Document:

EX-4.1

 Exhibit 4.1 
  

 
 DISCOVER CARD EXECUTION NOTE TRUST

 Issuer 
 and 

U.S. BANK NATIONAL ASSOCIATION 

Indenture Trustee 
 CLASS
A(2015-3) TERMS DOCUMENT 
 Dated as of October 7, 2015 

to 
 AMENDED AND RESTATED
INDENTURE SUPPLEMENT 
 Dated as of June 4, 2010 

for the DiscoverSeries Notes 
 to

 INDENTURE 
 Dated as of
July 26, 2007 
  
  

 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
	  	 	6	  
	 Section 1.03
	  	 Representations and Warranties of Indenture Trustee
	  	 	7	  
	 Section 1.04
	  	 Limitations on Liability
	  	 	7	  
	 Section 1.05
	  	 Governing Law
	  	 	8	  
	 Section 1.06
	  	 Counterparts
	  	 	8	  
	 Section 1.07
	  	 Ratification of Indenture and Indenture Supplement
	  	 	8	  
		
	ARTICLE II	  			
	THE CLASS A(2015-3) NOTES	  			
			
	 Section 2.01
	  	 Creation and Designation
	  	 	8	  
	 Section 2.02
	  	 Adjustments to Required Subordinated Percentages and Amount
	  	 	8	  
	 Section 2.03
	  	 Interest Payment
	  	 	9	  
	 Section 2.04
	  	 [Reserved]
	  	 	9	  
	 Section 2.05
	  	 Payments of Interest and Principal
	  	 	9	  
	 Section 2.06
	  	 Form of Delivery of Class A(2015-3) Notes; Depository; Denominations
	  	 	9	  
	 Section 2.07
	  	 Delivery and Payment for the Class A(2015-3) Notes
	  	 	10	  
	 Section 2.08
	  	 Targeted Deposits to the Accumulation Reserve Account
	  	 	10	  
	 Section 2.09
	  	 Additional Issuances of Notes
	  	 	10	  
	 Section 2.10
	  	 Designation of Additional Amounts to Be Included in the Excess Spread Amount for the DiscoverSeries Notes
	  	 	11	  
	 Section 2.11
	  	 Variable Accumulation Period
	  	 	11	  
	 Section 2.12
	  	 Permitted Investments
	  	 	12	  
		
	 EXHIBIT A FORM OF CLASS A(2015-3) NOTE
	  	 	14	  

  
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 THIS CLASS A(2015-3) 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 October 7, 2015. 

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(2015-3) Notes; 

(6) each capitalized term defined herein shall relate only to the Class A(2015-3) 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 $56,250,000; 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 September 1, 2017, 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(2015-3) Notes and 

(y) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class A(2015-3) 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%.

  
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	 Distribution Date:
	  	 Condition:

	(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(2015-3) Adverse Event” means the occurrence of any of the following: (a) an Early Redemption Event with respect
to the Class A(2015-3) Notes or (b) an Event of Default and acceleration of the Class A(2015-3) 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(2015-3) Adverse Event shall not be treated as continuing from and after the date of such cure. 

“Class A(2015-3) Note” means any Note, in the form set forth in Exhibit A hereto, designated therein as a Class A(2015-3)
Note and duly executed and authenticated in accordance with the Indenture. 
 “Class A(2015-3) Noteholder” means a Person
in whose name a Class A(2015-3) Note is registered in the Note Register. 
 “Class A(2015-3) Termination Date” means the
earliest to occur of (a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class A(2015-3) 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. 

  
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 “Expected Maturity Date” means September 17, 2018. 

“Indenture” means the Indenture, dated as of July 26, 2007, between the Issuer and Indenture Trustee, as amended by the
First Amendment to Indenture, dated as of June 4, 2010, as such agreement may be further amended, supplemented, restated, amended and restated, replaced or otherwise modified from time to time. 

“Indenture Supplement” means the Amended and Restated Indenture Supplement dated as of June 4, 2010, 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 $675,000,000, 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(2015-3) Note, from and including the applicable Issuance Date) to but excluding the current Interest Payment Date. 

“Interest Payment Date” means the fifteenth day of each month commencing in November 2015, or if such fifteenth day is not a
Business Day, the next succeeding Business Day. 
 “Issuance Date” means October 7, 2015, with respect to all Class
A(2015-3) Notes issued on the date hereof and, with respect to any additional Class A(2015-3) Notes issued pursuant to Section 2.09 hereof, any Issuance Date specified in the Notice of Additional Issuance delivered thereunder. 

“Legal Maturity Date” means March 15, 2021. 

“Note Interest Rate” means 1.45% per annum, calculated on the basis of twelve 30-day months and a 360-day year. 

“Notice of Additional Issuance” has the meaning set forth in Section 2.09 hereof. 

“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. 
 “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(2015-3) Notes, the Accumulation Amount, (ii) if such day is on or after the occurrence and during the continuance of a Class A(2015-3)
Adverse Event, the Nominal Liquidation Amount of the Class A(2015-3) Notes and (iii) in all other circumstances, zero. 

“Required Subordinated Amount of Class B Notes” means, for the Class A(2015-3) Notes for any date of determination, an amount
equal to the product of 

  
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 (a) the Required Subordinated Percentage of Class B Notes for such Class A(2015-3) Notes on such
date of determination; and 
 (b) the Nominal Liquidation Amount of such Class A(2015-3) 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(2015-3) Adverse Event,
the Required Subordinated Amount of Class B Notes for the Class A(2015-3) 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(2015-3) Adverse Event shall have occurred. 
 “Required Subordinated Amount of Class C Notes” means, for the Class
A(2015-3) 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(2015-3) Notes on such date of determination; and 
 (b) the Nominal Liquidation Amount of such Class A(2015-3) 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(2015-3) Adverse Event, the Required Subordinated Amount of Class C Notes for the Class A(2015-3) 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(2015-3) Adverse Event shall have occurred.

 “Required Subordinated Amount of Class D Notes” means, for the Class A(2015-3) 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(2015-3) Notes on such date of
determination; and 
 (b) the Nominal Liquidation Amount of such Class A(2015-3) 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(2015-3) Adverse Event,
the Required Subordinated Amount of Class D Notes for the Class A(2015-3) 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 the Class
A(2015-3) Adverse Event shall have occurred. 
 “Required Subordinated Percentage of Class B Notes” means, for the Class
A(2015-3) Notes, 7.284768%, subject to adjustment in accordance with Section 2.02. 
 “Required Subordinated Percentage of
Class C Notes” means, for the Class A(2015-3) Notes, 9.271523%, subject to adjustment in accordance with Section 2.02. 

“Required Subordinated Percentage of Class D Notes” means, for the Class A(2015-3) Notes, 15.894040%, subject to adjustment
in accordance with Section 2.02. 
 “Specified Rating” means, for the Class A(2015-3) 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 $675,000,000 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(2015-3) 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 corporate and
statutory trust proceedings of any 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; 

  
 6 

 (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 
 (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, any 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(2015-3) Notes under the Indenture, the Indenture Supplement and this Terms Document. 

  
 7 

 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(2015-3) 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(2015-3) 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(2015-3) 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(2015-3) 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. 

  
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 Section 2.03 Interest Payment. For the first Interest Payment Date, November 16,
2015, the amount of interest due with respect to the Class A(2015-3) Notes is $1,033,125. For each Interest Payment Date following the first Interest Payment Date for any Class A(2015-3) Note, the amount of interest due with respect to the Class
A(2015-3) Notes shall be an amount equal to 
  

					
	 (i)
	  	(A)	  	a fraction, the numerator of which is 30 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(2015-3) 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(2015-3) 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 twelve 30-day months and a 360-day year. 

Section 2.04 [Reserved] 

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(2015-3) Adverse Event has occurred and is continuing, principal will instead be payable in monthly installments on each Principal Payment Date for the Class A(2015-3) Notes in
accordance with Sections 3.01 and 3.05 of the Indenture Supplement. All payments of interest and principal on the Class A(2015-3) Notes shall be made as set forth in Section 1102 of the Indenture. 

(b) The right of the Class A(2015-3) Noteholders to receive payments from the Issuer will terminate on the Class A(2015-3) Termination Date.

 (c) All payments of principal, interest or other amounts to the Class A(2015-3) Noteholders will be made pro rata based on the
Stated Principal Amount of their Class A(2015-3) Notes. 
 Section 2.06 Form of Delivery of Class A(2015-3) Notes; Depository;
Denominations. 
 (a) The Class A(2015-3) 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(2015-3) Notes is attached hereto as Exhibit A. 

  
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 (b) The Depository for the Class A(2015-3) Notes shall be The Depository Trust Company, and the
Class A(2015-3) Notes shall initially be registered in the name of Cede & Co., its nominee. 
 (c) The Class A(2015-3) Notes will
be issued in minimum denominations of $100,000 and integral multiples of $1,000 in excess of that amount. 
 Section 2.07 Delivery
and Payment for the Class A(2015-3) Notes. The Issuer shall execute and deliver the Class A(2015-3) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class A(2015-3) 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(2015-3) 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(2015-3) 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(2015-3) 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(2015-3) 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(2015-3) Notes; 

  

	 	(ii)	the amount of such additional Class A(2015-3) Notes being offered and the resulting Initial Dollar Principal Amount and Stated Principal Amount of Class A(2015-3) Notes; 

 

	 	(iii)	the date from which interest on such additional Class A(2015-3) 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(2015-3) Notes; and 

  

	 	(v)	any other terms that the Issuer set forth in such notice of issuance of additional Class A(2015-3) Notes to clarify the rights of Holders of such additional Class A(2015-3) Notes or the effect of such issuance of
additional Class A(2015-3) Notes on any calculations to be made with respect to the Class A(2015-3) 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(2015-3) Notes; 

(b) no Class A(2015-3) Adverse Event has occurred and is continuing; and 

  
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 (c) either (i) the issuance of such additional Class A(2015-3) Notes would be treated as
part of the same issue as the outstanding Class A(2015-3) Notes under Treasury Regulation Sections 1.1275-1(f)(1) or 1.1275-2(k) or (ii) such additional Class A(2015-3) 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(2015-3) Notes so long as such conditions were satisfied or waived in connection with the initial issuance of Class A(2015-3) 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 DCMT Group One 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(2015-3) 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(2015-3) 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(2015-3) Notes.
Any such delay by the Calculation Agent on behalf of the Issuer shall be made no later than the first day of the scheduled Due Period immediately preceding the first Due Period in the 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(2015-3) Notes will not result in any Tranche of Notes not being paid in full on the relevant Expected Maturity Date (as defined in the Indenture); (ii) such delay is permitted under the Series 2007-CC Series 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 Calculation Agent on

  
 11 

 
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, unless at the time of such delay there is a Tranche of Outstanding DiscoverSeries Notes, which were issued prior to January 1, 2009 and for which the commencement of the
Accumulation Period for such Tranche of Notes has already been delayed pursuant to Section 4.02 of the Indenture Supplement. If such confirmation from the applicable Note Rating Agency is not required, 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(2015-3) Notes is delayed pursuant to this Section 2.11. 

Section 2.12 Permitted Investments. Notwithstanding anything to the contrary in the Indenture or the Pooling and Servicing
Agreement, with respect to the Class A(2015-3) Notes, for purposes of the definition of Permitted Investment, “Highest Rating” shall mean, with respect to Standard & Poor’s: 

(a) A-1 or AAA for funds on deposit in all Issuer Accounts other than Principal Funding Accounts; 

(b) A-1+ or AAA for funds on deposit in Principal Funding Accounts; or 

(c) any rating category which will not cause a reduction in or withdrawal of the rating of the Class A(2015-3) Notes, as confirmed in writing
by Standard & Poor’s. 
 [Remainder of page intentionally blank; signature page follows] 

  
 12 

 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/ Edwin J. Janis

		 	Name: Edwin J. Janis
		 	Title: Vice President

 [Signature Page to Class A(2015-3) Terms Document] 

 EXHIBIT A 

FORM OF CLASS A(2015-3) NOTE 

  
 14 

 DISCOVERSERIES CLASS A(2015-3) 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. 

  
 15 

			
	 REGISTERED
 No. [●]
	  	 $[●]*

CUSIP NO. 254683 BQ7

DISCOVER CARD EXECUTION NOTE TRUST 

1.45% 
 DISCOVERSERIES
CLASS A(2015-3) 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 September 17, 2018 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 March 15, 2021 Payment Date (the “Legal Maturity Date”). Interest will accrue on this Note at the rate of
1.45% per annum, as more specifically set forth in the Class A(2015-3) Terms Document dated as of October 7, 2015 (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 15th day of the month in which the previous Interest Payment Date occurred (or, in the case of the first Interest Payment Date for any Class A (2015-3) Notes, from and including the applicable
Issuance Date and assuming the month of issuance has 30 days) to but excluding the 15th day of the month in which the current Interest Payment Date occurs assuming each month has 30 days. Interest
will be computed on the basis of twelve 30-day months and a 360-day year (or, in the case of the first Interest Payment Date, based on the actual number of days elapsed and a 360-day year, assuming the month of issuance has 30 days). 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(2015-3) Notes is $675,000,000. 
 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 $100,000 and in integral multiples of $1,000 in excess thereof. 

  
 16 

 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. 

  
 17 

 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    

  
 18 

 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    

  
 19 

 REVERSE OF NOTE 

This Note is one of the Notes of a duly authorized issue of Notes of the Issuer, designated as its Class A(2015-3) DiscoverSeries Notes
(herein called the “Class A(2015-3) Notes”), all issued under an Indenture dated as of July 26, 2007, as amended by the First Amendment to Indenture, dated as of June 4, 2010 (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 an Amended and Restated Indenture Supplement for the DiscoverSeries Notes, dated
as of June 4, 2010 (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(2015-3) Notes are subject to all terms of the Indenture, the Indenture Supplement and the Terms Document. All terms used in this Class A(2015-3) 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(2015-3) 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(2015-3) 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(2015-3) Note shall be due and payable on the Legal Maturity Date. Notwithstanding the foregoing, the entire unpaid principal amount of the Class A(2015-3) Notes shall be due and payable on the date on which an
Event of Default relating to the Class A(2015-3) 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(2015-3) 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. 

  
 20 

 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(2015-3) Notes of record on the related Record Date (except
for the final distribution with respect to this Class A(2015-3) 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(2015-3) 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(2015-3) Note, shall be made by check mailed to the Person whose name appears as the Registered Holder of this Class A(2015-3) Note on the Note Register as of the close of business
on each Record Date, except that with respect to Class A(2015-3) 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(2015-3) Note be submitted for notation of payment. Any reduction in the principal amount of this Class A(2015-3) 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(2015-3) Note and of any Class A(2015-3) 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(2015-3) 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(2015-3) 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(2015-3) Note may be registered on the Note Register upon surrender of this Class A(2015-3) 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(2015-3) Notes of authorized denominations and in the same aggregate principal amount will be issued to the designated 

  
 21 

 
transferee or transferees. No service charge will be charged for any registration of transfer or exchange of this Class A(2015-3) 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(2015-3) Note or, in the case of a Note Owner, a beneficial interest in a Class A(2015-3) 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. 

Prior to the due presentment for registration of transfer of this Class A(2015-3) 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(2015-3) 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(2015-3) 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(2015-3) Note shall be conclusive and binding upon such
Holder and upon all future Holders of this Class A(2015-3) 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(2015-3) 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(2015-3) 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. 

  
 22 

 The Class A(2015-3) Notes are issuable only in registered form in denominations as provided in
the Indenture, subject to certain limitations therein set forth. 
 THIS CLASS A(2015-3) 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(2015-3) 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(2015-3) 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(2015-3) 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(2015-3) Note. 

  
 23 

 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.Exhibit 10.1

 

EXECUTIVE
agreement

 

 

THIS EXECUTIVE AGREEMENT (the “Agreement”)
by and between Hudson Global, Inc. (the “Company”) and Neil J. Funk (“Executive”) is made this 2nd
day of October, 2015 (the “Effective Date”).

 

WHEREAS, the Company and Executive have mutually
agreed to Executive’s imminent departure from employment with the Company as its Vice President, Internal Audit and to the
following satisfactory transitional arrangements.

 

NOW, THEREFORE, in consideration of this
mutual Agreement, the Company and Executive hereby agree as follows:

 

1.Departure. Executive’s
duties as Vice President, Internal Audit shall conclude on October 31, 2015 and Executive’s employment with the Company
shall cease on such date (the “Departure Date”). Until the Departure Date, the provisions of Sections 2, 4 through
6 and Sections 8(h) and 8(i) of the Hudson Highland Group Executive Employment Agreement, entered into by and between Executive
and the Company effective January 26, 2012 (the “Employment Agreement”), shall remain in effect. In addition, through
the Departure Date, Executive shall continue to be eligible for all employee benefit plans pursuant to their terms.

 

2.Consulting Services. The provisions
of this Section 2 are conditioned on the Executive having timely executed and not revoked the Release (as defined in Section 7
of this Agreement) and the Executive’s compliance with Section 6 of this Agreement:

 

(a)From November 1, 2015
through February 28, 2017 (the “Consulting Term”), Executive will serve as the Internal Audit, Enterprise Risk and
Controls Consultant to the Company, providing internal audit services including (i), on a quarterly basis, Sarbanes-Oxley testing
review, business conduct compliance reporting review, global risk assessment update and review, regional internal audit planning
and results review, Audit Committee meeting presentation and attendance, executive clearance and regional global litigation meeting
attendance and external auditor debriefing and updates; and (ii), on an annual basis, internal audit plan preparation and review,
Audit Committee meeting presentation and attendance, and global risk assessment and planning (the “Services”), provided
that Executive is expected to perform such Services for at least 67, but not more than 84, working days during the Consulting
Term. If the Company requests the Executive to perform additional internal audit services other than those described above and
such additional internal audit services will require Executive to work more than 84 working days during the Consulting Term, then
Company and Executive will mutually agree upon the project scope, budget and compensation to Executive before commencing any such
additional services. Notwithstanding the foregoing, any additional internal audit services or working days in excess of 84 during
the Consulting Term will be subject to prior approval by the Chairman of the Audit Committee and the Company. In such role, Executive
will report to the Chairman of the Audit Committee of the Board of Directors. The parties intend and agree that Executive will
act during the Consulting Term as an independent contractor and shall not be deemed an employee or agent of the Company for any
purpose whatsoever in performance of the Services. Executive shall have no right or authority to make or undertake any promise,
warranty or representation, to execute any contract or otherwise to assume any obligation or responsibility in the name or on
behalf of the Company.

 

     

     

    

 

(b)In consideration for the
Services, the Company shall pay Executive a consulting fee of USD$80,000 for the Consulting Term. Such amount shall be paid in
semi-monthly installments, in the amount of $2,500 each, during the Consulting Term. Executive shall be solely responsible for
any income taxes to which the consulting fee is subject. In addition, the Company shall pay (or promptly reimburse Executive)
for cell phone services during the Consulting Term and shall reimburse Executive for reasonable expenses incurred in the performance
of the Services based upon applicable receipts. The Company also shall provide Executive with adequate administrative support
to provide the Services.

 

(c)The Consulting Term will
terminate prior to February 28, 2017 upon any of the following: (i) Executive’s death, (ii) following Executive’s
60-day advance notice to the Company of his termination of Services for any or no reason, or (iii) the Company’s notice
to Executive of termination of his Services for failure to adequately perform such Services, which notice shall provide written
detail of the nature of the failure and give Executive at least thirty (30) days to cure such failure prior to the termination
becoming effective. Upon termination of the Consulting Term, Executive (or his estate, in the event of his death) will be entitled
to receive the semi-monthly installment payment for the period in which the termination is effective, and thereafter shall not
be entitled to receive any additional payments for the Services.

 

(d)At least sixty (60) days
prior to the end of the Consulting Term, the Company shall provide notice to Executive indicating whether the Consulting Term
will be extended beyond February 28, 2017 or will be terminated effective February 28, 2017. In the absence of such notice, the
Consulting Term will end on February 28, 2017. If the Company requests an extension of the Consulting Term and Executive agrees
to such extension, then the parties will mutually agree upon the period of the extension of the Services (the “Extended
Term”) and the amount of fees to be paid therefor. The Extended Term will be terminated upon the Executive’s death,
and can be terminated early by either party for any or no reason by providing at least sixty (60) days’ advance notice of
termination to the other party.

 

(e)At the end of the Consulting
Term (and any extensions thereto), Executive further represents and warrants that Executive will, on or before such date, deliver
to the Company the original and all copies of all documents, records, and property of any nature whatsoever which are in Executive’s
possession or control and which are the property of the Company or which relate to Confidential Information (as described below),
or to the business activities, facilities, or customers of the Company, including any records (electronic or otherwise), documents
or property created by Executive.

 

    	 	-2-	 

     

    

 

3.Departure Payments. The Company
will provide Executive with the following compensation, provided that Executive has timely executed and not revoked the Release
(as defined in Section 7 of this Agreement) and provided further that Executive does not violate Section 6 of this Agreement:

 

(a)The Company will pay Executive
Three Hundred Seventy-Five Thousand Dollars (USD$375,000) in a lump sum payment, less applicable tax withholdings, on the first
day of the seventh (7th) month following the month in which Executive’s employment with the Company terminates,
or May 1, 2016, and such lump sum payment shall be accompanied by a payment of interest calculated using the annual rate of interest
announced by the Federal Reserve Board (or any successor thereto) from time to time as the “federal funds rate”, such
rate to be determined on the date of Executive’s termination of employment, compounded quarterly.

 

(b)If Executive elects to
exercise Executive’s rights to continue group medical and dental plan coverage for a limited period (commonly referred to
as “COBRA rights”) within the statutorily prescribed time period commencing immediately following the Departure Date,
and Executive pays an amount equal to an active employee’s share of the premium for such group medical and dental benefits,
the Company will waive the remaining COBRA continuation premium for the twelve (12) month period following the Departure Date.
Notwithstanding the foregoing, if the group medical and dental plan coverage are fully-insured and, as a result of the Company’s
subsidization of Executive’s COBRA premiums, the plans are considered discriminatory such that the Company would be subject
to an excise tax, then in lieu of the foregoing, the Company shall pay Executive an amount equal to what would have been the Company’s
subsidy amount had Executive continued COBRA coverage for the twelve (12) month period.

 

(c)The Company will pay (or
promptly reimburse Executive) for up to Fifteen Thousand United States Dollars (USD$15,000) in the aggregate, during the time
period from the Departure Date to May 1, 2016, of fees and expenses of consultants and/or legal or accounting advisors engaged
by the Executive to advise the Executive as to matters relating to the computation of benefits due and payable under Section 3(a)
of this Agreement.

 

(d)Executive will not be
eligible for the Senior Management Bonus Plan for 2015.

 

(e)The Company shall permit
Executive to purchase his Company-issued laptop from the Company for a payment of USD$1.00. The Company shall deduct the withholding
taxes related to the transfer of such property from other amounts that the Company owes the Executive. The Company shall have
the right to copy the Executive’s laptop hard drive.

 

(f)Notwithstanding anything
to the contrary in this Agreement, any payment obligation of the Company under this Agreement shall be deemed satisfied regardless
of whether such payment was made by the Company or a subsidiary of the Company.

 

    	 	-3-	 

     

    

 

4.Obligations of Executive at Departure.
Executive hereby resigns as an officer or director of any subsidiaries of the Company effective as of the Departure Date and represents
and warrants that Executive will, on or before the Departure Date, provide any resignations from such other positions as the Company
deems necessary. Executive further represents and warrants that Executive will, on or before such date, deliver to the Company
the original and all copies of all documents, records, and property of any nature whatsoever which are in Executive’s possession
or control and which are the property of the Company or which relate to Confidential Information (as described below), or to the
business activities, facilities, or customers of the Company, including any records (electronic or otherwise), documents or property
created by Executive, other than those records, documents or property that Executive requires to perform the Services, which will
be returned at the end of the Consulting Term (including any extensions thereof).

 

5.Other Agreements. Except as
provided below, all the terms of the agreement between the Company and Executive are embodied in this Agreement and, except as
specifically set forth in Section 1 hereof, it fully supersedes any and all prior agreements or understandings, written or oral,
including any notice periods contained therein, between Executive and the Company, including, but not limited to, the Employment
Agreement; provided that:

 

(a)This Agreement does not
limit or restrict in any way Executive’s existing rights or obligations under the Company’s employee benefit plans,
including any retirement plan, retirement savings plan, or group medical plan.

 

(b)This Agreement does not
limit or restrict in any way Executive’s rights and obligations under any stock options and/or restricted stock awards previously
issued to Executive.

 

6.Restrictive Covenants. In
consideration of Executive’s position with the Company immediately prior to the Departure Date, the business relationships
Executive has developed while employed by the Company, and Executive’s knowledge of the Company’s business affairs
including the Confidential Information (as defined below), Executive agrees to the following restrictive covenants (the “Restrictive
Covenants”), which are a continuation of certain covenants previously agreed to by Executive in Attachment A to the Employment
Agreement:

 

(a)Non-Solicitation of
Clients. During the period ending on the later of (i) the 12-month period following the Departure Date or (ii) the end of
the Consulting Term, including any extensions thereto (the "Restricted Period"), Executive agrees that Executive will
not, directly or indirectly, unless such action is waived in writing by the Chief Executive Officer of the Company, for Executive’s
benefit or on behalf of any person, corporation, partnership or entity whatsoever, call on, solicit, provide services for, interfere
with or endeavor to entice away from the Company any client to whom Executive provides services at any time during the 12-month
period proceeding the Departure Date or during the Consulting Term, or any prospective client to whom the Company had made a presentation
at any time during the 12-month period preceding the Departure Date or during the Consulting Term that are services provided by
the Company. Notwithstanding the foregoing, nothing in this Agreement is intended to prevent Executive from being employed or
retained by any of the Company’s clients during the Restricted Period in a position or relationship in which Executive is
not soliciting clients of the Company involving services provided by Company.

 

    	 	-4-	 

     

    

 

(b)Non-Hire of Employees.
During the Restricted Period, Executive agrees that Executive will not, directly or indirectly, unless such action is waived in
writing by the Chief Executive Officer of the Company, for Executive’s benefit or on behalf of any person, corporation,
partnership or entity whatsoever, hire, attempt to hire, or solicit for hire any employee of the Company or its subsidiaries,
or any individual who was employed by the Company or its subsidiaries, as of the Departure Date.

 

(c)Confidentiality.
Executive agrees that during the Restricted Period, Executive shall maintain the confidentiality of any and all information about
the Company which is not generally known or available outside the Company, including without limitation, strategic plans, technical
and operating know-how, business strategy, trade secrets, customer information, business operations and other proprietary information
(“Confidential Information”), and Executive will not, directly or indirectly, disclose any Confidential Information
to any person or entity, or use any Confidential Information, whether for the benefit of Executive or the benefit of any new employer
or any other person or entity, or in any other manner that is detrimental to or inconsistent with any interest of the Company.
If Executive receives notice that Executive must disclose Confidential Information pursuant to a subpoena or other lawful process,
Executive must notify the Company’s General Counsel immediately. Except as permitted in writing by the Company, Executive
agrees not to discuss this Agreement publicly and will disclose its contents only to Executive’s attorneys, financial consultants,
and immediate family members. The provisions of the forgoing sentence shall not apply to any truthful statement required to be
made by Executive in any legal proceeding or government or regulatory investigation, provided, however, that prior to making such
statement Executive will give the Company reasonable notice and, to the extent Executive is legally entitled to do so, afford
the Company the ability to seek a confidentiality order.

 

(d)Acknowledgement of
Reasonableness of Restrictions. Executive acknowledges and agrees that the scope and duration of these Restrictive Covenants
are reasonable and necessary to protect the legitimate business interests of the Company. Executive acknowledges that Executive
has received substantial compensation from the Company in consideration for these Restrictive Covenants and that Executive’s
general skills and abilities are such that Executive can be gainfully employed and that this Agreement will not prevent Executive
from earning a living following Executive’s separation from service with the Company.

 

(e)Company Entitled to
Injunctive Relief. Executive agrees that the Company will suffer irreparable damage in the event the provisions of this Section
are breached and that Executive’s acceptance of the provisions of this Section was a material factor in Executive’s
and the Company’s decision to enter into this Agreement. Executive further agrees that the Company shall be entitled as
a matter of right to injunctive relief to prevent a breach by Executive. Resort to such equitable relief, however, shall not constitute
a waiver of any other rights or remedies the Company may have. The provisions of this Section shall not apply to any truthful
statement required to be made by Executive in any legal proceeding or government or regulatory investigation, provided, however,
that prior to making such statement Executive will give the Company reasonable written notice and, to the extent Executive is
legally entitled to do so, afford the Company the ability to seek a confidentiality order. Nothing herein modifies or reduces
Executive’s obligation to comply with applicable laws relating to trade secrets, confidential information, or unfair competition.

 

    	 	-5-	 

     

    

 

7.Release. Executive and the
Company shall execute the General Release attached hereto as Exhibit A (the “Release”) on the Departure Date.

 

8.No Disparagement. Executive
agrees that, except as may be required by the lawful order of a court or agency of competent jurisdiction, Executive will not
take any action or make any statement or disclosure, written or oral, that is intended or reasonably likely to disparage the Company
or any of its affiliates, or any of their past or present employees, officers or directors, and the Company will not knowingly
disparage, criticize or otherwise make any derogatory statements regarding Executive. For purposes of the Company’s obligation
to not disparage Executive under this Section 8 only, the term “Company” means only the Company’s executive
officers, directors, and members of the Global Leadership team.

 

9.Power of Attorney. Effective
on the Departure Date, the Company hereby revokes any and all powers of attorney the Company may have granted Executive during
Executive’s employment with the Company.

 

10.Expenses and Insurance. With
respect to services provided by Executive to the Departure Date and pursuant to this Agreement, the Company shall (a) reimburse
Executive for reasonable expenses incurred in the performance of Executive’s services, (b) maintain Director and Officer
insurance coverage for Executive consistent with that provided to other Company directors and officers, and (c) provide Executive
with full indemnification as permitted by law.

 

11.Regulatory Notices. The Company
confirms that to the best of its knowledge the Company has not received from any regulatory agency any notice pertaining to any
regulatory matter related to Executive. 

 

12.Taxes. All payments made
herein or the value of all property transferred to Executive hereunder shall be subject to applicable payroll and withholding
taxes. This Agreement shall be construed and administered in compliance with Section 409A of the Internal Revenue Code. The parties
agree to amend the Agreement as may be necessary to avoid application of Code Section 409A excise taxes or penalties to payments
made pursuant to this Agreement. 

 

13.Severability. In the event
any one or more of the provisions of this Agreement (or any part thereof) shall for any reason be held to be invalid, illegal
or unenforceable, the remaining provisions of this Agreement (or part thereof) shall be unimpaired, and the invalid, illegal or
unenforceable provision (or part thereof) shall be replaced by a provision (or part thereof), which, being valid, legal and enforceable,
comes closest to the intention of the parties underlying the invalid, illegal or unenforceable provisions. However, in the event
that any such provision of this Agreement (or part thereof) is adjudged by a court of competent jurisdiction to be invalid, illegal
or unenforceable, but that the other provisions (or part thereof) are adjudged to be valid, legal and enforceable if such invalid,
illegal or unenforceable provision (or part thereof) were deleted or modified, then this Agreement shall apply with only such
deletions or modifications, or both, as the case may be, as are necessary to permit the remaining separate provisions (or part
thereof) to be valid, legal and enforceable.

 

    	 	-6-	 

     

    

 

14.Governing Law. This Agreement
shall be governed by the substantive laws of the State of New York without regard to its conflict of laws provisions or the laws
of any other jurisdiction in which Executive resides or performs any duties hereunder, or where any violation of the Agreement
occurs.

 

15.Successors; Binding Agreement.
The Company shall have the right to assign its obligations under this Agreement to any entity that acquires all or substantially
all of the assets of the Company and continues the Company’s business. The rights and obligations of the Company under this
Agreement shall inure to the benefit of and shall be binding upon the Company and its successors and assigns. Executive may not
assign Executive’s rights or delegate Executive’s obligations hereunder.

 

16.Amendment; Waiver. This Agreement
may be amended or modified only by a written instrument executed by the Company and Executive. No provision of this Agreement
may be waived or discharged unless such waiver or discharge is in writing and signed by the Chief Executive Officer of the Company.
Any failure by Executive or the Company to enforce any of the provisions of this Agreement shall not be construed to be a waiver
of such provisions or any right to enforce each and every provision in the future. A waiver of any breach of this Agreement shall
not be construed as a waiver of any other or subsequent breach.

 

THE COMPANY AND EXECUTIVE ACKNOWLEDGE THAT
(A) EACH HAS CAREFULLY READ THIS AGREEMENT, (B) EACH UNDERSTANDS ITS TERMS, (C) ALL UNDERSTANDINGS AND AGREEMENTS BETWEEN THE
COMPANY AND EXECUTIVE RELATING TO THE SUBJECTS COVERED IN THE AGREEMENT ARE CONTAINED IN IT, AND (D) EACH HAS ENTERED INTO THIS
AGREEMENT VOLUNTARILY AND NOT IN RELIANCE ON ANY PROMISES OR REPRESENTATIONS BY THE OTHER, OTHER THAN THOSE CONTAINED IN THIS
AGREEMENT ITSELF.

 

 

    	 	-7-	 

     

    

 

IN WITNESS WHEREOF, the parties hereto
have executed this Agreement.

 

 

 

	Neil J. Funk	 	Hudson Global, Inc.
	 	 	 	 
	/s/
    Neil J. Funk	 	By:	/s/ Stephen
    A. Nolan
	Signature of Executive	 	 	Stephen A. Nolan,
	 	 	 	Chief Executive Officer
	 	 	 	 
	October 2, 2015	 	 	October 2, 2015
	Date	 	 	Date

 

    	 	-8-	 

     

    

 

EXHIBIT A

 

GENERAL RELEASE

 

		1.	In consideration of
                                         the substantial compensation provided by Hudson Global, Inc. (the “Company”)
                                         under Executive Agreement (the “Agreement”) entered into by and between the
                                         Company and Neil J. Funk (“Executive”) dated as of October 2, 2015, for the
                                         benefit of Executive, including the payments and other benefits that are to be provided
                                         to Executive pursuant to the Agreement, Executive, on behalf of Executive, Executive’s
                                         spouse, heirs, executors, administrators, agents, successors, assigns and representatives
                                         of any kind (hereinafter collectively referred to as the “Releasors”) confirm
                                         that Releasors have, as of the date set forth below (the “Effective Date”),
                                         released the Company, and each of its subsidiaries, affiliates, their employees, successors,
                                         assigns, executors, trustees, directors, advisors, agents and representatives, and all
                                         their respective predecessors and successors (hereinafter collectively referred to as
                                         the “Releasees”), from any and all actions, causes of action, charges, debts,
                                         liabilities, accounts, demands, damages and claims of any kind whatsoever arising prior
                                         to the Effective Date, including, but not limited to, those arising out of the changes
                                         in the terms and conditions of Executive’s relationship with the Company described
                                         in the Agreement.

 

		2.	Executive also releases
                                         and waives any claim or right to further compensation, benefits, damages, penalties,
                                         attorney’s fees, costs or expenses of any kind from the Company or any of the other
                                         Releasees based on events occurring on or prior to the Effective Date, except for the
                                         specific compensation and benefits described in Sections 2, 3 and 5 of the Agreement.

 

		3.	Executive further
                                         agrees not to file, pursue, or participate in any lawsuits of any kind in either state
                                         or federal court against any of the Releasees with respect to any claim released herein,
                                         including any claim arising out of or in connection with the employment of Executive
                                         by the Company or the termination of such employment (other than pursuing a claim for
                                         unemployment compensation benefits to which Executive may be entitled).

 

		4.	This General Release
                                         specifically includes, but is not limited to, a release of any and all claims pursuant
                                         to state or federal wage payment laws and those arising under any labor, employment discrimination
                                         (including, without limitation, the Age Discrimination in Employment Act of 1967, as
                                         amended; Title VII of the Civil Rights of Act of 1964, as amended; the Rehabilitation
                                         Act of 1973; the Reconstruction Era Civil Rights Acts, 42 U.S.C. § 1981 –
                                         1988; the Civil Rights Act of 1991; the Americans with Disabilities Act; the New York
                                         Human Rights Law, as amended; state or federal family and/or medical leave acts), contract
                                         or tort laws, equity or public policy, wrongful termination, retaliation, defamation,
                                         misrepresentation, invasion of privacy, or negligence standard, whether known or unknown,
                                         certain or speculative, which against any of the Releasees, any of the Releasors ever
                                         had or now has.

 

    	 	-9-	 

     

    

 

		5.	Notwithstanding the
                                         foregoing, this General Release does not waive rights, if any, Executive or Executive’s
                                         successors and assigns may have under or pursuant to, or release any member of Releasees
                                         from obligations, if any, it may have to them or to their successors and assigns on claims
                                         arising out of, related to or asserted under or pursuant to the Agreement or any indemnity
                                         agreement or obligation contained in or adopted or acquired pursuant to any provision
                                         of the charter or by-laws of the Company or its subsidiaries or affiliates or in any
                                         applicable insurance policy carried by the Company or its affiliates for any matter which
                                         arises or may arise after the Effective Date in connection with Executive’s employment
                                         with the Company. Further, Executive is not waiving, releasing or giving up any claim
                                         for vested benefits under any retirement plan or any right to continued benefits in accordance
                                         with the Consolidated Omnibus Budget Reconciliation Act of 1985.

 

		6.	The Company (and all
                                         other Releasees) hereby releases Executive (and the other Releasors) from any and all
                                         actions, causes of action, charges, debts, liabilities, accounts, demands, damages and
                                         claims of any kind whatsoever arising prior to the Effective Date except as provided
                                         by law. This General Release does not release Executive or the Company from their respective
                                         ongoing obligations under the Agreement.

 

		7.	Executive hereby acknowledges
                                         that Executive has up to twenty-one (21) days to review this General Release from
                                         the date of the Agreement and Executive has been advised to review it with an attorney
                                         of Executive’s choice. Executive further understands that the twenty-one (21) day
                                         review period ends when Executive signs this General Release. Executive also has seven
                                         (7) days after Executive signs this General Release to revoke by so notifying the
                                         Company in writing. Failure to provide the Company with this General Release does not
                                         delay occurrence of the Departure Date (as defined in the Agreement).

 

		8.	Executive acknowledges
                                         that Executive’s eligibility for the payments and other benefits described in Sections
                                         2 and 3 of the Agreement is contingent on Executive’s signing and returning this
                                         General Release to the Company in a timely manner and on its taking effect thereafter
                                         in accordance with its terms.

 

		9.	Executive acknowledges
                                         that Executive has carefully read this General Release, knows and understands the contents
                                         hereof and its binding legal effect. Executive signs the same of Executive’s own
                                         free will and act, and it is Executive’s intention that Executive be legally bound
                                         thereby.

 

    	 	-10-	 

     

    

 

IN WITNESS WHEREOF, the parties
hereto have executed this General Release this 31st day of October, 2015.

 

 

	Neil J. Funk	 	Hudson Global,
    Inc.
	 	 	 	 
	 	 	 	 
	 	 	By:	 
	Signature	 	 	Stephen A. Nolan,
	       	 	 	Chief Executive Officer

 

 

    	 	-11-

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