Document:

Class C(2008-1) Terms Document

 Exhibit 4.2 
  
  
 DISCOVER CARD EXECUTION NOTE TRUST 
 Issuer 
 and 
 U.S. BANK NATIONAL ASSOCIATION 
 Indenture
Trustee 
 CLASS C(2008-1) TERMS DOCUMENT 
 Dated as of February 29, 2008 
 to 
 INDENTURE SUPPLEMENT 
 Dated as of July 26, 2007 
 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 C(2008-1) Notes
	Section 2.01.	  	Creation and Designation	  	8
	Section 2.02.	  	Adjustments to Required Subordinated Amount	  	8
	Section 2.03.	  	Interest Payment	  	9
	Section 2.04.	  	Notification of LIBOR	  	9
	Section 2.05.	  	Payments of Interest and Principal	  	9
	Section 2.06.	  	Form of Delivery of Class C(2008-1) Notes; Denominations	  	10
	Section 2.07.	  	Delivery and Payment for the Class C(2008-1) Notes	  	11
	Section 2.08.	  	Targeted Deposits to the Accumulation Reserve Account	  	11
	Section 2.09.	  	Additional Issuances of Notes	  	11

 Exhibit 
  

			
	Exhibit A	  	Form of Class C Note

 THIS CLASS C(2008-1) 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 February 29, 2008. 
 Pursuant to this Terms Document, the Issuer shall create a new Tranche of Class C 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 C(2008-1) Notes; 
 (6) each capitalized term defined herein shall
relate only to the Class C(2008-1) 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 $25,000,000; provided,
however, if the commencement of the Accumulation Period is delayed in accordance with Section 4.02 of the Indenture Supplement, the Accumulation Amount shall be determined in accordance with the definition of “Accumulation
Amount” in the Indenture Supplement. 
 “Accumulation Commencement Date” means February 1, 2009 (or, if such day
is not a Business Day, the next succeeding Business Day), or such later date as the Calculation Agent on behalf of the Issuer determines in accordance with Section 4.02 of the Indenture Supplement. 
 “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 4.02 of the Indenture Supplement, 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 the 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 C(2008-1) Notes and 
 (y) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class C(2008-1) 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 4.02 of
the Indenture Supplement) 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 4.02 of
the Indenture Supplement) and any following Distribution Date	 	The three-month rolling average Excess Spread Percentage is less than 4%.

  

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	(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 4.02 of the
Indenture Supplement) 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 4.02
of the Indenture Supplement) and any following Distribution Date	 	The three-month rolling average Excess Spread Percentage is less than 2%.

 “Class C(2008-1) Adverse Event” means the occurrence of any of the following:
(a) an Early Redemption Event with respect to the Class C(2008-1) Notes or (b) an Event of Default and acceleration of the Class C(2008-1) 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 C(2008-1) Adverse Event shall not be treated as continuing from and after the date of such cure. 
 “Class C(2008-1) Note” means any Note, in the form set forth in Exhibit A hereto, designated therein as a Class C(2008-1) Note and duly
executed and authenticated in accordance with the Indenture. 
 “Class C(2008-1) Noteholder” means a Person in whose name a
Class C(2008-1) Note is registered in the Note Register. 
 “Class C(2008-1) Termination Date” means the earliest to occur
of (a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class C(2008-1) 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. 
 “Class C Reserve Account Percentage” means, for any Distribution Date on which a condition in the
left column of the following table was in effect on the immediately preceding Distribution Date, the percentage in the corresponding right column of the following table (or if more than one conditions were in effect on the immediately preceding
Distribution Date, the largest percentage). 
  

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	 Condition:
  

The three-month rolling average Excess Spread
Percentage is:
	  	Class C Reserve Account Percentage:	 	 
	 (a) 4.50% or greater
	  	0%	 
	 (b) 4.00% to 4.49%
	  	1.25%	 
	 (c) 3.50% to 3.99%
	  	2.00%	 
	 (d) 3.00% to 3.49%
	  	2.75%	 
	 (e) 2.50% to 2.99%
	  	3.50%	 
	 (f) 2.00% to 2.49%
	  	4.50%	 
	 (g) less than 2.00%, or
	  	6.00%	 
	an Early Redemption Event or Event of Default for the Class C(2008-1) Notes has occurred and is continuing.	  		 

 “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. 
 “Expected Maturity Date” means February 16, 2010. 
 “Indenture” means the Indenture dated as of July 26, 2007 between the Issuer and Indenture Trustee, as the same may be amended,
supplemented, restated, amended and restated, replaced or otherwise modified from time to time. 
 “Indenture Supplement”
means the Indenture Supplement dated as of July 26, 2007 for the DiscoverSeries Notes, by and between the Issuer and the Indenture Trustee, as the same may be amended, supplemented, restated, amended and restated, replaced or otherwise modified
from time to time. 
 “Initial Dollar Principal Amount” means $300,000,000, or such higher amount as is specified in any
Notice of Additional Issuance under Section 2.09. 
 “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 C(2008-1) Note, from and including the applicable Issuance Date) to but excluding such Interest Payment
Date. 
  

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 “Interest Payment Date” means the fifteenth day of each month commencing in March 2008,
or if such fifteenth day is not a Business Day, the next succeeding Business Day. 
 “Issuance Date” means February 29,
2008 with respect to all Class C(2008-1) Notes issued on the date hereof and, with respect to any additional Class C(2008-1) Notes issued pursuant to Section 2.09, any Issuance Date specified in the Notice of Additional Issuance delivered
thereunder. 
 “Legal Maturity Date” means August 15, 2012. 
 “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 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 at least four banks 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, selected by the
Trustee, 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 is not 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. 
 “LIBOR Determination Date” means the second LIBOR Business Day immediately preceding the commencement of an Interest Accrual Period.

 “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. 
 “Note Interest
Rate” means LIBOR + 4.70% per annum, calculated on the basis of the actual number of days elapsed and a 360-day year. 
 “Notice of Additional Issuance” has the meaning set forth in Section 2.09. 
 “Required Daily Deposit
Target Finance Charge Amount” means, for any day in a Due Period, an amount equal to the Class C 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 C 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 C 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. 
  

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 “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 C(2008-1) Notes, the Accumulation Amount, (ii) if such day is on or after the occurrence and during the continuance of a Class C(2008-1) Adverse Event, the Nominal
Liquidation Amount of the Class C(2008-1) Notes, and (iii) in all other circumstances, zero. 
 “Required Subordinated Amount of
Class D Notes” means, for the Class C(2008-1) Notes for any date of determination, zero, subject to adjustment in accordance with Section 2.02. 
 “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). 
 “Specified Rating” means, for the Class C(2008-1) Notes, BBB with respect to Standard & Poors,
Baa2 with respect to Moody’s and BBB with respect to Fitch. 
 “Stated Principal Amount” means $300,000,000 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 C(2008-1) 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; provided, however, that if such designation is of a lesser amount, the applicable Note Rating
Agencies shall have provided prior written confirmation that a Ratings Effect will not occur with respect to such change. 
 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 obligations 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; 
  

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 (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 
 (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 (A) asserting the invalidity of this Terms Document,
(B) seeking to prevent the consummation of any of the transactions contemplated by this Terms Document or (C) 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 Indenture, 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. 
  

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 (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 C(2008-1) Notes under the Indenture, the Indenture Supplement and this Terms Document. 
 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 C(2008-1) Notes

 Section 2.01. Creation and Designation. There is hereby created a Tranche of Class C Notes to be issued pursuant to the
Indenture and the Indenture Supplement to be known as the “DiscoverSeries Class C(2008-1) Notes.” 
 Section 2.02.
Adjustments to Required Subordinated Amount. 
 (a) On any date, the Issuer may, at the direction of the Beneficiary, change the
Required Subordinated Amount of Class D Notes for the Class C(2008-1) Notes (though not below zero) and may add such definitions and other terms and make such additional amendments to this Terms Document as shall be necessary to determine such
Required Subordinated Amount of Class D 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 and such other
amendments will not result in a Ratings Effect for any Tranche of Outstanding DiscoverSeries Notes; provided, however, that at any time the Class D Notes are or will be held by Discover Bank or any of its affiliates, the Required Subordinated
Amount of Class D Notes for these Class C(2008-1) Notes may not be increased above zero. 
 (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 D Notes for the Class C(2008-1) Notes with a different form of credit enhancement (including, without limitation, a cash collateral 

  

 8 

 
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 C(2008-1) Notes shall be an amount equal to 
  

	 	(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 C(2008-1) Notes determined as of the first date of such related Interest Accrual Period, plus 

any Class C Tranche Interest Allocation Shortfall for such Class C(2008-1) 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 C(2008-1) 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 C(2008-1) Adverse Event has occurred and is continuing, principal will instead be payable in monthly installments on each Principal Payment Date for the Class C(2008-1) Notes in accordance with
Sections 3.01 and 3.05 of the Indenture Supplement. All payments of interest and principal on the Class C(2008-1) Notes shall be made as set forth in Section 1101 of the Indenture. 
 (b) The right of the Class C(2008-1) Noteholders to receive payments from the Issuer will terminate on the Class C(2008-1) Termination Date. 

 

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 (c) All payments of principal, interest or other amounts to the Class C(2008-1) Noteholders will be made
pro rata based on the Stated Principal Amount of their Class C(2008-1) Notes. 
 Section 2.06. Form of Delivery of Class C(2008-1)
Notes; Denominations. 
 (a) The Class C(2008-1) Notes shall be delivered in the form of a definitive Registered Note as provided in
Section 201 of the Indenture. The form of the Class C(2008-1) Notes is attached hereto as Exhibit A. 
 (b) The Class C(2008-1) Notes
shall, until such time as the laws of any jurisdiction in which they are offered or sold no longer restrict the transfer or sale thereof, bear a legend in substantially the following form: 
 THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE
MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A. THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE DISCOVER CARD EXECUTION NOTE TRUST THAT (A) THIS NOTE MAY BE RESOLD, PLEDGED OR
OTHERWISE TRANSFERRED ONLY (1) TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT OR, IN THE
CASE OF THE INITIAL HOLDER HEREOF ONLY, ANOTHER APPLICABLE EXEMPTION UNDER THE SECURITIES ACT, (2) TO DISCOVER CARD EXECUTION NOTE TRUST OR ITS AFFILIATES OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, IF APPLICABLE, IN EACH CASE,
IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAW OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY SUBSEQUENT PURCHASER FROM IT OF THE RESALE
RESTRICTIONS SET FORTH IN (A) ABOVE. 
 No Class C(2008-1) Notes shall be transferred except in accordance with the transfer restrictions described in
the legend set forth above. 
 (c) The Class C(2008-1) Notes will be issued in minimum denominations of $100,000 and integral multiples of
$1,000 in excess of that amount. 
  

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 Section 2.07. Delivery and Payment for the Class C(2008-1) Notes. The Issuer shall execute
and deliver the Class C(2008-1) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class C(2008-1) 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 C(2008-1) 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 C(2008-1) Notes. 
 Section 2.09. Additional Issuances of Notes. Subject to clauses (ii), (iii), (iv) and
(v) of Sections 2.02 and Section 2.03 of the Indenture Supplement, the Issuer may issue additional Class C(2008-1) 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 C(2008-1) 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 C(2008-1) Notes; 

  

	 	(ii)	the amount of such additional Class C(2008-1) Notes being offered and the resulting Initial Dollar Principal Amount and Stated Principal Amount of Class C(2008-1) Notes;

  

	 	(iii)	the date from which interest on such additional Class C(2008-1) 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 C(2008-1) Notes; and 

  

	 	(v)	any other terms that the Issuer set forth in such notice of issuance of additional Class C(2008-1) Notes to clarify the rights of Holders of such additional Class C(2008-1) Notes or
the effect of such issuance of additional Class C(2008-1) Notes on any calculations to be made with respect to the Class C(2008-1) Notes, Class C, 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 C(2008-1) Notes; and 
 (b) no Class C(2008-1) Adverse Event has occurred and is continuing. 
 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 C(2008-1) Notes so long as such conditions were satisfied or waived
in connection with the initial issuance of Class C(2008-1) Notes. 
 [Remainder of page intentionally blank; signature page follows] 

  

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 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:	 	Sr. Financial Services Officer
	
	 U.S. BANK NATIONAL ASSOCIATION,
 as Indenture
Trustee

		
	By:	 	 /s/ Patricia M. Child

	Name:	 	Patricia M. Child
	Title:	 	Vice PresidentForm of Deferred Stock Unit Award

 EXHIBIT 10.16 
 This document constitutes part of a prospectus covering securities that have 
 been registered under
the Securities Act of 1933. 
 The date of this prospectus is [Date]. 
 MARSH & McLENNAN COMPANIES, INC. 
 2000 SENIOR EXECUTIVE INCENTIVE AND STOCK
AWARD PLAN 
 AND 
 2000 EMPLOYEE
INCENTIVE AND STOCK AWARD PLAN 
 Terms and Conditions for Award of Deferred Stock Units 
 to U.S. Award Recipients 
 This award of deferred stock
units has been granted to you on [Grant Date] the (“Grant Date”) under the Marsh & McLennan Companies, Inc. 2000 Senior Executive Incentive and Stock Award Plan or the Marsh & McLennan Companies, Inc. 2000 Employee
Incentive and Stock Award Plan (as applicable to you, the “Plan”). For purposes of these Terms and Conditions, “MMC” means Marsh & McLennan Companies, Inc. and any successor thereto. 
  

	I.	GRANT, VESTING AND DISTRIBUTION OF AWARD; RESTRICTIVE COVENANTS AGREEMENT  

  

	 	A.	Grant of Award 

  

	 	1.	The enclosed letter from [MMC CEO], dated [Date], (the “Grant Letter”) specifies the number of deferred stock units that comprises your individual award (the
“Award”). You must execute a Restrictive Covenants Agreement (as described in Section I.C.) by the date specified in the Grant Letter to accept the Award. 

  

	 	B.	Deferred Stock Units 

  

	 	1.	General. A deferred stock unit (“DSU”) represents an unfunded and unsecured promise to deliver (or cause to be delivered) to you, subject to these Terms and
Conditions and the terms and conditions of the Plan, one (1) share of MMC common stock as soon as practicable after vesting or as otherwise provided herein. 

  

	 	2.	Vesting. Subject to your continued employment, [Percentage] of the DSUs are scheduled to vest on each of the [Vesting Dates] (each a “DSU Scheduled Vesting
Date”). If your employment terminates prior to a DSU Scheduled Vesting Date, your right to the DSUs will be determined in accordance with Section III below. 

  

	 	3.	Delivery of Shares. Shares of MMC common stock in respect of the DSUs covered by the Award shall be distributed to you as soon as practicable after vesting, and in no event
later than 60 days after vesting. The delivery of shares in respect of your deferred stock units is conditioned on your (i) having timely signed and returned a copy of the Restrictive Covenants Agreement (defined below) to MMC as instructed and
(ii) satisfaction of any applicable tax withholding with respect to the Award. 

	 	C.	Restrictive Covenants Agreement 

 As provided in
these Terms and Conditions, you must execute a restrictive covenants agreement in a form determined by MMC (“Restrictive Covenants Agreement”) to accept the Award and for your Award to vest upon certain terminations of employment.
The Restrictive Covenants Agreement generally applies for a period of one year commencing with your termination of employment. You may obtain a copy of the Restrictive Covenants Agreement from MMC or an agent appointed by MMC. You may wish to
consider consulting an attorney (at your own expense) before signing the Restrictive Covenants Agreement. Please retain a copy of your signed Restrictive Covenants Agreement for your records. 
  

	II.	RIGHTS OF DEFERRED STOCK UNITS 

  

	 	A.	Unless and until both the vesting conditions of the Award have been satisfied and shares of MMC common stock have been delivered to you in accordance with the terms and conditions
described herein, you have only the rights of a general unsecured creditor and you have none of the attributes of ownership to such shares of stock (e.g., units cannot be used as payment for stock option exercises; units may not be transferred or
assigned; units have no voting rights). 

  

	 	B.	Dividend equivalents are payable on each DSU at or after the time of distribution of any dividend paid by MMC in respect of a share of its common stock (a “Dividend Payment
Date”), the record date of which occurs on or after the Grant Date. You shall be entitled to receive an amount (less applicable withholding) equal to such dividend payment as would have been made in respect of one (1) share of MMC
common stock for each DSU covered by the Award. Payment of a dividend equivalent shall be made only with respect to DSUs that are outstanding on the Dividend Payment Date. 

  

	III.	TERMINATION OF EMPLOYMENT 

 If your employment with
MMC or any of its subsidiaries or affiliates (the “Company”) terminates, the following shall apply: 
  

	 	A.	Death 

 In the event your employment is terminated
because of your death, the DSUs will vest at such termination of employment. 
  

	 	B.	Permanent Disability 

 In the event your employment
is terminated due to total and permanent disability as determined under MMC’s long-term disability program, the DSUs will vest at such termination of employment provided that you satisfy the condition to vesting described in Section III.G.

  

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	 	C.	Normal Retirement 

 In the event you retire from the
Company on or after your Normal Retirement Date, the DSUs will vest at such termination of employment provided that you satisfy the condition to vesting described in Section III.G. 
  

	 	D.	Termination Other Than For Cause 

  

	 	1.	In the event your employment is terminated by the Company other than for Cause (as defined below) prior to your Normal Retirement Date, the Award will vest on a pro rata basis at
such termination of employment provided that you satisfy the condition to vesting described in Section III.G. The portion of DSUs under the Award that vest is equal to a fraction, the numerator of which is the number of days from the Grant Date to
the date of your termination of employment, and the denominator of which is the number of days from the Grant Date to the Scheduled Vesting Date. 

  

	 	2.	For purposes of these Terms and Conditions, “Cause” shall mean: 

  

	 	i.	willful failure to substantially perform the duties consistent with your position which is not remedied within 30 days after receipt of written notice from the Company specifying
such failure; 

  

	 	ii.	willful violation of any written company policies including but not limited to, the Company’s Code of Business Conduct & Ethics; 

  

	 	iii.	commission at any time of any act or omission that results in a conviction, plea of no contest, plea of nolo contendere, or imposition of unadjudicated probation for any felony or
crime involving moral turpitude; 

  

	 	iv.	unlawful use (including being under the influence) or possession of illegal drugs; 

  

	 	v.	any gross negligence or willful misconduct resulting in a material loss to the Company or any of its subsidiaries, or material damage to the reputation of the Company or any of its
subsidiaries; or 

  

	 	vi.	any violation of any statutory or common law duty of loyalty to the Company or any of its subsidiaries, including the commission at any time of any act of fraud, embezzlement, or
material breach of fiduciary duty against the Company or any of its subsidiaries. 

  

	 	E.	Sale of Business Unit For Which You Work 

 In the
event of a sale or similar transaction involving the business unit for which you work (the “Employing Company”) as a result of which the Employing Company ceases to be a subsidiary of MMC, the Award will vest on a pro rata basis at
such termination of employment provided that you satisfy the condition to vesting described in Section III.G. 

  

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The portion of DSUs under the Award that vest is equal to a fraction, the numerator of which is the number of days from the Grant Date to the date of your
termination of employment, and the denominator of which is the number of days from the Grant Date to the Scheduled Vesting Date. 
  

	 	F.	All Other Employment Terminations 

 For all other
terminations of employment, all of your rights, title and interest in and to the Award, whether vested or unvested, shall be forfeited on the date of such termination of employment, except to the extent that the Compensation Committee of the MMC
Board of Directors (the “Committee”) may determine otherwise. For purposes of these Terms and Conditions, your employment will be treated as terminated when you are no longer employed by MMC or any affiliate or subsidiary of MMC.

  

	 	G.	Condition to Vesting of Award Upon Termination of Employment 

 In the event of your termination of employment due to Permanent Disability, Normal Retirement or Termination other than for Cause as described in Section III.B, C or D, any unvested portion of the Award will vest as
provided in Section III.B, C or D; provided that you reaffirm your Restrictive Covenants Agreement within 30 days following your termination of employment. Failure to timely reaffirm and comply with the Restrictive Covenants Agreement will
result in forfeiture of all of your rights, title and interest in and to the Award, whether vested or unvested. 
  

	 	H.	Definitions 

 As used in these terms and conditions,
the term “Normal Retirement Date” shall have the meaning given such term (or any comparable substitute term or concept) set forth in MMC’s primary retirement plan or program applicable to you upon your termination of
employment. 
  

	IV.	CHANGE IN CONTROL PROVISIONS 

  

	 	A.	Change in Control if Award is Assumed by a Successor 

  

	 	1.	 Upon the occurrence of a “Change in Control” of MMC, as defined in the Plan, if the Award is Assumed (as defined in Section IV.A.2) by the entity
effecting the Change in Control, the Award will become fully vested upon the earlier of the next Scheduled Vesting Date and your termination of employment without Cause or for Good Reason (as defined in the next sentence) during the 24-month period
following such Change in Control. For purposes of these Terms and Conditions, “Good Reason” includes any of the following without your written consent: (i) a reduction in your base salary; (ii) a reduction in your annual
incentive opportunity (including a material adverse change in the method of calculating your annual incentive); (iii) a material diminution of your duties, responsibilities or authority; or (iv) a relocation of more than 50 miles from your
office location in effect immediately prior to the 

  

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Change in Control; provided that you provide MMC with written notice of your intent to terminate your employment for Good Reason within 60 days of your
becoming aware of any circumstances set forth above (with such notice indicating the specific termination provision above on which you are relying and describing in reasonable detail the facts and circumstances claimed to provide a basis for
termination of your employment under the indicated provision) and that you provide MMC with at least 30 days following receipt of such notice to remedy such circumstances. 

  

	 	2.	For purposes of these Terms and Conditions, an Award will be considered assumed (“Assumed”) if the following conditions are met: 

  

	 	i.	The Award is converted into a replacement award (the “Replacement Award”) in a manner that is consistent with the treatment of an equal number of shares of MMC
stock covered by the Award in connection with the Change in Control. 

  

	 	ii.	The Replacement Award contains provisions for scheduled vesting and treatment on termination of employment (including the definition of Cause) that are no less favorable to you than
the Award, and all other terms of the Replacement Award (other than the security and number of shares represented by the Replacement Award) are substantially similar to the Award. 

  

	 	iii.	The security represented by the Replacement Award is of a class that is publicly held and widely traded on an established stock exchange. 

  

	 	B.	Change in Control if Award is not Assumed by a Successor 

  

	 	1.	Upon the occurrence of a Change in Control of MMC, if the Award is not Assumed by the entity effecting the Change in Control, the Award will become fully vested on the date of the
Change in Control and any restrictions contained in the terms and conditions of the grant of the Award shall lapse. 

  

	 	2.	If in the Change in Control transaction shareholders of MMC receive consideration consisting of cash or other property (including securities of a successor or parent corporation),
there shall be delivered to you the consideration which you would have received in such transaction had you been, immediately prior to such transaction, a holder of that number of shares of MMC common stock equal to the number of shares of MMC
common stock deliverable upon a Change in Control in respect of any DSUs covered by the Award. 

  

	 	C.	Additional Payment 

  

	 	1.	 Should the vesting of your DSUs under the Award accelerate because of a Change in Control, all or part of the value thereof (the “Acceleration
Value”) may be subject to a 20% federal excise tax (the “Excise Tax”) under Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”). The Excise Tax is imposed on a 

  

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select group of highly-compensated employees when the value, as determined by applicable regulations, of payments in the nature of compensation contingent on
a Change in Control (including an amount reflecting the value of the accelerated vesting of the Award) equals or exceeds three times the average of such employee’s last five years’ W-2 earnings. 

  

	 	2.	If a Change in Control occurs and the vesting of DSUs under the Award is accelerated, MMC will determine if the Excise Tax is payable by you. If the Excise Tax is payable by you,
MMC will pay to you, within five days of making the determination, an amount of money (the “Additional Payment”) such that after payment of applicable federal, state and local income taxes (other than any taxes arising under
Section 409A of the Code), employment taxes and any Excise Tax imposed upon the Additional Payment, you will retain an amount of the Additional Payment equal to the Excise Tax imposed in respect of the Acceleration Value. If the Additional
Payment, after payment of such taxes, is later determined to be less than the amount necessary to reimburse you for the Excise Tax you owe in respect of the Acceleration Value, a further payment will be made to you. If the Additional Payment, after
payment of applicable taxes, is later determined to be more than the amount necessary to reimburse you for the Excise Tax you owe in respect of the Acceleration Value, you will be required to reimburse MMC (or its successor) for such excess.

  

	V.	ADDITIONAL PROVISIONS APPLICABLE TO COVERED EMPLOYEES 

 Notwithstanding any other provision herein, for any employee determined by the Committee to be likely to be a covered employee within the meaning of Section 162(m)(3) of the Code in the year the Award vests, delivery of shares in
respect of the Award shall be postponed until the earlier of (i) the earliest date at which the Committee reasonably anticipates that the deduction of the payment of such Award will not be limited or eliminated by application of
Section 162(m) of the Code or (ii) the calendar year in which such employee terminates employment. According to Internal Revenue Service regulations, “covered employees” include (1) the chief executive officer of MMC as of
the last day of the year and (2) the four highest-paid executive officers of the Company, other than the chief executive officer of MMC, who are employed on the last day of the year. 
  

	VI.	OTHER PROVISIONS 

  

	 	A.	No Right to Continued Employment. The granting of an Award does not give you any right to continue to be employed by the Company for any specific duration, or restrict, in any way,
your right or the right of your employer to terminate your employment at any time for any reason, with or without cause or prior notice. Nothing in these Terms and Conditions or the Plan gives you any right to continue in the employ of the Company
or interfere in any way with your right, or the right of the Company, to terminate your employment at any time. 

  

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	 	B.	Any shares that may be deliverable to you following your death shall be delivered to the person or persons to whom your rights pass by will or the law of descent and distribution,
and such delivery shall completely discharge the Company’s obligations under the Award. 

  

	 	C.	The Company is not liable for the non-issuance or non-transfer, nor for any delay in the issuance or transfer, of any shares of MMC common stock due to you which results from the
inability of the Company to obtain, or in any delay in obtaining, from each regulatory body having jurisdiction, all requisite authority to issue or transfer shares of MMC common stock, if counsel for the Company deems such authority necessary for
the lawful issuance or transfer of any such shares. 

  

	 	D.	The Award is subject to all of these Terms and Conditions and to the terms and conditions of the Plan and to the terms and conditions of any employment agreement or offer letter
between you and the Company regarding the treatment of equity-based awards upon certain terminations of employment (“Contractual Provisions”), and your acceptance of the Award shall constitute your agreement to the terms and
conditions of the Plan and the administrative regulations of the Committee. In the event of any inconsistency between these Terms and Conditions, the Contractual Provisions and the provisions of the Plan, the provisions of the Plan shall prevail. In
the event of any inconsistency between these Terms and Conditions and any Contractual Provisions, the Contractual Provisions shall prevail. Your acceptance of the Award constitutes your agreement that the shares of MMC common stock acquired
hereunder, if any, will not be sold or otherwise disposed of by you in violation of any applicable securities laws or regulations. 

  

	 	E.	The Award shall be subject to such additional administrative regulations as the Committee may, from time to time, adopt. All decisions of the Committee upon any questions arising
under these Terms and Conditions or the Plan shall be conclusive and binding. The Committee may delegate to any other individual or entity the authority to perform any or all of the functions of the Committee under the Award, and references to the
Committee shall be deemed to include any such delegate. 

  

	 	F.	The Committee may, in its sole discretion, amend the terms of the Award; provided, however, that if the Committee concludes that such amendment is likely to materially impair
your rights with respect to the Award, such amendment shall not be implemented with respect to your Award without your consent. 

  

	 	G.	The Committee has full discretion and authority to control and manage the operation and administration of the Awards and the Plan. The Committee is comprised of at least two members
of the MMC Board of Directors. 

  

	 	H.	The Plan, and the granting of Awards thereunder, and any delivery of shares in respect of an Award and the obligations of the Company and employees under the Plan, shall be subject
to all applicable governmental laws, rules and regulations, and to such approvals by any regulatory or governmental agency as may be required, including, but not limited to, tax and securities regulations. 

  

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	 	I.	The MMC Board of Directors may amend, alter, suspend, discontinue or terminate the Plan or the Committee’s authority to grant awards under the Plan; except that, without the
consent of an affected participant, no such action may materially adversely affect the rights of such participant under any award theretofore granted to him or her. Following the occurrence of a Change in Control (as defined in the Plan), the MMC
Board of Directors may not terminate the Plan or amend the Plan with respect to awards that have already been granted in any manner adverse to employees. 

  

	 	J.	Awards relating to not more than eighty million (80,000,000) shares of MMC common stock (par value $1.00 per share), plus such number of shares authorized and reserved for
awards pursuant to certain preexisting share resolutions adopted by the MMC Board of Directors, may be made over the life of the Marsh & McLennan Companies, Inc. 2000 Employee Incentive and Stock Award Plan. Awards relating to not more than
eight million (8,000,000) shares of MMC common stock (par value $1.00 per share), plus such number of shares remaining unused under preexisting stock plans approved by MMC’s stockholders, may be issued under the Marsh & McLennan
Companies, Inc. 2000 Senior Executive Incentive and Stock Award Plan. Employees of the Company will be eligible for awards under the Plan. MMC common stock is traded on the New York Stock Exchange under the symbol “MMC” and is subject to
market price fluctuation. Shares of MMC common stock delivered in respect of the Award may be obtained through open market purchases, treasury stock or newly issued shares. 

  

	 	K.	The Plan is not qualified under Section 401(a) of the Code and is not subject to the provisions of the Employee Retirement Income Security Act of 1974. Your right to payment of
your Award is the same as the right of an unsecured general creditor of the Company. 

  

	 	L.	There are no investment fees associated with your Award, and MMC pays all administrative expenses associated with your Award, although you will be responsible for any fees
associated with the sale of any shares of MMC common stock delivered in respect of the Award. 

 Please retain this document in your permanent
records. If you have any questions regarding the Plan or your Award or would like an account statement detailing the number of units covered and the vesting date(s) of such Award or any other information, please contact: 
 MMC Global Compensation 
 Marsh &
McLennan Companies, Inc. 
 1166 Avenue of the Americas 
 New York, New York l0036-2774 
 Telephone Number: (212) 345-5000 
 Facsimile Number: (212) 345-4767 
  

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	VII.	FEDERAL INCOME TAX CONSIDERATIONS 

 The following is a summary of
the United States Federal income tax consequences of your Award. This discussion does not address all aspects of the U.S. Federal income tax consequences that may be relevant to you in light of your personal investment or tax circumstances and does
not discuss any state or local tax consequences of your Award. This section is based on the Internal Revenue Code of 1986, as amended, its legislative history, existing and proposed regulations under the Code, and published rulings and court
decisions, all as currently in effect. These laws are subject to change, possibly on a retroactive basis. Please consult your own tax advisor concerning the application of the U.S. Federal income tax laws to your particular situation, as well as the
applicability and effect of any state or local tax laws before taking any actions with respect to your Award 
  

	 	A.	Deferred Stock Units 

 You will not be subject to
tax upon the grant of deferred stock units. Upon vesting of deferred stock units, the fair market value of the shares of common stock covered by the Award on the vesting date will be subject to FICA employment tax withholding. Upon distribution of
the shares of common stock (or, in the event Section IV.A.3 is applicable, cash or other property) underlying the deferred stock units, you will recognize as compensation income an amount equal to the fair market value on the date of distribution of
the shares of common stock (and/or cash or other property) received. This amount of income will be subject to income tax withholding on the date of distribution. Your basis in any shares of common stock received will be equal to the fair market
value of the shares of common stock on the date of distribution, and your holding period in such shares will begin on the day following the date of distribution. If any dividend equivalents are paid to you, they will be includible in your income as
additional compensation (and not as dividend income) and will be subject to income and employment tax withholding. In the taxable year in which you recognize ordinary income on account of shares of common stock awarded to you, the Company generally
will be entitled to a deduction equal to the amount of income recognized by you. 
  

	 	B.	Section 409A 

 Notwithstanding any other provision
herein, your Award may be subject to additional restrictions to ensure compliance with the requirements of Section 409A of the Code (regarding nonqualified deferred compensation) and regulations thereunder. The Committee intends to administer
the Awards in accordance with Section 409A of the Code and reserves the right to make changes in the terms or operations of the Awards (including changes that may have retroactive effect) deemed necessary or desirable to comply with
Section 409A of the Code. This means, for example, that the timing of distributions may be different from those described in this document or in other materials relating to the Award or the Plan that do not yet reflect Section 409A of the
Code and the regulations thereunder. If your Award is not in compliance with Section 409A of the Code, you may be subject to immediate taxation of all vested but unpaid awards under the Plan that are subject to Section 409A of the Code,
plus interest at the underpayment rate plus 1%, plus a 20% penalty. 
  

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	VIII.	RESALE RESTRICTIONS 

  

	 	A.	If you are an “affiliate” of MMC at the time you receive shares of MMC common stock in respect of the Award, your ability to resell those shares may be restricted. In
order to resell such shares, you will be required either to observe the resale limitations of Rule 144 of the Securities Act of 1933, as amended (the “Securities Act”), or offer your shares for resale in compliance with another
applicable exemption from the registration requirements of the Securities Act. 

  

	 	B.	An “affiliate” is defined, for purposes of the Securities Act, as a person who directly, or indirectly through one or more intermediaries, controls or is controlled by, or
is under common control with, MMC. A “person” is defined to include any relative or spouse of the person and any relative of the person’s spouse who has the same home as the person, any trust, estate, corporation or other organization
in which the person or any of the foregoing persons has collectively more than 10% beneficial interest, and any trust or estate for which the person or any of the foregoing persons serves as trustee, executor or in any similar capacity. A person
“controls, is controlled by or is under common control” with MMC when that person directly or indirectly possesses the power to direct or cause the direction of the management and policies of MMC whether through the ownership of voting
securities, by contract or otherwise. 

  

	IX.	INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 

  

	 	A.	The Annual Report on Form 10-K of MMC for its last fiscal year, MMC’s Registration Statement on Form 8 dated February 3, 1987, describing MMC common stock, including any
amendment or reports filed for the purpose of updating such description, and MMC’s Registration Statement on Form 8-A/A dated January 26, 2000, describing the Preferred Stock Purchase Rights attached to the common stock, including any
further amendment or reports filed for the purpose of updating such description, which have been filed by MMC under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), are incorporated by reference herein.

  

	 	B.	All documents subsequently filed by MMC pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act, subsequent to the end of MMC’s last fiscal year and prior to the
filing of a post-effective amendment which indicates that all securities offered have been sold or which deregisters all securities then remaining unsold, shall be deemed to be incorporated by reference herein and to be a part hereof from the date
of filing of such documents. 

  

	 	C.	The Annual Report can be viewed on MMC’s website at http://www.mmc.com/annualreport.html. Participants may receive without charge, upon written or oral request, a copy
of any of the documents incorporated herein by reference and any other documents that constitute part of this Prospectus by contacting MMC Global Compensation as indicated above. 

  

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