Document:

Class A(2013-2) Terms Document

 Exhibit 4.2 
  

 
  

DISCOVER CARD EXECUTION NOTE TRUST 
 Issuer 
 and 

U.S. BANK NATIONAL ASSOCIATION 
 Indenture Trustee 
 CLASS A(2013-2) TERMS DOCUMENT 

Dated as of February 13, 2013 
 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(2013-2) Notes	  
			
	 Section 2.01
	 	Creation and Designation	  	 	8	  
	 Section 2.02
	 	Adjustments to Required Subordinated Percentages and Amount	  	 	8	  
	 Section 2.03
	 	Interest Payment	  	 	8	  
	 Section 2.04
	 	[Reserved]	  	 	9	  
	 Section 2.05
	 	Payments of Interest and Principal	  	 	9	  
	 Section 2.06
	 	Form of Delivery of Class A(2013-2) Notes; Depository; Denominations	  	 	9	  
	 Section 2.07
	 	Delivery and Payment for the Class A(2013-2) 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	  
		
	   Exhibit A Form of Class A Note
	  			

 THIS CLASS A(2013-2) 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 13, 2013. 
 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(2013-2) Notes; 
 (6) each capitalized term defined herein shall relate only to the Class A(2013-2) 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 $75,000,000; 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 February 1, 2015, 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 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 A(2013-2) Notes and 

(y) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class A(2013-2) Notes is paid in full. 

 

			
	 Distribution Date:
	  	 Condition:

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

  
 2 

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

 provided, however, if at any point the Accumulation Reserve Funding Period has not commenced because no condition
requiring funding has occurred or the Calculation Agent has determined that the Accumulation Period Length will be shortened to one (1) month, and subsequently a condition requiring funding occurs and the Calculation Agent determines that the
Accumulation Period Length will not be so shortened, the Accumulation Reserve Funding Period shall commence on the following Distribution Date. 
 “Class A(2013-2) Adverse Event” means the occurrence of any of the following: (a) an Early Redemption Event with respect to the Class A(2013-2) Notes or (b) an Event of Default
and acceleration of the Class A(2013-2) 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(2013-2)
Adverse Event shall not be treated as continuing from and after the date of such cure. 
 “Class A(2013-2)
Note” means any Note, in the form set forth in Exhibit A hereto, designated therein as a Class A(2013-2) Note and duly executed and authenticated in accordance with the Indenture. 

“Class A(2013-2) Noteholder” means a Person in whose name a Class A(2013-2) Note is registered in the Note Register.

 “Class A(2013-2) Termination Date” means the earliest to occur of (a) the Principal Payment Date on
which the Outstanding Dollar Principal Amount of the Class A(2013-2) 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. 

“Expected Maturity Date” means February 16, 2016. 

  
 3 

 “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, by and 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 $900,000,000, 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(2013-2) Note, from and including the applicable Issuance Date and assuming the month of issuance has
30 days) to but excluding such Interest Payment Date. 
 “Interest Payment Date” means the fifteenth day of
each month commencing in March 2013, or if such fifteenth day is not a Business Day, the next succeeding Business Day. 

“Issuance Date” means February 13, 2013 with respect to all Class A(2013-2) Notes issued on the date hereof and,
with respect to any additional Class A(2013-2) Notes issued pursuant to Section 2.09 hereof, any Issuance Date specified in the Notice of Additional Issuance delivered thereunder. 

“Legal Maturity Date” means August 15, 2018. 

“Note Interest Rate” means 0.69% 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(2013-2) Notes, the Accumulation Amount, (ii) if such day is on or after the occurrence and during the continuance of
a Class A(2013-2) Adverse Event, the Nominal Liquidation Amount of the Class A(2013-2) Notes, and (iii) in all other circumstances, zero. 
 “Required Subordinated Amount of Class B Notes” means, for the Class A(2013-2) Notes for any date of determination, an amount equal to the product of 

(a) the Required Subordinated Percentage of Class B Notes for such Class A(2013-2) Notes on such date of determination and 

  
 4 

 (b) the Nominal Liquidation Amount of such Class A(2013-2) 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(2013-2) Adverse Event, the Required Subordinated Amount of Class B Notes for the Class A(2013-2) 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(2013-2) Adverse Event shall have
occurred. 
 “Required Subordinated Amount of Class C Notes” means, for the Class A(2013-2) 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(2013-2) Notes on such date of determination and 
 (b) the Nominal Liquidation Amount of such Class A(2013-2) 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(2013-2) Adverse Event, the Required Subordinated Amount of Class C Notes for the Class A(2013-2) 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(2013-2) Adverse Event shall have occurred. 
 “Required Subordinated Amount of Class D Notes” means, for the Class A(2013-2) 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(2013-2) Notes on such date of determination and 

(b) the Nominal Liquidation Amount of such Class A(2013-2) 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(2013-2) Adverse Event,
the Required Subordinated Amount of Class D Notes for the Class A(2013-2) Notes will be the greater of 
  

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

  

	 	(y)	the amount determined above for the date immediately prior to the date on which the Class A(2013-2) Adverse Event shall have occurred. 

  
 5 

 “Required Subordinated Percentage of Class B Notes” means, for the Class
A(2013-2) Notes, 7.284768%, subject to adjustment in accordance with Section 2.02. 
 “Required Subordinated
Percentage of Class C Notes” means, for the Class A(2013-2) Notes, 9.271523%, subject to adjustment in accordance with Section 2.02. 
 “Required Subordinated Percentage of Class D Notes” means, for the Class A(2013-2) Notes, 15.894040%, subject to adjustment in accordance with Section 2.02. 

“Specified Rating” means, for the Class A(2013-2) 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
$900,000,000 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(2013-2) 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; 

(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 

  
 6 

 
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 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(2013-2) 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(2013-2) 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(2013-2) 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(2013-2) 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(2013-2) Notes with a different form of credit enhancement (including, without limitation, a cash
collateral account, a letter of credit, a reserve account, a surety bond, an insurance policy or a collateral interest, or any combination thereof) and may add such definitions and other terms and make such additional amendments to this Terms
Document as shall be necessary for such replacement without the consent of any Noteholders, provided that the Issuer has received written confirmation from each applicable Note Rating Agency that such replacement and such other amendments
will not result in a Ratings Effect for any Tranche of Outstanding DiscoverSeries Notes. 
 Section 2.03 Interest
Payment. For the first Interest Payment Date, March 15, 2013, the amount of interest due with respect to the Class A(2013-2) Notes is $552,000.00. For each 

  
 8 

 
Interest Payment Date following the first Interest Payment Date for any Class A(2013-2) Note, the amount of interest due with respect to the Class A(2013-2) 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(2013-2) 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(2013-2) 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(2013-2) Adverse Event has occurred and is continuing, principal will instead
be payable in monthly installments on each Principal Payment Date for the Class A(2013-2) Notes in accordance with Sections 3.01 and 3.05 of the Indenture Supplement. All payments of interest and principal on the Class A(2013-2) Notes shall be made
as set forth in Section 1102 of the Indenture. 
 (b) The right of the Class A(2013-2) Noteholders to receive payments from
the Issuer will terminate on the Class A(2013-2) Termination Date. 
 (c) All payments of principal, interest or other amounts
to the Class A(2013-2) Noteholders will be made pro rata based on the Stated Principal Amount of their Class A(2013-2) Notes. 
 Section 2.06 Form of Delivery of Class A(2013-2) Notes; Depository; Denominations. 
 (a) The Class A(2013-2) 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(2013-2) Notes is
attached hereto as Exhibit A. 
 (b) The Depository for the Class A(2013-2) Notes shall be The Depository Trust Company, and the
Class A(2013-2) Notes shall initially be registered in the name of Cede & Co., its nominee. 

  
 9 

 (c) The Class A(2013-2) Notes will be issued in minimum denominations of $200,000 and
integral multiples of $1,000 in excess of that amount. 
 Section 2.07 Delivery and Payment for the Class A(2013-2)
Notes. The Issuer shall execute and deliver the Class A(2013-2) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class A(2013-2) 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(2013-2) 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(2013-2) 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 A(2013-2) 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(2013-2) 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(2013-2) Notes; 

  

	 	(ii)	the amount of such additional Class A(2013-2) Notes being offered and the resulting Initial Dollar Principal Amount and Stated Principal Amount of Class A(2013-2)
Notes; 

  

	 	(iii)	the date from which interest on such additional Class A(2013-2) 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(2013-2) Notes; and 

 

	 	(v)	any other terms that the Issuer set forth in such notice of issuance of additional Class A(2013-2) Notes to clarify the rights of Holders of such additional Class
A(2013-2) Notes or the effect of such issuance of additional Class A(2013-2) Notes on any calculations to be made with respect to the Class A(2013-2) Notes, Class A, 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(2013-2) Notes;

 (b) no Class A(2013-2) Adverse Event has occurred and is continuing; and 

  
 10 

 (c) either (i) the issuance of such additional Class A(2013-2) Notes would be treated
as part of the same issue as the outstanding Class A(2013-2) Notes under Treasury Regulation Sections 1.1275-1(f)(1) or 1.1275-2(k), or (ii) such additional Class A(2013-2) 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(2013-2) Notes so long as such conditions were satisfied or waived in connection with the initial issuance of Class A(2013-2) Notes; provided, however, that the Issuer shall
have to deliver to the Indenture Trustee a Master Trust Tax Opinion and an Issuer Tax Opinion with respect to such issuance. 

Section 2.10 Designation of Additional Amounts to be included in the Excess Spread Amount for the DiscoverSeries Notes. At
any time that any outstanding Series of certificates issued by the Master Trust provides that the Series Principal Collections allocated to such Series will be deposited into the Group Finance Charge Collections Reallocation Account for the Master
Trust to the extent necessary for application to cover shortfalls for other Series issued by the Master Trust, an amount equal to (x) all Series Principal Collections allocated to such Series, multiplied by (y) a fraction, the
numerator of which is the sum of the Nominal Liquidation Amounts for each outstanding Tranche of the DiscoverSeries Notes (including the Class A(2013-2) 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(2013-2) 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(2013-2) 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(2013-2) Notes will not result in any Tranche of Notes not being
paid in full on the relevant Expected Maturity Date; (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 behalf of the 

  
 11 

 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(2013-2) 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(2013-2) 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(2013-2) 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:
	 		 	
		 	  

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

			
	By:	 		 	
		 	  

		 	Name:	 	Patricia M. Child
		 	Title:	 	Vice President

 [Signature Page to Class A(2013-2) Terms Document] 

 DISCOVERSERIES CLASS A(2013-2) 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. 

			
	REGISTERED	  	$[•] *
	No. 1	  	CUSIP NO. 254683BA2

 DISCOVER CARD EXECUTION NOTE TRUST 
 0.69% 
 DISCOVERSERIES CLASS A(2013-2) 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 February 16, 2016 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 August 15, 2018 Payment Date (the
“Legal Maturity Date”). Interest will accrue on this Note at the rate of 0.69% per annum, as more specifically set forth in the Class A(2013-2) Terms Document dated as of February 13, 2013 (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 from and including the previous Interest Payment Date (or, in the case of the first Interest Payment Date for any Class A(2013-2) Notes, from and including the applicable Issuance Date) to but excluding such Interest
Payment Date. 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(2013-2) Notes is $900,000,000. 

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. 
 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.

  
  

	*	Denominations of $200,000 and in integral multiples of $1,000 in excess thereof. 

  
 2 

 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:

  
 3 

 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:

  
 4 

 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(2013-2) DiscoverSeries Notes
(herein called the “Class A(2013-2) 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(2013-2) Notes are subject to all terms of the Indenture, the Indenture Supplement and the Terms Document. All terms used in this Class A(2013-2) 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(2013-2) 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(2013-2) 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(2013-2) Note shall be due and payable on the Legal Maturity Date. Notwithstanding the foregoing, the entire unpaid principal amount of the Class A(2013-2) Notes shall be due and
payable on the date on which an Event of Default relating to the Class A(2013-2) 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(2013-2) 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. 

  
 5 

 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(2013-2) Notes of record on the related Record Date (except for the final distribution with respect to this Class A(2013-2)
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(2013-2) 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(2013-2) Note, shall be made by check mailed to the Person whose name appears as the Registered Holder of this Class A(2013-2) Note on the Note Register as of the close of business on each Record
Date, except that with respect to Class A(2013-2) 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(2013-2) Note be submitted for notation of payment. Any reduction in the principal amount of this Class A(2013-2) 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(2013-2) Note and of any Class A(2013-2) 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(2013-2) 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(2013-2) 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. On any payment of interest or principal being made, details of such payment shall be
entered by the Indenture Trustee on behalf of the Issuer in Schedule A hereto. 
 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(2013-2) Note may be registered on the Note Register upon surrender of this Class A(2013-2) 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(2013-2) Notes of authorized denominations and in the same aggregate principal amount will be issued to the designated
transferee or transferees. No service charge will be charged for any registration of transfer or exchange of this Class A(2013-2) Note, but the transferor may be required to pay a sum 

  
 6 

 
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(2013-2) Note or, in the case
of a Note Owner, a beneficial interest in a Class A(2013-2) 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(2013-2) 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(2013-2) 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(2013-2) 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(2013-2) Note shall be
conclusive and binding upon such Holder and upon all future Holders of this Class A(2013-2) 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(2013-2) 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(2013-2) Note includes any successor to the Issuer under the Indenture.

 The Issuer is permitted by the Indenture, under certain circumstances, to merge or consolidate, subject to the rights of the
Indenture Trustee and the Holders of Notes under the Indenture. 
 The Class A(2013-2) Notes are issuable only in registered
form in denominations as provided in the Indenture, subject to certain limitations therein set forth. 

  
 7 

 THIS CLASS A(2013-2) 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(2013-2) 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(2013-2) 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(2013-2) 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(2013-2) Note. 

  
 8 

 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. 

  
 9 

 SCHEDULE A 
 PART I 
 INTEREST PAYMENTS 

 

									
	 Interest

Payment Date
	  	 Date of

Payment
	  	 Total Amount

of Interest Payable
	  	 Amount of

Interest Paid
	  	 Confirmation of
payment by or
on
behalf of the Note Issuance
Trust

	 1.
	  		  		  		  	
	 2.
	  		  		  		  	
	 3.
	  		  		  		  	
	 4.
	  		  		  		  	
	 5.
	  		  		  		  	
	 6.
	  		  		  		  	
	 7.
	  		  		  		  	
	 8.
	  		  		  		  	
	 9.
	  		  		  		  	
	 10.
	  		  		  		  	
	 11.
	  		  		  		  	
	 12.
	  		  		  		  	
	 13.
	  		  		  		  	
	 14.
	  		  		  		  	
	 15.
	  		  		  		  	
	 16.
	  		  		  		  	
	 17.
	  		  		  		  	
	 18.
	  		  		  		  	
	 19.
	  		  		  		  	
	 20.
	  		  		  		  	
	 21.
	  		  		  		  	
	 22.
	  		  		  		  	
	 23.
	  		  		  		  	
	 24.
	  		  		  		  	
	 25.
	  		  		  		  	
	 26.
	  		  		  		  	
	 27.
	  		  		  		  	
	 28.
	  		  		  		  	
	 29.
	  		  		  		  	
	 30.
	  		  		  		  	
	 31.
	  		  		  		  	
	 32.
	  		  		  		  	
	 33.
	  		  		  		  	
	 34.
	  		  		  		  	
	 35.
	  		  		  		  	
	 36.
	  		  		  		  	

  
 10 

 PART II 
 PRINCIPAL PAYMENTS 
  

									
	 Principal Payment Date
	  	 Date of

Payment
	  	 Total Amount

of Principal

Payable
	  	 Total Amount

Paid
	  	 Confirmation of
payment by or
on
behalf of the Note Issuance
Trust

	 1.
	  		  		  		  	
	 2.
	  		  		  		  	
	 3.
	  		  		  		  	
	 4.
	  		  		  		  	
	 5.
	  		  		  		  	
	 6.
	  		  		  		  	
	 7.
	  		  		  		  	
	 8.
	  		  		  		  	
	 9.
	  		  		  		  	
	 10.
	  		  		  		  	
	 11.
	  		  		  		  	
	 12.
	  		  		  		  	

  
 11Exhibit 10.1

 Exhibit 10.1 
 WELLPOINT 
 120 Monument Circle 
 Indianapolis, IN 46204 
 February 6, 2013 

Mr. Joseph R. Swedish 
 [intentionally
omitted] 
 Re: Offer Letter 
 Dear
Joe: 
 We are pleased to extend to you our offer to join WellPoint, Inc., an Indiana corporation (the
“Company”), as Chief Executive Officer of the Company (the “CEO”). If you accept this offer, your start date will be during the second calendar quarter of 2013 on a date mutually agreed to by you and the Chair of
the Board of Directors of the Company (the “Board”), or such earlier date as mutually agreed to by you and the Chair of the Board (such date, the “Start Date”). This letter (“Offer Letter”) serves
as confirmation of our offer subject to the contingencies listed below. 
 Position and Duties. As of the Start Date, you
will (1) be employed by the Company as CEO, with such duties as are commensurate with such position and as are customarily exercised by a person holding such position in companies of the size and nature of the Company, (2) report to the
Board, (3) be appointed to the Board effective as of the Start Date and be nominated for reelection to the Board in each such year thereafter in which your term as a director is set to expire and such Board service shall be for no additional
compensation, (4) serve as a member of the board of directors of any of the Company’s subsidiaries to which you are elected for no additional compensation, and (5) perform your duties primarily at the Company’s headquarters in
Indianapolis, Indiana. During your employment with the Company, you will be permitted to (A) serve on civic or charitable boards or committees and (B) serve on one non-competitive for-profit board, so long as such activities do not
significantly interfere with the performance of your responsibilities as an officer and employee of the Company in accordance with this Offer Letter. 
 Base Salary. Your base salary as of the Start Date will be at an annual rate of $1,250,000, which will be paid in substantially equal installments in accordance with the Company’s payroll
policies. Your base salary will be reviewed from time to time, but at least annually, by the Board or the Compensation Committee of the Board (the “Compensation Committee”). The base salary as determined herein from time to time
shall constitute your “base salary” for all purposes under this Offer Letter. 

 Annual Incentive. You will be eligible to participate in the Company’s Annual
Incentive Plan for fiscal year 2013 with an annual target bonus opportunity equal to 150 percent of your base salary (“Annual Target Bonus”) and an annual maximum bonus opportunity equal to 300 percent of your base salary, prorated
for the portion of the year that you are actually employed by the Company during fiscal year 2013, to be paid to you at the same time as annual bonuses are paid to senior executives of the Company generally, but in no event later than two and a half
months after the end of the fiscal year. Your Annual Target Bonus will be reviewed from time to time, but at least annually, by the Board or the Compensation Committee. 
 Equity Incentive Grants. For fiscal year 2013, you will be awarded equity incentive grants with a target value of $8,000,000 (using the same valuation method as is used by the Company for grants of
equity awards to other senior executives of the Company generally at such time) in accordance with the terms and conditions of the Company’s Incentive Compensation Plan, provided that the Company may make such grants as an “inducement
award” and not expressly pursuant to such plan in which case the Company shall take all actions as are required to satisfy NYSE listing standards applicable to such grants and promptly after such grants shall file a Form S-8 registering the
shares of common stock respecting such grants, (the “2013 Awards”). All such awards will be delivered to you on the same terms and conditions and in the same proportion as to the forms of equity award granted as long term incentive
compensation awards granted to other senior executives of the Company in fiscal year 2013 generally (i.e., 20% as stock options time-vesting 33-1/3% per year, 50% as performance units time- and performance-vesting 33-1/3% per year and 30%
restricted stock units time-vesting 33-1/3% per year), as determined by the Compensation Committee. Notwithstanding the foregoing, upon a termination of your employment by the Company without Cause (as defined below) or a resignation by you for
Good Reason (as defined below), subject to your execution and non-revocation of a release as set forth in the Executive Agreement Plan (and not requiring as a condition of any payment hereunder or thereunder your agreement to any restriction on your
activities post-termination to which you had not agreed prior to such termination), (1) occurring prior to the first annual vesting date, your 2013 Awards will vest 33.3% effective on the first annual vesting date, subject, in the case of any
2013 Awards subject to performance goals, to the achievement of any such performance goals; (2) occurring after the first annual vesting date, you will vest in a number of 2013 Awards (in addition to such number of awards as may have previously
vested), as a result of your termination, subject, in the case of any 2013 Awards subject to performance goals, to the achievement of any such performance goals, equal to the product of (A) the number of shares subject to such 2013 Award
scheduled to vest during such year and (B) a fraction, the numerator of which is the number of days from the last annual vesting date through your termination of employment and the denominator of which is 365; and (3) for such termination
occurring at any time prior to your attaining age 65, any portion of your 2013 Awards that are stock options and vest as a result of such termination will be exercisable for not less than 45 days from the vesting date. Beginning in fiscal year 2014
and while you continue to be employed by the Company, you will be eligible to participate in the Company’s equity incentive plans as determined by the Compensation Committee in its discretion on terms and conditions comparable to other senior
executives of the Company; provided that for purposes of such awards, and for purposes of determining the 

  
 2 

 
post- employment termination exercise period of the stock options granted under your 2013 Awards, you will be considered to be eligible for retirement treatment upon your attainment of age 65.
For purposes of this Offer Letter, “Cause” and “Good Reason” shall have the meaning of those terms set forth in the employment agreement attached hereto as Exhibit A (without regard for any amendment or termination of such
employment agreement after expiration of the Initial Term (as defined therein)). 
 “Make Whole” Payment. In
replacement of compensation to be forfeited by you (as previously disclosed to the Company) as a result of your commencing employment with the Company, the Company agrees to pay you an amount in cash equal to $3,561,476 within 30 days following the
Start Date (the “Make Whole Payment”). You agree to substantiate the amounts previously disclosed to the Company to the reasonable satisfaction of the Company as soon as practicable following the date hereof. To the extent the
substantiation supports a lesser Make Whole Payment, the unsubstantiated amount will be forfeited and, if already paid, refunded by you to the Company. In the event that, within one year following the Start Date, your employment is terminated by the
Company for Cause or you resign without Good Reason (and not due to your Disability, as defined in the Company’s Long-Term Disability Plan), you will immediately repay to the Company an amount equal to the product of (A) the after-tax
amount of the Make Whole Payment and (B) a fraction, the numerator of which is the number of days from your termination of employment through the first anniversary of the Start Date and the denominator of which is 365. The Make Whole Payment
shall not be taken into account for purposes of determining your entitlement under any compensation or benefit plan, program, policy, agreement or other arrangement of the Company or its subsidiaries. 

Inducement Grant. Within 30 days of the Start Date, you will be granted a number of restricted shares of the Company’s common
stock pursuant to the Incentive Compensation Plan equal to the quotient obtained by dividing $1,500,000 by the Fair Market Value (as defined in the Incentive Compensation Plan) of a share of the Company’s common stock as of the date of grant
(the “Inducement Grant”), provided that the Company may make such grants as an “inducement award” and not expressly pursuant to such plan in which case the Company shall take all actions as are required to satisfy the NYSE
listing standards applicable to such grants and promptly after such grants shall file a Form S-8 registering the shares of common stock respecting such grants. Subject to your continued employment through each applicable vesting date, one-third of
the Inducement Grant shall vest on each of the first three anniversaries of the Start Date. Notwithstanding the foregoing, subject to your execution and non-revocation of a release in accordance with the terms therefor provided above, upon your
termination of employment by the Company without Cause or by you for Good Reason or due to your death or Disability, the Inducement Grant shall immediately vest in full. 
 Other Benefit Plans. You, your spouse and your eligible dependents will be eligible to participate in the employee benefit plans of the Company consistent with your level and role at the Company.
In addition, while you are employed by the Company and the Company continues to maintain the Directed Executive Compensation Program, you will be entitled to an annual cash payment equal to $54,000 pursuant to the Directed Executive Compensation
Program. The Company will pay or reimburse your 

  
 3 

 
business expenses incurred in accordance with Company policies applicable to senior executives (or as otherwise may be agreed by the Board in its discretion). You will be entitled to payment of
your relocation expenses in accordance with the Company’s homeowner relocation guidelines applicable to senior executives. 

Paid Time Off. The Company has a Paid Time Off (“PTO”) policy that provides a bank of paid time for needs such as
vacation, personal illness, family needs, etc. You will be eligible for 24 days of PTO annually, which will be prorated during your first year of employment based on the Start Date. 

Severance. You will participate in the Company’s Executive Agreement Plan or its successor, as it may be amended from time to
time (the “Executive Agreement Plan”). You will enter into an employment agreement effective on your Start Date, pursuant to the Executive Agreement Plan, in the form attached hereto as Exhibit A. The current terms and
conditions of the Executive Agreement Plan (as amended) are in the form publicly filed with the Securities and Exchange Commission by the Company as Exhibit 10.4 to the Company’s 2008 annual report (Form 10-K), Exhibit 10.4(a) to the
Company’s quarterly report (Form 10-Q) for March 31, 2009 and as Exhibit 10.4(b) the Company’s current report (Form 8-K) dated March 10, 2011. 
 Company Policies. You will be subject to all policies of the Company, including, without limitation, any stock ownership guidelines and incentive compensation clawback policies applicable to senior
executives of the Company, as each policy is adopted or amended from time to time. Consistent with the terms of Company’s stock ownership guidelines, you will have five years to meet the requisite stock ownership level. By signing this Offer
Letter you agree that your continued employment is contingent upon compliance with applicable regulatory, registration and licensing requirements, if any, now or in the future required of your position, including passing the appropriate exams or
transferring existing license(s), if any, or completing any registration requirements, within any reasonable time limits imposed by the Company, and your compliance with applicable regulatory, registration and licensing. 

Representation. You represent and warrant to the Company that, as of the Start Date, you are not a party to any agreement,
containing any non-competition or non-solicitation provisions or any other restrictions (including, without limitation, any confidentiality provisions) that would result in any restriction on your ability to accept and perform this or any other
position with the Company and its affiliates. Effective as of the Start Date, and prior to your Start Date, you will have resigned as a member of any for-profit boards of directors on which you served prior to the Start Date. 

Tax Withholding. The Company may withhold from any amounts payable to you under this Offer Letter or otherwise such United States
federal, state or local or foreign taxes as will be required to be withheld pursuant to any applicable law or regulation. 

Indemnification. The Company shall, at all times during which you may be subject to liability for your acts and omissions to act
occurring while you are an officer 

  
 4 

 
of the Company or a member of the Board, indemnify you and hold you harmless to the maximum extent permitted under the Company’s charter, by-laws and applicable law and shall cover you as an
insured under the Company’s contract of officers and directors liability insurance that covers members of the Board. 

Entire Agreement; Amendments; Counterparts. This Offer Letter, and the Executive Agreement Plan and the related employment
agreement attached hereto as Exhibit A, each as amended by the Offer Letter, constitute the entire agreement of the parties and supersede all prior agreements. In the event of any inconsistency between any provision of this Offer Letter and any
provision of any other plan, program, agreement or other arrangement of the Company, including, without limitation, the Executive Agreement Plan and the related employment agreement, the provisions of this Offer Letter will control. This Offer
Letter may be terminated or amended only in a writing signed by the Company and you. This Offer Letter may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same.

 Governing Law and Employment “At Will”. This Offer Letter (and such portions of the employment agreement
entered into pursuant to the Executive Agreement Plan as are made applicable under this Offer Letter) and your employment will be governed by Indiana law, without reference to principles of conflict of laws. You and the Company agree that your
employment with the Company constitutes “at-will” employment, subject to the above terms of this Offer Letter, and this employment relationship may be terminated at any time, upon written notice to the other party, for any reason, at the
option either of you or the Company; provided that you give the Company 30 days’ advance notice of your decision to resign. 

[Signature Page Follows Immediately After This Page] 

  
 5 

 We are excited about the important contributions you will make to the Company and look
forward to your acceptance of our offer. Please indicate your acceptance of these terms by signing below and returning a copy to me by close of business on February 8, 2013. 

 

			
	Very truly yours,
	
	  /s/ Ramiro G. Peru

	 Name: Ramiro G. Peru
	 Title:	 	Chairman, Compensation Committee WellPoint, Inc. Board of Directors

 Accepted and agreed: 
  

	
	  /s/ Joseph R. Swedish

	 JOSEPH R. SWEDISH

	
	 Date: February 8, 2013

  
 6 

 EXHIBIT A 

Employment Agreement under Executive Agreement Plan 
 EMPLOYMENT AGREEMENT (the “Agreement”) dated as of             , 2013 (the “Agreement Date”), between WellPoint,
Inc., an Indiana corporation (“WellPoint”) with its headquarters and principal place of business in Indianapolis, Indiana (WellPoint, together with its subsidiaries and affiliates are collectively referred to herein as the
“Company”), and the person listed on Schedule A (the “Executive”). 

W  I  T  N  E  S  S 
 E  T  H 
 WHEREAS, the Company desires to retain the services of Executive and to
provide Executive an opportunity to receive severance to which Executive is not otherwise entitled in return for the diligent and loyal performance of Executive’s duties and Executive’s agreement to reasonable and limited restrictions on
Executive’s post-employment conduct to protect the Company’s investments in its intellectual property, employee workforce, customer relationships and goodwill; 
 WHEREAS, Executive has entered into an offer letter with the Company, dated February 6, 2013, to which this Agreement is attached as an exhibit and to which this Agreement is subject
(“Offer Letter”); 
 WHEREAS, the Company has established the WellPoint, Inc. Executive Agreement Plan (“Plan”) to
provide certain benefits for participants who enter into an employment agreement in the form of this Agreement; and 
 WHEREAS, Executive
is not required to execute this Agreement as a condition of employment; rather, Executive is entering into this Agreement to enjoy the substantial additional payments and benefits available under the Plan and the Designated Plans (as hereinafter
defined). 
 NOW THEREFORE, in consideration of the foregoing, of the mutual promises contained herein and of other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 1.
POSITION/DUTIES. 
 (a) During the Employment Period (as defined in Section 2 below), Executive shall (1) be employed
by the Company in the position set forth on Schedule A, with such duties as are commensurate with such position and duties as set forth in the Offer Letter, (2) report to the Board of Directors of the Company (the “Board”),
(3) be appointed to the Board effective as of the Start Date (as defined in the Offer Letter) and nominated for reelection to the Board in each such year thereafter in which Executive’s term as a director is set to expire and such Board
service shall be for no additional compensation, (4) serve as a member of the board of directors of any of the Company’s subsidiaries to which Executive is elected for no additional compensation, and (5) perform his duties primarily
at the Company’s headquarters in Indianapolis, Indiana. 

 (b) During the Employment Period, Executive shall comply with Company policies and
procedures, and shall devote all of Executive’s business time, energy and skill, best efforts and undivided business loyalty to the performance of Executive’s duties with the Company. Executive further agrees that while employed by the
Company he shall not perform any services for remuneration for or on behalf of any other entity without the advance written consent of the Company. Notwithstanding the foregoing, during the Employment Period, Executive will be permitted to
(A) serve on civic or charitable boards or committees and (B) serve on one non-competitive for-profit board, so long as such activities do not significantly interfere with the performance of Executive’s responsibilities as an employee
and officer of the Company in accordance with this Agreement. 
 2. EMPLOYMENT PERIOD. Subject to the termination provisions
hereinafter provided, the initial term of Executive’s employment under this Agreement shall commence on the Agreement Date listed above and end on the Anniversary Date which is two years after the Agreement Date (the “Initial Term”);
provided, however, that commencing on the day following the first anniversary of the Agreement Date the term will automatically be extended each day by one day, until a date (the “Expiration Date”) which is the first annual anniversary of
the first date on which either the Company or Executive delivers to the other written notice of non renewal. The term beginning on the Agreement Date and ending on the Expiration Date shall constitute the “Employment Period” for purposes
of this Agreement. Expiration of this Agreement shall not be construed to terminate the employment of Executive. If the employment of Executive does not terminate on or before the Expiration Date in accordance with this Agreement, Executive shall
continue to be an employee at will of the Company after the Expiration Date unless such employment is otherwise terminated by the Company or Executive. 
 3. BASE SALARY. The Company agrees to pay Executive a base salary at an annual rate set forth on Schedule A, payable in accordance with the regular payroll practices of the Company. Executive’s Base
Salary shall be subject to annual review by the Company. The base salary as determined herein from time to time shall constitute “Base Salary” for purposes of this Agreement. 

4. BONUS. During the Employment Period, Executive shall be eligible to receive consideration for an annual bonus upon such terms as
adopted from time to time by the Company. The Annual Target Bonus and the Maximum Bonus for which Executive is eligible for the year in which this Agreement is executed is specified in Schedule A to this Agreement, prorated for the portion of the
year that Executive is actually employed by the Company during fiscal year 2013. 
 5. BENEFITS. Executive, his or her spouse
and their eligible dependents shall be entitled to participate in any employee benefit plan that the Company has adopted or may adopt, maintain or contribute to for the benefit of its executives at a level commensurate with Executive’s
position, subject to satisfying the applicable eligibility requirements therefor, in addition to the benefits available under the Plan. Notwithstanding the foregoing, the Company may modify or terminate any employee benefit plan at any time in
accordance with its terms. 

  
 A-2

 6. TERMINATION. Executive’s employment and the Employment Period shall terminate on the
first of the following to occur: 
 (a) DISABILITY. Subject to applicable law, upon 10 days’ prior written notice by
the Company to Executive of termination due to Disability. “Disability” shall have the meaning defined in the Company’s Long Term Disability Plan. 
 (b) DEATH. Automatically on the date of death of Executive. 
 (c)
CAUSE. The Company may terminate Executive’s employment hereunder for Cause immediately upon written notice by the Company to Executive of a termination for Cause. “Cause” shall have the meaning defined for that term in the
Plan; provided that, notwithstanding anything in the Plan to the contrary, during the Initial Term, (A) clause (vii) of the “Cause” definition for Executive shall read in its entirety “(vii) conduct which brings the Company
into substantial public disgrace or disrepute;” and (B) for purposes of the Cause definition, no act or omission to act will be “willful” if conducted in good faith and with a reasonable belief that such act or omission was in
the best interests of the Company. 
 (d) WITHOUT CAUSE. Upon written notice by the Company to Executive of an
involuntary termination without Cause, other than for death or Disability. 
 (e) BY EXECUTIVE. Upon written notice by
Executive to the Company with or without Good Reason as defined in the plan; provided that, notwithstanding anything in the Plan to the contrary, for the Initial Term, (A) the “Good Reason” definition for Executive at any time before
or after a Change in Control will include the occurrence of the events set forth in clauses (i), (ii), (iii) or (iv) of the Good Reason definition in the Plan and (B) clause (i) of the Good Reason definition in the Plan for
Executive shall read in its entirety “(i) a material reduction during any twenty-four (24) month period in Executive’s Annual Salary, or in Executive’s annual total cash compensation (including Annual Salary and Target Bonus, but
excluding for this purpose the one-time “make whole payment” set forth in the Offer Letter).” 
 7. CONSEQUENCES
OF TERMINATION. The Executive’s entitlement to payments and benefits upon termination shall be as set forth in the Plan; provided that, notwithstanding anything in the Plan or elsewhere in this Agreement to the contrary, the provisions set
forth in the paragraph titled “Severance” in the Offer Letter shall apply for so long as those provisions are effective in accordance with the terms thereof. 
 8. RELEASE. Any and all amounts payable and benefits or additional rights provided pursuant to this Agreement beyond Accrued Benefits shall only be payable if Executive delivers to the Company and does
not revoke a general release of all claims in a form tendered by the Company which shall be substantially similar to the form attached as Exhibit B to the Plan or such other form acceptable to the Company within thirty (30) days of
Executive’s termination of employment. 
 9. RESTRICTIVE COVENANTS. 

(a) CONFIDENTIALITY. 

  
 A-3

 (i) Executive recognizes that the Company derives substantial economic value
from information created and used in its business which is not generally known by the public, including, but not limited to, plans, designs, concepts, computer programs, formulae, and equations; product fulfillment and supplier information; customer
and supplier lists, and confidential business practices of the Company, its affiliates and any of its customers, vendors, business partners or suppliers; profit margins and the prices and discounts the Company obtains or has obtained or at which it
sells or has sold or plans to sell its products or services (except for public pricing lists); manufacturing, assembling, labor and sales plans and costs; business and marketing plans, ideas, or strategies; confidential financial performance and
projections; employee compensation; employee staffing and recruiting plans and employee personal information; and other confidential concepts and ideas related to the Company’s business (collectively, “Confidential Information”).
Executive expressly acknowledges and agrees that by virtue of his or her employment with the Company, Executive will have access and will use in the course of Executive’s duties certain Confidential Information and that Confidential Information
constitutes trade secrets and confidential and proprietary business information of the Company, all of which is the exclusive property of the Company. For purposes of this Agreement, Confidential Information includes the foregoing and other
information protected under the Indiana Uniform Trade Secrets Act (the “Act”), or to any comparable protection afforded by applicable law, but does not include information that Executive establishes by clear and convincing evidence, is or
may become known to Executive or to the public from sources outside the Company and through means other than a breach of this Agreement. 
 (ii) Executive agrees that Executive will not for himself or herself or for any other person or entity, directly or indirectly, without the prior written consent of the Company, while employed by the
Company and thereafter: (1) use Confidential Information for the benefit of any person or entity other than the Company or its affiliates; (2) remove, copy, duplicate or otherwise reproduce any document or tangible item embodying or
pertaining to any of the Confidential Information, except as required to perform Executive’s duties for the Company or its affiliates; or (3) while employed and thereafter, publish, release, disclose or deliver or otherwise make available
to any third party any Confidential Information by any communication, including oral, documentary, electronic or magnetic information transmittal device or media. Upon termination of employment, Executive shall return all Confidential Information
and all other property of the Company. This obligation of non-disclosure and non-use of information shall continue to exist for so long as such information remains Confidential Information. 

(b) DISCLOSURE AND ASSIGNMENT OF INVENTIONS AND IMPROVEMENTS. Without prejudice to any other duties express or implied imposed on
Executive hereunder it shall be part of Executive’s normal duties at all times to consider in what manner and by what methods or devices the products, services, processes, equipment or systems of the Company and any customer or vendor of the
Company might be improved and promptly to give to the Board or its designee full details of any improvement, invention, research, development, discovery, design, code, model, suggestion or innovation (collectively called “Work Product”),
which Executive (alone or with others) may make, discover, create or conceive 

  
 A-4

 
in the course of Executive’s employment. Executive acknowledges that the Work Product is the property of the Company. To the extent that any of the Work Product is capable of protection by
copyright, Executive acknowledges that it is created within the scope of Executive’s employment and is a work made for hire. To the extent that any such material may not be a work made for hire, Executive hereby assigns to the Company all
rights in such material. To the extent that any of the Work Product is an invention, discovery, process or other potentially patentable subject matter (the “Inventions”), Executive hereby assigns to the Company all right, title, and
interest in and to all Inventions. The Company acknowledges that the assignment in the preceding sentence does not apply to an Invention that Executive develops entirely on his or her own time without using the Company’s equipment, supplies,
facilities or trade secret information, except for those Inventions that either: 
  

	 	(1)	relate at the time of conception or reduction to practice of the Invention to the Company’s business, or actual or demonstrably anticipated research or development
of the Company, or 

  

	 	(2)	result from any work performed by Executive for the Company. 

 Execution of this Agreement constitutes Executive’s acknowledgment of receipt of written notification of this Section and of notice of the general exception to assignments of Inventions provided
under the Uniform Employee Patents Act, in the form adopted by the state having jurisdiction over this Agreement or provision, or any comparable applicable law. 
 (c) NON-COMPETITION. During the Employment Period, and any period in which Executive is employed by the Company during or after the Employment Period, and during the period of time after
Executive’s termination of employment as set forth in Schedule A (the “Restricted Period”), Executive will not, without prior written consent of the Company, directly or indirectly seek or obtain a Competitive Position in a
Restricted Territory and perform a Restricted Activity with a Competitor, as those terms are defined herein. 

(i) Competitive Position means any employment or performance of services with a Competitor (A) in which Executive has
executive level duties for such Competitor, or (B) in which Executive will use any Confidential Information of the Company. 
 (ii) Restricted Territory means any geographic area in which the Company does business and in which Executive had responsibility for, or Confidential Information about, such business within the thirty six
(36) months prior to Executive’s termination of employment from the Company. 
 (iii) Restricted
Activity means any activity for which Executive had responsibility for the Company within the thirty-six (36) months prior to Executive’s termination of employment from the Company or about which Executive had Confidential Information.

 (iv) Competitor means any entity or individual (other than the Company), engaged in management of network
based managed care plans and programs, or the performance of managed care services, health insurance, long term care insurance, dental, life or disability insurance, behavioral health, vision, flexible spending accounts, COBRA

  
 A-5

 
administration or other products or services substantially the same or similar to those offered by the Company while Executive was employed, or other products or services offered by the Company
within twelve (12) months after the termination of Executive’s employment if Executive had responsibility for, or Confidential Information about, such other products or services while Executive was employed by the Company. 

(d) NON-SOLICITATION OF CUSTOMERS. During the Restricted Period, Executive will not, either individually or as an employee,
partner, consultant, independent contractor, owner, agent, or in any other capacity, directly or indirectly, for a Competitor of the Company as defined in Section 9(c)(iv) above: (i) solicit business from any client or account of the
Company or any of its affiliates with which Executive had contact, or responsibility for, or about which Executive had knowledge of Confidential Information by reason of Executive’s employment with the Company, (ii) solicit business from
any client or account which was pursued by the Company or any of its affiliates and with which Executive had contact, or responsibility for, or about which Executive had knowledge of Confidential Information by reason of Executive’s employment
with the Company, within the twelve (12) month period prior to termination of employment. For purposes of this provision, an individual policyholder in a plan maintained by the Company or by a client or account of the Company under which
individual policies are issued, or a certificate holder in such plan under which group policies are issued, shall not be considered a client or account subject to this restriction solely by reason of being such a policyholder or certificate holder.

 (e) NON-SOLICITATION OF EMPLOYEES. During the Restricted Period, Executive will not, either individually or as an
employee, partner, independent contractor, owner, agent, or in any other capacity, directly or indirectly solicit, hire, attempt to solicit or hire, or participate in any attempt to solicit or hire, for any non-Company affiliated entity, any person
who on or during the six (6) months immediately preceding the date of such solicitation or hire is or was an officer or employee of the Company, or whom Executive was involved in recruiting while Executive was employed by the Company.

 (f) NON-DISPARAGEMENT. Executive agrees that he or she will not, nor will he or she cause or assist any other person
to, make any statement to a third party or take any action which is intended to or would reasonably have the effect of disparaging or harming the Company or the business reputation of the Company’s directors, employees, officers and managers.
Further, the Participant will not at any time make any verbal or written statement to any media outlet regarding the Company. The Company agrees not to make any official statement, and to instruct its directors and executive officers not to make any
statement or cause or assist any other person to make any statement, to a third party or take any action which is intended to or would reasonably have the effect of disparaging or harming Executive or his business reputation and any such statement
by an executive officer of the Company shall be treated by the Company as a breach of the Company’s code of conduct that is subject to discipline of such executive officer up to and including termination of employment. 

(g) CESSATION AND RECOUPMENT OF SEVERANCE PAYMENTS AND OTHER BENEFITS. If at any time Executive breaches any provision of this
Section 9, then: (i) the Company shall cease to provide any further Severance Pay or other benefits previously received under the Plan and Executive shall repay to the Company all Severance Pay and other

  
 A-6

 
benefits previously received under the Plan, (ii) all unexercised Company stock options under any Designated Plan (as defined in the Plan) whether or not otherwise vested shall cease to be
exercisable and shall immediately terminate; (iii) Executive shall forfeit any outstanding restricted stock or other outstanding equity award made under any Designated Plan and not otherwise vested on the date of breach; and (iv) Executive
shall pay to the Company (A) for each share of common stock of the Company (“Common Share”) acquired on exercise of an option under a Designated Plan within the 24 months prior to such breach, the excess of the fair market value of a
Common Share on the date of exercise over the exercise price, and (B) for each Share of restricted stock that became vested under any Designated Plan within the 24 months prior to such breach, the fair market value (on the date of vesting) of a
Common Share. Any amount to be repaid pursuant to this Section 9(g) shall be held by Executive in constructive trust for the benefit of the Company and shall, upon written notice from the Company, within 10 days of such notice, be paid by
Executive to the Company with interest from the date such Common Share was acquired or the share of restricted stock became vested, as the case may be, to the date of payment, at 120% of the applicable federal rate, determined under
Section 1274(d) of the Internal Revenue Code of 1986, as amended from time to time (the “Code”). Any amount described in clauses (i), (ii) or (iii) that Executive forfeits as a result of a breach of the provisions of
Sections 9 shall not reduce any money damages that would be payable to the Company as compensation for such breach. The amount to be repaid pursuant to this Section 9(g) shall be determined on a gross basis, without reduction for any taxes
incurred, as of the date of the realization event, and without regard to any subsequent change in the fair market value of a Common Share. The Company shall have the right to offset such gain against any amounts otherwise owed to Executive by the
Company (whether as wages, vacation pay, or pursuant to any benefit plan or other compensatory arrangement other than any amount pursuant to any nonqualified deferred compensation plan under Section 409A of the Code). For purposes of this
Section 9(g), a “Designated Plan” is each annual bonus and incentive plan, stock option, restricted stock, or other equity compensation or long-term incentive compensation plan, deferred compensation plan, or supplemental retirement
plan, listed on Exhibit C to the Plan. The provisions of this Section 9(g) shall apply to awards described in clauses (i), (ii), (iii) and (iv) of this Section earned or made after the date Executive becomes a participant in the Plan
and executes this Agreement, and to awards earned or made prior thereto which by their terms are subject to cessation and recoupment under terms similar to those of this paragraph. 

(h) EQUITABLE RELIEF AND OTHER REMEDIES—CONSTRUCTION. 

(i) Executive acknowledges that each of the provisions of this Agreement are reasonable and necessary to preserve the
legitimate business interests of the Company, its present and potential business activities and the economic benefits derived therefrom; that they will not prevent him or her from earning a livelihood in Executive’s chosen business and are not
an undue restraint on the trade of Executive, or any of the public interests which may be involved. 
 (ii)
Executive agrees that beyond the amounts otherwise to be provided under this Agreement and the Plan, the Company will be damaged by a violation of this Agreement and the amount of such damage may be difficult to measure. Executive agrees that if
Executive commits or threatens to commit a breach of any of the covenants and agreements contained in Sections 9 and 10 to the extent permitted by applicable law, 

  
 A-7

 
then the Company shall have the right to seek and obtain all appropriate injunctive and other equitable remedies, without posting bond therefor, except as required by law, in addition to any
other rights and remedies that may be available at law or under this Agreement, it being acknowledged and agreed that any such breach would cause irreparable injury to the Company and that money damages would not provide an adequate remedy. Further,
if Executive violates Section 9(b)—(e) hereof Executive agrees that the period of violation shall be added to the Period in which Executive’s activities are restricted. 

(iii) Notwithstanding the foregoing, the Company will not seek injunctive relief to prevent an Executive residing in
California from engaging in post termination competition in California under Section 9(c) or 9(d) of this Agreement provided that the Company may seek and obtain relief to enforce Section 9(g) of this Section with respect to such
Executives. 
 (iv) The parties agree that the covenants contained in this Agreement are severable. If an
arbitrator or court shall hold that the duration, scope, area or activity restrictions stated herein are unreasonable under circumstances then existing, the parties agree that the maximum duration, scope, area or activity restrictions reasonable and
enforceable under such circumstances shall be substituted for the stated duration, scope, area or activity restrictions to the maximum extent permitted by law. The parties further agree that the Company’s rights under Section 9(g) should
be enforced to the fullest extent permitted by law irrespective of whether the Company seeks equitable relief in addition to relief provided thereon or if the arbitrator or court deems equitable relief to be inappropriate. 

(i) SURVIVAL OF PROVISIONS. The obligations contained in this Section 9 above and Section 10 below shall survive the
cessation of the Employment Period and Executive’s employment with the Company and shall be fully enforceable thereafter; provided, however, (a) if the Plan is terminated or this Agreement expires after the Initial Term, the Restricted
Period will expire, and (b) if the severance period under the Plan is reduced following the Initial Term or Base Salary or Annual Target Bonus is excluded as a component of severance in a manner that has the same economic effect as a reduction
in the severance period, the duration of the Restricted Period will be reduced to the duration of the severance period. 
 10.
COOPERATION. While employed by the Company and for two years (or, if longer, for so long as any claim referred to in Section 3.10 of the Plan remains pending) after the termination of Executive’s employment for any reason, Executive will
provide cooperation and assistance to the Company as provided in Section 3.10 of the Plan. 
 11. NOTIFICATION OF EXISTENCE
OF AGREEMENT. Executive agrees that in the event that Executive is offered employment with another employer (including service as a partner of any partnership or service as an independent contractor) at any time during the existence of this
Agreement, or such other period in which post termination obligations of this Agreement apply, Executive shall immediately advise said other employer (or partnership) of the existence of this Agreement and shall immediately provide said employer (or
partnership or service recipient) with a copy of Sections 9 and 10 of this Agreement. 

  
 A-8

 12. NOTIFICATION OF SUBSEQUENT EMPLOYMENT. Executive shall report promptly to the Company
any employment with another employer (including service as a partner of any partnership or service as an independent contractor or establishment of any business as a sole proprietor) obtained during the period in which Executive’s post
termination obligations set forth in Section 9(b)—(f) apply. 
 13. NOTICE. For the purpose of this Agreement,
notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given (i) on the date of delivery if delivered by hand, (ii) on the date of transmission, if delivered by
confirmed facsimile or e-mail, (iii) on the first business day following the date of deposit if delivered by guaranteed overnight delivery service, or (iv) on the fourth business day following the date delivered or mailed by United States
registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 
 If to Executive: 

At the address (or to the facsimile number) shown 
 on the records of the Company 
 If to the Company: 

Randal L. Brown 

Executive Vice President and Chief Human Resources Officer 
 WellPoint, Inc. 
 120 Monument Circle 

Indianapolis, IN 46204 
 or to
such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt. 

14. SECTION HEADINGS; INCONSISTENCY. The section headings used in this Agreement are included solely for convenience and shall not
affect, or be used in connection with, the interpretation of this Agreement. Capitalized terms not defined hereunder or made applicable under the Offer Letter shall have the meaning set forth in the Plan. In the event of any inconsistency between
any provision of the Offer Letter and any provision of any other plan, program, agreement or other arrangement of the Company, including, without limitation, this Agreement and the Plan, the provisions of the Offer Letter will control. For so long
as, and to the extent that, the Offer Letter applies and any terms of this Agreement apply pursuant to the Offer Letter, in the event of any inconsistency between any provision of this Agreement and the Plan, the provisions of this Agreement shall
control. 
 15. SUCCESSORS AND ASSIGNS—BINDING EFFECT. This Agreement shall be binding upon and inure to the benefit of the
parties and their successors and permitted assigns, as the case may be. The Company may assign this Agreement to any affiliate of the Company and to any successor or assign of all or a substantial portion of the Company’s business. Executive
may not assign or transfer any of his rights or obligations under this Agreement. This Agreement, and the Offer Letter constitute the entire agreement of the parties and supersede all prior agreements. This Agreement may be executed in separate
counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same. 

  
 A-9

 16. SEVERABILITY. The provisions of this Agreement shall be deemed severable and the
invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. 

17. DISPUTE RESOLUTION. 
 (a) In the event of any dispute arising out of or relating to this Agreement the determinations of fact and the construction of this Agreement or any other determination by the Committee in its sole and
absolute discretion pursuant to Section 6.3 of the Plan shall be final and binding on all persons and may not be overturned in any arbitration or any other proceeding unless the party challenging the Committee’s determination can
demonstrate by clear and convincing evidence that a determination of fact is clearly erroneous or any other determination by the Committee is arbitrary and capricious; provided, however, that if a claim relates to benefits due following a Change in
Control (as defined in the Plan), the Committee’s determination shall not be final and binding if the party challenging the Committee’s determination establishes by a preponderance of the evidence that he or she is entitled to the benefit
in dispute. 
 (b) Any dispute arising out of or relating to this Agreement shall first be presented to the Committee pursuant
to the claims procedure set forth in Section 5.2 of the Plan and the claims review procedure of Section 5.3 of the Plan within the times therein provided. In the event of any failure timely to use and exhaust such claims procedure, and the
claims review procedures, the decision of the Committee on any matter respecting this Agreement shall be final and binding and may not be challenged by further arbitration, or any other proceeding. 

(c) Any dispute arising out of or relating to this Agreement, including the breach, termination or validity thereof, which has not been
resolved as provided in paragraph (b) of this Section as provided herein shall be finally resolved by arbitration in accordance with the CPR Rules for Non-Administered Arbitration then currently in effect, by a sole arbitrator. The Company
shall be initially responsible for the payment of any filing fee and advance in costs required by CPR or the arbitrator, provided, however, if Executive initiates the claim, Executive will contribute an amount not to exceed $250.00 for these
purposes. During the arbitration, each Party shall pay for its own costs and attorneys fees, if any. Attorneys fees and costs should be awarded by the arbitrator to the prevailing party pursuant to Section 19 below. 

(d) The arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1-16, and judgment upon the award
rendered by the arbitrator may be entered by any court having jurisdiction thereof. The arbitrator shall not have the right to award speculative damages or punitive damages to either party except as expressly permitted by statute (notwithstanding
this provision by which both parties hereto waive the right to such damages) and shall not have the power to amend this Agreement. The arbitrator shall be required to follow applicable law. The place of arbitration shall be Indianapolis, Indiana.
Any application to enforce or set aside the arbitration award shall be filed in a state or federal court located in Indianapolis, Indiana. 
 (e) Any demand for Arbitration must be made or any other proceeding filed within six (6) months after the date of the Committee’s decision on review pursuant to Section 5.3 of the Plan.

  
 A-10

 (f) Notwithstanding the foregoing provisions of this Section, an action to enforce this
Agreement shall be filed within eighteen (18) months after the party seeking relief had actual or constructive knowledge of the alleged violation of this Agreement or any party shall be able to seek immediate, temporary, or preliminary
injunctive or equitable relief from a court of law or equity if, in its judgment, such relief is necessary to avoid irreparable damage. To the extent that any party wishes to seek such relief from a court, the parties agree to the following with
respect to the location of such actions. Such actions brought by Executive shall be brought in a state or federal court located in Indianapolis, Indiana. Such actions brought by the Company shall be brought in a state or federal court located in
Indianapolis, Indiana; Executive’s state of residency; or any other forum in which Executive is subject to personal jurisdiction. Executive specifically consents to personal jurisdiction in the State of Indiana for such purposes. 

(g) IF FOR ANY REASON THIS ARBITRATION CLAUSE BECOMES NOT APPLICABLE, THEN EACH PARTY, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY AS TO ANY ISSUE RELATING HERETO IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER MATTER INVOLVING THE PARTIES HERETO.

 18. GOVERNING LAW. This Agreement forms part of an employee benefit plan subject to the Employee Retirement Income
Security Act of 1974 (“ERISA”), and shall be governed by and construed in accordance with ERISA and, to the extent applicable and not preempted by ERISA, the law of the State of Indiana applicable to contracts made and to be performed
entirely within that State, without regard to its conflicts of law principles. Any reference to the “Chief Executive Officer” under the Plan will be considered to refer to the Compensation Committee of the Board of Directors of the Company
as the Plan applies to Executive. 
 19. ATTORNEYS’ FEES. In the event of any contest arising under or in connection with
this Agreement, the arbitrator or court, as applicable, shall award the prevailing party attorneys’ fees and costs to the extent permitted by applicable law. 
 20. MISCELLANEOUS. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by Executive and such officer or
director as may be designated by the Company. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. This Agreement and the Plan and together with all exhibits thereto sets forth the entire agreement of the parties hereto in respect of
the subject matter contained herein. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement. 

21. OTHER EMPLOYMENT ARRANGEMENTS. Except for the Offer Letter or as set forth on Schedule A or provided in Section 2.1(a)(i) of the
Plan, any severance or change in control plan or agreement (other than the Plan) or other similar agreements or arrangements between Executive and the Company, shall, effective as of the Effective Date, be superseded by this Agreement and the Plan
and shall therefore terminate and be null and void and of no force or effect. 

  
 A-11

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written
above. 
  

			
	WELLPOINT, INC.
		
	 By:
	 	  

	 Name:
	 	  

	 Its:
	 	  

	 Date:
	 	  

	
	EXECUTIVE
	
	  

		
	 Date:
	 	  

  
 A-12

 SCHEDULE A 

 

			
	1. Name of Executive	  	Joseph R. Swedish
		
	2. Position	  	Chief Executive Officer
		
	3. Base Salary	  	$1,250,000
		
	4. Annual Target Bonus and Maximum Bonus Opportunity	  	150% and 300% of Base Salary
		
	5. Severance Payments and Benefits in the case of a Termination Without Cause or With Good Reason and in the absence of a Change in Control to be paid over the period indicated at
times corresponding with the Company’s normal payroll dates	  	24 months base salary and bonus and benefit continuation per the Plan
		
	6. Severance Payments and Benefits in the case of a Termination Without Cause during an Imminent Change in Control Period or during the thirty-six (36) month period after a
Change in Control or a Termination by Executive with Good Reason during the thirty six (36) month period after a Change in Control	  	36 months base salary and bonus and benefit continuation per the Plan
		
	7. Non Solicitation and Non Competition Period following Termination of Employment for any reason	  	18 months

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}]]