option may be intended as an incentive stock option
within the meaning of Section 422 of the Code (an “ISO”) or a nonqualified stock option (an option not
intended to be an ISO). The award agreement for an option will indicate if the option is intended as an ISO. Each option, or portion
thereof, that is not an ISO, shall be a nonqualified stock option. The maximum term of each option (ISO or nonqualified) shall
be eight (8) years. The per share exercise price for each option shall be not less than 100% of the fair market value of a
share of Common Stock on the date of grant of the option. When an option is exercised, the exercise price for the shares to be
purchased shall be paid in full in cash or such other method permitted by the Administrator consistent with Section 5.5.

 

5.1.2       Additional Rules Applicable to ISOs. To the extent that the aggregate fair market value (determined
at the time of grant of the applicable option) of stock with respect to which ISOs first become exercisable by a participant in
any calendar year exceeds $100,000, taking into account both Common Stock subject to ISOs under this Plan and stock subject to
ISOs under all other plans of the Corporation or one of its Subsidiaries (or any parent or predecessor corporation to the extent
required by and within the meaning of Section 422 of the Code and the regulations promulgated thereunder), such options shall
be treated as nonqualified stock options. In reducing the number of options treated as ISOs to meet the $100,000 limit, the most
recently granted options shall be reduced first. To the extent a reduction of simultaneously granted options is necessary to meet
the $100,000 limit, the Administrator may, in the manner and to the extent permitted by law, designate which shares of Common Stock
are to be treated as shares acquired pursuant to the exercise of an ISO. ISOs may only be granted to employees of the Corporation
or one of its subsidiaries (for this purpose, the term “subsidiary” is used as defined in Section 424(f) of the
Code, which generally requires an unbroken chain of ownership of at least 50% of the total combined voting power of all classes
of stock of each subsidiary in the chain beginning with the Corporation and ending with the subsidiary in question). There shall
be imposed in any award agreement relating to ISOs such other terms and conditions as from time to time are required in order that
the option be an “incentive stock option” as that term is defined in Section 422 of the Code. No ISO may be granted
to any person who, at the time the option is granted, owns (or is deemed to own under Section 424(d) of the Code) shares of
outstanding Common Stock possessing more than 10% of the total combined voting power of all classes of stock of the Corporation,
unless the exercise price of such option is at least 110% of the fair market value of the stock subject to the option and such
option by its terms is not exercisable after the expiration of five years from the date such option is granted.

 

5.1.3       Stock Appreciation Rights. A stock appreciation right or “SAR” is a right to
receive a payment, in cash and/or Common Stock (as specified in the applicable award agreement), equal to the excess of the fair
market value of a specified number of shares of Common Stock on the date the SAR is exercised over the “base price”
of the award, which base price shall be set forth in the applicable award agreement and shall be not less than 100% of the fair
market value of a share of Common Stock on the date of grant of the SAR. The maximum term of a SAR shall be eight (8) years.

 

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5.1.4       Other Awards; Dividend Equivalent Rights. The other types of awards that may be granted under this
Plan include: (a) stock bonuses, restricted stock, performance stock, stock units, phantom stock or similar rights to purchase
or acquire shares, whether at a fixed or variable price or ratio related to the Common Stock, upon the passage of time, the occurrence
of one or more events, or the satisfaction of performance criteria or other conditions, or any combination thereof; (b) any
similar securities with a value derived from the value of or related to the Common Stock and/or returns thereon; or (c) cash
awards. Dividend equivalent rights may be granted as a separate award or in connection with another award under this Plan; provided,
however, that dividend equivalent rights may not be granted in connection with a stock option or SAR granted under this Plan. Notwithstanding
anything in the Plan or an award agreement to the contrary, any dividends and/or dividend equivalents as to the unvested portion
of an award (including, without limitation, a restricted stock award) will be subject to termination and forfeiture to the same
extent as the corresponding portion of the award to which they relate.

 

		5.2	Performance-Based Awards. The grant, vesting, exercisability or payment of performance-based
awards shall depend on the degree of achievement of one or more performance goals relative to a pre-established targeted level
or levels using one or more of the Business Criteria set forth below (on an absolute or relative (including, without limitation,
relative to the performance of other companies or upon comparisons of any of the indicators of performance relative to other companies)
basis) for the Corporation on a consolidated basis or for one or more of the Corporation’s subsidiaries, segments, divisions
or business units, or any combination of the foregoing.

 

5.2.1       Performance Goals. The specific performance goals for performance-based awards may be, on an absolute
or relative basis, established based on one or more of the following business criteria (“Business Criteria”)
as selected by the Administrator in its sole discretion: earnings per share; cash flow (which means cash and cash equivalents derived
from either net cash flow from operations or net cash flow from operations, financing and investing activities); working capital;
stock price; total stockholder return; revenue; gross profit; operating income; net earnings (before or after interest, taxes,
depreciation and/or amortization); gross margin; operating margin; net margin; return on equity or on assets or on net investment;
cost containment or reduction; regulatory submissions or approvals; manufacturing production; completion of strategic partnerships;
research milestones; any other measure selected by the Administrator or any combination thereof. As applicable, these terms are
used as applied under generally accepted accounting principles or in the financial reporting of the Corporation or of its Subsidiaries.
The applicable performance goals may be applied on a pre- or post-tax basis and may be adjusted to include or exclude determinable
components of any performance goal, including, without limitation, foreign exchange gains and losses, asset write-downs, acquisitions
and divestitures, change in fiscal year, unbudgeted capital expenditures, special charges such as restructuring or impairment charges,
debt refinancing costs, extraordinary or noncash items, unusual, infrequently occurring, nonrecurring or one-time events affecting
the Corporation or its financial statements or changes in law or accounting principles (“Adjustment Events”).
The applicable performance measurement period may not be less than three months nor more than 10 years.

 

5.2.2       Form of Payment; Maximum Performance-Based Award. Grants or awards under this Section 5.2
may be paid in cash or shares of Common Stock or any combination thereof. The maximum number of shares of Common Stock which may
be subject to performance-based awards (including performance-based awards payable in shares of Common Stock and performance-based
awards payable in cash where the amount of cash payable upon or following vesting of the award is determined with reference to
the fair market value of a share of Common Stock at such time) that are granted to any one participant in any one calendar year
shall not exceed 3,000,000 shares, either individually or in the aggregate, subject to adjustment as provided in Section 7.1;
provided that this limit shall not apply to Options and SARs (which are covered by the limit of Section 4.2(b)). The aggregate
amount of compensation to be paid to any one participant in respect of all performance-based awards payable only in cash (excluding
cash awards covered by the preceding sentence where the cash payment is determined with reference to the fair market value of a
share of Common Stock upon or following the vesting of the award) and granted to that participant in any one calendar year shall
not exceed $5,000,000.

 

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5.2.3       Certification of Payment. Before any performance-based award is paid under this Section 5.2,
the Administrator must certify in writing that the performance target(s) and any other material terms of the Performance-Based
Award were in fact timely satisfied.

 

5.2.4       Reservation of Discretion. The Administrator will have the discretion to determine the restrictions
or other limitations of the individual awards granted under this Section 5.2 including the authority to reduce awards, payouts
or vesting or to pay no awards, in its sole discretion, if the Administrator preserves such authority at the time of grant by language
to this effect in its authorizing resolutions or otherwise.

 

		5.3	Award Agreements. Each award shall be evidenced by either (1) a written award
agreement in a form approved by the Administrator and executed by the Corporation by an officer duly authorized to act on its behalf,
or (2) an electronic notice of award grant in a form approved by the Administrator and recorded by the Corporation (or its
designee) in an electronic recordkeeping system used for the purpose of tracking award grants under this Plan generally (in each
case, an “award agreement”), as the Administrator may provide and, in each case and if required by the Administrator,
executed or otherwise electronically accepted by the recipient of the award in such form and manner as the Administrator may require.
The Administrator may authorize any officer of the Corporation (other than the particular award recipient) to execute any or all
award agreements on behalf of the Corporation. The award agreement shall set forth the material terms and conditions of the award
as established by the Administrator consistent with the express limitations of this Plan. Notwithstanding anything contained herein
to the contrary, the Administrator may approve an award agreement that, upon the termination of a participant’s employment
or service, provides that, or may, in its sole discretion based on a review of all relevant facts and circumstances, otherwise
take action regarding an award agreement such that (i) any or all outstanding stock options and SARs shall become exercisable in
part or in full, (ii) all or a portion of the restriction or vesting period applicable to any outstanding award shall lapse, (iii)
all or a portion of the performance measurement period applicable to any outstanding award shall lapse and (iv) the performance
goals applicable to any outstanding award (if any) shall be deemed to be satisfied at the target, maximum or any other interim
level.

 

		5.4	Deferrals and Settlements. Payment of awards may be in the form of cash, Common Stock,
other awards or combinations thereof as the Administrator shall determine, and with such restrictions as it may impose. The Administrator
may also require or permit participants to elect to defer the issuance of shares or the settlement of awards in cash under such
rules and procedures as it may establish under this Plan. The Administrator may also provide that deferred settlements include
the payment or crediting of interest or other earnings on the deferral amounts, or the payment or crediting of dividend equivalents
where the deferred amounts are denominated in shares.

 

		5.5	Consideration for Common Stock or Awards. The purchase price for any award granted
under this Plan or the Common Stock to be delivered pursuant to an award, as applicable, may be paid by means of any lawful consideration
as determined by the Administrator, including, without limitation, one or a combination of the following methods:

 

		●	services rendered by the recipient of such award;

 

		●	cash, check payable to the order of the Corporation, or electronic funds transfer;

 

		●	notice and third party payment in such manner as may be authorized by the Administrator;

 

		●	the delivery of previously owned shares of Common Stock;

 

		●	by a reduction in the number of shares otherwise deliverable pursuant to the award; or

 

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		●	subject to such procedures as the Administrator may adopt, pursuant to a “cashless exercise” with a third party
who provides financing for the purposes of (or who otherwise facilitates) the purchase or exercise of awards.

 

In no event shall any shares newly-issued by the Corporation
be issued for less than the minimum lawful consideration for such shares or for consideration other than consideration permitted
by applicable state law. Shares of Common Stock used to satisfy the exercise price of an option shall be valued at their fair market
value on the date of exercise. The Corporation will not be obligated to deliver any shares unless and until it receives full payment
of the exercise or purchase price therefor and any related withholding obligations under Section 8.5 and any other conditions
to exercise or purchase have been satisfied.

 

		5.6	Definition of Fair Market Value. For purposes of this Plan, “fair market value”
shall mean the closing price (in regular trading) for a share of Common Stock on the NASDAQ Stock Market (the “Market”)
for the date in question or, if no sales of Common Stock were reported on the Market on that date, the closing price (in regular
trading) for a share of Common Stock on the Market for the next preceding day on which sales of Common Stock were reported on the
Market. The Administrator may, however, provide with respect to one or more awards that the fair market value shall equal the closing
price (in regular trading) for a share of Common Stock on the Market on the last trading day preceding the date in question or
the average of the high and low trading prices of a share of Common Stock on the Market for the date in question or the most recent
trading day. If the Common Stock is no longer listed or is no longer actively traded on the Market as of the applicable date, the
fair market value of the Common Stock shall be the value as reasonably determined by the Administrator for purposes of the award
in the circumstances. The Administrator also may adopt a different methodology for determining fair market value with respect to
one or more awards if a different methodology is necessary or advisable to secure any intended favorable tax, legal or other treatment
for the particular award(s) (for example, and without limitation, the Administrator may provide that fair market value for purposes
of one or more awards will be based on an average of closing prices (or the average of high and low daily trading prices) for a
specified period preceding the relevant date).

 

		5.7	Transfer Restrictions. 

 

5.7.1       Limitations on Exercise and Transfer. Unless otherwise expressly provided in (or pursuant to) this
Section 5.7 or required by applicable law: (a) all awards are non-transferable and shall not be subject in any manner
to sale, transfer, anticipation, alienation, assignment, pledge, encumbrance or charge; (b) awards shall be exercised only
by the participant; and (c) amounts payable or shares issuable pursuant to any award shall be delivered only to (or for the
account of) the participant.

 

5.7.2       Exceptions. The Administrator may permit awards to be exercised by and paid to, or otherwise transferred
to, other persons or entities pursuant to such conditions and procedures, including limitations on subsequent transfers, as the
Administrator may, in its sole discretion, establish in writing. Any permitted transfer shall be subject to compliance with applicable
federal and state securities laws and shall not be for value (other than nominal consideration, settlement of marital property
rights, or for interests in an entity in which more than 50% of the voting interests are held by the Eligible Person or by the
Eligible Person’s family members).

 

5.7.3       Further Exceptions to Limits on Transfer. The exercise and transfer restrictions in Section 5.7.1
shall not apply to:

 

		(a)	transfers to the Corporation (for example, in connection with the expiration or termination of
the award);

 

		(b)	the designation of a beneficiary to receive benefits in the event of the participant’s death
or, if the participant has died, transfers to or exercise by the participant’s beneficiary, or, in the absence of a validly
designated beneficiary, transfers by will or the laws of descent and distribution;

 

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		(c)	subject to any applicable limitations on ISOs, transfers to a family member (or former family member)
pursuant to a domestic relations order if approved or ratified by the Administrator;

 

		(d)	if the participant has suffered a disability, permitted transfers or exercises on behalf of the
participant by his or her legal representative; or

 

		(e)	the authorization by the Administrator of “cashless exercise” procedures with third
parties who provide financing for the purpose of (or who otherwise facilitate) the exercise of awards consistent with applicable
laws and the express authorization of the Administrator.

 

		5.8	International Awards. One or more awards may be granted to Eligible Persons who provide
services to the Corporation or one of its Subsidiaries outside of the United States. Any awards granted to such persons may be
granted pursuant to the terms and conditions of any applicable sub-plans, if any, appended to this Plan and approved by the Administrator.

 

		6.	EFFECT OF TERMINATION OF EMPLOYMENT OR SERVICE ON AWARDS

 

		6.1	General. The Administrator shall establish the effect of a termination of employment
or service on the rights and benefits under each award under this Plan and in so doing may make distinctions based upon, inter
alia, the cause of termination and type of award. If the participant is not an employee of the Corporation or one of its Subsidiaries
and provides other services to the Corporation or one of its Subsidiaries, the Administrator shall be the sole judge for purposes
of this Plan (unless a contract or the award otherwise provides) of whether the participant continues to render services to the
Corporation or one of its Subsidiaries and the date, if any, upon which such services shall be deemed to have terminated.

 

		6.2	Events Not Deemed Terminations of Service. Unless the express policy of the Corporation
or one of its Subsidiaries, or the Administrator, otherwise provides, the employment relationship shall not be considered terminated
in the case of (a) sick leave, (b) military leave, or (c) any other leave of absence authorized by the Corporation
or one of its Subsidiaries, or the Administrator; provided that, unless reemployment upon the expiration of such leave is guaranteed
by contract or law or the Administrator otherwise provides, such leave is for a period of not more than three months (or such other
period of time as required by applicable law). In the case of any employee of the Corporation or one of its Subsidiaries on an
approved leave of absence, continued vesting of the award while on leave from the employ of the Corporation or one of its Subsidiaries
may be suspended until the employee returns to service, unless the Administrator otherwise provides or applicable law (including
Section 409A of the Code) otherwise requires. In no event shall an award be exercised after the expiration of the term set forth
in the applicable award agreement.

 

		6.3	Effect of Change of Subsidiary Status. For purposes of this Plan and any award, if
an entity ceases to be a Subsidiary of the Corporation a termination of employment or service shall be deemed to have occurred
with respect to each Eligible Person in respect of such Subsidiary who does not continue as an Eligible Person in respect of the
Corporation or another Subsidiary that continues as such after giving effect to the transaction or other event giving rise to the
change in status unless the Subsidiary that is sold, spun-off or otherwise divested (or its successor or a direct or indirect parent
of such Subsidiary or successor) assumes the Eligible Person’s award(s) in connection with such transaction.

 

		7.	ADJUSTMENTS; ACCELERATION

 

		7.1	Adjustments. Subject to Section 7.2, upon (or, as may be necessary to effect
the adjustment, immediately prior to): any reclassification, recapitalization, stock split (including a stock split in the form
of a stock dividend) or reverse stock split; any merger, combination, consolidation, or other reorganization; any spin-off, split-up,
or similar extraordinary dividend distribution in respect of the Common Stock; or any exchange of Common Stock or other securities
of the Corporation, or any similar, unusual or extraordinary corporate transaction in respect of the Common Stock; then the Administrator
shall equitably and proportionately adjust (1) the number and type of shares of Common Stock (or other securities) that thereafter
may be made the subject of awards (including the specific share limits, maximums and numbers of shares set forth elsewhere in this
Plan), (2) the number, amount and type of shares of Common Stock (or other securities or property) subject to any outstanding
awards, (3) the grant, purchase, or exercise price (which term includes the base price of any SAR or similar right) of any
outstanding awards, and/or (4) the securities, cash or other property deliverable upon exercise or payment of any outstanding
awards, in each case to the extent necessary to preserve (but not increase) the level of incentives intended by this Plan and the
then-outstanding awards.

 

    9

     

    

 

Unless otherwise expressly provided in the applicable
award agreement, upon (or, as may be necessary to effect the adjustment, immediately prior to) any event or transaction described
in the preceding paragraph or a sale of all or substantially all of the business or assets of the Corporation as an entirety, the
Administrator shall equitably and proportionately adjust the performance standards applicable to any then-outstanding performance-based
awards to the extent necessary to preserve (but not increase) the level of incentives intended by this Plan and the then-outstanding
performance-based awards.

 

It is intended that, if possible, any adjustments
contemplated by the preceding two paragraphs be made in a manner that satisfies applicable U.S. legal, tax (including, without
limitation and as applicable in the circumstances, Section 424 of the Code and Section 409A of the Code) and accounting
(so as to not trigger any charge to earnings with respect to such adjustment) requirements.

 

Without limiting the generality of Section 3.3,
any good faith determination by the Administrator as to whether an adjustment is required in the circumstances pursuant to this
Section 7.1, and the extent and nature of any such adjustment, shall be conclusive and binding on all persons.

 

		7.2	Change in Control—Assumption and Termination of Awards. Upon the occurrence
of a Change in Control, then the Administrator may make provision for a cash payment in settlement of, or for the termination,
assumption, substitution or exchange of any or all outstanding share-based awards or the cash, securities or property deliverable
to the holder of any or all outstanding share-based awards, based upon, to the extent relevant under the circumstances, the distribution
or consideration payable to holders of the Common Stock upon or in respect of such Change in Control. Upon the occurrence of a
Change in Control, then, unless the Administrator has made a provision for the substitution, assumption, exchange or other continuation
or settlement of the award or (unless the Administrator has provided for the termination of the award) the award would otherwise
continue in accordance with its terms in the circumstances: (1) unless otherwise provided in the applicable award agreement,
each then-outstanding option and SAR shall become fully vested, all shares of restricted stock then outstanding shall fully vest
free of restrictions, and each other award granted under this Plan that is then outstanding shall become payable to the holder
of such award; and (2) each award shall terminate upon the Change in Control; provided that the holder of an option or SAR
shall be given reasonable advance notice of the impending termination and a reasonable opportunity to exercise his or her outstanding
vested options and SARs (after giving effect to any accelerated vesting required in the circumstances) in accordance with their
terms before the termination of such awards (except that in no case shall more than ten days’ notice of the impending termination
be required and any acceleration of vesting and any exercise of any portion of an award that is so accelerated may be made contingent
upon the actual occurrence of the Change in Control).

 

The Administrator may adopt such valuation methodologies
for outstanding awards as it deems reasonable in the event of a cash or property settlement and, in the case of options, SARs or
similar rights, but without limitation on other methodologies, may base such settlement solely upon the excess (if any) of the
per share amount payable upon or in respect of such Change in Control over the exercise or base price of the award.

 

Subject to applicable law, in the event of a Change
in Control, the Administrator may take such action contemplated by this Section 7.2 prior to such Change in Control (as opposed
to on the occurrence of such Change in Control) to the extent that the Administrator deems the action necessary to permit the participant
to realize the benefits intended to be conveyed with respect to the underlying shares. Without limiting the generality of the foregoing,
the Administrator may deem an acceleration to occur immediately prior to the Change in Control and, in such circumstances, will
reinstate the original terms of the award if an event giving rise to an acceleration does not occur.

 

    10

     

    

 

Without limiting the generality of Section 3.3,
any good faith determination by the Administrator pursuant to its authority under this Section 7.2 shall be conclusive and
binding on all persons.

 

		7.3	Other Acceleration Rules. The Administrator may override the provisions of Section 7.2
by express provision in the award agreement and may accord any Eligible Person a right, subject to Section 409A of the Code, to
refuse any acceleration, whether pursuant to the award agreement or otherwise, in such circumstances as the Administrator may approve.
The portion of any ISO accelerated in connection with an event referred to in Section 7.2 (or such other circumstances as
may trigger accelerated vesting of the award) shall remain exercisable as an ISO only to the extent the applicable $100,000 limitation
on ISOs is not exceeded. To the extent exceeded, the accelerated portion of the option shall be exercisable as a nonqualified stock
option under the Code.

 

		7.4	Definition of Change in Control. With respect to a particular award granted under
this Plan, a “Change in Control” shall be deemed to have occurred as of the first day, after the date of grant of the
particular award, that any one or more of the following conditions shall have been satisfied:

 

		(a)	The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Exchange Act (a “Person”)) of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of more than 30% of either (1) the then-outstanding shares of common stock of the Corporation (the
“Outstanding Company Common Stock”) or (2) the combined voting power of the then-outstanding voting securities
of the Corporation entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”);
provided, however, that, for purposes of this clause (a), the following acquisitions shall not constitute a Change in Control Event;
(A) any acquisition directly from the Corporation, (B) any acquisition by the Corporation, (C) any acquisition by
any employee benefit plan (or related trust) sponsored or maintained by the Corporation or any affiliate of the Corporation or
a successor, or (D) any acquisition by any entity pursuant to a transaction that complies with Sections (c)(1), (2) and
(3) below;

 

		(b)	Individuals who, as of the Effective Date, 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 director
subsequent to the Effective Date whose election, or nomination for election by the Corporation’s stockholders, was approved
by a vote of at least two-thirds of the directors then comprising the Incumbent Board (including for these purposes, the new members
whose election or nomination was so approved, without counting the member and his predecessor twice) shall be considered as though
such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption
of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or
other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;

 

		(c)	Consummation of a reorganization, merger, statutory share exchange or consolidation or similar
corporate transaction involving the Corporation or any of its Subsidiaries, a sale or other disposition of all or substantially
all of the assets of the Corporation, or the acquisition of assets or stock of another entity by the Corporation or any of its
Subsidiaries (each, a “Business Combination”), in each case unless, following such Business Combination, (1) all
or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Common Stock and
the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly,
more than 50% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding voting securities
entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Business Combination
(including, without limitation, an entity that, as a result of such transaction, owns the Corporation or all or substantially all
of the Corporation’s assets directly or through one or more subsidiaries (a “Parent”)) in substantially
the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common Stock
and the Outstanding Company Voting Securities, as the case may be, (2) no Person (excluding any entity resulting from such
Business Combination or a Parent or any employee benefit plan (or related trust) of the Corporation or such entity resulting from
such Business Combination or Parent) beneficially owns, directly or indirectly, more than 30% of, respectively, the then-outstanding
shares of common stock of the entity resulting from such Business Combination or the combined voting power of the then-outstanding
voting securities of such entity, except to the extent that the ownership in excess of 30% existed prior to the Business Combination,
and (3) at least a majority of the members of the board of directors or trustees of the entity resulting from such Business
Combination or a Parent were members of the Incumbent Board at the time of the execution of the initial agreement or of the action
of the Board providing for such Business Combination; or

 

    11

     

    

 

		(d)	Approval by the stockholders of the Corporation of a complete liquidation or dissolution of the
Corporation other than in the context of a transaction that does not constitute a Change in Control under clause (c) above.

 

		8.	OTHER PROVISIONS

 

		8.1	Compliance with Laws. This Plan, the granting and vesting of awards under this Plan,
the offer, issuance and delivery of shares of Common Stock, and/or the payment of money under this Plan or under awards are subject
to compliance with all applicable federal and state laws, rules and regulations (including but not limited to state and federal
securities law and federal margin requirements) and to such approvals by any listing, regulatory or governmental authority as may,
in the opinion of counsel for the Corporation, be necessary or advisable in connection therewith. The person acquiring any securities
under this Plan will, if requested by the Corporation or one of its Subsidiaries, provide such assurances and representations to
the Corporation or one of its Subsidiaries as the Administrator may deem necessary or desirable to assure compliance with all applicable
legal and accounting requirements.

 

		8.2	No Rights to Award. No person shall have any claim or rights to be granted an award
(or additional awards, as the case may be) under this Plan, subject to any express contractual rights (set forth in a document
other than this Plan) to the contrary.

 

		8.3	No Employment/Service Contract. Nothing contained in this Plan (or in any other documents
under this Plan or in any award) shall confer upon any Eligible Person or other participant any right to continue in the employ
or other service of the Corporation or one of its Subsidiaries, constitute any contract or agreement of employment or other service
or affect an employee’s status as an employee at will, nor shall interfere in any way with the right of the Corporation or
one of its Subsidiaries to change a person’s compensation or other benefits, or to terminate his or her employment or other
service, with or without cause. Nothing in this Section 8.3, however, is intended to adversely affect any express independent
right of such person under a separate employment or service contract other than an award agreement.

 

		8.4	Plan Not Funded. Awards payable under this Plan shall be payable in shares or from
the general assets of the Corporation, and no special or separate reserve, fund or deposit shall be made to assure payment of such
awards. No participant, beneficiary or other person shall have any right, title or interest in any fund or in any specific asset
(including shares of Common Stock, except as expressly otherwise provided) of the Corporation or one of its Subsidiaries by reason
of any award hereunder. Neither the provisions of this Plan (or of any related documents), nor the creation or adoption of this
Plan, nor any action taken pursuant to the provisions of this Plan shall create, or be construed to create, a trust of any kind
or a fiduciary relationship between the Corporation or one of its Subsidiaries and any participant, beneficiary or other person.
To the extent that a participant, beneficiary or other person acquires a right to receive payment pursuant to any award hereunder,
such right shall be no greater than the right of any unsecured general creditor of the Corporation.

 

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		8.5	Tax Withholding. Upon any exercise, vesting, or payment of any award, or upon the
disposition of shares of Common Stock acquired pursuant to the exercise of an ISO prior to satisfaction of the holding period requirements
of Section 422 of the Code, or upon any other tax withholding event with respect to any award, the Corporation or one of its
Subsidiaries shall have the right at its option to:

 

		(a)	require the participant (or the participant’s personal representative or beneficiary, as
the case may be) to pay or provide for payment of at least the minimum amount of any taxes which the Corporation or one of its
Subsidiaries may be required to withhold with respect to such award event or payment; or

 

		(b)	deduct from any amount otherwise payable in cash (whether related to the award or otherwise) to
the participant (or the participant’s personal representative or beneficiary, as the case may be) the minimum amount of any
taxes which the Corporation or one of its Subsidiaries may be required to withhold with respect to such award event or payment.

 

In any case where a tax is required to be withheld
in connection with the delivery of shares of Common Stock under this Plan, the Administrator may in its sole discretion (subject
to Section 8.1) require or grant (either at the time of the award or thereafter) to the participant the right to elect, pursuant
to such rules and subject to such conditions as the Administrator may establish, that the Corporation reduce the number of shares
to be delivered by (or otherwise reacquire) the appropriate number of shares, valued in a consistent manner at their fair market
value or at the sales price in accordance with authorized procedures for cashless exercises, necessary to satisfy the applicable
withholding obligation on exercise, vesting or payment. Shares of Common Stock to be delivered or withheld may not have an aggregate
Fair Market Value in excess of the amount determined by applying the minimum statutory withholding rate (or, if permitted by the
Corporation, such other rate as will not cause adverse accounting consequences under generally accepted accounting principles then
in effect). Any fraction of a share of Common Stock which would be required to satisfy such an obligation shall be disregarded
and the remaining amount due shall be paid in cash by the holder.

 

		8.6	Effective Date, Termination and Suspension, Amendments. 

 

8.6.1      Effective Date. This Plan is effective as of March 28, 2017, the date of its approval by the Board
(the “Effective Date”). This Plan shall be submitted for and subject to stockholder approval no later
than twelve months after the Effective Date. Upon such stockholder approval, no further awards shall be granted under any Prior
Plan. Unless earlier terminated by the Board, this Plan shall terminate at the close of business on the day before the tenth anniversary
of the Effective Date. After the termination of this Plan either upon such stated expiration date or its earlier termination by
the Board, no additional awards may be granted under this Plan, but previously granted awards (and the authority of the Administrator
with respect thereto, including the authority to amend such awards) shall remain outstanding in accordance with their applicable
terms and conditions and the terms and conditions of this Plan.

 

8.6.2      Board Authorization. The Board may, at any time, terminate or, from time to time, amend, modify
or suspend this Plan, in whole or in part. No awards may be granted during any period that the Board suspends this Plan.

 

8.6.3      Stockholder Approval. To the extent then required by applicable law or any applicable listing agency
or required under Sections 422 or 424 of the Code to preserve the intended tax consequences of this Plan, or deemed necessary or
advisable by the Board, any amendment to this Plan shall be subject to stockholder approval.

 

8.6.4      Amendments to Awards. Without limiting any other express authority of the Administrator under (but
subject to) the express limits of this Plan, the Administrator by agreement or resolution may waive conditions of or limitations
on awards to participants that the Administrator in the prior exercise of its discretion has imposed, without the consent of a
participant, and (subject to the requirements of Sections 3.2 and 8.6.5) may make other changes to the terms and conditions of
awards. Any amendment or other action that would constitute a repricing of an award is subject to the limitations set forth in
Section 3.2.

 

    13

     

    

 

8.6.5      Limitations on Amendments to Plan and Awards. No amendment, suspension or termination of this Plan
or amendment of any outstanding award agreement shall, without written consent of the participant, affect in any manner materially
adverse to the participant any rights or benefits of the participant or obligations of the Corporation under any award granted
under this Plan prior to the effective date of such change. Changes, settlements and other actions contemplated by Section 7
shall not be deemed to constitute changes or amendments for purposes of this Section 8.6.

 

		8.7	Privileges of Stock Ownership. Except as otherwise expressly authorized by the Administrator,
a participant shall not be entitled to any privilege of stock ownership as to any shares of Common Stock not actually delivered
to and held of record by the participant (subject to the last sentence of Section 5.1.4). Except as expressly required by
Section 7.1 or otherwise expressly provided by the Administrator, no adjustment will be made for dividends or other rights
as a stockholder for which a record date is prior to such date of delivery.

 

		8.8	Governing Law; Construction; Severability. 

 

8.8.1      Choice of Law. This Plan, the awards, all documents evidencing awards and all other related documents
shall be governed by, and construed in accordance with the laws of the State of Delaware.

 

8.8.2      Severability. If a court of competent jurisdiction holds any provision invalid and unenforceable,
the remaining provisions of this Plan shall continue in effect.

 

8.8.3      Plan Construction.

 

		(a)	Rule 16b-3. It is the intent of the Corporation that the awards and transactions permitted
by awards be interpreted in a manner that, in the case of participants who are or may be subject to Section 16 of the Exchange
Act, qualify, to the maximum extent compatible with the express terms of the award, for exemption from matching liability under
Rule 16b-3 promulgated under the Exchange Act. Notwithstanding the foregoing, the Corporation shall have no liability to any participant
for Section 16 consequences of awards or events under awards if an award or event does not so qualify.

 

		(b)	Section 409A. It is intended that the provisions of the Plan comply with, or be exempt from,
Section 409A of the Code, and all provisions of the Plan shall be construed and interpreted in a manner consistent with the requirements
for avoiding taxes or penalties under Section 409A of the Code. If, at the time of a participant’s “separation from
service” (within the meaning of Section 409A of the Code), (i) such participant shall be a specified employee (within the
meaning of Section 409A of the Code and using the identification methodology selected by the Corporation from time to time) and
(ii) the Corporation shall make a good faith determination that an amount payable pursuant to an award constitutes deferred compensation
(within the meaning of Section 409A of the Code) the payment of which is required to be delayed pursuant to the six-month delay
rule set forth in Section 409A of the Code in order to avoid taxes or penalties under Section 409A of the Code, then the Corporation
shall not pay such amount on the otherwise scheduled payment date but shall instead pay it on the first business day after such
six-month period. Such amount shall be paid without interest, unless otherwise determined by the Administrator, in its sole discretion,
or as otherwise provided in any applicable award agreement between the Corporation and the relevant participant. Notwithstanding
any provision of the Plan to the contrary, in light of the uncertainty with respect to the proper application of Section 409A of
the Code, the Corporation reserves the right to make amendments to any award as the Corporation deems necessary or desirable to
avoid the imposition of taxes or penalties under Section 409A of the Code. In any case, a participant shall be solely responsible
and liable for the satisfaction of all taxes and penalties that may be imposed on such participant or for such participant’s
account in connection with an award (including any taxes and penalties under Section 409A of the Code), and neither the Corporation
nor any of its affiliates shall have any obligation to indemnify or otherwise hold such participant harmless from any or all of
such taxes or penalties.

 

    14

     

    

 

		8.9	Captions. Captions and headings are given to the sections and subsections of this
Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the
construction or interpretation of this Plan or any provision thereof.

 

		8.10	Stock-Based Awards in Substitution for Stock Options or Awards Granted by Other Corporation.
Awards may be granted to Eligible Persons in substitution for or in connection with an assumption of employee stock options, SARs,
restricted stock or other stock-based awards granted by other entities to persons who are or who will become Eligible Persons in
respect of the Corporation or one of its Subsidiaries, in connection with a distribution, merger or other reorganization by or
with the granting entity or an affiliated entity, or the acquisition by the Corporation or one of its Subsidiaries, directly or
indirectly, of all or a substantial part of the stock or assets of the employing entity. The awards so granted need not comply
with other specific terms of this Plan, provided the awards reflect only adjustments giving effect to the assumption or substitution
consistent with the conversion applicable to the Common Stock in the transaction and any change in the issuer of the security.
Any shares that are delivered and any awards that are granted by, or become obligations of, the Corporation, as a result of the
assumption by the Corporation of, or in substitution for, outstanding awards previously granted by an acquired company (or previously
granted by a predecessor employer (or direct or indirect parent thereof) in the case of persons that become employed by the Corporation
or one of its Subsidiaries in connection with a business or asset acquisition or similar transaction) shall not be counted against
the Share Limit or other limits on the number of shares available for issuance under this Plan.

 

		8.11	Non-Exclusivity of Plan. Nothing in this Plan shall limit or be deemed to limit the
authority of the Board or the Administrator to grant awards or authorize any other compensation, with or without reference to the
Common Stock, under any other plan or authority.

 

		8.12	No Corporate Action Restriction. The existence of this Plan, the award agreements
and the awards granted hereunder shall not limit, affect or restrict in any way the right or power of the Board or the stockholders
of the Corporation to make or authorize: (a) any adjustment, recapitalization, reorganization or other change in the capital
structure or business of the Corporation or any Subsidiary, (b) any merger, amalgamation, consolidation or change in the ownership
of the Corporation or any Subsidiary, (c) any issue of bonds, debentures, capital, preferred or prior preference stock ahead
of or affecting the capital stock (or the rights thereof) of the Corporation or any Subsidiary, (d) any dissolution or liquidation
of the Corporation or any Subsidiary, (e) any sale or transfer of all or any part of the assets or business of the Corporation
or any Subsidiary, or (f) any other corporate act or proceeding by the Corporation or any Subsidiary. No participant, beneficiary
or any other person shall have any claim under any award or award agreement against any member of the Board or the Administrator,
or the Corporation or any employees, officers or agents of the Corporation or any Subsidiary, as a result of any such action.

 

		8.13	Other Company Benefit and Compensation Programs. Payments and other benefits received
by a participant under an award made pursuant to this Plan shall not be deemed a part of a participant’s compensation for
purposes of the determination of benefits under any other employee welfare or benefit plans or arrangements, if any, provided by
the Corporation or any Subsidiary, except where the Administrator expressly otherwise provides or authorizes in writing. Awards
under this Plan may be made in addition to, in combination with, as alternatives to or in payment of grants, awards or commitments
under any other plans or arrangements of the Corporation or its Subsidiaries.

 

		8.14	Clawback Policy. The awards granted under this Plan are subject to the terms of the
Corporation’s recoupment, clawback or similar policy as it may be in effect from time to time, as well as any similar provisions
of applicable law, any of which could in certain circumstances require repayment or forfeiture of awards or any shares of Common
Stock or other cash or property received with respect to the awards (including any value received from a disposition of the shares
acquired upon payment of the awards).

 

    15EX-4.1

 Exhibit 4.1 
  

 
 DISCOVER CARD EXECUTION NOTE TRUST

 Issuer 
 and 

U.S. BANK NATIONAL ASSOCIATION 

Indenture Trustee 
 CLASS A(2018-3) TERMS DOCUMENT 
 Dated as of June 26, 2018 

to 
 SECOND AMENDED AND RESTATED
INDENTURE SUPPLEMENT 
 Dated as of December 22, 2015 

for the DiscoverSeries Notes 
 to

 AMENDED AND RESTATED INDENTURE 

Dated as of December 22, 2015 
  

 
  

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	ARTICLE I	 
	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	  			
	 Section 1.01
	 	Definitions	  	 	1	 
	 Section 1.02
	 	Representations and Warranties of Issuer	  	 	7	 
	 Section 1.03
	 	Representations and Warranties of Indenture Trustee	  	 	8	 
	 Section 1.04
	 	Limitations on Liability	  	 	8	 
	 Section 1.05
	 	Governing Law	  	 	9	 
	 Section 1.06
	 	Counterparts	  	 	9	 
	 Section 1.07
	 	Ratification of Indenture and Indenture Supplement	  	 	9	 
	
	ARTICLE II	 
	THE CLASS A(2018-3) NOTES	 
			
	 Section 2.01
	 	Creation and Designation	  	 	9	 
	 Section 2.02
	 	Adjustments to Required Subordinated Percentages and Amount	  	 	9	 
	 Section 2.03
	 	Interest Payment	  	 	9	 
	 Section 2.04
	 	Notification of LIBOR	  	 	10	 
	 Section 2.05
	 	Payments of Interest and Principal	  	 	10	 
	 Section 2.06
	 	Form of Delivery of Class A(2018-3) Notes; Depository; Denominations	  	 	10	 
	 Section 2.07
	 	Delivery and Payment for the Class A(2018-3) Notes	  	 	11	 
	 Section 2.08
	 	Targeted Deposits to the Accumulation Reserve Account	  	 	11	 
	 Section 2.09
	 	Additional Issuances of Notes	  	 	11	 
	 Section 2.10
	 	Designation of Additional Amounts to Be Included in the Excess Spread Amount for the DiscoverSeries Notes	  	 	12	 
	 Section 2.11
	 	Variable Accumulation Period	  	 	12	 
	 Section 2.12
	 	Seller’s Interest to Be Included in the Monthly Statement	  	 	13	 
	 Section 2.13
	 	Duties of the Indenture Trustee	  	 	13	 

 EXHIBIT A FORM OF CLASS A(2018-3) NOTE 

  
 -i- 

 THIS CLASS A(2018-3) TERMS DOCUMENT (this “Terms
Document”), by and between DISCOVER CARD EXECUTION NOTE TRUST, a statutory trust created under the laws of the State of Delaware (the “Issuer”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association organized
and existing under the laws of the United States of America, as Indenture Trustee (the “Indenture Trustee”), is made and entered into as of June 26, 2018. 

Pursuant to this Terms Document, the Issuer shall create a new Tranche of Class A Notes of the DiscoverSeries and shall specify the
principal terms thereof. 
 ARTICLE I 

Definitions and Other Provisions of General Application 

Section 1.01 Definitions. For all purposes of this Terms Document, except as otherwise expressly provided or unless the context
otherwise requires: 
 (1) the terms defined in this Article have the meanings assigned to them in this Article, and include the plural as
well as the singular; 
 (2) all other terms used herein which are defined in the Indenture Supplement or the Indenture, either directly or
by reference therein, have the meanings assigned to them therein; 
 (3) all accounting terms not otherwise defined herein have the meanings
assigned to them in accordance with generally accepted accounting principles and, except as otherwise herein expressly provided, the term “generally accepted accounting principles” with respect to any computation required or permitted
hereunder means such accounting principles as are generally accepted in the United States of America at the date of such computation; 
 (4)
all references in this Terms Document to designated “Articles,” “Sections” and other subdivisions are to the designated Articles, Sections and other subdivisions of this Terms Document; the words “herein,”
“hereof” and “hereunder” and other words of similar import refer to this Terms Document as a whole and not to any particular Article, Section or other subdivision; 

(5) in the event that any term or provision contained herein shall conflict with or be inconsistent with any term or provision contained in the
Indenture Supplement or the Indenture, the terms and provisions of this Terms Document shall be controlling, but solely with respect to the Class A(2018-3) Notes; 

(6) each capitalized term defined herein shall relate only to the Class A(2018-3) Notes and no
other Tranche of Notes issued by the Issuer; 
 (7) “including” and words of similar import will be deemed to be followed by
“without limitation”; and 

 (8) for purposes of determining any amount or making any calculation hereunder, such amount or
calculation, (x) if specified to be as of the first day of any Due Period, shall (a) include any Notes issued during such Due Period as if such Notes had been outstanding on the first day of such Due Period and (b) give effect to any
payments, deposits or other allocations made on the Distribution Date related to the prior Due Period and (y) if specified to be as of the close of business on the last day of any Due Period shall give effect to any payments, deposits or other
allocations made on the related Distribution Date. 
 “Accumulation Amount” means $43,750,000; provided,
however, if the commencement of the Accumulation Period is delayed in accordance with Section 2.11 hereof, the Accumulation Amount shall be determined in accordance with the definition of “Accumulation Amount” in the Indenture
Supplement. 
 “Accumulation Commencement Date” means June 1, 2020, or such later date as the Calculation Agent on
behalf of the Issuer determines in accordance with Section 2.11 hereof. 
 “Accumulation Period” has the meaning set
forth in the Indenture Supplement. 
 “Accumulation Period Length” means 12 months; provided, however, if the
commencement of the Accumulation Period is delayed in accordance with Section 2.11 hereof, the Accumulation Period Length shall be determined in accordance with the definition of “Accumulation Period Length” in the Indenture
Supplement. 
 “Accumulation Reserve Funding Period” shall not apply if the Calculation Agent on behalf of the Issuer
notifies the Indenture Trustee that it expects the Accumulation Period Length to be adjusted to one (1) month, and otherwise shall mean a period commencing on the first Distribution Date on which a condition in the right column of the following
table was in effect on the immediately preceding Distribution Date, if such Distribution Date is a Distribution Date described in the corresponding left column of the following table, and ending on the Distribution Date immediately preceding the
earlier to occur of: 
 (x) the Expected Maturity Date for the Class A(2018-3) Notes and 

(y) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the
Class A(2018-3) Notes is paid in full. 
  

			
	Distribution Date:	  	Condition:
	(a)The Distribution Date occurring three (3) calendar months prior to the first scheduled Distribution
Date of the Accumulation Period (as adjusted in accordance with Section 2.11 hereof) and any following Distribution Date	  	No condition.
	 	 
	(b)The Distribution Date occurring four (4) calendar months prior to the first scheduled Distribution Date
of the Accumulation Period (as adjusted in accordance with Section 2.11 hereof) and any following Distribution Date	  	The three-month rolling average Excess Spread Percentage is less than 4%.

  
 2 

			
	(c)The Distribution Date occurring six (6) calendar months prior to the first scheduled Distribution Date of the Accumulation Period (as adjusted in accordance with
Section 2.11 hereof) and any following Distribution Date	  	The three-month rolling average Excess Spread Percentage is less than 3%.
	 	 
	(d)The Distribution Date occurring twelve (12) calendar months prior to the first scheduled Distribution
Date of the Accumulation Period (as adjusted in accordance with Section 2.11 hereof) and any following Distribution Date	  	The three-month rolling average Excess Spread Percentage is less than 2%.

 provided, however, if at any point the Accumulation Reserve Funding Period has not commenced because no
condition requiring funding has occurred or the Calculation Agent has determined that the Accumulation Period Length will be shortened to one (1) month, and subsequently a condition requiring funding occurs and the Calculation Agent determines
that the Accumulation Period Length will not be so shortened, the Accumulation Reserve Funding Period shall commence on the following Distribution Date. 

“Class A(2018-3) Adverse Event” means the occurrence of any of the
following: (a) an Early Redemption Event with respect to the Class A(2018-3) Notes or (b) an Event of Default and acceleration of the Class A(2018-3)
Notes; provided, however, that if the only such event to have occurred is an Excess Spread Early Redemption Event for which an Excess Spread Early Redemption Cure has occurred, a
Class A(2018-3) Adverse Event shall not be treated as continuing from and after the date of such cure. 

“Class A(2018-3) Note” means any Note, in the form set forth in
Exhibit A hereto, designated therein as a Class A(2018-3) Note and duly executed and authenticated in accordance with the Indenture. 

“Class A(2018-3) Noteholder” means a Person in whose name a Class A(2018-3) Note is registered in the Note Register. 
 “Class A(2018-3) Termination Date” means the earliest to occur of (a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the
Class A(2018-3) Notes is paid in full, (b) the Legal Maturity Date and (c) the date on which the Indenture is discharged and satisfied pursuant to Article VI thereof. 

“Excess Spread Percentage” for any Distribution Date means a fraction, the numerator of which is the Excess Spread Amount for
such Distribution Date multiplied by 12 and the denominator of which is the sum of the Nominal Liquidation Amounts of all Tranches of DiscoverSeries Notes as of the first day of the related Due Period. 

  
 3 

 “Expected Maturity Date” means June 15, 2021. 

“Indenture” means the Amended and Restated Indenture, dated as of December 22, 2015, between the Issuer and Indenture
Trustee, as such agreement may be further amended, supplemented, restated, amended and restated, replaced or otherwise modified from time to time. 

“Indenture Supplement” means the Second Amended and Restated Indenture Supplement, dated as of December 22, 2015, for
the DiscoverSeries Notes, between the Issuer and the Indenture Trustee, as the same may be further amended, supplemented, restated, amended and restated, replaced or otherwise modified from time to time. 

“Initial Dollar Principal Amount” means $525,000,000, or such higher amount as is specified in any Notice of Additional
Issuance under Section 2.09 hereof. 
 “Interest Accrual Period” means, with respect to any Interest Payment Date, the
period from and including the previous Interest Payment Date (or, in the case of the first Interest Payment Date for any Class A(2018-3) Note, from and including the applicable Issuance Date) to but
excluding such Interest Payment Date. 
 “Interest Payment Date” means the fifteenth day of each month commencing in July
2018, or if such fifteenth day is not a Business Day, the next succeeding Business Day. 
 “Issuance Date” means
June 26, 2018, with respect to all Class A(2018-3) Notes issued on the date hereof and, with respect to any additional Class A(2018-3) Notes issued
pursuant to Section 2.09 hereof, any Issuance Date specified in the Notice of Additional Issuance delivered thereunder. 

“Legal Maturity Date” means December 15, 2023. 

“LIBOR” means, with respect to any LIBOR Determination Date, the rate for deposits in United States dollars with a duration
comparable to the relevant Interest Accrual Period which appears on Reuters Screen LIBOR01 as of 11:00 a.m., London time, on such day. If such rate does not appear on Reuters Screen LIBOR01, the rate will be determined by the Indenture Trustee on
the basis of the rates at which deposits in United States dollars are offered by major banks in the London interbank market, selected by the Calculation Agent by written notice to the Indenture Trustee, at approximately 11:00 a.m., London time, on
such day to prime banks in the London interbank market with a duration comparable to the relevant Interest Accrual Period commencing on that day. The Indenture Trustee will request the principal London office of four banks selected by the
Calculation Agent to provide a quotation of its rate. If at least two such quotations are provided, the rate will be the arithmetic mean of the quotations. If fewer than two quotations are provided as requested, the rate for that day will be the
arithmetic mean of the rates quoted by four major banks in New York City, the identity of which will be selected by the Calculation Agent, at approximately 11:00 a.m., New York City time, on that day for loans in United States dollars to leading
European banks with a duration comparable to the relevant Interest Accrual Period commencing on that day. If LIBOR with respect to a LIBOR Determination Date cannot be determined pursuant to the foregoing, LIBOR with respect to such LIBOR
Determination Date will be LIBOR with respect to the immediately prior LIBOR Determination Date. 

  
 4 

 “LIBOR Business Day,” if applicable, shall mean a day other than a Saturday or a
Sunday on which banking institutions in both the City of London, England and in New York, New York are not required or authorized by law to be closed. 

“LIBOR Determination Date” means the second LIBOR Business Day immediately preceding the commencement of an Interest Accrual
Period. 
 “Note Interest Rate” means, for any Interest Accrual Period, LIBOR + 0.23% per annum, calculated on the basis of
the actual number of days elapsed and a 360-day year; provided, that if the sum of LIBOR + 0.23% for such Interest Accrual Period is less than 0.00%, then the Note Interest Rate for such Interest Accrual
Period will be deemed to be 0.00%. 
 “Notice of Additional Issuance” has the meaning set forth in Section 2.09
hereof. 
 “Regulation RR” means Regulation RR (Credit Risk Retention) promulgated by the Securities and Exchange
Commission to implement the credit risk retention requirements of Section 15G of the Securities Exchange Act. 
 “Required
Daily Deposit Target Finance Charge Amount” means, for any day in a Due Period, an amount equal to the Class A Tranche Interest Allocation for the related Distribution Date; provided, however, that for purposes of
determining the Required Daily Deposit Target Finance Charge Amount on any day on which the Class A Tranche Interest Allocation cannot be determined because the LIBOR Determination Date for the applicable Interest Accrual Period has not yet
occurred, the Required Daily Deposit Target Finance Charge Amount shall be the Class A Tranche Interest Allocation determined based on a pro forma calculation made on the assumption that LIBOR will be LIBOR for the applicable period determined
on the first day of such calendar month, multiplied by 1.25. 
 “Required Daily Deposit Target Principal Amount”
means, for any day in a Due Period, (i) if such Due Period is in the Accumulation Period for the Class A(2018-3) Notes, the Accumulation Amount, (ii) if such day is on or after the
occurrence and during the continuance of a Class A(2018-3) Adverse Event, the Nominal Liquidation Amount of the Class A(2018-3) Notes and (iii) in all
other circumstances, zero. 
 “Required Subordinated Amount of Class B Notes” means, for the Class A(2018-3) Notes for any date of determination, an amount equal to the product of 
 (a) the
Required Subordinated Percentage of Class B Notes for such Class A(2018-3) Notes on such date of determination; and 

(b) the Nominal Liquidation Amount of such Class A(2018-3) Notes on such date of determination;

 provided, however, that for any date of determination on or after the occurrence and during the continuation of a Class A(2018-3) Adverse Event, the Required Subordinated Amount of Class B Notes for the Class A(2018-3) Notes will be the greater of 

(x) the amount determined above for such date of determination; and 

  
 5 

 (y) the amount determined above for the date immediately prior to the date on which such Class A(2018-3) Adverse Event shall have occurred. 
 “Required Subordinated Amount of
Class C Notes” means, for the Class A(2018-3) Notes for any date of determination, an amount equal to the product of 

(a) the Required Subordinated Percentage of Class C Notes for such Class A(2018-3) Notes on
such date of determination; and 
 (b) the Nominal Liquidation Amount of such Class A(2018-3)
Notes on such date of determination; 
 provided, however, that for any date of determination on or after the occurrence and during the
continuation of a Class A(2018-3) Adverse Event, the Required Subordinated Amount of Class C Notes for the Class A(2018-3) Notes will be the greater of

 (x) the amount determined above for such date of determination; and 

(y) the amount determined above for the date immediately prior to the date on which such
Class A(2018-3) Adverse Event shall have occurred. 
 “Required Subordinated Amount of
Class D Notes” means, for the Class A(2018-3) Notes for any date of determination, an amount equal to the product of 

(a) the Required Subordinated Percentage of Class D Notes for such Class A(2018-3) Notes on
such date of determination; and 
 (b) the Nominal Liquidation Amount of such Class A(2018-3)
Notes on such date of determination; 
 provided, however, that for any date of determination on or after the occurrence and during the
continuation of a Class A(2018-3) Adverse Event, the Required Subordinated Amount of Class D Notes for the Class A(2018-3) Notes will be the greater of

 (x) the amount determined above for such date of determination; and 

(y) the amount determined above for the date immediately prior to the date on which the
Class A(2018-3) Adverse Event shall have occurred. 
 “Required Subordinated Percentage
of Class B Notes” means, for the Class A(2018-3) Notes, 6.96202532%, subject to adjustment in accordance with Section 2.02. 

“Required Subordinated Percentage of Class C Notes” means, for the
Class A(2018-3) Notes, 8.86075950%, subject to adjustment in accordance with Section 2.02. 

“Required Subordinated Percentage of Class D Notes” means, for the
Class A(2018-3) Notes, 10.75949368%, subject to adjustment in accordance with Section 2.02. 

  
 6 

 “Reuters Screen LIBOR01” means the display page currently so designated on the
Reuters Screen (or such other page as may replace that page on that service for the purpose of displaying comparable rates or prices). 

“Seller’s Interest” means, at any time, a “seller’s interest” as defined in, and calculated in accordance
with, Regulation RR. 
 “Seller’s Interest Measurement Date” means the last day of each calendar month. 

“Specified Rating” means, for the Class A(2018-3) Notes, Aaa(sf) with respect to
Moody’s, AAA(sf) with respect to Standard & Poor’s and AAAsf with respect to Fitch. 
 “Stated Principal
Amount” means $525,000,000 or such higher amount as is specified in any Notice of Additional Issuance under Section 2.09. 

“Targeted Accumulation Reserve Subaccount Deposit” means, with respect to any Distribution Date during the Accumulation
Reserve Funding Period, an amount equal to (i) 0.5% of the Outstanding Dollar Principal Amount of the Class A(2018-3) Notes as of the close of business on the last day of the related Due Period or
(ii) any other amount designated by the Calculation Agent on behalf of the Issuer. 
 Section 1.02 Representations and
Warranties of Issuer. The Issuer represents and warrants that: 
 (a) the Issuer has been duly formed and is validly existing as a
statutory trust in good standing under the laws of the State of Delaware, and has full power and authority to execute and deliver this Terms Document and to perform the terms and provisions hereof; 

(b) the execution, delivery and performance of this Terms Document by the Issuer have been duly authorized by all necessary limited liability
company and statutory trust proceedings of the Beneficiary and the Owner Trustee, do not require any approval or consent of any governmental agency or authority and do not and will not conflict with any material provision of the Certificate of Trust
or the Trust Agreement of the Issuer; 
 (c) this Terms Document is the valid, binding and enforceable obligation of the Issuer, except as
the same may be limited by receivership, insolvency, reorganization, moratorium or other laws relating to the enforcement of creditors’ rights generally or by general equity principles; 

(d) to the best of the Issuer’s knowledge, this Terms Document will not conflict with any law or governmental regulation or court decree
applicable to it; 
 (e) the Issuer is not required to be registered under the Investment Company Act; 

(f) all information heretofore furnished by the Issuer in writing to the Indenture Trustee for purposes of or in connection with this Terms
Document or any transaction contemplated hereby is, and all such information hereafter furnished by the Issuer in writing to the Indenture Trustee will be, true and accurate in every material respect or based on reasonable estimates on the date as
of which such information is stated or certified; and 

  
 7 

 (g) to the best knowledge of the Issuer, there are no proceedings or investigations pending
against the Issuer before any court, regulatory body, administrative agency or other tribunal or governmental instrumentality having jurisdiction over the Issuer (i) asserting the invalidity of this Terms Document, (ii) seeking to prevent
the consummation of any of the transactions contemplated by this Terms Document or (iii) seeking any determination or ruling which in the Issuer’s judgment would materially and adversely affect the performance by the Issuer of its
obligations under this Terms Document or the validity or enforceability of this Terms Document. 
 Section 1.03 Representations and
Warranties of Indenture Trustee. The Indenture Trustee represents and warrants and any successor trustee shall represent and warrant that: 

(a) the Indenture Trustee is organized, existing and in good standing under the laws of the United States of America; 

(b) the Indenture Trustee has full power, authority and right to execute, deliver and perform this Terms Document, and has taken all necessary
action to authorize the execution, delivery and performance by it of this Terms Document; and 
 (c) this Terms Document has been duly
executed and delivered by the Indenture Trustee. 
 Section 1.04 Limitations on Liability. 

(a) It is expressly understood and agreed by the parties hereto that (i) this Terms Document is executed and delivered by the Owner
Trustee not individually or personally but solely as Owner Trustee under the Trust Agreement, in the exercise of the powers and authority conferred and vested in it, (ii) each of the representations, undertakings and agreements herein made on
the part of the Issuer is made and intended not as a personal representation, undertaking or agreement by the Owner Trustee but is made and intended for the purpose of binding only the Issuer, (iii) nothing herein contained will be construed as
creating any liability on the Owner Trustee individually or personally, to perform any covenant of the Issuer either expressed or implied herein, all such liability, if any, being expressly waived by the parties to this Terms Document and by any
Person claiming by, through or under them and (iv) under no circumstances will the Owner Trustee be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Issuer under this Terms Document or any related documents. 
 (b) None of the
Indenture Trustee, the Owner Trustee, the Calculation Agent, the Beneficiary, the Depositor, any Master Servicer or any Servicer or any of their respective officers, directors, employees, incorporators or agents will have any liability with respect
to this Terms Document, and recourse may be had solely to the Collateral pledged to secure these Class A(2018-3) Notes under the Indenture, the Indenture Supplement and this Terms Document. 

  
 8 

 Section 1.05 Governing Law. THIS TERMS DOCUMENT WILL BE CONSTRUED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATION LAW, WITHOUT REFERENCE TO ANY CONFLICT OF LAW PROVISIONS THAT WOULD RESULT IN THE APPLICATION OF THE LAWS
OF ANY OTHER STATE. 
 Section 1.06 Counterparts. This Terms Document may be executed in any number of counterparts, each of
which when so executed will be deemed to be an original, but all such counterparts will together constitute but one and the same instrument. 

Section 1.07 Ratification of Indenture and Indenture Supplement. As supplemented by this Terms Document, each of the Indenture and
the Indenture Supplement is in all respects ratified and confirmed and the Indenture as supplemented by the Indenture Supplement and this Terms Document shall be read, taken and construed as one and the same instrument. 

ARTICLE II 
 The Class A(2018-3) Notes 
 Section 2.01 Creation and Designation. There is hereby created a
Tranche of Class A Notes to be issued pursuant to this Terms Document, the Indenture and the Indenture Supplement to be known as the “DiscoverSeries Class A(2018-3) Notes.” 

Section 2.02 Adjustments to Required Subordinated Percentages and Amount. 

(a) On any date, the Issuer may, at the direction of the Beneficiary, change the Required Subordinated Percentage of Class B Notes, the
Required Subordinated Percentage of Class C Notes or the Required Subordinated Percentage of Class D Notes, in each case for the Class A(2018-3) Notes, without the consent of any Noteholders;
provided that the Issuer has received written confirmation from each applicable Note Rating Agency that the change in such percentage will not result in a Ratings Effect for any Tranche of Outstanding DiscoverSeries Notes. 

(b) On any date, the Issuer may, at the direction of the Beneficiary, replace all or a portion of the Required Subordinated Amount of
Class B Notes, the Required Subordinated Amount of Class C Notes or the Required Subordinated Amount of Class D Notes, in each case for the Class A(2018-3) Notes with a different form of
credit enhancement (including, without limitation, a cash collateral account, a letter of credit, a reserve account, a surety bond, an insurance policy or a collateral interest, or any combination thereof) and may add such definitions and other
terms and make such additional amendments to this Terms Document as shall be necessary for such replacement without the consent of any Noteholders, provided that the Issuer has received written confirmation from each applicable Note Rating
Agency that such replacement and such other amendments will not result in a Ratings Effect for any Tranche of Outstanding DiscoverSeries Notes. 

Section 2.03 Interest Payment. For each Interest Payment Date the amount of interest due with respect to the Class A(2018-3) Notes shall be an amount equal to 

  
 9 

	 	(i)	(A) a fraction, the numerator of which is the actual number of days in the related Interest Accrual Period and the denominator of which is 360, times 

 

	 	(B)	the Note Interest Rate in effect with respect to such related Interest Accrual Period, times 

  

	 	(ii)	the Outstanding Dollar Principal Amount of the Class A(2018-3) Notes determined as of the first date of such related Interest Accrual Period, 

plus any Class A Tranche Interest Allocation Shortfall for such Class A(2018-3) Notes for the
immediately preceding Distribution Date, together with interest thereon at the Note Interest Rate in effect with respect to such related Interest Accrual Period, calculated on the basis of the actual number of days in the related Interest Accrual
Period and a 360-day year. 
 Section 2.04 Notification of LIBOR. On each LIBOR
Determination Date, the Indenture Trustee shall send to the Issuer, the Beneficiary, each applicable Master Servicer and any stock exchange on which the Class A(2018-3) Notes are then listed (if the rules
of such exchange so require), by facsimile transmission or electronic transmission, notification of LIBOR for the following Interest Accrual Period. 

Section 2.05 Payments of Interest and Principal. 

(a) The Issuer will cause interest to be paid on each Interest Payment Date and principal to be paid on the Expected Maturity Date;
provided, however, that it shall not be an Event of Default if principal is not paid in full on such Expected Maturity Date unless funds for such payment have been allocated in accordance with Section 3.01 of the Indenture
Supplement; and provided, further, that if a Class A(2018-3) Adverse Event has occurred and is continuing, principal will instead be payable in monthly installments on each Principal Payment
Date for the Class A(2018-3) Notes in accordance with Sections 3.01 and 3.05 of the Indenture Supplement. All payments of interest and principal on the
Class A(2018-3) Notes shall be made as set forth in Section 1102 of the Indenture. 
 (b)
The right of the Class A(2018-3) Noteholders to receive payments from the Issuer will terminate on the Class A(2018-3) Termination Date. 

(c) All payments of principal, interest or other amounts to the Class A(2018-3) Noteholders will
be made pro rata based on the Stated Principal Amount of their Class A(2018-3) Notes. 

Section 2.06 Form of Delivery of Class A(2018-3) Notes; Depository;
Denominations. 
 (a) The Class A(2018-3) Notes shall be delivered in the form of a Global
Note which shall be a Registered Note as provided in Section 204 of the Indenture. The form of the Class A(2018-3) Notes is attached hereto as Exhibit A. 

  
 10 

 (b) The Depository for the Class A(2018-3) Notes
shall be The Depository Trust Company, and the Class A(2018-3) Notes shall initially be registered in the name of Cede & Co., its nominee. 

(c) The Class A(2018-3) Notes will be issued in minimum denominations of $5,000 and integral
multiples of $1,000 in excess of that amount. 
 Section 2.07 Delivery and Payment for the Class A(2018-3) Notes. The Issuer shall execute and deliver the Class A(2018-3) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall
deliver the Class A(2018-3) Notes when authenticated, each in accordance with Sections 203 and 303 of the Indenture. 

Section 2.08 Targeted Deposits to the Accumulation Reserve Account. The deposit targeted to be made to the Accumulation Reserve
Subaccount for the Class A(2018-3) Notes for any Due Period during the Accumulation Reserve Funding Period will be an amount equal to the Targeted Accumulation Reserve Subaccount Deposit minus any
amount on deposit in the Accumulation Reserve Subaccount for the Class A(2018-3) Notes. 

Section 2.09 Additional Issuances of Notes. Subject to clauses (ii), (iii), (iv) and (v) of Section 2.02 and
Section 2.03 of the Indenture Supplement, the Issuer may issue additional Class A(2018-3) Notes, so long as the following conditions precedent are satisfied: 

(a) the Issuer shall have given the Indenture Trustee written notice of such issuance of additional
Class A(2018-3) Notes (the “Notice of Additional Issuance”) at least one (1) Business Day in advance of the Issuance Date thereof, which notice shall include: 

 

	 	(i)	the Issuance Date of such additional Class A(2018-3) Notes; 

  

	 	(ii)	the amount of such additional Class A(2018-3) Notes being offered and the resulting Initial Dollar Principal Amount and Stated Principal Amount of Class A(2018-3) Notes; 

  

	 	(iii)	the date from which interest on such additional Class A(2018-3) Notes will accrue (which may be a date prior to the date of issuance thereof); 

 

	 	(iv)	the first Interest Payment Date on which interest will be paid on such additional Class A(2018-3) Notes; and 

 

	 	(v)	any other terms that the Issuer set forth in such notice of issuance of additional Class A(2018-3) Notes to clarify the rights of Holders of such additional Class A(2018-3) Notes or the effect of such issuance of additional Class A(2018-3) Notes on any calculations to be made with respect to the Class A(2018-3) Notes, the Class A Notes or the Issuer. 

 All such terms shall be incorporated
into and form a part of this Terms Document on and after the effective date of such Class A(2018-3) Notes; 

(b) no Class A(2018-3) Adverse Event has occurred and is continuing; and 

  
 11 

 (c) either (i) the issuance of such additional
Class A(2018-3) Notes would be treated as part of the same issue as the outstanding Class A(2018-3) Notes under Treasury Regulation Sections 1.1275-1(f)(1) or 1.1275-2(k) or (ii) such additional Class A(2018-3) Notes are not issued with “original issue
discount” for purposes of Section 1273 of the Code. 
 The Issuer shall not have to satisfy the conditions set forth in
Section 310 of the Indenture in connection with an issuance of additional Class A(2018-3) Notes so long as such conditions were satisfied or waived in connection with the initial issuance of Class A(2018-3) Notes; provided, however, that the Issuer shall have to deliver to the Indenture Trustee a Master Trust Tax Opinion and an Issuer Tax Opinion with respect to such issuance. 

Section 2.10 Designation of Additional Amounts to Be Included in the Excess Spread Amount for the DiscoverSeries Notes. At any
time that any outstanding Series of certificates issued by the Master Trust provides that the Series Principal Collections allocated to such Series will be deposited into the Group Finance Charge Collections Reallocation Account for the Master Trust
to the extent necessary for application to cover shortfalls for other Series issued by the Master Trust, an amount equal to (x) all Series Principal Collections allocated to such Series, multiplied by (y) a fraction, the numerator
of which is the sum of the Nominal Liquidation Amounts for each outstanding Tranche of the DiscoverSeries Notes (including the Class A(2018-3) Notes) and the denominator of which is (i) the Aggregate
Investor Interest for the Master Trust minus (ii) the sum of the Series Investor Interests for all such Series that provide that the Series Principal Collections allocated to such Series will be so deposited, is hereby designated to be
included in the Excess Spread Amount and shall be treated as Series Finance Charge Amounts for the DiscoverSeries. 
 Section 2.11
Variable Accumulation Period. Notwithstanding anything to the contrary in Section 4.02 of the Indenture Supplement, the Calculation Agent on behalf of the Issuer shall, by written notice to the Indenture Trustee, delay the commencement
of the Accumulation Period for the Class A(2018-3) Notes and determine a new Accumulation Commencement Date, subject to the conditions set forth in this Section 2.11; provided, however,
that the Accumulation Period shall commence no later than the first day of the Due Period related to the Expected Maturity Date for the Class A(2018-3) Notes. Any such delay by the Calculation Agent on
behalf of the Issuer shall be made no later than the last day of the Due Period immediately preceding the first day of the first Due Period in the scheduled Accumulation Period (after giving effect to any prior delay in the commencement of the
Accumulation Period pursuant to this Section 2.11). 
 The Calculation Agent on behalf of the Issuer shall cause such delay if the
Calculation Agent determines in good faith that each of the following conditions will be satisfied: (i) the Calculation Agent on behalf of the Issuer delivers to the Indenture Trustee a certificate to the effect that the Calculation Agent on
behalf of the Issuer reasonably believes that, based on the payment rate and the anticipated availability of Series Principal Amounts and Reallocated Principal Amounts, the delay in the commencement of the Accumulation Period for the Class A(2018-3) Notes will not result in any Tranche of Notes not being paid in full on the relevant Expected Maturity Date (as defined in the applicable Terms Document); (ii) such delay is permitted under the
Series 2007-CC Supplement or any other applicable agreement relating to any Additional Collateral Certificate; and (iii) the Accumulation Amount, the Accumulation Commencement Date and the Accumulation
Period Length shall have been adjusted. The 

  
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Calculation Agent on behalf of the Issuer shall not be required to obtain confirmation from the applicable Note Rating Agencies that such delay in the commencement of the Accumulation Period will
not result in a Ratings Effect for any Tranche of Outstanding DiscoverSeries Notes. The Calculation Agent on behalf of the Issuer shall provide written notice to each applicable Note Rating Agency in the event that the commencement of the
Accumulation Period for the Class A(2018-3) Notes is delayed pursuant to this Section 2.11. 

Section 2.12 Seller’s Interest to Be Included in the Monthly Statement. The Issuer shall cause the Master
Servicer to include the amount of the Seller’s Interest as of the Seller’s Interest Measurement Date on each investor certificateholder’s monthly statement delivered pursuant to the Series
2007-CC Supplement. 
 Section 2.13 Duties of the Indenture Trustee. For the avoidance
of doubt, the Indenture Trustee undertakes to perform only such duties as are specifically set forth in the Indenture, the Indenture Supplement, the Pooling and Servicing Agreement, any Series Supplement and this Agreement and as such
shall have no obligation or responsibility to monitor or enforce compliance with Regulation RR, nor shall be liable to any Person for any violation of Regulation RR; provided that nothing in this Section 2.13 shall alter the Indenture
Trustee’s duties, obligations or standard of care as set forth in the Indenture or any Indenture Supplement. It is understood and acknowledged that the Indenture Trustee has not provided any advice with respect to the acquisition of the Class A(2018-3) Notes, and has no financial interest in the acquisition of such Class A(2018-3) Notes. 

[Remainder of page intentionally blank; signature page follows] 

  
 13 

 IN WITNESS WHEREOF, the parties hereto have caused this Terms Document to be duly executed, all
as of the day and year first above written. 
  

			
	 DISCOVER CARD EXECUTION NOTE TRUST,

    as Issuer

		
	By:	 	Wilmington Trust Company,
		 	not in its individual capacity but solely as Owner Trustee
		
	By:	 	 /s/ Jennifer A. Luce

		 	Name: Jennifer A. Luce
		 	Title:   Vice President
	
	 U.S. BANK NATIONAL ASSOCIATION,
 as
Indenture Trustee

		
	By:	 	 /s/ Julia Linian

		 	Name: Julia Linian
		 	Title:   Vice President

 [Signature Page to Class A(2018-3) Terms Document] 

 EXHIBIT A 

FORM OF CLASS A(2018-3) NOTE 

 DISCOVERSERIES CLASS A(2018-3) NOTE 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO
THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR TO SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN. 
 THE HOLDER OF THIS NOTE, BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT AT ANY TIME
INSTITUTE AGAINST THE ISSUER, ANY MASTER TRUST OR ANY SPECIAL PURPOSE ENTITY THAT ACTS AS A DEPOSITOR WITH RESPECT TO ANY MASTER TRUST OR THE ISSUER, OR JOIN IN ANY INSTITUTION AGAINST THE ISSUER, ANY MASTER TRUST OR ANY SPECIAL PURPOSE ENTITY THAT
ACTS AS A DEPOSITOR WITH RESPECT TO ANY MASTER TRUST OR THE ISSUER, ANY RECEIVERSHIP, INSOLVENCY, BANKRUPTCY OR SIMILAR PROCEEDINGS, OR OTHER PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY
OBLIGATIONS RELATING TO THE NOTES, THE INDENTURE, ANY DERIVATIVE AGREEMENT, ANY SUPPLEMENTAL CREDIT ENHANCEMENT AGREEMENT AND ANY SUPPLEMENTAL LIQUIDITY AGREEMENT. 

THE HOLDER OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, BY THE ACQUISITION OF A BENEFICIAL
INTEREST THEREIN, AGREE TO TREAT THE NOTES AS INDEBTEDNESS FOR APPLICABLE FEDERAL, STATE AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON OR MEASURED BY INCOME. 

THE HOLDER OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, BY THE ACQUISITION OF A BENEFICIAL
INTEREST THEREIN, WILL BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (i) IT IS NOT ACQUIRING THIS NOTE WITH THE ASSETS OF A BENEFIT PLAN INVESTOR (AS DEFINED BELOW) OR PLAN SUBJECT TO SIMILAR LAW (AS DEFINED BELOW) OR (ii) (A) THE
ACQUISITION AND HOLDING OF THIS NOTE WILL NOT GIVE RISE TO A NONEXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE “CODE”) OR A VIOLATION OF SIMILAR LAW AND (B) IF IT IS A BENEFIT PLAN INVESTOR, THE DECISION TO ACQUIRE THIS NOTE WAS MADE BY AN AUTHORIZED FIDUCIARY THAT IS AN “INDEPENDENT FIDUCIARY WITH FINANCIAL
EXPERTISE,” AS DESCRIBED IN 29 C.F.R. SECTION 2510.3-21(c)(1). FOR THESE PURPOSES, A “BENEFIT PLAN 

 INVESTOR” INCLUDES AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF ERISA THAT IS SUBJECT
TO THE PROVISIONS OF TITLE I OF ERISA, (B) A “PLAN” DESCRIBED IN SECTION 4975(e)(1) OF THE CODE THAT IS SUBJECT TO SECTION 4975 OF THE CODE AND (C) AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” OF THE
FOREGOING. ”SIMILAR LAW” MEANS ANY LAW SUBSTANTIALLY SIMILAR TO THE FIDUCIARY RESPONSIBILITY OR PROHIBITED TRANSACTION SECTIONS OF ERISA OR SECTION 4975 OF THE CODE. 

			
	 REGISTERED

No. [•]
	  	 $[•]*

CUSIP NO. 254683 CF0

 DISCOVER CARD EXECUTION NOTE TRUST 

ONE-MONTH LIBOR + 0.23% 

DISCOVERSERIES CLASS A(2018-3) NOTE 

DISCOVER CARD EXECUTION NOTE TRUST, a statutory trust created under the laws of the State of Delaware (herein referred to as the
“Issuer” or the “Note Issuance Trust”), for value received, hereby promises to pay to CEDE & CO., or registered assigns, subject to the following provisions, a principal sum of $[•] ([•] dollars)
payable on the June 2021 Payment Date (the “Expected Maturity Date”), except as otherwise provided below or in the Indenture or the Indenture Supplement (as defined on the reverse hereof); provided, however, that the
entire unpaid principal amount of this Note shall be due and payable on the December 2023 Payment Date (the “Legal Maturity Date”). Interest will accrue on this Note at the rate of one-month
LIBOR + 0.23% per annum; provided, that if the sum of LIBOR + 0.23% is less than 0.00%, then interest on this Note will be deemed to accrue at a rate of 0.00%, as more specifically set forth in the
Class A(2018-3) Terms Document dated as of June 26, 2018 (the “Terms Document”), between the Issuer and U.S. Bank National Association, as Indenture Trustee (the “Indenture
Trustee”, which term includes any successor Indenture Trustee under the Indenture), and shall be due and payable on each Interest Payment Date for the period from and including the previous Interest Payment Date (or, in the case of the
first Interest Payment Date for any Class A(2018-3) Notes, from and including the applicable Issuance Date) to but excluding such Interest Payment Date. Interest will be computed on the actual number of
days elapsed and a 360-day year. Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof. 

The principal and interest may be payable monthly, and may be payable earlier or later than the Expected Maturity Date, following an Event of
Default or while an Early Redemption Event has occurred and is continuing. No principal or interest will be distributed on the Note following the distribution of proceeds of a Receivables Sale. 

The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts. 
 The Initial Dollar Principal Amount of the
Class A(2018-3) Notes is $525,000,000. 
 Reference is made to the further provisions of this
Note set forth on the reverse hereof, which shall have the same effect as though fully set forth on the face of this Note. 
  

	* 	Denominations of $5,000 and in integral multiples of $1,000 in excess thereof. 

 Unless the certificate of authentication hereon has been executed by the Indenture Trustee whose
name appears below by manual signature, this Note shall not be entitled to any benefit under the Indenture, Indenture Supplement or the Terms Document referred to on the reverse hereof, or be valid or obligatory for any purpose. 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile,
by its Authorized Officer. 
  

			
	 DISCOVER CARD EXECUTION NOTE TRUST,

    as Issuer

		
	By:	 	WILMINGTON TRUST COMPANY, not in its individual capacity, but solely as Owner Trustee
		
	By:	 	  

		 	Name:
		 	Title:
		
		 	Date:             , 20    

 INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Notes designated above and referred to in the within-mentioned Indenture. 

 

			
	US BANK NATIONAL ASSOCIATION, not in its individual capacity, but solely as Indenture Trustee
		
	By:	 	  

		 	Name:
		 	Title:
		
		 	Date:             , 20    

 REVERSE OF NOTE 

This Note is one of the Notes of a duly authorized issue of Notes of the Issuer, designated as its
One-Month LIBOR + 0.23% Class A(2018-3) DiscoverSeries Notes (herein called the “Class A(2018-3)
Notes”), all issued under an Amended and Restated Indenture dated as of December 22, 2015 (such Indenture, as may be further amended, restated, amended and restated, supplemented, replaced or otherwise modified from time to time, is
herein called the “Indenture”), as supplemented by a Second Amended and Restated Indenture Supplement for the DiscoverSeries Notes, dated as of December 22, 2015 (such Indenture Supplement, as may be further amended, restated,
amended and restated, supplemented, replaced or otherwise modified from time to time, is herein called the “Indenture Supplement”), between the Issuer and Indenture Trustee, to which Indenture and Indenture Supplement reference is
hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes. The Class A(2018-3) Notes are subject to all terms of the
Indenture, the Indenture Supplement and the Terms Document. All terms used in this Class A(2018-3) Note that are defined in the Indenture, the Indenture Supplement and the Terms Document shall have the
meanings assigned to them in or pursuant to the Indenture, the Indenture Supplement and the Terms Document. 
 The Class B Notes, the
Class C Notes and the Class D Notes of the DiscoverSeries and other tranches of Class A Notes of the DiscoverSeries will also be issued under the Indenture and the Indenture Supplement. 

The Class A(2018-3) Notes are and will be equally and ratably secured by the collateral pledged
as security therefor as provided in the Indenture and the Indenture Supplement. 
 Principal of the
Class A(2018-3) Notes will be payable on the Expected Maturity Date in an amount described on the face hereof except as otherwise provided in the Indenture or the Indenture Supplement. 

As described above, the entire unpaid principal amount of this Class A(2018-3) Note shall be due
and payable on the Legal Maturity Date. Notwithstanding the foregoing, the entire unpaid principal amount of the Class A(2018-3) Notes shall be due and payable on the date on which an Event of Default
relating to the Class A(2018-3) Notes shall have occurred and be continuing and, except in the event of an insolvency related default, the Indenture Trustee or the Majority Holders of the applicable
Series, Class or Tranche of Outstanding Dollar Principal Amount of the Outstanding Notes have declared the Class A(2018-3) Notes to be immediately due and payable in the manner provided in
Section 702 of the Indenture; provided, however, that such acceleration of the entire unpaid principal amount of the Notes may be rescinded by the Majority Holders of such applicable Series, Class or
Tranche of Notes. 
 On any day occurring on or after the date on which the aggregate Nominal Liquidation Amount of any Tranche of Notes is
reduced to less than 5% of its highest Outstanding Dollar Principal Amount, the Depositor or any Affiliate thereof has the right, but not the obligation, to redeem such Tranche of Notes in whole but not in part, pursuant to
Section 1202 of the Indenture. The redemption price will be an amount equal to the Outstanding Dollar Principal Amount of such Tranche, plus accrued, unpaid and additional interest or principal accreted and unpaid on such
Tranche to but excluding the date of redemption. 

 Subject to the terms and conditions of the Indenture, the Beneficiary, on behalf of the Note
Issuance Trust, may from time to time issue, or direct the Owner Trustee, on behalf of the Note Issuance Trust, to issue, one or more Series, Classes or Tranches of Notes. 

On each Payment Date, the Paying Agent shall distribute to each Holder of Class A(2018-3) Notes
of record on the related Record Date (except for the final distribution with respect to this Class A(2018-3) Note) such Holder’s pro rata share of the amounts held by the Paying Agent that are
allocated and available on such Payment Date to pay interest and principal on the Class A Notes. 
 Payments of interest on this Class A(2018-3) Note due and payable on each Payment Date, together with any installment of principal, if any, to the extent not in full payment of this
Class A(2018-3) Note, shall be made by check mailed to the Person whose name appears as the Registered Holder of this Class A(2018-3) Note on the Note Register
as of the close of business on each Record Date, except that with respect to Class A(2018-3) Notes registered on the Record Date in the name of the nominee of the clearing agency (initially, such nominee
to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account designated by such nominee. Such checks shall be mailed to the Person entitled thereto at the address of such Person as it appears on
the Note Register as of the applicable Record Date without requiring that this Class A(2018-3) Note be submitted for notation of payment. Any reduction in the principal amount of this Class A(2018-3) Note (or any one or more Predecessor Notes) effected by any payments made on any Payment Date shall be binding upon all future Holders of this
Class A(2018-3) Note and of any Class A(2018-3) Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not
noted hereon. If funds are expected to be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Class A(2018-3) Note on a Payment Date, then
the Indenture Trustee, in the name of and on behalf of the Issuer, will notify the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date by notice mailed within five days of such Payment Date and the amount
then due and payable shall be payable only upon presentation and surrender of this Class A(2018-3) Note at the Indenture Trustee’s principal Corporate Trust Office or at the office of the Indenture
Trustee’s agent appointed for such purposes located in the City of New York. 
 As provided in the Indenture and subject to certain
limitations set forth therein and as set forth in the first legend on the face hereof, the transfer of this Class A(2018-3) Note may be registered on the Note Register upon surrender of this Class A(2018-3) Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or his attorney duly authorized in writing, with such signature guaranteed by a commercial bank or trust company located, or having a correspondent located, in the City of New
York or the city in which the Corporate Trust Office is located, or a member firm of a national securities exchange, and such other documents as the Indenture Trustee may require, and thereupon one or more new
Class A(2018-3) Notes of authorized denominations and in the same aggregate principal amount will be issued to the designated 

 
transferee or transferees. No service charge will be charged for any registration of transfer or exchange of this Class A(2018-3) Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange. 

To the fullest extent permitted by applicable law, each Noteholder or Note Owner, by acceptance of a
Class A(2018-3) Note or, in the case of a Note Owner, a beneficial interest in a Class A(2018-3) Note, covenants and agrees that by accepting the benefits of
the Indenture it will not at any time institute against the Issuer, any Master Trust or any special purpose entity that acts as a depositor with respect to any Master Trust or the Issuer, or join in any institution against the Issuer, any Master
Trust or any special purpose entity that acts as a depositor with respect to any Master Trust or the Issuer of, any receivership, insolvency, bankruptcy or other similar proceedings, or other proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the Notes, the Indenture, any Derivative Agreement, any Supplemental Credit Enhancement Agreement and any Supplemental Liquidity Agreement. 

By acquiring a Class A(2018-3) Note (or interest therein), each Noteholder or Note Owner (and if
each Noteholder or Note Owner is a Plan, its fiduciary) shall be deemed to represent and warrant that either: (a) it is not acquiring the Class A(2018-3) Note (or interest therein) with the assets of
(i) an “employee benefit plan” as defined in Section 3(3) of Employee Retirement Income Security Act of 1974 (“ERISA”) that is subject to Title I of ERISA, (ii) a “plan” as defined in and subject
to Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”) (iii) an entity deemed to hold plan assets of the foregoing (each of (i), (ii) and (iii), a “Benefit Plan Investor”) or (iv) a
plan that is subject to federal, state, local or other law that is similar to the fiduciary or prohibited transaction provisions of ERISA or Section 4975 of the Code (“Similar Law”); or (b) the acquisition and holding of
the Class A(2018-3) Note (or interest therein) will not give rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or a violation of any Similar Law.

 In addition, each Noteholder or Note Owner that is a Benefit Plan Investor, and the fiduciary purchasing the Class A(2018-3) Notes on behalf of a Benefit Plan Investor (the “Plan Fiduciary”), is deemed to represent and warrant by its acquisition of a
Class A(2018-3) Note (or interest therein) that the decision to acquire the Class A(2018-3) Note has been made by the Plan Fiduciary and the Plan Fiduciary is
an “independent fiduciary with financial expertise” as described in 29 C.F.R. Sec. 2510.3-21(c)(1). Specifically, this requires the Benefit Plan Investor and Plan Fiduciary to represent and warrant
that: (a) the Plan Fiduciary is independent of the Issuer, the Underwriters, the Depositor, the Owner Trustee, any Master Servicer, any Servicer and each of their affiliates (the “Transaction Parties”) and the Plan Fiduciary
either: (i) is a bank as defined in Section 202 of the Investment Advisers Act of 1940, as amended (the “Advisers Act”), or similar institution that is regulated and supervised and subject to periodic examination by a U.S.
state or U.S. federal agency, (ii) is an insurance carrier which is qualified under the laws of more than one U.S. state to perform the services of managing, acquiring or disposing of assets of an employee benefit plan described in
Section 3(3) of ERISA or any plan described in Section 4975(e)(1)(A) of the Code, (iii) is an investment adviser registered under the Advisers Act, or, if not registered as an investment adviser under the Advisers Act by reason of
paragraph (1) of Section 203A of the Advisers Act, is registered as an investment adviser under the laws of 

 
the U.S. state in which it maintains its principal office and place of business, (iv) is a broker-dealer registered under the U.S. Securities Exchange Act of 1934, as amended or
(v) holds, or has under its management or control, total assets of at least U.S. $50 million (provided that this clause (v) shall not be satisfied if the Plan Fiduciary is either (i) an individual directing his or her own
individual retirement account or relative of such individual or (ii) a participant or beneficiary of such benefit plan purchasing the Class A(2018-3) notes); (b) the Plan Fiduciary is capable of
evaluating investment risks independently, both in general and with respect to particular transactions and investment strategies, including the acquisition by the Benefit Plan Investor of the
Class A(2018-3) Notes; (c) the Plan Fiduciary is a “fiduciary” with respect to the Benefit Plan Investor within the meaning of Section 3(21) of ERISA, Section 4975 of the Code, or
both, and is responsible for exercising independent judgment in evaluating the Benefit Plan Investor’s acquisition of the Class A(2018-3) Notes, (d) none of the Transaction Parties has exercised
any authority to cause the Benefit Plan Investor to invest in the Class A(2018-3) Notes or to negotiate the terms of the Benefit Plan Investor’s investment in the
Class A(2018-3) Notes; and (e) the Plan Fiduciary has been informed by the Transaction Parties: (i) that none of the Transaction Parties are undertaking to provide impartial investment advice or
to give advice in a fiduciary capacity, and that no such entity has given investment advice or otherwise made a recommendation, in connection with the Benefit Plan Investor’s acquisition of the
Class A(2018-3) Notes and (ii) of the existence and nature of the Transaction Parties’ financial interests in the Benefit Plan Investor’s acquisition of the
Class A(2018-3) Notes. 
 Prior to the due presentment for registration of transfer of this Class A(2018-3) Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name this Class A(2018-3)
Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Class A(2018-3) Note be overdue,
and neither the Issuer, the Indenture Trustee nor any such agent shall be affected by notice to the contrary. 
 The Indenture permits, with
certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Notes under the Indenture at any time by the Issuer with the consent of the Holders
of Notes representing not less than 66 2/3% of the Outstanding Dollar Principal Amount of each adversely affected Series, Class or Tranche of Notes. The Indenture also contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Dollar Principal Amount of the Notes, on behalf of the Holders of all the Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Class A(2018-3) Note shall be conclusive and binding upon such Holder and upon all future Holders of this
Class A(2018-3) Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Class A(2018-3) Note. The Indenture also permits the Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued thereunder.

 The term “Issuer” as used in this Class A(2018-3) Note includes any
successor to the Issuer under the Indenture. 

 The Issuer is permitted by the Indenture, under certain circumstances, to merge or consolidate,
subject to the rights of the Indenture Trustee and the Holders of Notes under the Indenture. 
 The
Class A(2018-3) Notes are issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations therein set forth. 

THIS CLASS A(2018-3) NOTE AND THE INDENTURE WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATION LAW, WITHOUT REFERENCE TO ANY CONFLICT OF LAW PROVISIONS THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANY OTHER STATE.

 No reference herein to the Indenture and no provision of this Class A(2018-3) Note or of the
Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Class A(2018-3) Note at the times, place, and rate, and in
the coin or currency herein prescribed. 
 No recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer
on the Notes or under the Indenture or any certificate or other writing delivered in connection therewith, against (i) the Owner Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any
partner, owner, beneficiary, agent, officer, director or employee of the Owner Trustee in its individual capacity, any holder of a beneficial interest in the Issuer or any successor or assign of the Owner Trustee in its individual capacity, except
as any such Person may have expressly agreed (it being understood that the Owner Trustee has no such obligations in its individual capacity). The Holder of this Class A(2018-3) Note by the acceptance
hereof agrees that, except as expressly provided in the Indenture and the Indenture Supplement in the case of an Event of Default under the Indenture, the Holder shall have no claim against any of the foregoing for any deficiency, loss or claim
therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture
or in this Class A(2018-3) Note. 

 ASSIGNMENT 

Social Security or taxpayer I.D. or other identifying number of assignee 

 
 FOR VALUE RECEIVED, the undersigned hereby
sells, assigns and transfers unto 
 (name and address of assignee) 

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints attorney, to transfer said Note on the books kept for registration
thereof, with full power of substitution in the premises. 
  

			
	Dated:                                     
                                         
       	  	                                      
                                         
                     *
		  	Signature Guaranteed:

  

	*	NOTE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change whatsoever.

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