Document:

EX-10.1

 Exhibit 10.1 

DISCOVER FINANCIAL SERVICES 

AMENDED AND RESTATED 2014 OMNIBUS INCENTIVE PLAN

 2015 SPECIAL AWARD CERTIFICATE FOR 

RESTRICTED STOCK UNITS 

 TABLE OF CONTENTS FOR
AWARD CERTIFICATE 
  

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

 DISCOVER FINANCIAL SERVICES 

AMENDED AND RESTATED 2014 OMNIBUS INCENTIVE PLAN

 2015 SPECIAL AWARD CERTIFICATE FOR RESTRICTED
STOCK UNITS 
 Discover has awarded to you restricted stock units (“RSUs”) as part of your
discretionary long-term incentive compensation for services provided to the Company, from the Date of the Award through the Scheduled Vesting Dates, as provided in this Award Certificate. This Award Certificate sets forth the general terms and
conditions of your restricted stock unit award (your “RSU Award”). Capitalized terms used in this Award Certificate that are not defined in the text have the meanings set forth in Section 25 below. Capitalized terms used in this Award
Certificate that are not defined in the text or in Section 25 below have the meanings set forth in the Plan. 
 The number of RSUs in
your RSU Award has been communicated to you separately. 
 Your RSU Award is made pursuant to the Plan. References to “restricted stock
units” or “RSUs” in this Award Certificate mean only those RSUs included in your RSU Award, and the terms and conditions herein apply only to such RSU Award. If you receive any other award under the Plan or another equity compensation
plan, it will be governed by the terms and conditions of the applicable award documentation, which may be different from those herein. 

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

	1.	Restricted Stock Units Generally. 

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

  
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	2.	Vesting Schedule and Conversion. 

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

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

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

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

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

 

	3.	Special Provisions for Certain “Specified Employees”. 

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

	4.	Dividend Equivalent Payments. 

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

	5.	Death; Disability; Retirement. 

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

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

  
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	6.	Involuntary Termination. 

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

	7.	Change in Control. 

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

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

	8.	Termination of Employment. 

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

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

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

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

(b) Clawback. In the event and to the extent the Committee reasonably determines that the performance considered by the Committee, and
on the basis of which the amount of RSUs were granted, was based on Discover’s material noncompliance with any financial reporting requirement under the securities laws which requires Discover to file a

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

(1) You shall forfeit a number of RSUs hereunder equal to the Clawback RSUs. In the event such forfeited RSUs are less
than the Clawback RSUs, then you shall comply with the following paragraph (2). 
 (2) You shall transfer to
the Company the shares of Discover common stock which resulted from the conversion of the RSUs hereunder net of taxes or their equivalent dollar value such that the forfeited RSUs under paragraph (1) above plus the shares of Discover common
stock or monies (excluding the impact of taxes) transferred under this paragraph (2) equals the value of the Clawback RSUs. The value of the Clawback RSUs shall be determined using a valuation methodology established by the Company, of Discover
common stock on the date your RSUs converted, were scheduled to convert, or otherwise became taxable, as applicable. 
 (c) Risk
Review. No RSUs will convert to shares of Discover common stock until the Chief Human Resources Officer receives confirmation from the Chief Risk Officer that a review has been completed by the Chief Risk Officer to determine whether you engaged
in any willful or reckless violation of the Company’s risk policies. If the Chief Risk Officer finds any such violation or breach, then the Company may determine that all or a portion of your RSUs will be forfeited. Additionally, if you are a
Covered Employee, the Chief Risk Officer will conduct Company and/or Business Unit risk reviews as well as evaluate your individual risk goals. Based on this assessment, the Company may determine that all or a portion of your RSUs will be
forfeited. 
 (d) Authorization. You authorize the Company to deduct any amount or amounts owed by you pursuant to this
Section 9 from any amounts payable by or on behalf of the Company to you, including, without limitation, any amount payable to you as salary, wages, paid time off, bonus, severance, change in control severance or the conversion of any
equity-based award. This right of offset shall not be an exclusive remedy and the Company’s election not to exercise this right of offset with respect to any amount payable to you shall not constitute a waiver of this right of offset with
respect to any other amount payable to you or any other remedy. 
 (e) Voluntary Termination Clawback. Given the
retention nature of the Award, in the event that you voluntarily terminate your employment with the Company on or before the date the Award is fully vested on February 1, 2019, you shall: 

(1) pay to the Company an amount in cash equal to the value of the RSUs that vested and converted to shares of Discover common stock net
of taxes on or within one year prior to, your termination of Employment, which value shall be determined using a valuation methodology established by the Company as of the date your RSUs converted, were scheduled to convert, or otherwise became
taxable, as applicable; or 

  
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 (2) transfer to the Company a number of shares of Discover common stock equal to the
number of the RSUs that vested and converted to shares of Discover common stock net of taxes on or within one year prior to, your termination of Employment. 
  

	10.	Tax and Other Withholding Obligations. 

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

	11.	Satisfaction of Obligations. 

 Notwithstanding any other provision of this Award
Certificate, Discover may, in its sole discretion, take various actions affecting your RSUs in order to collect amounts sufficient to satisfy any obligation that you owe to the Company and any tax or other withholding obligations. Discover’s
determination of the amount that you owe the Company shall be conclusive. The fair market value of Discover common stock for purposes of the following provisions shall be determined using a valuation methodology established by Discover. The actions
that may be taken by Discover pursuant to this Section 11 include, but are not limited to, the following: 
 (a) Withholding of
Shares of Discover Common Stock. Upon conversion of RSUs, including any accelerated conversion pursuant to Sections 5, 6, or 7 above, or, if later, upon delivery of the shares of Discover common stock, Discover may withhold a number of shares of
Discover common stock sufficient to satisfy any obligation that you owe to the Company and any tax or other withholding obligations whether national, federal, state or local tax withholding obligations including any social insurance contributions or
employment tax obligation. The Company shall determine the number of shares of Discover common stock to be withheld by dividing the dollar value of your obligation to the Company and any tax or other withholding obligations by the fair market value
of Discover common stock on the date the shares of Discover common stock are scheduled to convert, or otherwise become taxable, as applicable. To the extent that the Company retains any shares of Discover common stock or reduces the number of RSUs
to cover the withholding obligations, it will do so at the minimum statutory rate. Should the Company withhold in excess of the actual tax withholding obligation, the Company will refund the excess amount to you within a reasonable period and
without any interest. 

  
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 (b) Netting of Accelerated RSUs. In order to satisfy any taxes due upon an event which is
earlier than conversion, Discover may accelerate the vesting and conversion of a portion of your unvested RSUs. The Company shall determine the number of RSUs to be accelerated and converted by dividing the dollar value of your tax obligations upon
such event by the fair market value of Discover common stock on the date of accelerated conversion. Accelerated and converted RSUs shall not exceed the value of taxes due upon such event and the resulting shares of Discover common stock will be
withheld by Discover. 
 (c) Withholding of Other Compensation. Discover may withhold the payment of dividend equivalents on
your RSUs or any other compensation or payments due from Discover to ensure satisfaction of any obligation that you owe the Company or any tax or other withholding obligations or Discover may permit you to satisfy such tax or other withholding
obligation by paying such obligation in immediately available funds. 
 (d) Mobile Employees. You are liable and responsible
for all taxes and social insurance contributions owed in connection with the Award, regardless of any action the Company takes with respect to any tax withholding obligations that arise in connection with the Award. The Company does not make any
representation or undertaking regarding the tax treatment or the treatment of any tax withholding in connection with the grant, vesting or payment of the Award. The Company does not commit and is under no obligation to structure the Award to reduce
or eliminate your tax liability. Further, you may be subject to individual income taxation (and possibly social security or other applicable personal or payroll taxes) in each jurisdiction where you have performed services for the Company between
the Award Date and the Vesting Date. Taxes for which you are liable, if applicable, may be withheld and deposited by the Company in each jurisdiction in which you have performed services regardless of your status as a resident or non-resident in one
or more of the jurisdictions that have a right to impose taxation. You agree that you will comply with all United States and foreign individual income tax return filing obligations that may be imposed with respect to the Award. 

 

	12.	Nontransferability. 

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

	13.	Designation of a Beneficiary. 

 You may make a written designation of beneficiary
or beneficiaries to receive all or part of the shares of Discover common stock to be paid under this Award Certificate in the event of your death. To make a beneficiary designation, you must complete and file the form attached hereto as Appendix
B with the Human Resources Department. Any shares of Discover common stock that become payable upon your death, and as to which a designation of beneficiary is not in effect, will be distributed to your estate. If you previously filed a
designation of beneficiary form for your equity awards with the Human Resources Department, such form will also apply to the 

  
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RSUs granted pursuant to this RSU Award. You may replace or revoke your beneficiary designation at any time. If there is any question as to the legal right of any beneficiary to receive shares of
Discover common stock under this RSU Award, Discover may determine in its sole discretion to deliver the shares in question to your estate. Discover’s determination shall be binding and conclusive on all persons and it will have no further
liability to anyone with respect to such shares. 
  

	14.	Ownership and Possession. 

 (a) Generally. Generally, you will not have any
rights as a stockholder in the shares of Discover common stock corresponding to your RSUs prior to conversion of your RSUs. Prior to conversion of your RSUs, however, you will receive dividend equivalent payments, as set forth in Section 4 of
this Award Certificate. To the extent necessary or advisable to comply with Section 409A of the Internal Revenue Code, with respect to any provision of this Award Certificate that provides for vested RSUs to convert to shares of Discover common
stock on or as soon as administratively practicable after a specified event or date, such conversion will be made by the later of the end of the calendar year in which the specified event or date occurs or the 15th day of the third calendar month following the specified event or date. 
 (b) Following
Conversion. Subject to the terms and conditions of this Award Certificate, following conversion of your RSUs you will be the beneficial owner of the net shares of Discover common stock issued to you, and you will be entitled to all rights of
ownership, including voting rights and the right to receive cash or stock dividends or other distributions paid on such shares. 
  

	15.	Securities Law Matters. 

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

	16.	Compliance with Laws and Regulations. 

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

  
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	17.	No Entitlements. 

 (a) No Right to Continued Employment. This RSU Award is
not an employment agreement, and nothing in this Award Certificate, the International Supplement, if applicable, or the Plan shall alter your status as an “at-will” employee of the Company or your Employment status at a Related Employer.
None of this Award Certificate, the International Supplement, if applicable, or the Plan shall be construed as guaranteeing your Employment by the Company or a Related Employer, or as giving you any right to continue in the employ of the Company or
a Related Employer, during any period (including without limitation the period between the Date of the Award and any of the Scheduled Vesting Dates, or any portion of any of these periods), nor shall they be construed as giving you any right to be
reemployed by the Company or a Related Employer following any termination of Employment. 
 (b) No Right to Future Awards. This
RSU Award, and all other awards of RSUs and other equity-based awards, are discretionary. This RSU Award does not confer on you any right or entitlement to receive another award of RSUs, any other equity-based award or any other award at any time in
the future or in respect of any future period. 
 (c) No Effect on Future Employment Compensation. Discover has made this RSU
Award to you in its sole discretion. This RSU Award does not confer on you any right or entitlement to receive compensation in any specific amount for any future fiscal year, and does not diminish in any way the Company’s discretion to
determine the amount, if any, of your compensation. In addition, this RSU Award is not part of your base salary or wages and will not be taken into account in determining any other Employment-related rights you may have, such as rights to pension or
severance pay, end of service payments, bonuses, long-service awards or similar payments and in no event shall be considered as compensation for, or relating in any way to, past services for the Company. 

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

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

  
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	18.	Consents. 

 Your RSU Award is conditioned upon the Company’s making of all
filings and the receipt of all consents or authorizations required to comply with, or required to be obtained under, applicable local law. 

In accepting this RSU Award, you consent to the collection, use and transfer, in electronic or other form, of your personal data by and among,
as applicable, the Company and any other possible recipients for the purpose of implementing, administering and managing your participation in the Plan, as well as for the purpose of the Company’s compliance with applicable law, including,
without limitation, Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act. You understand that the recipients of your personal data may be located in the U.S. or elsewhere, and the recipients’ country may have
different data privacy laws and protections than your country. You understand that you may request a list with the names and addresses of any potential recipients of your personal data, view the personal data, request additional information about
the storage of your personal data, require any necessary amendments to your personal data or refuse or withdraw your consent by contacting your local human resources representative, in any case without cost. You understand, however, that refusing or
withdrawing your consent may affect your ability to participate in the Plan. 
  

	19.	Electronic Delivery and Consent to Electronic Participation. 

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

 

	20.	Award Modification. 

 The Committee reserves the right to modify or amend
unilaterally the terms and conditions of your RSUs, without first asking your consent, or to waive any terms and conditions that operate in favor of Discover. These amendments may include (but are not limited to) changes that the Committee considers
necessary or advisable as a result of changes in any, or the adoption of any new, Legal Requirement. The Committee may not modify your RSUs in a manner that would materially impair your rights in your RSUs without your consent; provided,
however, that the Committee may, without your consent, amend or modify your RSUs in any manner that the Committee considers necessary or advisable to comply with or reflect the application of any Legal Requirement or to ensure that your RSUs
are not subject to United States federal, state or local income tax or any equivalent taxes in territories outside the United States prior to payment. Discover will notify you of any amendment of your RSUs that affects your rights. Any amendment or
waiver of a provision of this Award Certificate (other than any amendment or waiver applicable to all recipients generally), which amendment or waiver operates in your favor or confers a benefit on you, must be in writing and signed by the Chief
Human Resources Officer to be effective. 

  
 12 

	21.	Severability. 

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

 

	22.	Successors. 

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

 

	23.	Governing Law. 

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

	24.	Section 409A. 

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

	25.	Defined Terms. 

 For purposes of this Award Certificate, the following terms shall
have the meanings set forth below: 

  
 13 

 (a) “Board” means the Board of
Directors of Discover.  
 (b) “Cause” means: 

(1) any act or omission which constitutes a material breach of your obligations to the Company or your failure or
refusal to perform satisfactorily any duties reasonably required of you, which breach, failure or refusal (if susceptible to cure) is not corrected (other than failure to correct by reason of your incapacity due to Disability) within ten
(10) business days after written notification thereof to you by the Company; 
 (2) any act or omission by
you that constitutes (i) fraud or intentional misrepresentation, (ii) embezzlement, misappropriation or conversion of assets of, or business opportunities considered by, the Company or (iii) any other act which has caused or may
reasonably be expected to cause material injury to the interest or business reputation of the Company; or  
 (3)
your violation of any securities, commodities or banking laws, any rules or regulations issued pursuant to such laws, or rules or regulations of any securities or commodities exchange or association of which the Company is a member or of any
policy of the Company relating to compliance with any of the foregoing. 
 (c) “Change in
Control” means, except as provided otherwise below, the first to occur of any of the following events: 

(1) except as otherwise provided in clause (3) below, any person (as defined in Section 3(a)(9) of the
Securities Exchange Act of 1934 (the “Exchange Act”), as such term is modified in Sections 13(d) and 14(d) of the Exchange Act), other than (i) any employee plan established by the Company or any of its Subsidiaries, (ii) any
group of employees holding shares subject to agreements relating to the voting of such shares, (iii) the Company or any of its affiliates (as defined in Rule 12b-2 promulgated under the Exchange Act), (iv) an underwriter temporarily
holding securities pursuant to an offering of such securities, or (v) a corporation owned, directly or indirectly, by stockholders of the Company in substantially the same proportions as their ownership of the Company, either (x) acquires
ownership of stock of the Company that, together with stock held by such person (not including the stock owned by such person any stock acquired directly from the Company other than in connection with the acquisition by the Company of a business),
constitutes more than fifty percent (50%) of the total fair market value of the stock of the Company (but only if such person did not own more than 50% of the total fair market value of the stock of the Company prior to the acquisition of
additional stock), or (y) acquires (or has acquired during the twelve-month period ending on the date of the most recent acquisition by such person) ownership of the stock of the Company possessing thirty percent (30%) or more of the total
voting power of the stock of the Company (but only if such person did not own 30% or more of the total voting power of the stock of the Company prior to the acquisition of additional stock and not including the stock owned by such person any stock
acquired directly from the Company other than in connection with the acquisition by the Company of a business); 

  
 14 

 (2) a change in the composition of the Board during any twelve-month
period, such that individuals who, as of the Date of the Award, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a member of
the Board subsequent to the date of Date of the Award whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board; 
 (3) the consummation of a merger
or consolidation of the Company with any other corporation or other entity, or the issuance of voting securities in connection with a merger or consolidation of the Company (or any direct or indirect subsidiary of the Company) pursuant to applicable
stock exchange requirements, other than (i) a merger or consolidation which results in the securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into
securities of the surviving entity or any parent thereof), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its subsidiaries, at least fifty percent
(50%) of the combined voting power of the voting securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no person (determined pursuant to clause (1) above) is or becomes the beneficial owner, directly or indirectly, of securities of the Company (not including in the securities
beneficially owned by such person any securities acquired directly from the Company or its affiliates other than in connection with the acquisition by the Company or its affiliates of a business) representing thirty percent (30%) or more of the
total voting power of the stock of the Company (but only if such person did not own 30% or more of the total voting power of the stock of the Company prior to the acquisition of additional securities);  

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

  
 15 

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

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

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

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

(g) “Competitive Activity” means: 

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

 (2) either alone or in concert with others, forming, or acquiring a 5% or greater equity ownership, voting
interest or profit participation in, a Competitor. 
 (h) “Competitor” means any corporation,
partnership or other entity that engages in (or that owns a significant interest in any corporation, partnership or other entity that engages in) (1) the business of consumer lending, including, without limitation, credit card issuance or
electronic payment services, or (2) any other business in which you have been involved in or had significant knowledge of, which has been conducted by the Company at any time during your employment with the Company. For the avoidance of doubt,
a competitor of any entity which results from a corporate transaction involving the Company that constitutes a Change in Control shall be considered a Competitor for purposes of this Award Certificate. 

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

  
 16 

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

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

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

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

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

  
 17 

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

(p) “Internal Revenue Code” means the United States Internal Revenue Code of
1986, as amended, and the rules, regulations and guidance thereunder.  
 (q) “Legal
Requirement” means any law, regulation, ruling, judicial decision, accounting standard, regulatory guidance or other legal requirement (including any foreign legal requirements). 

(r) “Plan” means the Discover Financial Services Amended and Restated 2014
Omnibus Incentive Plan, as in effect from time to time.  
 (s) “Related
Employment” means your employment with an employer other than the Company (such employer, herein referred to as a “Related Employer”), provided:
(1) you undertake such employment at the written request or with the written consent of the Chief Human Resources Officer; (2) immediately prior to undertaking such employment you were an employee of the Company or were engaged in Related
Employment (as defined herein); and (3) such employment is recognized by the Company in its discretion as Related Employment; and, provided further that the Company may (i) determine at any time in its
sole discretion that employment that was recognized by the Company as Related Employment no longer qualifies as Related Employment, and (ii) condition the designation and benefits of Related Employment on such terms and conditions as the
Company may determine in its sole discretion. The designation of employment as Related Employment does not give rise to an employment relationship between you and the Company, or otherwise modify your and the Company’s respective rights and
obligations. 
 (t) “Retirement” means the termination of your
Employment by you or by the Company for any reason other than for Cause and other than due to your death or Disability, on or after the date on which: 

(1) you have attained age 55 and completed at least 5 years of service with the Company; or 

(2) you have attained age 65, whichever occurs first. 

(u) “Scheduled Vesting Date” means the Scheduled Vesting Dates set forth in
Appendix A as the context requires.  
 (v) “Subsidiary” means (i) a
corporation or other entity with respect to which Discover, directly or indirectly, has the power, whether through the ownership of voting securities, by contract or otherwise, to elect at least a majority of the members of such corporation’s
board of directors or analogous governing body, or (ii) any other corporation or other entity in which Discover, directly or indirectly, has an equity or similar interest and which the Committee designates as a Subsidiary for purposes of the
Plan. 

  
 18 

 (w) “Wrongful Solicitation” occurs upon either of the following
events: 
 (1) while Employed, including during any notice period applicable to you in connection with
the termination of your Employment, or within one year after the termination of your Employment, directly or indirectly in any capacity (including through any person, corporation, partnership or other business entity of any kind), you hire or
solicit, recruit, induce, entice, influence or encourage any Company employee to leave the Company or become hired or engaged by another firm; provided, however, that this clause shall apply only to employees with whom you worked or
had professional or business contact, or who worked in or with your business unit, during any notice period applicable to you in connection with the termination of your Employment or during the one year preceding notice of the termination of your
Employment; or  
 (2) while Employed, including during any notice period applicable to you in
connection with the termination of your Employment, or within one year after the termination of your Employment, directly or indirectly in any capacity (including through any person, corporation, partnership or other business entity of any kind),
you solicit or entice away or in any manner attempt to persuade any client or customer, or prospective client or customer, of the Company (i) to discontinue or diminish his, her or its relationship or prospective relationship with the Company
or (ii) to otherwise provide his, her or its business to any person, corporation, partnership or other business entity which engages in any line of business in which the Company is engaged (other than the Company); provided,
however, that this clause shall apply only to clients or customers, or prospective clients or customers, that you worked for on an actual or prospective project or assignment during any notice period applicable to you in connection with the
termination of your Employment or during the one year preceding notice of the termination of your Employment. 
 IN WITNESS
WHEREOF, Discover has duly executed and delivered this Award Certificate as of the Date of the Award. 
  

	
	DISCOVER FINANCIAL SERVICES
	By:
	
	

	Doug Rose
	Senior Vice President, Chief HR Officer

  
 19 

 APPENDIX A 

Summary of Award 
 Date of Award:
April 29, 2015 
  

					
	Vesting Schedule:	  	 Scheduled Vesting Date
	  	 Vesting Amount

		  	February 1, 2016	  	one-fourth*
		  	February 1, 2017	  	one-fourth
		  	February 1, 2018	  	one-fourth
		  	February 1, 2019	  	one-fourth

  

	*	Any fractional RSUs resulting from the application of the vesting schedule will be aggregated and will vest on the first Scheduled Vesting Date. 

  
 20 

 APPENDIX B 

Designation of Beneficiary(ies) Under 

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

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

 

							
	 	  	Beneficiary(ies) Name	  	Relationship	  	Percentage
	 (1)
	  		  		  	
		  	  
	  	  
	  	  

	 (2)
						
		  	  
	  	  
	  	  

	 (3)
						
		  	  
	  	  
	  	  

	 (4)
						
		  	  
	  	  
	  	  

 Address(es) of Beneficiary(ies): 

(1) 
 (2) 

(3) 
 (4) 

 

					
	 	 	
	Name: (please print)		Date		
			
	  
 Signature
				

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

  
 21Exhibit 4.14

 

Schedule of Material Differences between:

 

·                  Form of Limited Partnership Agreement by and among Wuhu Bona Film Investment Management Co., Ltd., as general partner, and the limited partners with respect to the First Film Fund (“First Film Fund LPA”) (incorporated by reference to Exhibit 4.13 to our annual report on Form 20-F filed with the Securities and Exchange Commission on April 21, 2014); and

·                  Form of Limited Partnership Agreement by and among Wuhu Bona Film Investment Management Co., Ltd., as general partner, and the limited partners with respect to the Second Film Fund (“Second Film Fund LPA”).

 

	
Material difference
    	
 
    	
First Film Fund LPA
    	
 
    	
Second Film Fund LPA
    
	
Article 1.   Definitions — Section 1.1.1
    	
 
    	
“Limited Partnership”   or “Partnership” means Wuhu Bona Jinyu Film Investment Center, L.P.   established by the Partners according to the Partnership Enterprise Law and   other relevant laws and regulations and this Agreement.

 

“Liquid Investment”   means purchase of fixed income products with the period less than one year,   including bank deposit, state bonds, currency market funds, fixed profit or   fixed income trust plans or asset management plans, and any other products   approved by the advisory committee.

 

“General Partner” or   “Executive Partner” means Wuhu Bona Film Investment Management Limited, the   sole General Partner or Executive Partner at the execution of this Agreement.

 

“Asset Management   Project” means the Limited Partner registered with the AIC as asset manager,   who subscribes for the Property Shares in the Limited Partnership with the   entrusted capital of the asset management plan in accordance with the   subscription conditions determined by the General Partner.
    	
 
    	
“Limited Partnership”   or “Partnership” means Wuhu Bona Boxin Film Investment Center, L.P.   established by the Partners according to the Partnership Enterprise Law and   other relevant laws and regulations and this Agreement.

 

“Liquid Investment”   means purchase of fixed income products with the period less than one year,   including bank deposit, state bonds, currency market funds, fixed profit or   fixed income trust plans or asset management plans, private funds (include   but not limited to private funds registered with Asset Management Association   of China) and any other products.

 

“General Partner” or   “Executive Partner” means Wuhu Bona Film Investment Management Limited, the   General Partner or Executive Partner at the execution of this Agreement.

 

“Special Investment   Vehicle” means investment vehicle recognized by the General Partner which subscribes   for the Property Shares in the Limited Partnership, including but not limited   to the asset management plans, partnership enterprises, private funds   (including but not limited to the private funds that registered with the   Asset 
    

 

 

	
 
    	
 
    	
 
    	
 
    	
Management Association   of China) or other investment vehicles recognized by the General Partner.
    
	
Article 2.   Establishment of Limited Partnership — Section 2.9. Special Investment   Vehicle (in Second Film Fund LPA)
    	
 
    	
N/A
    	
 
    	
Special Investment   Vehicle shall submit to the General Partner a list of its investors   (including their respective investment holding).

 

Where Special   Investment Vehicle subscribes for the Property Shares in the Limited   Partnership, pursuant to this Agreement (such as provisions in relation to   calculation of breaching liabilities for capital contribution default, etc),   investors of the Special Investment Vehicle (“Special Investment Vehicle   Investors”) shall been deemed indirectly subscribe for the Property Shares of   the Limited Partnership via the Special Investment Vehicle. Where Special   Investment Vehicle Investor breaches its capital contribution obligation   which results in the Special Investment Vehicle’s failure in paying up its   Subscribed Capital Contribution in accordance with the Capital Contribution   Notice issued by the General Partner, the breaching Special Investment   Vehicle Investor shall be deemed as a Limited Partner to the Limited   Partnership and be held liable, unless otherwise stipulated herein.
    
	
Article 3.   Contribution Methods, Contribution Amount and Contribution Period —   Section 3.2. Subscribed Capital Contribution
    	
 
    	
Subscribed Contribution   of each Partner is set forth in Schedule A hereto.
    	
 
    	
Subscribed Contribution   of each Partner is set forth in Schedule A hereto. Except for Special Limited   Partners, Subscribed Capital Contribution for Limited Partners shall be not   less than RMB5,000,000 and Subscribed Capital Contribution for Special   Limited Partners shall be not less than 30% of Total Amount of Subscribed   Capital Contribution (including any Subsequent Capital Increase) of the   Limited Partnership. The General Partner has the right to adjust the   aforesaid minimum amount of Subscribed Capital Contribution according to 
    

 

2

 

	
 
    	
 
    	
 
    	
 
    	
the actual   circumstances.
    
	
Article 3.   Contribution Methods, Contribution Amount and Contribution Period —   Section 3.3. Contribution
    	
 
    	
Each Partner shall pay   in contribution in [   ] installments pursuant to the Capital   Contribution Notice issued by the General Partner within [   ] years since the date hereof. Each   installment shall be paid by the Partners according to their respective   Subscribed Capital Contribution ratio respectively for the same term.
    	
 
    	
Each Partner shall pay   in contribution in [   ] installments pursuant   to the Capital Contribution Notice issued by the General Partner within [   ] years since the date hereof. Capital   Contribution Notice shall state the ratio, amount and deadline of Subscribed   Capital Contribution each partner shall pay in installment (“Subscribed   Capital Contribution Ratio”).

 

The Subscribed Capital   Contribution Ratio shall be 20%, 20%, 20%, 20%, 10% and 10% in installment by   each Partner. Each installment shall be paid by the Partners according to   their respective Subscribed Capital Contribution ratio respectively for the   same term. Notwithstanding the foregoing, the General Partner has the right   to adjust the subscription particulars (including but not limited to the   number of installments, the Subscribed Capital Contribution Ratio for each   installment and the payment amount for each installment) for the Partners   according to the investment circumstances of projects of the Limited   Partnership.

 

All Partners agree to   fulfill their Subscribed Capital Contribution obligations in accordance with   the Capital Contribution Notice issued by the General Partner.
    
	
Article 3.   Contribution Methods, Contribution Amount and Contribution Period —   Section 3.3.2(1) (in First Film Fund LPA) /   Section 3.3.4(1) (in Second Film Fund LPA)
    	
 
    	
After the execution of   this Agreement, the General Partner shall issue a Capital Contribution Notice   for the First Installment to all Partners, specifying the ratio of the   payable First Installment of each Partner to the amount of Subscribed Capital   Contribution (“Ratio of First Installment”), payable amount of First   Installment, and the Contribution Deadline of First Installment.  The   Ratio of First Installment is [   ]% (or other ratio decided 
    	
 
    	
After the execution of   this Agreement, the General Partner shall issue a Capital Contribution Notice   for the First Installment to all Partners, specifying the ratio of the   payable First Installment of each Partner to the amount of Subscribed Capital   Contribution (“Ratio of First Installment”), payable amount of First   Installment, and the Contribution Deadline of First Installment.  The   Ratio of First Installment is [   ]% (or other ratio decided 
    

 

3

 

	
 
    	
 
    	
by the General   Partner).  On or before the Contribution Deadline of First Installment,   each Partner shall pay up its payable First Installment specified in the   Capital Contribution Notice into the Escrow Account of the Partnership.    The Capital Contribution Notice for the First Installment shall be issued   thirty (30) days before the Contribution Deadline of First Installment.   Contribution Deadline of First Installment is the initial closing date of   this Agreement (the “Initial Closing Date”).
    	
 
    	
by the General   Partner).  On or before the Contribution Deadline of First Installment,   each Partner shall pay up its payable First Installment specified in the   Capital Contribution Notice into the Escrow Account of the Partnership.    The Capital Contribution Notice for the First Installment shall be issued   five (5) days before the Contribution Deadline of First   Installment.  Contribution Deadline of First Installment is the initial   closing date of this Agreement (the “Initial Closing Date”).
    
	
Article 3.   Contribution Methods, Contribution Amount and Contribution Period —   Section 3.3.2(4) (in First Film Fund LPA)
    	
 
    	
If the General Partner   fails to pay the First Installment pursuant to Article 3.3.2, it shall   pay liquidated damages for overdue payment of contribution at an interest of   [ ]% per day from the next day of the Contribution Deadline of First Installment,   until it has paid up such amount. If the General Partner still fails to pay   up such amount thirty (30) days after its breaching, then the Limited Partner   has the right to initiate the removal procedure against the Executive Partner   according to Article 13.3. For the avoidance of doubt, removal of the   General Partner does not relieve the General Partner from its obligations and   responsibilities to pay overdue contribution interest.
    	
 
    	
N/A
    
	
Article 3.   Contribution Methods, Contribution Amount and Contribution Period —   Section 3.3.3(3) (in First Film Fund LPA)
    	
 
    	
If the General Partner   fails to pay the Subsequent Installments on or before the Contribution   Deadline set forth in the Capital Contribution Notice, it shall pay   liquidated damages for overdue payment of contribution at an interest of [ ]%   per day from the next day of the Contribution Deadline, until it has paid up   such amount. If the General Partner still fails to pay up such amount within   thirty (30) days after its breaching, then the Limited Partner has the right   to initiate the removal procedure against the Executive Partner according to 
    	
 
    	
N/A
    

 

4

 

	
 
    	
 
    	
Article 13.3. For   the avoidance of doubt, removal of the General Partner does not relieve the   General Partner from its obligations and responsibilities to pay overdue   contribution interest.
    	
 
    	
 
    
	
Article 3.   Contribution Methods, Contribution Amount and Contribution Period —   Section 3.3.3(3)  (in First Film Fund LPA) /   Section 3.3.5(4) (in Second Film Fund LPA)
    	
 
    	
Notwithstanding the   provisions above, if Asset Management Project fails to fully pay its payable   Subsequent Installments in accordance with the Capital Contribution Notice   issued by the General Partner because of the capital contribution default by the   trustor of the Asset Management Project (“Breaching Trustor”), then the   breaching liabilities of the Asset Management Project under   Article 3.3.3(2) shall be limited to the breaching liabilities that   shall be assumed by the Breaching Trustor prescribed in the Asset Management   Project contract.
    	
 
    	
Notwithstanding the   provisions above, if the investor in the Special Investment Vehicle fails to   fully pay its payable Subsequent Installments in accordance with the Capital   Contribution Notice issued by the General Partner as a result of the capital   contribution default by the investor of the Special Investment Vehicle   (“Breaching Investor”), then the breaching liabilities of the Special   Investment Vehicle under Article 3.3.4(2) shall be limited to the   breaching liabilities that shall be assumed by the Breaching Investor   prescribed in the fund agreement. When decide whether one is a “Disqualified   Breaching Limited Partner,” the Breaching Investor should be treated as the   Disqualified Breaching Limited Partner, while the Non-Breaching Investor   shall be treated as Non-Breaching Limited Partners. The Non-Breaching   Investor’s interest in the Limited Partners under the indirect subscription   through the Special Investment Vehicle will not be affected. “Non-Breaching   Investor” means a Special Investment Vehicle investor that pays up all the   payable amount in time pursuant to contract for the Special Investment   Vehicle. “Breaching Investor” means a Special Investment Vehicle investor   that violates its obligation of paying capital contribution pursuant to   contract for the Special Investment Vehicle.
    
	
Article 4.   Partners — Section 4.1.3
    	
 
    	
A Limited Partner shall   not execute the business of the Limited Partnership nor represent the Limited   Partnership in external affairs. Any Limited Partner shall not participate in   the management or control of the investment business of the Limited   Partnership or other 
    	
 
    	
A Limited Partner shall   not execute the business of the Limited Partnership nor represent the Limited   Partnership in external affairs. Any Limited Partner shall not participate in   the management or control of the investment business of the Limited   Partnership or other 
    

 

5

 

	
 
    	
 
    	
activities,   transactions and business in the name of the Limited Partnership, sign   documents on behalf of the Limited Partnership, or conduct other acts which   have a binding effect on the Limited Partnership.
    	
 
    	
activities,   transactions and business in the name of the Limited Partnership, sign   documents on behalf of the Limited Partnership, or conduct other acts which   have a binding effect on the Limited Partnership, otherwise the Limited   Partner shall be liable for the economic loss of the Limited Partnership and   other partners.
    
	
Article 4.   Partners — Section 4.1.5
    	
 
    	
A Limited Partner shall   ensure its qualification of a Limited Partner of the Limited Partnership, and   make sure none of law, regulations or competent authority prohibits or   restricts it from being a Limited Partner of the Limited Partnership. If the   Limited Partner is deemed to be disqualified by any competent authority from   being a Limited Partner of the Partnership, resulting that it is unable to be   registered at the AIC as a Limited Partner of the Limited Partnership, or is   found to not having the qualification of being a Limited Partner after its   registration at the AIC as a Limited Partner in the Limited Partnership, then   the Limited Partner is mandated to withdraw from the Partnership. Upon the   occurrence of the above situations, the General Partner is irrevocably   authorized by all Partners to issue the mandatory withdrawal notice to the   Breaching Limited Partner and notify all Partners. The Breaching Limited   Partner mandatorily withdrawing from the Partnership for the above reasons   shall pay RMB [ ] for liquidated damage to the Partnership, and assume the   losses incurred by the Partnership for such default. All Partners unanimously   agree that, notwithstanding the above provisions, the General Partner has the   right to exempt relevant Breaching Limited Partner from obligation of   liquidated damages.
    	
 
    	
A Limited Partner shall   ensure its qualification of a Limited Partner of the Limited Partnership, and   make sure none of law, regulations or competent authority prohibits or   restricts it from being a Limited Partner of the Limited Partnership. If the   Limited Partner is deemed to be disqualified by any competent authority from   being a Limited Partner of the Partnership, resulting that it is unable to be   registered at the AIC as a Limited Partner of the Limited Partnership, or is   found to not having the qualification of being a Limited Partner after its   registration at the AIC as a Limited Partner in the Limited Partnership, then   the Limited Partner is mandated to withdraw from the Partnership   unconditionally. Upon the occurrence of the above situations, the General   Partner is irrevocably authorized by all Partners to issue the mandatory   withdrawal notice to the Breaching Limited Partner and notify all Partners.   The Breaching Limited Partner mandatorily withdrawing from the Partnership   for the above reasons shall pay [ ]% of its Subscribed Contribution as   liquidated damage to the Partnership, and assume the losses incurred by the   Partnership for such default. All Partners unanimously agree that,   notwithstanding the above provisions, the General Partner has the right to   exempt relevant Breaching Limited Partner from obligation of liquidated   damages.
    
	
Article 5.   Partnership 
    	
 
    	
The Executive Partner   has exclusive right as set forth in 
    	
 
    	
The Executive Partner   has exclusive right as set forth in 
    

 

6

 

	
Business Execution —   Section 5.3.1
    	
 
    	
the Partnership   Enterprise Law and this Agreement to execute the Partnership business,   including but not limit to:

 

(1)  To manage,   control and decide the investment and other business of the Limited   Partnership;

 

(3) To decide to   extend the closed period of investment withdrawal from the Limited   Partnership according to Article 7.3.2;

 

(16) To file a lawsuit,   respond to an action, participate in the arbitration, compromise or settle   with the opposing party for the best interest of the Limited Partnership so   as to resolve the disputes between the Partnership and third parties;
    	
 
    	
the Partnership   Enterprise Law and this Agreement to execute the Partnership business,   including but not limit to:

 

(1) manage,   control and decide the investment and other business of the Limited   Partnership (the General Partner can set up an investment committee   (“Investment Committee”) depending on the circumstances in order to decide,   consult or propose on investment projects and investment proposals);

 

(3) decide to   extend the closed period of investment and/or withdrawal from the Limited   Partnership according to Article 7.3.1 and Article 7.3.2;

 

(16) file a lawsuit, respond   to an action, participate in the arbitration, compromise or settle with the   opposing party on behalf of the Limited Partnership for the best interest of   the Limited Partnership so as to resolve the disputes between the Partnership   and third parties;
    
	
Article 5.   Partnership Business Execution — Section 5.11.1
    	
 
    	
Unless adopted by the   Advisory Committee, the Executive Partner may not establish a new investment   entity with exactly the same investment purpose and strategy as the Limited   Partnership, except for any of the following situations: (1) the   Executive Partner is no longer the General Partner of the Limited   Partnership; (2) the external investment amount of the Limited   Partnership exceeds [ ]% of the Total Amount of Subscribed Capital Contribution.   For the avoidance of doubt, the investment entity which has been managed by   the Executive Partner before the establishment of the Limited Partnership,   and the investment entity and Affiliates divided therefrom before the   establishment of the Limited Partnership, shall not be deemed as a new   investment entity above. For the avoidance of doubt, 
    	
 
    	
Unless adopted by the   Advisory Committee, the Executive Partner may not establish a new investment   entity with exactly the same investment purpose and strategy as the Limited   Partnership, except for any of the following situations: (1) the   Executive Partner is no longer the General Partner of the Limited   Partnership; (2) the external investment amount of the Limited   Partnership exceeds [   ]% of the Total Amount of Subscribed   Capital Contribution.  For the avoidance of doubt, the investment entity   which has been managed by the Executive Partner before the establishment of   the Limited Partnership, and the investment entity and Affiliates divided   therefrom before the establishment of the Limited Partnership (“Management   Investment Entity”), shall not be deemed as a new investment entity 
    

 

7

 

	
 
    	
 
    	
any actions of Bona   Film within its main business are not subject to this Article.
    	
 
    	
above.  The   investment ratio between the Limited Partnership and the Management   Investment Entities shall be 2:8 until the Management Investment Entity   completes its investment. For the avoidance of doubt, any actions of Bona   Film within its main business are not subject to this Article.
    
	
Article 5.   Partnership Business Execution — Section 5.11.2
    	
 
    	
Except otherwise   provided herein, the Limited Partnership has priority investment rights   towards all film production projects invested by Bona Film. Before the investment   of the Limited Partnership is completed, Bona Film and its Affiliates may not   use its own funds to invest in film production projects. Notwithstanding the   above provisions, (1) Bona Film may use its own funds to invest in those   film production projects, which the General Partner’s investment committee   has decided not to invest in and for which all of the members in the   investment committee designated by Bona Film have voted; (2) Bona Film   may use its own funds, or associated with the Limited Partnership, to invest   in film production projects with a resolution adopted by the General   Partner’s investment committee.
    	
 
    	
Except otherwise   provided herein, the Limited Partnership has priority investment rights   towards all film production projects invested by Bona Film. Before the   investment of the Limited Partnership is completed, Bona Film and its   Affiliates may not use its own funds to invest in film production projects.   Notwithstanding the above provisions, (1) Bona Film may use its own   funds to invest in those film production projects, which the General   Partner’s Investment Committee has decided not to invest in and for which all   of the members in the Investment Committee designated by Bona Film have   voted; (2) subject to the approval of the General Partner’s Investment   Committee, Bona Film may use its own funds, or associated with the Limited   Partnership, to invest in film production projects with a resolution adopted   by the General Partner’s Investment Committee.
    
	
Article 6.   Expenses of Limited Partnership — Section 6.3.2(5)
    	
 
    	
If the Limited   Partnership conducts Subsequent Capital Increase according to   Article 2.8 hereof, the calculation basis for Management Fees shall be   increased by the Subsequent Subscribed Contribution in correspondence to the   Subsequent Capital Increase, and shall be calculated from the Contribution   Deadline of First Installment of Initial Capital Increase. With regards to   Subsequent Subscribed Contribution corresponding to the Subsequent Capital   Increase, the Limited Partnership shall pay Management Fees within ten   (10) business days of the Contribution Deadline of First Installment of
    	
 
    	
If the Limited   Partnership conducts Subsequent Capital Increase according to   Article 2.8 hereof, the calculation basis for Management Fees shall be   increased by the Subsequent Subscribed Contribution in correspondence to the   Subsequent Capital Increase, and shall be calculated from the Contribution   Deadline of First Installment of Initial Capital Increase.
    

 

8

 

	
 
    	
 
    	
Subsequent Subscribed   Contribution.
    	
 
    	
 
    
	
Article 6.   Expenses of Limited Partnership — Section 6.3.4
    	
 
    	
Management Fees shall   be paid in [ ] installments for a year since the Contribution Deadline of   First Date, and paid within ten business days after [ ] (in case of legal   holidays, the last business day before such legal holidays). The General   Partner has the right to delay charges of Management Fees in whole or in part   at its own decision according to cash position of the Limited Partnership.
    	
 
    	
Management Fees shall   be paid in quarter since the Contribution Deadline of First Installment, and   paid within ten business days after [ ] (in case of legal holidays, the last   business day before such legal holidays).  The first payment of   Management Fees shall be paid since the Contribution Deadline of First   Installment, and paid no later than the end of such quarter and within ten   (10) business days after the Contribution Deadline of First Installment,   whichever is earlier. With regards to Subsequent Subscribed Contribution   corresponding to the Subsequent Capital Increase, the Limited Partnership   shall pay Management Fees within ten (10) business days of the   Contribution Deadline of First Installment of Subsequent Subscribed   Contribution. The General Partner has the right to delay charges of   Management Fees in whole or in part at its own decision according to cash   position of the Limited Partnership.
    
	
Article 7.   Investment Business — Section 7.3.1
    	
 
    	
The closed period of   Investment Withdrawal of the Limited Partnership is [ ] years since the   Initial Closing Date confirmed by the General Partner. The investment period   starts from the next day of the Initial Closing Date to the earlier of two   following date: (1) [ ] years after the next day of the Initial Closing   Date; or (2) the date when the Total Amount of Subscribed Capital   Contribution of the Limited Partnership has been fully used for the   investment into the Target Projects (including the actually paid-in   Investable Fund and the investment amount reserved by the executive documents   and the commitments) and the payment or reservation for the Limited   Partnership’s fees (“Investment Period”). The Limited Partnership shall not   invest after the 
    	
 
    	
The investment period   of the Limited Partnership starts from the next day of the Initial Closing   Date to the earlier of two following dates: (1) [ ] years after the next   day of the Initial Closing Date; or (2) the date when the Total Amount   of Subscribed Capital Contribution of the Limited Partnership has been fully   used for the investment into the Target Projects (including the actually   paid-in Investable Fund and the investment amount reserved by the executive   documents and the commitments) and the payment or reservation for the Limited   Partnership’s fees (“Investment Period”). The General Partner has the right   to extend the Investment Period of the Limited Partnership for one   (1) year. The Limited Partnership shall not invest after the expiration 
    

 

9

 

	
 
    	
 
    	
expiration date of   Investment Period, unless investment agreements have been executed or valid   investment commitment has been made during the Investment Period or   subsequent investment into the already invested projects.
    	
 
    	
date of Investment   Period, unless investment agreements have been executed or valid Investment   Committee has been made during the Investment Period or subsequent investment   into the already invested projects.
    
	
Article 7.   Investment Business — Section 7.3.2
    	
 
    	
The Partners hereby   confirm that, the General Partner has the right to extend the period of   Investment Withdrawal of the Partnership for [ ] year on its own, on the   premise that the General Partner shall make the decision about extension no   later than [ ] years after the Closing Date of First Installment of Initial Capital   Increase, and send a written notice of extending the closed period of   Investment Withdrawal to all Partners.
    	
 
    	
Two years after the end   of Investment Period is the withdrawal period (“Withdrawal Period”) and the   General Partner has the right to extend the Withdrawal Period for [ ] year.
    
	
Article 7.   Investment Business — Section 7.3.3 (in Second Film Fund LPA)
    	
 
    	
N/A
    	
 
    	
The General Partner   shall make the decision about the extension of Investment Period and   Withdrawal Period in Section 7.3.1 and Section 7.3.2 according to   the project investment circumstance. The General Partner shall issue a   written notice of Investment Period and/or Withdrawal Period to all Partners.
    
	
Article 7.   Investment Business — Section 7.4.1 (in Second Film Fund LPA)
    	
 
    	
N/A
    	
 
    	
Source of investment   income of the Limited Partnership is the beneficial rights based on the   copyrights of the target film and television projects of the Limited   Partnership, in other words, the share of global income in the Target   Projects according to the investment of the Limited Partnership in the Target   Projects.  

 

Global Income = Income   from film distribution —advertisement and distribution cost — commission of   distribution agents — dividends of cast members or actors (if any) - taxation  
    

 

10

 

	
 
    	
 
    	
 
    	
 
    	
“Income from film   distribution” means any income derived from the distribution, copy, exhibit,   broadcast or any other forms of the “film” in mainland China and overseas,   including but not limited to sales or rent income from the “film” printer in   movie theaters, via “film” video cassette, audio-visual products or any other   income or income from advertisement sales via any existing or future similar   forms, such as box office from domestic or overseas, income from television   and internet broadcast, audio-visual copyright income, advertisement income   and aviation broadcast income, etc.  

 

“advertisement and   distribution cost” means fees for advertisement, roadshow, film print,   inspection, fees for online advertisement sales, joint advertising for video   websites and miscellaneous, etc.  

 

“Commission of   distribution agents” has the meaning set forth in Section 5.11.3 hereof.  

 

“Dividends of cast   members or actors” (if any) needs to be notified to Investment Committee in   advance and be approved by Investment Committee in written.
    
	
Article 7.   Investment Business — Section 7.4.4 (in First Film Fund LPA) / 7.5.4 (in   Second Film Fund LPA)
    	
 
    	
The Limited Partnership   can borrow Bank’s loan on its own or via Bona Film or the project of the Limited   Partnership, but total loan shall not exceed [   ]% of Paid-in   Capital Contribution of the Limited Partnership.
    	
 
    	
The Limited Partnership   can borrow bank’s loan on its own or via Bona Film or the project of the   Limited Partnership, but total amount of loans shall not exceed   [   ]% of Paid-in Capital Contribution of the Limited   Partnership. The interest of bank loans shall be less than [ ]% of the   lending rate of People’s Bank of China over the same period for the same   grade of loans on the day of withdrawing bank loans.
    

 

11

 

	
Article 7.   Investment Business — Section 7.5.5 (in Second Film Fund LPA)
    	
 
    	
N/A
    	
 
    	
The Limited Partnership   shall not provide any external guarantees within the term of the Partnership.
    
	
Article 8.   Partners’ Meeting — Section 8.2.5(5)
    	
 
    	
Putting forward opinion   or suggestion on the investment matters with potential conflict of interests   between the Limited Partners and the General Partner and the appraisal   matters involved in the interests distribution of the Limited Partnership   that are submitted by the General Partner for discussion;
    	
 
    	
(5) Putting   forward opinion or suggestion on the investment matters with potential   conflict of interests between Limited Partners and the General Partner, matters   with conflict of interests between the General Partner and the Limited   Partnership and appraisal matters involved in the interests distribution of   the Limited Partnership that are submitted by the General Partner for   discussion;
    
	
Article 8.   Partners’ Meeting — Section 8.2.5(6) (in First Film Fund LPA)
    	
 
    	
Receipt of issuance   commission ratio by Bona Film higher than the ratio set forth herein;
    	
 
    	
N/A
    
	
Article 9.   Distribution and Loss Allocation — Section 9.1.3(3) (in Second Film   Fund LPA)
    	
 
    	
N/A
    	
 
    	
Upon confirmation by   the Limited Partners and Special Investment Vehicle, Limited Partnership can   adjust pre- distribution.
    
	
Article 9.   Distribution and Loss Allocation — Section 9.1.4(2)
    	
 
    	
All Partners   unanimously agree that, during the term of the Limited Partnership, if the   Partnership has received cash income from Investment Project shall be   distributed, it shall be distributed by the General Partner in following   steps after deducting estimated cost:  

 

(2)  Second Round   Distribution, Preferred Return: The cash income raised from Investment   Project to the Limited Partners shall be distributed to all Partners, 
    	
 
    	
All Partners   unanimously agree that, during the term of the Limited Partnership, if the   Partnership has received cash income from Investment Project, such income   shall be distributed by the General Partner in following steps after   deducting estimated cost:  

 

(2)  Second Round   Distribution, Preferred Return: The cash income raised from Investment   Project shall be distributed to all Partners, according to the proportion of 
    

 

12

 

	
 
    	
 
    	
according to the   proportion of each Partner’s Investable Funds to the amount of all Partners’   Investable Funds, until the Paid-in Capital Contribution of all Partners   reaches at [   ]% of Annual Internal Rate of Return (IRR) from   Contribution Deadline of each installments to the distribution day.  

 

(4)  Fourth Round   Distribution: After the distributions above, the cash shall be distributed if   it still remains in the Limited Partnership, the [   ]% to the   General Partner, and [   ]% according to the proportion of the   all Partners’ Investable Funds to the sum of Investable Funds in the   Partnership to all Partners.
    	
 
    	
each Partner’s   Investable Funds to the amount of all Partners’ Investable Funds, until the   Paid-in Capital Contribution of all Partners reaches at [   ]%   of Annual Internal Rate of Return (IRR) (before distribution) from   Contribution Deadline of each installment to the distribution day.  

 

(4)  Fourth Round   Distribution: After the distributions above, the cash shall be distributed if   it still remains in the Limited Partnership, the [   ]% to the   General Partner, and [   ]% according to the proportion of the   all Partners’ Investable Funds to the sum of Investable Funds in the   Partnership to all Partners, until the Paid-in Capital Contribution of all   Partners reaches at [   ]% of Annual Internal Rate of Return   (IRR) (before distribution) from Contribution Deadline of each installment to   the distribution day.  

 

(5)   Fifth   Round Distribution: After the distributions above, the cash shall be   distributed if it still remains in the Limited Partnership, the   [   ]% to the General Partner, and [   ]%   according to the proportion of the all Partners’ Investable Funds to the sum   of Investable Funds in the Partnership to all Partners, until the Paid-in   Capital Contribution of all Partners reaches at [   ]% of   Annual Internal Rate of Return (IRR) (before distribution) from Contribution   Deadline of each installment to the distribution day.  

 

(6)  Six Round   Distribution: After the distributions above, the cash shall be distributed if   it still remains in the Limited Partnership, the [   ]% to the   General Partner, and [   ]% according to the proportion of the   all Partners’ Investable Funds to the sum of Investable Funds in the   Partnership to all Partners, until the Paid-in Capital Contribution of all   Partners reaches at [   ]% of Annual Internal Rate of 
    

 

13

 

	
 
    	
 
    	
 
    	
 
    	
Return (IRR) (before   distribution) from Contribution Deadline of each installment to the   distribution day.  

 

(7)  Seven   Round Distribution: After the distributions above, the cash shall be   distributed if it still remains in the Limited Partnership, the   [   ]% to the General Partner, and [   ]%   according to the proportion of the all Partners’ Investable Funds to the sum   of Investable Funds in the Partnership to all Partners.
    
	
Article 10   Representations and Warranties — Section 10.1.1(6) and   10.1.1(7) (in Second Film Fund LPA)
    	
 
    	
N/A
    	
 
    	
(6) It is complied   with the rules for accredited investors set out in the Interim Measures   for the Regulation of Privately Offered Investment Funds. It has the   financial capacity to fulfill its capital contribution obligations under this   Agreement and the source of funding is legal. In particular, unless otherwise   prescribed by the Interim Measures for the Regulation of Privately Offered   Investment Funds for qualifications of an accredited investor, it confirms   that: with respect to individuals, their financial assets (including bank   deposits, stocks, bonds, fund units, wealth management plans, bank financial   products, trust plans, insurance products and futures rights and interests   etc.) shall not be less than RMB3 million or their personal average annual   income in the last three years shall not be less than RMB0.5 million; with   respect to entities, their net assets shall not be less than RMB10 million;  

 

(7) The materials   or information relating to its qualification and legal status provided to the   Limited Partnership and General Partner is true and accurate. Where there is   any change to such materials or information, it will notify the General   Partner within three (3) Business Days from such change.
    

 

14

 

	
Article 11   Accounting, Reports and Account — Section 11.3.1
    	
 
    	
From the Contribution   Deadline of First Installment, the General Partner shall (1) submit   semiannual report to all Partners containing a summarization of investment   activities and unaudited abstract of financial information including the   balance sheet of the Partnership for the last six months before the end of   the third month of each half year (namely March 31 and   September 30); (2) submit the annual report of the last accounting   year before June 30 of each year to all Partners containing the   summarization of investment activities and audited financial report of the   last year.
    	
 
    	
From the Contribution   Deadline of First Installment, the General Partner shall (1) submit   quarterly report to all Partners containing a summarization of the quarterly   investment activities within 30 days of the end of each quarter;   (2) submit semiannual report to all Partners containing a summarization   of investment activities and unaudited abstract of financial information   including the balance sheet of the Partnership for the last six months before   the end of the third month of each half year (namely March 31 and   September 30); (3) submit the annual report of the last accounting   year before June 30 of each year to all Partners containing the summarization   of investment activities and audited financial report of the last year.
    
	
Article 15.   Dissolution and Liquidation — Section 15.1.1(3)
    	
 
    	
(3) The Executive   Partner has been expelled and the Partners’ Meeting has not adopted a   resolution on the admission of a new Executive Partner;
    	
 
    	
(3) The Executive   Partner has been expelled;
    
	
Article 17.   Governing Law and Resolution of Disputes — Section 17.2.1
    	
 
    	
All the disputes   arising out of or related to this Agreement shall be settled by the related   Parties through friendly negotiation first. If the related Parties fail to   settle the disputes through negotiation, the disputes shall be submitted to   Shanghai Arbitration Committee for arbitration in accordance with the then   effective arbitration rules of the committee. The award of the   arbitration shall be final and binding upon the related Parties. Unless   otherwise awarded by the arbitration tribunal, the arbitration fee shall be   borne by the losing Party.
    	
 
    	
All the disputes   arising out of or related to this Agreement shall be settled by the related   Parties through friendly negotiation first. If the related Parties fail to   settle the disputes through negotiation, the disputes shall be submitted to   Beijing Arbitration Committee for arbitration in Beijing in accordance with   the then effective arbitration rules of the committee. The arbitral   tribunal shall consist of three arbitrators. Chairman of the arbitral tribunal shall be designated by Beijing   Arbitration Committee. The other members of the arbitral tribunal shall be designated   by the related Parties. The arbitration proceedings shall be conducted in   Chinese. The award of the arbitration shall be final and binding on the   related Parties. Unless otherwise awarded by the arbitration tribunal, the   arbitration fee 
    

 

15

 

	
 
    	
 
    	
 
    	
 
    	
shall be borne by the   losing Party.
    

 

16

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