Document:

Form of Directors' Compensation Plan

 Exhibit 10.8 
 DISCOVER FINANCIAL SERVICES 
 DIRECTORS’ COMPENSATION PLAN 
 Section 1. Purpose 
 Discover Financial Services,
a Delaware corporation (the “Company”), hereby adopts the Discover Financial Services Directors’ Compensation Plan (the “Plan”). The purpose of the Plan is to set forth the annual compensation for non-employee
directors and to promote the long-term growth and financial success of the Company by attracting, motivating and retaining non-employee directors of outstanding ability and assisting the Company in promoting a greater identity of interest between
the Company’s non-employee directors and its stockholders. 
 Capitalized terms used herein without definition have the meanings
ascribed thereto in Section 20. 
 Section 2. Eligibility 
 Only directors of the Company who are not employees of the Company or any affiliate of the Company (the “Eligible Directors”) are eligible to participate in the Plan. 
 Section 3. Plan Operation 
 (a)
Administration. The Plan requires no discretionary action by any administrative body with regard to any transaction under the Plan. To the extent, if any, that questions of administration arise, these shall be resolved by the Board. The Board
may, in its discretion, delegate to the Chief Financial Officer, the Chief Legal Officer, the Secretary of the Company or to one or more officers of the Company any or all authority and responsibility to act pursuant to the Plan. All references to
the “Plan Administrators” in the Plan shall refer to the Board, or the Chief Financial Officer, the Chief Legal Officer, the Secretary or to one or more officers of the Company if the Board has delegated its authority pursuant to this
Section 3(a). The determination of the Plan Administrators on all matters within their authority relating to the Plan shall be conclusive. 
 (b) No Liability. The Plan Administrators shall not be liable for any action or determination made in good faith with respect to the Plan or any award hereunder, and the Company shall indemnify and hold harmless the Plan
Administrators from all losses and expenses (including reasonable attorneys’ fees) arising from the assertion or judicial determination of any such liability. 
 Section 4. Shares of Stock Subject to the Plan 
 (a) Stock. Awards under the Plan shall relate to shares of
Stock. 
 (b) Shares Available for Awards. Subject to Section 4(c) (relating to adjustments upon changes in capitalization), as
of any date, the total number of shares of Stock with respect to which awards may be granted under the Plan shall be equal to the excess (if any) of (i) 500,000 shares over (ii) the sum of (a) the number of shares subject to
outstanding awards granted under 

 
the Plan and (b) the number of shares previously issued pursuant to the Plan. In accordance with (and without limitation upon) the preceding sentence,
shares of Stock covered by awards granted under the Plan that are canceled or expire unexercised shall again become available for awards under the Plan. Shares of Stock that are issuable pursuant to the awards granted under the Plan shall be
authorized and unissued shares, treasury shares or shares of Stock purchased by, or on behalf of, the Company in open-market transactions. 
 (c) Adjustments. In the event of any merger, reorganization, recapitalization, consolidation, sale or other distribution of substantially all of the assets of the Company, any stock dividend, split, spin-off, split-up, split-off,
distribution of cash, securities or other property by the Company, or other change in the Company’s corporate structure affecting the Stock, then the following shall be automatically adjusted in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be awarded under the Plan: 
 (i) the aggregate number of shares of Stock reserved
for issuance under the Plan, 
 (ii) the number and, if applicable, type of shares of Stock subject to outstanding awards,

 (iii) the number of Restricted Stock Units credited pursuant to Sections 5(a) of the Plan, and 
 (iv) the number of shares to be granted pursuant to any other automatic awards that may be provided for under the Plan in the future.

 (d) Types of Award. The Company’s stockholders approved the Plan on
[            ]. The types of awards authorized by the stockholders under the Plan are Retainers and Restricted Stock Units. 
 Section 5. Initial and Annual Awards of Restricted Stock Units 
 (a) Awards Granted. 
 (i) Initial Awards. Prior to December 31, 2007, on
the last day of the calendar month in which any person becomes an Eligible Director, such Eligible Director shall be entitled to receive a number of Restricted Stock Units equal to the number obtained by dividing $350,000 by the Fair Market Value of
a share of Stock on such day; provided, however, that if such a person is elected, appointed or otherwise becomes an Eligible Director after the date of the spin-off of the Company from Morgan Stanley, the initial equity award provided
for in this Section 5(a)(i) shall be adjusted on a pro-rata basis by multiplying such award by a fraction where the numerator is twenty-four (24) minus the number of months between the date of such spin-off and the date that such person
becomes an Eligible Director and the denominator is twenty-four (24). 
 (ii) Subsequent Awards. As of the date of each
Annual Meeting, each Eligible Director, including, without limitation, any Eligible Director who becomes a member of the Board by reason of being elected to the Board at such Annual Meeting, shall be entitled to receive a number of Restricted Stock
Units equal to the number obtained by 

  

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dividing $125,000 by the Fair Market Value of a share of Stock on such day; provided, however, that such Eligible Director continues to serve
as a director of the Company after such Annual Meeting. Notwithstanding the foregoing, if a person becomes an Eligible Director on a date other than the date of an Annual Meeting, the equity award provided for in this Section 5(a)(ii) shall be
granted on the date that such person becomes an Eligible Director, using the Fair Market Value of a share of Stock on such date; provided, however, that such award shall be adjusted on a pro-rata basis by multiplying such award by a
fraction where the numerator is the number of months between the date that such person becomes an Eligible Director and the date of the next Annual Meeting and the denominator is twelve (12). 
 (b) Agreements. Each Restricted Stock Unit granted pursuant to this Section 5 shall be evidenced by an agreement in such form as the Plan
Administrators prescribes from time to time and shall comply with the following terms and conditions: 
 (i) Restriction
Period. Restricted Stock Units granted pursuant to Section 5(a)(i) shall be subject to a restriction period whereby 50% of such units shall vest on the first anniversary of the date of grant and the remaining units shall vest on the second
anniversary of the date of grant. Each grant of Restricted Stock Units pursuant to Section 5(a)(ii) shall vest on the first anniversary of the date of grant. Notwithstanding the foregoing, the Plan Administrators, in their discretion, may
specify in the agreement circumstances under which the award shall become immediately transferable and nonforfeitable or under which the award shall be forfeited. 
 (ii) Effect of Termination. 
 (A) Unless provided otherwise in the applicable agreement, if an Eligible Director’s service as a director of the Company terminates for a reason other than for Cause, then any Restricted Stock Unit granted to
such Eligible Director shall continue to vest following the date of such Eligible Director’s termination of service in accordance with the following provisions: 
 (a) Disability or Death. If an Eligible Director’s service terminates by reason of Disability or death, all Restricted Stock
Units granted under the Plan to such Eligible Director shall continue to vest in accordance with the terms of the applicable agreement. 
 (b) Other. If an Eligible Director’s service terminates for any other reason, all Restricted Stock Units granted under the Plan to such Eligible Director shall be immediately cancelled and forfeited.

 (iii) Rights and Provisions Applicable to Restricted Stock Units. The agreement relating to a Restricted Stock Unit
shall specify whether the holder thereof shall be entitled to receive, on a current or deferred basis, dividend equivalents, or the deemed reinvestment of any deferred dividend equivalents, with respect to the number of shares of common stock
subject to such award. Prior to the settlement of a Restricted Stock Unit, the holder thereof shall not have any rights as a stockholder of the Company with respect to the shares of Stock subject to such award, except to the extent that the Plan
Administrators, in their sole discretion, may grant dividend equivalents on Restricted Stock Units which are settled in shares of Stock. No shares of Stock and no certificates or other indicia of ownership representing shares of Stock that are
subject to a Restricted Stock Unit shall be issued upon the grant of a Restricted Stock Unit. Instead, shares of Stock subject to Restricted Stock Units and the certificates or other indicia of ownership representing such shares of Stock shall be
distributed only at the time of settlement of such Restricted Stock Units in accordance with the terms and conditions of this Plan and the agreements relating to such Restricted Stock Units. 
  

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 (c) Limitation on Transfer. Restricted Stock Units may not be sold, transferred, pledged, assigned
or otherwise conveyed by an Eligible Director. 
 (d) Deferral of Awards. Each Eligible Director may elect to defer an award of
Restricted Stock Units in accordance with Section 6. 
 Section 6. Deferral Elections 
 The Plan Administrators may permit the deferral of any Retainer or award granted under this Plan, subject to the rules and procedures as it may establish,
in accordance with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, (the “Code”) or other applicable law, and which may include provisions for the payment or crediting of dividend equivalents,
on a current or deferred basis, or the deemed reinvestment of any deferred dividend equivalents, with respect to the number of shares Stock subject to such award. 
 Section 7. Annual Retainers 
 (a) Board Members. Each Eligible Director shall be entitled to an Annual Retainer
of $75,000. 
 (b) Lead Director and Chairpersons. In addition to the Annual Retainer provided for in Section 7(a), the Lead
Director shall be entitled to a Lead Director Retainer of $75,000, the Audit Committee Chair shall be entitled to a Committee Retainer of $50,000; the Compensation Committee Chair shall be entitled to a Committee Retainer of $25,000 and the
Nominating and Governance Committee Chair shall be entitled to a Committee Retainer of $25,000. 
 Section 8. Fair Market Value 
 “Fair Market Value” shall mean, with respect to each share of Stock for any day: 
 (a) if the Stock is listed for trading on the New York Stock Exchange, the closing price, regular way, of the Stock as reported on the New York Stock
Exchange Composite Tape, rounded up to the nearest whole cent, or if no such reported sale of the Stock has occurred on such date, on the most recent date such a reported sale occurred, or 
 (b) if the Stock is not so listed, but is listed on another national securities exchange or on the Nasdaq Global Market (“Nasdaq”), the
closing price, regular way, of the Stock on such exchange or Nasdaq, rounded up to the nearest whole cent, as the case may be, on the date on which the largest number of shares of Stock have been traded in the aggregate on the preceding twenty
trading days, or, if no such reported sale of the Stock has occurred on such date on such exchange or Nasdaq, as the case may be, on the most recent date on which such a reported sale occurred on such exchange or Nasdaq, as the case may be, or

 (c) if the Stock is not listed for trading on a national securities exchange or Nasdaq, the average of the closing bid and ask prices as
reported by the National Association of Securities Dealers, rounded up to the nearest whole cent, or, if no such prices shall have been so reported for such date, on the most recent date for which such prices were so reported. 
  

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 Section 9. Issuance of Stock 
 (a) Restrictions on Transferability. All shares of Stock delivered under the Plan shall be subject to such stop-transfer orders and other restrictions as the Company may deem advisable or legally necessary
under any applicable laws, statutes, rules, regulations and other legal requirements, including, without limitation, those of any stock exchange upon which the Stock is then listed and any applicable federal, state or foreign securities law.

 (b) Compliance with Laws. Anything to the contrary herein notwithstanding, the Company shall not be required to issue any shares of
Stock under the Plan if, in the opinion of legal counsel to the Company, the issuance and delivery of such shares would constitute a violation by the Eligible Director or the Company of any applicable law or regulation of any governmental authority,
including, without limitation, federal and state securities laws, or the regulations of any stock exchanges on which the Company’s securities may then be listed. 
 Section 10. Withholding Taxes 
 The Company may require as a condition of delivery of any shares
of Stock that the Eligible Director remit (i) in cash, (ii) by tendering (or attesting to the ownership of) shares of Stock, where the Company determines such action will not result in unfavorable accounting treatment or (iii) by the
Company withholding shares of Stock, an amount sufficient to satisfy all applicable foreign, federal, state, local and other governmental withholding tax requirements relating thereto (if any) and any or all indebtedness or other obligation of the
Eligible Director to the Company or any of its subsidiaries. Any shares tendered or withheld pursuant to this Section 10 will be valued at Fair Market Value on the relevant payment or exercise date, as applicable. 
 Section 11. Plan Amendments and Termination 
 The
Board may suspend or terminate the Plan at any time, in whole or in part. Termination of the Plan shall not adversely affect the rights of Eligible Directors with respect to outstanding awards granted pursuant to this Plan. 
 The Board may also alter, amend or modify the Plan at any time. These amendments may include (but are not limited to) changes that the Board considers
necessary or advisable as a result of changes in, or the adoption or interpretation of, any law, regulation, ruling, judicial decision or accounting standards (collectively, “Legal Requirements”). The Board may not amend or modify
the Plan in a manner that would materially impair an Eligible Director’s rights in any outstanding award granted pursuant to this Plan without the Eligible Director’s consent; provided, however, that the Board may, without an
Eligible Director’s consent, amend or modify the Plan in any manner that it considers necessary or advisable to comply with any Legal Requirement or to ensure that awards granted pursuant to the Plan are not subject to Federal, state or local
income tax prior to payment. 
 Notwithstanding the foregoing, if any provision of this Plan would, in the reasonable, good faith judgment of
the Company, result in or likely result in the imposition on any Eligible 

  

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Director or any other person of any tax, interest or penalty under Section 409A of the Code, the Company may unilaterally amend or reform this Plan or
any provision hereof, without the consent of any Eligible Director, in the manner that the Company reasonably and in good faith determines to be necessary or advisable to avoid the imposition of such tax, interest or penalty; provided,
however, that any such amendment or reformation shall, to the maximum extent the Company reasonably and in good faith determines to be possible, retain the economic and tax benefits to the Eligible Directors hereunder while not materially
increasing the cost to the Company of providing such benefits to the Eligible Directors. 
 Section 12. Listing, Registration and Legal Compliance

 If the Plan Administrators at any time determine that any Consent (as hereinafter defined) is necessary or desirable as a condition of,
or in connection with, the granting of any award under the Plan, the issuance or purchase of shares or other rights hereunder or the taking of any other action hereunder (each such action being hereinafter referred to as a “Plan
Action”), then such Plan Action shall not be taken, in whole or in part, unless and until such Consent has been effected or obtained. The term “Consent” as used herein with respect to any Plan Action means (i) the
listing, registrations or qualifications in respect thereof upon any securities exchange or under any foreign, federal, state or local law, rule or regulation, (ii) any and all consents, clearances and approvals in respect of a Plan Action by
any governmental or other regulatory bodies, or (iii) any and all written agreements and representations by an Eligible Director with respect to the disposition of Stock or with respect to any other matter, which the Plan Administrators deems
necessary or desirable in order to comply with the terms of any such listing, registration or qualification or to obtain an exemption from the requirement that any such listing, qualification or registration be made. 
 Section 13. Right Reserved 
 Nothing in the Plan
shall confer upon any Eligible Director the right to continue as a director of the Company or affect any right that the Company or any Eligible Director may have to terminate the service of such Eligible Director. 
 Section 14. Rights as a Stockholder 
 An Eligible
Director shall not, by reason of any Restricted Stock Unit or any other award hereunder, have any rights as a stockholder of the Company until Stock has been issued to such Eligible Director. 
  

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 Section 15. Unfunded Plan 
 The Plan shall be unfunded and shall not create (or be construed to create) a trust or a separate fund or funds. The Plan shall not establish any fiduciary relationship between the Company and any Eligible Director or
other person. To the extent any person holds any rights by virtue of a pending grant or deferral under the Plan, such rights shall be no greater than the rights of an unsecured general creditor of the Company. 
 Section 16. Governing Law 
 The Plan shall be
governed by the laws of the State of Delaware applicable to agreements made and to be performed entirely within such state. 
 Section 17.
Severability 
 If any part of the Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or
invalidity shall not invalidate any portion of the Plan not declared to be unlawful or invalid. Any Section or part of a Section so declared to be unlawful or invalid shall, if possible, be construed in a manner that will give effect to the terms of
such Section or part of a Section to the fullest extent possible while remaining lawful and valid. 
 Section 18. Notices 
 All notices and other communications hereunder shall be given in writing and shall be deemed given when personally delivered against receipt or five days
after having been mailed by registered or certified mail, postage prepaid, return receipt requested, addressed as follows; (a) if to the Company: Discover Financial Services, 2500 Lake Cook Road, Riverwoods IL 60015, Attention: Corporate
Secretary; and (b) if to an Eligible Director, at the Eligible Director’s principal residential address last furnished to the Company. Either party may, by notice, change the address to which notice to such party is to be given.

 Section 19. Section Headings 
 The
Section headings contained herein are for the purposes of convenience only and are not intended to define or limit the contents of said Sections. 
 Section 20. Definitions 
 As used in the Plan, the following terms shall have the meanings indicated below: 

“Annual Meeting” means an annual meeting of the Company’s stockholders. 
 “Annual Retainer” means an annual cash retainer for services as a member of the Board. 
 “Board” means the board of directors of the Company. 
  

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 “Cause” means, with respect to any Eligible Director termination of service on the Board
on account of any act of (A) fraud or intentional misrepresentation, or (B) embezzlement, misappropriation or conversion of assets or opportunities of the Company or any affiliate. 
 “Committee Retainer” means an annual cash retainer for services as a member of any committee of the Board. 
 “Company” has the meaning set forth in Section 1. 
 “Consent” has the meaning set forth in Section l2. 
 “Disability” means a
“permanent and total disability” as defined in Section 22(e)(3) of the Code. 
 “Eligible Directors” has the
meaning set forth in Section 2. 
 “Fair Market Value” has the meaning set forth in Section 8. 
 “Lead Director Retainer” means an annual cash retainer for services as the lead director of the Board. 
 “Normal Retirement” means the termination of service on the Board for retirement at or after attaining age 65, other than termination
for Cause, Disability or death. 
 “Plan” has the meaning set forth in Section 1. 
 “Restricted Stock Units” means the right to receive one share of Stock or the Fair Market Value thereof in cash for each unit awarded
subject to the expiration of a specified restriction period and subject to any additional restrictions that may be contained in the agreement relating thereto. 
 “Retainer” means the Annual Retainer, the Committee Retainer and/or the Lead Director Retainer, as applicable. 
 “Stock” means the Company’s common stock, par value $0.01 per share, and any other shares into which such stock shall thereafter be changed by reason of any merger, reorganization,
recapitalization, consolidation, split-up, combination of shares or similar event as set forth in and in accordance with Section 4. 
  

 8Form of Employee Stock Purchase Plan

 Exhibit 10.9 
 DISCOVER FINANCIAL SERVICES 
 EMPLOYEE STOCK PURCHASE PLAN 
 1. Purpose. The purpose of the Discover Financial Services Employee Stock Purchase Plan (the “Plan”) is to provide
employees of Discover Financial Services, a Delaware corporation (the “Company”), and its Subsidiary Companies (as defined below) that are designated to participate in the Plan the opportunity to participate in the ownership of the
Company and to encourage increased efforts to promote the best interests of the Company and the Subsidiary Companies by permitting eligible employees to purchase shares of common stock, $.01 par value, of the Company (“Common
Stock”) at below-market prices. The Plan is intended to qualify as an “employee stock purchase plan” under section 423 of the Internal Revenue Code of 1986, as amended (the “Code”). For purposes of the Plan,
the term “Subsidiary Companies” shall mean all corporations which are subsidiary corporations (within the meaning of section 424(f) of the Code) and of which the Company is the common parent. The Company and its Subsidiary Companies
that, from time to time, are designated by the Company to participate in the Plan are sometimes hereinafter called collectively the “Participating Companies.” 
 2. Eligibility. Participation in the Plan shall be open to each employee of a Participating Company who has satisfied rules and conditions
established by the Compensation Committee of the Board of Directors (the “Board”) from time to time (an “Eligible Employee”); provided, however that such rules shall neither permit nor deny participation in the Plan
contrary to the requirements of the Code (including by not limited to, Section 423(b)(3),(4),(5), and (8) thereof) and the regulations promulgated thereunder. Each Eligible Employee shall be eligible to participate in the Plan beginning on
the later of: 
 (a) the first day of the first month following the date the employee has completed one year of service for the Participating
Companies, provided that he is still employed on such date, and 
 (b) the date such employee becomes an Eligible Employee. 
 No right to purchase Common Stock hereunder shall accrue under the Plan on behalf of any person who is not an Eligible Employee as of the first day of a
Purchase Period (as defined in Section 3). Notwithstanding the foregoing, any employee of a Participating Company who on [Insert Spin Date] was eligible to participate in the Morgan Stanley Employee Stock Purchase Plan or who, on the Effective
Date (as defined in Section 3) would have been so eligible if he or she had then been employed by Morgan Stanley shall be an Eligible Employee as of the Effective Date. 
 No Eligible Employee shall acquire a right to purchase Common Stock hereunder if immediately after receiving such right, such employee would own 5% or
more of the total combined voting power or value of all classes of stock of the Company or any Subsidiary Company (including any stock attributable to such employee under section 424(d) of the Code or which the employee may purchase under
outstanding options (including the right to purchase Common Stock under the Plan)). 

 Notwithstanding anything herein to the contrary, each Eligible Employee’s right to purchase Common
Stock hereunder shall be restricted so that no Eligible Employee’s right to purchase Common Stock under all employee stock purchase plans qualified under section 423 of the Code and maintained by the Company or any of its Subsidiary Companies
accrues at a rate which exceeds $25,000 of Fair Market Value (determined as of the date on which the options under each such plan are considered granted pursuant to section 423 of the Code) (or such other amount as may be specified under section 423
of the Code) for a calendar year. 
 3. Effective Date of Plan; Purchase Periods. The Plan shall become effective on
October 1, 2007, or such later date as may be determined by the Committee (the “Effective Date”), provided that this Plan is approved by the Company’s shareholder prior to the date the Company’s shares are traded on a
national stock exchange. Eligible Employees shall be permitted to purchase shares of Common Stock as soon as practicable after each Purchase Period during the term of the Plan. A “Purchase Period” under the Plan shall be each
Eligible Employee’s payroll period. 
 4. Basis of Participation; Payroll Deductions. Subject to compliance with
applicable rules prescribed by the Committee (as defined in Section 13) each Eligible Employee shall be entitled to enroll in the Plan as of the first day of any Purchase Period which begins on or after such Eligible Employee has satisfied the
eligibility requirements in Section 2 of the Plan. 
 To enroll in the Plan, an Eligible Employee shall make a request to the Company or
its designated agent at the time and in the manner specified by the Committee, specifying the amount of payroll deduction to be applied to the Compensation (as defined below) earned by the employee during each payroll period during the Purchase
Period. The Committee may determine and specify, from time to time, (i) the range of permissible percentages of a participant’s Compensation an Eligible Employee may specify as a payroll deduction and (ii) the maximum amount, if any,
of Compensation that may be deducted for an Eligible Employee in any year, and provided further, that no such determination shall be contrary to the requirements of section 423 of the Code and the regulation promulgated thereunder. Subject to
compliance with applicable rules prescribed by the Committee, the request shall be credited as soon as practicable following the Purchase Period. For purposes of the Plan, a participant’s “Compensation” shall mean the sum of the types
and amounts of compensation determined from time to time by the Committee in its sole discretion to be eligible to be taken into account under the Plan, provided that no such determination shall include or exclude any type or amount of compensation
contrary to the requirements of section 423 of the Code and any regulations promulgated thereunder. Each Eligible Employee shall be advised of the Purchase Price (as defined in Section 5) before enrolling in the Plan. 
 Payroll deductions shall be made for each participant in accordance with such participant’s request until such participant’s participation in
the Plan terminates, such participant’s payroll deductions are suspended, such participant’s request is revised or the Plan terminates, all as hereinafter provided. 
 Following his or her enrollment in the Plan, a participant may change the amount of his or her payroll deduction effective as of the first day of any
Purchase Period by so directing 

  

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the Company or its designated agent at the time and in the manner specified by the Committee. A participant may not change the amount of his or her payroll
deduction effective as of any date other than the first day of a Purchase Period, except that a participant may elect to suspend his or her payroll deductions under the Plan as provided in Section 7. 
 Payroll deductions for each participant shall be credited to a purchase account established on behalf of the participant on the books of the
participant’s employer or such employer’s designated agent (a “Purchase Account”). As soon as practicable following the end of each Purchase Period, the amount in each participant’s Purchase Account will be applied to
the purchase of the number of whole and fractional shares of Common Stock determined by dividing such amount by the Purchase Price (as defined in Section 5) for such Purchase Period. No interest shall accrue at any time for any amount credited
to a Purchase Account of a participant. 
 The Committee may, in its discretion, establish additional procedures whereby Eligible Employees
may participate in the Plan by means other than payroll deduction. Such other methods of participating shall be subject to such rules and conditions as the Committee may establish. The Committee may at any time amend, suspend or terminate any
participation procedures established pursuant to this paragraph without prior notice to any participant or Eligible Employee. 
 5.
Purchase Price. The purchase price (the “Purchase Price”) per share of Common Stock hereunder shall be expressed as a percentage of Fair Market Value (as defined below) for any Purchase Period and shall be determined from
time to time by the Board, but in no event shall such purchase price be less than 85% of the Fair Market Value of a share of Common Stock on the last day of such Purchase Period. If such sum results in a fraction of one cent, the Purchase Price
shall be increased to the next higher full cent. For purposes of the Plan, the “Fair Market Value” of a share of Common Stock on a given day shall be the average of the high and low sales price of a share of Common Stock as reported
on the New York Stock Exchange (or such other exchange on which shares of Common Stock are listed) on the date as of which such value is being determined or, if there shall be no reported transactions on such date, on the next preceding date for
which a transaction was reported. In no event, however, shall the Purchase Price be less than the par value of a share of Common Stock. Notwithstanding anything herein to the contrary, in the event the Board determines pursuant to this
Section 5 to change the Purchase Price, each participant shall be advised in advance of the effective date of such change and afforded the opportunity to make a change in participation under Section 4 and Section 7. 
 6. Purchase Accounts and Issuance of Shares. The Common Stock purchased by each participant shall be posted to such participant’s
Purchase Account as soon as practicable after, and credited to such participant’s Purchase Account as of, the last day of the Purchase Period with respect to which the Common Stock was purchased. Except as provided in Section 7 and
Section 8, a participant (or his or her legal representative, as appropriate) will be issued his or her shares when his or her participation in the Plan is terminated pursuant to Section 7(b), the Plan is terminated or upon request, but,
in the last case, only in whole shares. 
 The Committee may permit or require that shares be deposited directly with a broker designated by
the Committee or to a designated agent of the Company, and the Committee may use electronic or automated methods of share transfer. The Committee may require that shares be retained with such broker or agent for a designated period of time and/or
may establish other procedures to permit tracking of disqualifying dispositions of such shares. 
  

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 7. Suspension and Termination of Participation. (a) Suspension of Payroll
Deductions. A participant may elect at the time and in the manner specified by the Committee to suspend his or her participation in the Plan, provided such election is received by the Company or its designated agent prior to the date specified
by the Committee for suspension of participation with respect to the Purchase Period for which such suspension is to be effective. Upon any suspension of participation, the participant’s payroll deductions shall cease, and if the participant
elects, the cash credited to such participant’s Purchase Account on the date of such suspension shall be delivered as soon as practicable to such participant. If the participant does not elect to receive such cash, such cash shall be applied to
the purchase of shares of Common Stock, as described in Sections 4, 5 and 6 hereof. A participant who elects to suspend participation in the Plan shall be permitted to resume participation in the next following Purchase Period by making a new
request to participate at the time and in the manner described in Section 4 hereof. 
 (b) Termination of Participation. If the
participant dies, terminates employment with the Participating Companies for any reason, including a termination due to disability or retirement, or otherwise ceases to be an Eligible Employee, such participant’s participation in the Plan shall
immediately terminate. Upon such terminating event, any cash credited to such participant’s Purchase Account on the date of such termination shall be delivered as soon as practicable to such participant or his or her legal representative, as
the case may be, and the number of full shares of Common Stock held for his or her benefit, and a cash payment equal to the Fair Market Value of any fractional share so held, shall, subject to Section 7(d) below, be delivered to the participant
or his or her legal representative, as the case may be, as soon as practicable after such termination. 
 (c) Leaves of Absence.
Unless the Committee otherwise determines, a participant on a paid leave of absence shall continue to be a participant in the Plan so long as such participant is on such paid leave of absence. Unless otherwise determined by the Committee, a
participant on an unpaid leave of absence shall not be entitled to participate in the Plan after such unpaid leave has begun but shall not be deemed to have terminated employment for purposes of the Plan. A participant who, upon failing to return to
work following a leave of absence, is deemed not to be an employee, shall not be entitled to participate in the Plan after such termination of employment, and such participant’s Purchase Account shall be paid out in accordance with
Section 7(b). 
 (d) Twenty-four Month Holding Period. Notwithstanding any provision of this Plan to the contrary, except to the
extent otherwise determined by the Committee, no shares of Common Stock purchased hereunder may be withdrawn or distributed prior to a date that is at least twenty-four months after such shares were purchased, except distributions to a
participant’s beneficiary pursuant to Section 20. 
 8. Termination or Amendment of the Plan. The Company, by action
of the Board, may terminate the Plan at any time, in which case notice of such termination shall be given to all participants, but any failure to give such notice shall not impair the effectiveness of the termination. 
  

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 Without any action being required, the Plan shall terminate in any event when the maximum number of
shares of Common Stock to be sold under the Plan (as provided in Section 17) has been purchased. If at any time the number of shares of Common Stock remaining available for purchase under the Plan is not sufficient to satisfy all
then-outstanding purchase rights, the Board or Committee may determine an equitable basis of apportioning available shares of Common Stock among all participants. 
 The Company, by action of the Board, may amend the Plan from time to time in any respect for any reason; provided, however, that the Plan may not be amended in any manner that will retroactively impair
or otherwise adversely affect the rights of any person to benefits under the Plan which have accrued prior to the date of such action and no such amendment shall increase the maximum number of shares of Common Stock which may be purchased under the
Plan unless such increase is approved by the stockholders of the Company in accordance with section 423 of the Code. 
 9.
Non-Transferability. Rights acquired under the Plan are not transferable and may be exercised only by a participant. 
 10.
Dividends on Shares. All ordinary or regular cash dividends paid with respect to shares of Common Stock held in a participant’s Purchase Account shall be invested automatically in shares of Common Stock purchased at 100 percent of
Fair Market Value on the date such dividend is paid. All ordinary or regular non-cash dividends paid on Common Stock held in a participant’s Purchase Account shall be paid to the participant as soon as practicable. 
 11. Sales through the Plan. A participant or former participant who has terminated employment with the Participating Companies may sell his
or her shares of Common Stock acquired under the Plan pursuant to the procedures established from time to time by the Administrator. Notwithstanding the foregoing, except to the extent otherwise determined by the Committee, shares of Common Stock
purchased hereunder (other than shares of Common Stock acquired upon the automatic investment of dividends pursuant to Section 10) shall not be transferable by a Participant for a period of 12 months immediately following the date on which such
shares were purchased. 
 12. Stockholder’s Rights. No Eligible Employee or participant shall by reason of the Plan have
any rights of a stockholder of the Company until he or she shall acquire a share of Common Stock as herein provided. 
 13. No Right to
Continued Employment. Nothing in the Plan shall impose an obligation on any Participating Company to continue the employment of a participant or shall lessen or affect a Participating Company’s right to terminate the employment of a
participant at any time for any reason. 
 14. Withholding. As a condition to receiving shares hereunder, the Company may
require the participant to make a cash payment to the Company of, or the Company may withhold from any shares distributable under the Plan, an amount necessary to satisfy all Federal, state, city or other taxes required to be withheld in respect of
such payments pursuant to any law or governmental regulation or ruling. 
  

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 15. Offsets. To the extent permitted by law, the Company shall have the absolute right to
withhold any amounts payable to any Participant under the terms of the Plan to the extent of any amount owed for any reason by such Participant to the Company or any Subsidiary and to set off and apply the amounts so withheld to payment of any such
amount owed to the Company or any Subsidiary, whether or not such amount shall then be immediately due and payable and in such order or priority as among such amounts owed as the Company, in its sole discretion, shall determine. 

16. Administration of the Plan. The Plan shall be administered by the Compensation Committee of the Board (the
“Committee”). The Committee shall have full power and authority to: (i) interpret and administer the Plan and any instrument or agreement entered into under the Plan; (ii) establish such rules and regulations and appoint
such agents as it shall deem appropriate for the proper administration of the Plan; and (iii) make any other determination and take any other action that the Committee deems necessary or desirable for administration of the Plan, provided,
however, that any exercise of discretion granted to the Committee pursuant to the Plan shall be exercised in a manner consistent with Section 423 of the Code. Decisions of the Committee shall be final, conclusive and binding upon all persons,
including the Company, each participant and each other employee of the Company. The Committee may delegate to any committee, person (whether or not an employee of a Participating Company) or entity any of its responsibilities or duties hereunder.
The Plan shall be interpreted and administered so as to ensure that all participants have the same rights and privileges, as provided by section 423(b)(5) of the Code. 
 17. Maximum Number of Shares. The maximum number of shares of Common Stock which may be purchased under the Plan is 3,000,000 subject to adjustment as hereinafter set forth. Shares of Common Stock sold
hereunder may be treasury shares, authorized and unissued shares, shares purchased in the open market (on an exchange or in negotiated transactions) or any combination thereof. 
 18. Changes in the Company’s Capital Structure. In the event of any stock split, stock dividend, recapitalization, reorganization,
merger, consolidation, combination, exchange of shares, liquidation, spin-off or other similar change in capitalization or event, or any distribution to holders of shares of Common Stock other than a regular cash dividend, the maximum number and
class of securities which may be purchased under the Plan and the purchase price per security shall be appropriately adjusted by the Board. The decision of the Board regarding any such adjustment shall be final, binding and conclusive. If any such
adjustment would result in a fractional security being available under the Plan, such fractional security shall be disregarded. The provisions of the Plan shall be binding upon, and inure to the benefit of, all successors of the Company and each
participant, including, without limitation, such Participant’s estate and all executors, administrators or trustees thereof, heirs and legatees, and any receiver, trustee in bankruptcy or representative of creditors of such participant.

 19. Merger or Other Corporate Change. In the event of a merger or other transaction involving the Company in which shares of
Common Stock are exchanged for stock, securities, cash or other property, each option under the Plan shall be assumed or an equivalent option shall be substituted by the successor corporation in such transaction, or a parent or subsidiary of such
successor corporation. The Board may elect, however, in the exercise of its sole discretion and in lieu of such assumption or substitution, to shorten the Purchase Period then in effect by establishing a new purchase date or to cancel the Purchase
Period and refund all 

  

 6 

 
amounts credited to each participant’s Purchase Account. If the Board shortens the Purchase Period then in effect, the Company shall make its best
efforts to notify each participant of such change at least 10 business days prior to the new purchase date, and allow participants to elect to receive the cash credited to their Purchase Accounts in accordance with Section 7(a). 
 20. Designation of Beneficiary. A participant may file a written designation of a beneficiary who is to receive any shares and cash, if
any, from the participant’s account under the Plan in the event of such participant’s death subsequent to the last day of a Purchase Period but prior to delivery to such participant of such shares and cash. In addition, a participant may
file a written designation of a beneficiary who is to receive any cash from the participant’s account under the Plan in the event of such participant’s death prior to the last day of a Purchase Period. If a participant is married and the
designated beneficiary is not the participant’s spouse, spousal consent shall be required for such designation to be effective. Such designation of beneficiary may be changed by the participant at any time by written notice. In the event of the
death of a participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such participant’s death, the Company shall deliver such shares and/or cash to the executor or administrator of the estate
of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares and/or cash to the spouse or to any one or more dependents or relatives of the
participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. All beneficiary designations shall be in such form and manner as the Company may designate from time to time.

 21. Notices. Except as otherwise expressly provided herein, (i) any request, election or notice under the Plan from an
Eligible Employee or participant shall be transmitted or delivered to the Company or its designated agent in the manner specified by the Committee and, subject to any limitations specified in the Plan, shall be effective when so delivered and
(ii) any request, notice or other communication from the Company or its designated agent that is transmitted or delivered to Eligible Employees or participants shall be effective when so transmitted or delivered. 
 22. Compliance with Statutes and Regulations. The Plan, and the Company’s obligation to sell and deliver shares of Common Stock
hereunder, shall be subject to all applicable federal and state laws, rules and regulations, and to such approval by any regulatory or governmental agency as may, in the sole discretion of the Company, be required or desirable. 
 23. Governing Law. The Plan and all determinations made hereunder and actions taken pursuant hereto, to the extent not otherwise governed
by the Code or the laws of the United States, shall be governed by the laws of the [State of Delaware] and construed in accordance therewith without giving effect to principles of conflicts of laws. 
 24. International Participants. To the extent permitted under section 423 of the Code, without the amendment of the Plan, the Committee may
provide for the participation in the Plan by Eligible Employees who are subject to the laws of foreign countries or jurisdictions on such terms and conditions different from those specified in the Plan as may in the judgment of the Committee be
necessary or desirable to foster and promote achievement of the purposes of the Plan and, in furtherance of such purposes the Committee may make such modifications, amendments, procedures, subplans and the like as may be necessary or advisable to
comply with provisions of laws of other countries or jurisdictions in which the Participating Companies operate or have employees. 
  

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