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                                                                  EXECUTION COPY

                                  EXHIBIT 10.16

                                     FORM OF
                              EMPLOYMENT AGREEMENT
                          FOR EXECUTIVE VICE PRESIDENTS

THIS EMPLOYMENT AGREEMENT (the "Agreement") is entered into by and between
___________ (the "Executive"), and Collegiate Funding Services, Inc., a
corporation organized and existing under the laws of the State of Delaware (the
"Company").

WHEREAS, Executive is currently employed as an Executive Vice President of the
Company pursuant to an employment agreement dated May 17, 2002, between
Executive and Collegiate Funding Services, L.L.C. ("CFS"), the primary
subsidiary of the Company (the "Prior Agreement"); and

WHEREAS, in recognition of Executive's contributions to the success and
accomplishments of the Company, the Company wishes to continue Executive's
employment and obtain his commitment to serve as Executive Vice President of the
Company under the terms of a new agreement relating to such employment; and

WHEREAS, the Company and Executive agree to enter into such new employment
agreement on the terms set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants and obligations
contained herein, and intending to be legally bound, the parties, subject to the
terms and conditions set forth herein, agree as follows:

1. Employment and Term.

(a)   Executive hereby agrees to be employed by the Company as Executive Vice
      President of the Company, and Company hereby agrees to employ Executive in
      such capacity. To the extent required by law, Executive's employment under
      this Agreement shall be maintained through CFS, or another wholly owned
      subsidiary of the Company used to employ Company executives, and in such
      case any reference in this Agreement to employment or termination of
      employment with the Company shall be deemed to include employment or
      termination of employment with CFS or such other subsidiary.

(b)   The period of Executive's employment under this Agreement (the "Term")
      shall begin on June 30, 2004 (the "Effective Date") and end on the first
      anniversary of the Effective Date, unless sooner terminated in accordance
      with Section 12 hereof, or extended pursuant to (c) below.

(c)   The Term shall automatically be extended for an additional one-year period
      each June 30, beginning June 30, 2005, unless either Executive or the
      Company delivers written notice to the other party, not later than 60 days
      before the end of the Term (including extensions) of their election that
      the Term not be extended.

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(d)   As of the Effective Date, this Agreement shall supersede and take the
      place of any and all other agreements between Executive and the Company or
      CFS that govern the terms and conditions of Executive's employment,
      including the Prior Agreement.

(e)   During the Term, Executive will devote Executive's full business time,
      attention, skill and best efforts to the performance of Executive's duties
      hereunder and will not engage in any other business, profession or
      occupation for compensation or otherwise which would conflict or interfere
      with the rendition of such services either directly or indirectly, without
      the prior written consent of the board of directors of the Company (the
      "Board"); provided, that, nothing herein shall preclude Executive, subject
      to the prior approval of the Board, from accepting appointment to or
      continuing to serve on any board of directors or trustees of any business
      corporation or any charitable organization; provided, in each case, and in
      the aggregate, that such activities do not conflict or interfere with the
      performance of Executive's duties hereunder or conflict with Section 11 of
      this Agreement.

2. BASE SALARY.

(a)   The Company shall pay Executive an annual salary at the rate of __________
      (the "Base Salary").(1) The Base Salary shall be inclusive of all
      applicable income, Social Security and other taxes and charges which are
      required by law or requested to be withheld by Executive and which shall
      be withheld and paid in accordance with Company's normal payroll practice
      for its similarly situated executives as in effect from time to time.

(b)   The Compensation and Personnel Committee of the Board (the "Compensation
      Committee"), shall review Executive's Base Salary during the Term.

3. STOCK OWNERSHIP. Executive agrees to comply with the Company's stock
ownership guidelines as may be established from time to time by the Board, which
guidelines shall establish (i) the appropriate level of equity ownership
expressed as a multiple of Base Salary and (ii) a target number of years within
which such level of equity ownership is to be attained. In computing whether the
annual and overall guidelines have been met, all shares of Class B common stock
of the Company, or to the extent such class becomes common stock on or after the
date of the closing of the first sale to the general public pursuant to a
registration statement filed with and declared effective by the Securities and
Exchange Commission (the "SEC") under the Securities Act of 1933 (an "Initial
Public Offering"), such common stock (in either case, the "Common Stock") held
by Executive and all stock options to purchase Common Stock ("Stock Options")
and restricted shares of Common Stock ("Restricted Shares") granted to Executive
shall be counted.

4. IPO SUCCESS BONUS. If the Company completes an Initial Public Offering, then
the Company shall pay Executive a success bonus of __________.(2) This success
bonus will be treated as income, and the Company shall withhold all such taxes
as required from the success bonus. Notwithstanding the foregoing, the Company
may pay the success bonus in the form of a stock and cash grant to Executive
such that his after-tax position remains the same. Any shares of Common Stock
that are issued to Executive pursuant to this Section 4 may not be sold by
Executive during the one-year period following the completion of the Initial
Public Offering,

(1) The annual base salary for each Executive will be: John R. Elam, $235,000,
Kevin A. Landgraver, $265,000, W. Clark McGhee, $266,000, John A. Reeves,
$210,000 and Charles L. Terrible, $225,000.

(2) This bonus for each Executive will be: Mr. Elam, $100,000, Mr. Landgraver,
$250,000, W. Clark McGhee, $150,000, John A. Reeves, $100,000 and Charles L.
Terrible, $150,000.

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other than with the express written consent of the Board. Executive understands
and agrees that the certificate (or certificates) representing such shares of
Common Stock shall bear a legend noted conspicuously on such certificate in
substantially the following form. "THE SHARES REPRESENTED BY THIS CERTIFICATE
MAY NOT BE TRANSFERRED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE
DISPOSED OF UNLESS SUCH TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR
OTHER DISPOSITION COMPLIES WITH THE PROVISIONS OF THE EMPLOYMENT AGREEMENT,
DATED AS OF JUNE 30, 2004, BY AND BETWEEN COLLEGIATE FUNDING SERVICES, INC. (THE
"COMPANY") AND ____________, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL
EXECUTIVE OFFICE OF THE COMPANY AND WHICH, AMONG OTHER MATTERS, PLACES
RESTRICTIONS ON THE SALE OF SUCH SHARES. THE HOLDER OF THIS CERTIFICATE, BY
ACCEPTANCE OF THIS CERTIFICATE, AGREES TO BE BOUND BY ALL OF THE PROVISIONS OF
SUCH AGREEMENT."

5. ANNUAL INCENTIVE COMPENSATION.

(a)   During the Term, Executive shall have an annual cash incentive opportunity
      (the "Incentive"), in an amount not to exceed one hundred-fifty percent
      (150%) of Base Salary based upon the achievement of performance criteria
      established by the Compensation Committee of at the beginning of each such
      fiscal year. The final amount of the Incentive will be determined by the
      Compensation Committee in its discretion.

(b)   At the discretion of the Compensation Committee, a portion, not to exceed
      fifty percent (50%) of the Incentive, may be paid in shares of Common
      Stock or in Restricted Shares. To the extent the Incentive is paid in
      Restricted Shares, such Restricted Shares shall be issued from shares of
      Common Stock reserved under the Company's 2002 Stock Incentive Plan, as
      revised. The restrictions with respect to such Restricted Shares shall
      lapse ratably over a period of three (3) years from the date of issuance.
      To the extent the Incentive is paid in shares of Common Stock, such shares
      shall count towards any stock ownership requirement applicable to
      Executive under this or any other agreement between Executive and the
      Company.

6. STOCK OPTIONS/RESTRICTED SHARES.

(a)   If the Company completes an Initial Public Offering, on the date of such
      offering, Executive shall be granted Restricted Shares in an amount up to
      ___% of the fully diluted outstanding shares of Common Stock measured at
      the time of the Initial Public Offering (the "IPO Restricted Shares") and
      Stock Options to purchase up to ___% of the fully diluted outstanding
      shares of Common Stock, measured as of the time of the Initial Public
      Offering (the "IPO Options")(3).

(b)   Any IPO Options and IPO Restricted Shares shall count towards any stock
      ownership requirement applicable to Executive under this or any other
      agreement between Executive and the Company.

(3)   The restricted share percentage for each Executive will be up to: Mr.
      Elam, 0.07%, Mr. Landgraver, 0.11%, Mr. McGhee, 0.09%, Mr. Reeves 0.05%
      and Mr. Terribile, 0.07%, respectively. The option percentage for each
      Executive will be up to: Mr. Elam, 0.16%, Mr. Landgraver, 0.24%, Mr.
      McGhee, 0.20%, Mr. Reeves, 0.12% and Mr. Terribile, 0.16%, respectively.

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(c)   The exercise price of the IPO Options will equal the per share offering
      price of the shares of Common Stock offered to the public in the Initial
      Public Offering. The IPO Options will vest and all restrictions on the IPO
      Restricted Shares will lapse with respect to 25% of the shares covered by
      the IPO Options and the IPO Restricted Shares on the first anniversary of
      the date of grant and on each of the immediately following three
      anniversaries. The IPO Options and the IPO Restricted Shares shall be
      subject to the terms and conditions of the Company's 2002 Stock Incentive
      Plan, as revised, and an individual Award Agreement between Executive and
      the Company entered into at the time of grant.

7. EXISTING STOCK OPTIONS. Of the Stock Options granted to Executive in May 2002
under the Company's 2002 Stock Incentive Plan that are not vested or exercisable
as of the Effective Date, fifty percent (50%) of such Stock Options will become
vested and exercisable on the Effective Date, and all remaining Stock Options
shall become fully vested and exercisable on the first anniversary of the
Effective Date. All unvested Stock Options discussed in this Section 7 are
subject to the acceleration provisions contained within this Agreement.

8. PENSION PLANS; SERP.

(a)   Executive shall be entitled to participate in any tax-qualified retirement
      plans maintained by or contributed to by the Company for the benefit of
      its senior executives (Executive Vice President level), (collectively
      "Qualified Plans"), including without limitation, the CFS 401K Retirement
      Plan (the "401(k) Plan"), in accordance with the terms of the Qualified
      Plans as they may be amended from time to time as provided by the
      Qualified Plans.

(b)   Executive shall also be eligible to participate in the Company's
      Supplemental Employee Retirement Plan (the "SERP"). Under the terms of the
      SERP, with respect to each calendar year during the Term, Executive may
      make a pre-tax deferral contribution to the SERP (provided that Executive
      has made the maximum permissible elective contribution to the 401(k) Plan)
      in an amount not to exceed $25,000 when added to such maximum permissible
      elective contribution to the 401(k) Plan. The Company shall match
      contributions made by Executive to the SERP, in cash or Common Stock, in
      an amount equal to one hundred percent (100%) of Executive's contribution
      to the SERP. The Company's matching contribution shall vest ratably in
      equal installments over a three (3) year period.

9. MEDICAL INSURANCE AND OTHER BENEFITS. During the Term, Executive shall be
entitled to the following benefits:

(a)   Executive shall be entitled to participate in any medical and dental
      insurance plans generally available to the senior management of the
      Company, as such plans may be in effect from time to time.

(b)   Executive shall be entitled to receive or participate in such further
      savings, deferred compensation, life insurance, health or welfare benefit
      plans offered to the Company's

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      senior management generally, in accordance with the terms of such plans as
      they may be amended from time to time in the discretion of the Company.

(c)   The Company agrees to reimburse Executive for all reasonable, ordinary and
      necessary business expenses incurred by Executive in performing his duties
      pursuant to this Agreement, in accordance with Company's reimbursement
      policies generally applicable to management personnel.

(d)   Executive shall be entitled to receive a five thousand dollar ($5,000)
      annual allowance for tax preparation, planning and advice.

(e)   Executive shall be entitled to paid time off as provided under the terms
      of the Company's paid time off policy.

10. NONDISCLOSURE OF PROPRIETARY AND CONFIDENTIAL INFORMATION.

(a)   Executive and Company acknowledge that Executive will, in the course of
      his employment, come into possession of confidential, proprietary business
      and technical information, and trade secrets of Company and its
      Affiliates, as defined in this Section 10(a) (the "Proprietary
      Information"). Proprietary Information includes, but is not limited to,
      the following:

      (i)   Business Procedures, Financial Information, Accounting Information,
            Credit Information. All information concerning or relating to the
            way the Company and its Affiliates conduct their business, which is
            not generally known to the public or within the industry or trade in
            which the Company or its Affiliates compete (such as Company
            contracts, internal business procedures, controls, plans, licensing
            techniques and practices, supplier, subcontractor and prime
            contractor names and contacts and other vendor information, computer
            system passwords and other computer security controls, financial
            information, distributor information, and employee data) and the
            physical embodiments of such information (such as check lists,
            samples, service and operational manuals, contracts, proposals,
            printouts, correspondence, forms, listings, ledgers, financial
            statements, financial reports, financial and operational analyses,
            financial and operational studies, management reports of every kind,
            databases, employment or personnel records, and any other written or
            machine-readable expression of such information as are filed in any
            tangible media).

      (ii)  Marketing Plans and Customer Lists. All information not generally
            known to the public or within the industry or trade in which Company
            or its Affiliates compete pertaining to Company's and its
            Affiliates' marketing plans and strategies; forecasts and
            projections; marketing practices, procedures and policies; goals and
            objectives; quoting practices, procedures and policies; and customer
            data including the customer list, contracts, representatives,
            requirements and needs, specifications, data provided by or about
            prospective customers, and the physical embodiments of such
            information.

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      (iii) Business Ventures. All information not generally known to the public
            or within the industry or trade in which the Company or its
            Affiliates operate concerning new product development, negotiations
            for new business ventures, future business plans, and similar
            information and the physical embodiments of such information.

      (iv)  Software. All information relating to the Company's and its
            Affiliates' software or hardware in operation or various stages of
            research and development, which are not generally known to the
            public or within the industry or trade in which the Company or its
            Affiliates compete and the physical embodiments of such information.

      (v)   Litigation. Information which is not a public record and is not
            generally known to the public or within the industry or trade in
            which the Company or its Affiliates compete regarding litigation and
            potential litigation matters and the physical embodiments of such
            information.

      (vi)  Policy Information. Information not of a public nature regarding the
            policies and positions that have been or will be advocated by the
            Company and its Affiliates with government officials, the views of
            government officials toward such policies and positions, and the
            status of any communications that the Company or its Affiliates may
            have with any government officials.

      (vii) Information Not Generally Known. Any information which (a) is not
            generally known to the public or within the industry or trade in
            which the Company or its Affiliates compete and (b) (1) gives the
            Company or its Affiliates an advantage over its or their competitors
            or (2) has significant economic value or potentially significant
            economic value to the Company or its Affiliates, including the
            physical embodiments of such information.

(b)   Executive acknowledges that the Proprietary Information is a valuable and
      unique asset of Company and its Affiliates. Executive agrees that he will
      not, at any time during his employment or after the termination of his
      employment with the Company, without the prior written consent of the
      Company or its Affiliates, as applicable, either directly or indirectly
      divulge any Proprietary Information for his own benefit or for any purpose
      other than the exclusive benefit of the Company and/or its Affiliates.

11. AGREEMENT NOT TO COMPETE.

(a)   Executive acknowledges and agrees that the Company is engaged in a highly
      competitive business and that by virtue of Executive's position and
      responsibilities with the Company and access to the Proprietary
      Information, engaging in any business which is competitive with the
      Company's Business (as defined below) will cause the Company great and
      irreparable harm.

(b)   Executive covenants and agrees that at all times during the Term, and
      during the period beginning on the date of termination of his employment
      (whether such termination is voluntary or involuntary) and ending one (1)
      year following his date of termination (the

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      "Restricted Period"), he shall not, either directly or indirectly through
      one or more intermediaries:

      (i)   work or serve as a director, officer, employee, consultant, agent,
            representative, or in any other capacity, with or without
            compensation, on behalf of any Prohibited Entity;

      (ii)  interfere with the Company's relations with any person or entity who
            is a client or customer of the Company;

      (iii) solicit any employees, customers, or business partners of the
            Company, induce any customer or business partner of the Company to
            breach a contract with the Company or any principal for whom the
            Company acts as agent to terminate such agency relationship; or

      (iv)  make statements about the Company or its employees, officers or
            directors reasonably determined by the Company to be disparaging.

(c)   For purposes of this Agreement:

      (i)   The term "Entity" shall mean a business entity of any type, whether
            or not incorporated.

      (ii)  A "Prohibited Entity" is any Entity that is primarily engaged in the
            Company's Business in the United States, Canada, or any other
            country where Company (including any Affiliate) either engages in
            the Company's Business at the time of Executive's termination or
            where Company, at the time of Executive's termination, has developed
            a business plan or taken affirmative steps to engage in the
            Company's Business;

      (iii) The Company's "Business" shall include any business activity or line
            of business similar to the type of education finance business
            conducted by Company, CFS, and/or their Affiliates at the time of
            Executive's termination of employment or which Company, CFS and/or
            their Affiliates at the time of Executive's termination of
            employment has developed a business plan or has taken affirmative
            steps to engage in such business activity or line of business.

      (iv)  An Entity is primarily engaged in the Company's Business if more
            than fifty (50%) of the revenues generated by the Entity are
            generated by such Business. For this purpose, each parent,
            subsidiary or other affiliate shall be deemed to be a separate
            Entity

      (v)   The term "Affiliate" shall be deemed to refer to the Company, and
            any entity (whether or not existing on the date hereof) controlling,
            controlled by or under common control with the Company.

(d)   Given his role as Executive Vice President, Executive expressly agrees
      that the markets served by the Company, CFS and their Affiliates extend
      nationally and to Canada and are

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      not dependent on the geographic location of the executive personnel or the
      businesses by which they are employed and that the restrictions set forth
      in this Section 11 are reasonable and are no greater than are required for
      the protection of the Company, CFS, and its Affiliates.

(e)   In the event the Company reasonably determines that Executive has violated
      any provision of this Section 11, and Executive has not cured such
      violation within five (5) days of the date of receipt of written notice
      thereof by Executive, then:

      (i)   Executive shall be terminated for Cause (as defined in Section
            12.4);

      (ii)  Executive will repay to Company any after tax profits realized from
            the exercise of Stock Options since the earlier of one year prior to
            the date of such violation and the termination of Executive's
            employment with the Company (whichever date occurred the longest
            period of time before the date of any such option exercise); and

      (iii) the Company may discontinue any or all remaining benefits payable to
            Executive by virtue of his termination of employment.

Such termination of employment or discontinuance of benefits shall be in
addition to and shall not limit in any way any and all other rights and remedies
that the Company may have against Executive.

12. TERMINATION OF EMPLOYMENT.

(a)   In addition to the expiration or nonrenewal of the Term, Executive's
      employment hereunder may be terminated during the Term upon the occurrence
      of any one of the events described in this Section 12. Except for
      termination of the Agreement due to the death of Executive or by Executive
      without Good Reason (as defined in Section 12.1 and 12.4), all termination
      decisions by the Company shall require Board action. Upon termination,
      Executive shall be entitled only to such compensation and benefits as
      described in this Section 12.

12.1 DEATH; TOTAL DISABILITY.

(a)   Executive's employment shall terminate upon Executive's death. The Company
      may terminate Executive's employment upon his becoming "Totally Disabled."
      For purposes of this Agreement, Executive shall be "Totally Disabled" if
      Executive is physically or mentally incapacitated so as to render
      Executive incapable of performing the essential functions of his position
      with or without reasonable accommodation, for a period of more than 180
      days. Executive's receipt of disability benefits under the Company's
      long-term disability benefits plan or receipt of Social Security
      disability benefits shall be deemed conclusive evidence that Executive is
      Totally Disabled for purpose of this Agreement. In the absence of
      Executive's receipt of such long-term disability benefits or Social
      Security benefits, the determination of whether Executive is Totally
      Disabled will be made by a personal physician selected by Executive (or
      his legal representative) and approved by

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      the Compensation Committee. The determination of such personal physician
      shall be final and binding, unless it is determined to have been arbitrary
      and capricious.

(b)   Upon termination of the employment of Executive due to death or Total
      Disability during the Term, Executive (or Executive's executors, legal
      representatives or administrators, as applicable) will be entitled to
      receive the following payments and benefits:

      (i)   Accrued but unpaid Base Salary through the date of termination;

      (ii)  Reimbursement for any unreimbursed business expenses and such
            employee benefits, if any, that Executive may be entitled to under
            the employee benefit plans of the Company (excluding any severance
            plan), including amounts with respect to any accrued paid time off
            that has not been paid;

      (iii) Within thirty (30) days of termination of employment, a lump sum
            payment in an amount equal to Base Salary (as in effect on the date
            of termination); and

      (iv)  A pro rata portion of the Incentive, if any, that Executive would
            have been entitled to receive pursuant to Section 5 hereof in the
            year of Executive's death or Total Disability (i) based upon the
            percentage of the fiscal year that shall have elapsed through the
            date of Executive's termination of employment and (ii) to the extent
            payment of the Incentive is based upon individual performance
            criteria, based upon the actual performance of Executive during the
            portion of such fiscal year that Executive was employed by the
            Company prior to such death or Total Disability, payable when such
            Incentive would have otherwise been payable had Executive's
            employment not terminated.

(c)   All Stock Options and/or Restricted Shares held by the Executive shall
      fully vest and, as applicable, be exercisable immediately, and all
      restrictions on Restricted Shares shall lapse. Unless otherwise provided
      by the Company in its sole discretion, Executive (or Executive's
      executors, legal representatives or administrators, as applicable) shall
      be required to exercise all vested Stock Options held by him as of the
      date of termination within one hundred and twenty (120) days of the date
      of termination. Any Stock Options not exercised within such 120-day period
      shall expire. Notwithstanding the foregoing, in no event shall the Stock
      Options be exercised later than the expiration date set forth in the stock
      option notice and stock option award agreement.

(d)   For a period beginning on the date of termination, and ending twelve (12)
      months after such date, Executive, as applicable, and his eligible
      dependents shall be entitled to continue to participate in the Company's
      group life, medical and dental plans on the same basis as immediately
      prior to termination. The Company shall pay the entire cost of such
      coverage, including any employee cost-sharing provisions, if any. To the
      extent the terms and conditions of the aforesaid plans do not permit
      participation by Executive and his eligible dependents, Company shall
      arrange to provide Executive, as applicable, and his eligible dependents
      with the same level of coverage under individual policies. Executive shall
      cease to be covered under the foregoing medical and/or dental insurance
      plans if he obtains other coverage under other medical, dental and/or
      vision insurance

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      plans. After expiration of the twelve-month period, if Executive has not
      obtained any other medical, dental and/of vision plans, the Company shall
      offer coverage under COBRA to the maximum allowed and Executive shall be
      responsible for all costs thereof.

12.2  TERMINATION BY COMPANY WITHOUT CAUSE; TERMINATION BY EXECUTIVE FOR GOOD
      REASON.

(a)   Termination By Company Without Cause. The Company may terminate
      Executive's employment hereunder at any time for any reason other than
      Cause (as defined in Section 12.4) or Total Disability upon written notice
      to Executive ("Termination Without Cause").

(b)   Termination By Executive For Good Reason. Executive may terminate his
      employment hereunder at any time for Good Reason upon prior written notice
      at any time during the Term. For purposes of this Agreement, "Good Reason"
      shall mean:

      (i)   Subject to the provisions of Section 2(b) of this Agreement, a
            reduction by the Company in Executive's Base Salary of more than ten
            percent (10%) unless such reduction is part of an overall corporate
            restructuring or cost reduction plan; or

      (ii)  The change of Executive's principal place of employment to a
            location more than seventy-five (75) miles from such principal place
            of employment.

For purposes of this Agreement, Good Reason shall not include notice to
Executive of the non-renewal of the Term.

(c)   In the event of a Termination Without Cause, or a Termination For Good
      Reason during the term of this Agreement, Executive shall be entitled to
      receive the following payments and benefits:

      (i)   Accrued but unpaid Base Salary through the date of termination;

      (ii)  Reimbursement for any unreimbursed business expenses and such
            employee benefits, if any, that Executive may be entitled to under
            the employee benefit plans of the Company (excluding any severance
            plans), including amounts with respect to any accrued paid time off
            that has not been paid;

      (iii) Within thirty (30) days following the date of termination, a lump
            sum payment in an amount equal to the following:

            (A) One hundred percent (100%) of Base Salary in effect on the date
                  of termination; plus

            (B) One hundred percent (100%) of Executive's average annual
                  Incentive (the "Average Incentive"). For purposes of
                  determining the Average Incentive, the average of the
                  Incentive earned by Executive with respect to the two (2)
                  completed years immediately prior to his termination shall be
                  used. If the number of completed years beginning on and after
                  the

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                  Effective Date is less than two (2), the Average Incentive
                  shall be the Incentive, if any, earned with respect to the
                  first year of Executive's employment; and

      (iv)  For a period beginning on the date of termination, and ending twelve
            (12) months after such date, Executive and his eligible dependents
            shall be entitled to continue to participate in the Company's group
            life, medical and dental plans on the same basis as immediately
            prior to termination. The Company shall pay the entire cost of such
            coverage, including any employee cost-sharing provisions, if any. To
            the extent the terms and conditions of the aforesaid plans do not
            permit participation by Executive and his eligible dependents,
            Company shall arrange to provide Executive and his eligible
            dependents with the same level of coverage under individual
            policies. Executive shall cease to be covered under the foregoing
            medical and/or dental insurance plans if he obtains other coverage
            under other medical, dental and/or vision insurance plans. After
            expiration of the twelve-month period, if Executive has not obtained
            any other medical, dental and/of vision plans, the Company shall
            offer coverage under COBRA to the maximum allowed and Executive
            shall be responsible for all costs thereof.

(d)   The Executive shall not be required to mitigate the amount of any payment
      or benefit contemplated by this section, nor shall any such payment or
      benefit be reduced by any earnings or benefits that Executive may receive
      from any other source.

(e)   Executive shall be required to exercise all vested Stock Options held by
      him as of the date of termination within one hundred and twenty (120) days
      of the date of termination. Any vested Stock Options not exercised within
      such 120-day period shall expire. Notwithstanding the foregoing, in no
      event shall the Stock Options be exercised later than the expiration date
      set forth in the stock option notice and stock option award agreement. All
      unvested Stock Options held by Executive as of the date of termination
      will expire and be forfeited, and all unvested IPO Restricted Shares shall
      be forfeited, as of the date of termination.

(f)   In the event of a termination under this Section 12.2 following an Initial
      Public Offering, all restrictions on Restricted Shares held by Executive
      at such time, other than the IPO Restricted Shares, shall lapse.

12.3 CHANGE IN CONTROL.

(a)   For purposes of this Agreement, "Change in Control" shall mean an
      occurrence of one or more of the following events:

      (i)   an acquisition (other than directly from the Company) of any voting
            securities of the Company (the "Voting Securities") by any "person"
            or "group" (within the meaning of Section 13(d)(3) or 14(d)(2) of
            the Securities Exchange Act of 1934) other than an employee benefit
            plan of the Company, immediately after which such person or group
            has "Beneficial Ownership" (within the meaning of Rule 13d-3 under
            the Exchange Act) of more than fifty (50%) percent (or a lesser

                                       11

<PAGE>

            percentage should the acquisition of any percentage of voting stock
            of the Company, by any person or group constitute control of or
            power to control the management and policies of the Company) of the
            combined voting power of combined voting power of the then
            outstanding voting securities of CFS or the Company, or

      (ii)  a sale of all or substantially all of the assets of Company.

(b)   In the event that the Company terminates Executives employment hereunder
      without Cause or Executive resigns for Good Reason during the term of this
      Agreement and within twelve (12) months following a Change in Control,
      Executive shall be entitled to receive the following payments and
      benefits:

      (i)   Accrued but unpaid Base Salary through the date of termination;

      (ii)  Reimbursement for any unreimbursed business expenses and such
            employee benefits, if any, that Executive may be entitled to under
            the employee benefit plans of the Company (excluding any severance
            plans), including amounts with respect to any accrued paid time off
            that has not been paid;

      (iii) Within thirty (30) days following the date of termination, a lump
            sum payment in an amount equal to the following:

            (A) One hundred fifty percent (150%) of Base Salary in effect on the
                  date of termination; plus

            (B) One hundred percent (100%) of the Average Incentive; and

      (iv)  For a period beginning on the date of termination, and ending
            eighteen (18) months after such date, Executive and his eligible
            dependents shall be entitled to continue to participate in the
            Company's group life, medical and dental plans on the same basis as
            immediately prior to termination. The Company shall pay the entire
            cost of such coverage, including any employee cost-sharing
            provisions, if any. To the extent the terms and conditions of the
            aforesaid plans do not permit participation by Executive and his
            eligible dependents, Company shall arrange to provide Executive and
            his eligible dependents with the same level of coverage under
            individual policies. Executive shall cease to be covered under the
            foregoing medical and/or dental insurance plans if he obtains other
            coverage under other medical, dental and/or vision insurance plans.
            After expiration of the eighteen-month period, if Executive has not
            obtained any other medical, dental and/of vision plans, the Company
            shall offer coverage under COBRA to the maximum allowed and
            Executive shall be responsible for all costs thereof.

(c)   Executive shall not be required to mitigate the amount of any payment or
      benefit contemplated by this section, nor shall any such payment or
      benefit be reduced by any earnings or benefits that Executive may receive
      from any other source.

                                       12

<PAGE>

(d)   All Stock Options and/or Restricted Shares held by Executive shall fully
      vest and, as applicable, be exercisable immediately, and all restrictions
      on Restricted Shares shall lapse. Unless otherwise provided by the Company
      in its sole discretion, Executive (or Executive's executors, legal
      representatives or administrators, as applicable) shall be required to
      exercise all vested Stock Options held by him as of the date of
      termination within one hundred and twenty (120) days of termination. Any
      Stock Options not exercised within such 120-day period shall expire.
      Notwithstanding the foregoing, in no event shall the Stock Options be
      exercised later than the expiration date set forth in the stock option
      notice and stock option award agreement.

12.4 TERMINATION FOR CAUSE; TERMINATION BY EXECUTIVE WITHOUT GOOD REASON.

(a)   Termination for Cause. The Company may terminate the employment of
      Executive for Cause upon prior written notice at any time during the Term.

      (i)   For purposes of this Agreement, "Cause" shall mean:

            (A) Executive's willful and continuing failure, that is not remedied
                  within twenty days after receipt of written notice of such
                  failure from the Company, to either (x) perform his
                  obligations hereunder, or (y) follow the Company's Code of
                  Business Conduct;

            (B) Executive's indictment for embezzlement, fraud or felony under
                 the laws of the United States or any state thereof;

            (C) Executive's breach of fiduciary responsibility;

            (D) an act of dishonesty by Executive which is materially injurious
                  to the Company;

            (E) Executive's willful misconduct in connection with his duties;

            (F) Executive's breach of the confidentiality, non-competition
                  and/or non-solicitation provisions of Sections 10 and 11 of
                  this Agreement; or

            (G) any material infraction by Executive of any federal securities
                  laws or the rules and regulations promulgated by the SEC
                  thereunder.

      (ii)  Regardless of whether Executive's employment was initially
            considered to be terminated for any reason other than Cause,
            Executive's employment will be considered to have been terminated
            for Cause for purposes of this Agreement if the Board subsequently
            determines that Executive engaged in conduct constituting Cause.

      (iii) Any determination of Cause under this Agreement shall be made by
            resolution adopted by unanimous vote of the Board at a meeting
            called and held for that purpose. Executive shall be provided with
            reasonable notice of such meeting and

                                       13

<PAGE>

            shall be given the opportunity to be heard prior to the vote being
            taken by the Board.

(b)   Termination By Executive Without Good Reason. Executive may terminate his
      employment hereunder at any time without Good Reason.

(c)   In the event Executive's employment hereunder is terminated by Company for
      Cause or by Executive Without Good Reason, Executive shall receive, as his
      sole compensation hereunder, all accrued but unpaid Base Salary prorated
      for the year through the date of termination, reimbursement for any
      unreimbursed business expenses and such employee benefits, if any, that
      Executive may be entitled to under the employee benefit plans of the
      Company (excluding any severance plans), including amounts with respect to
      any accrued paid time off that has not been paid. In addition, Executive
      shall be required to exercise all vested Stock Options held by him as of
      the date of termination within one hundred and twenty (120) days of the
      date of termination. Any vested Stock Options not exercised within such
      120-day period shall expire. Notwithstanding the foregoing, in no event
      shall the Stock Options be exercised later than the expiration date set
      forth in the stock option notice and stock option award agreement. All
      unvested Stock Options and unvested IPO Restricted Shares held by
      Executive as of the date of termination shall be forfeited.

(d)   In the event Executive's employment hereunder is terminated by the Company
      for Cause or by Executive Without Good Reason following the IPO, all
      Restricted Shares held by Executive at such time shall be forfeited.

12.5 RETIREMENT.

(a)   Executive may terminate his employment hereunder by reason of Retirement.

(b)   "Retirement" means Executive's retirement from the Company on or after the
      first to occur of (1) Executive's attainment of age 60 and completion of 5
      years of continuous service with the Company; or (2) Executive's
      attainment of age 62.

(c)   On the date of Executive's termination of employment by reason of his
      Retirement (the "Retirement Date"), Executive will be entitled to receive
      the following compensation:

      (i)   Accrued but unpaid Base Salary through his last day of work;

      (ii)  Reimbursement for any unreimbursed business expenses and such
            employee benefits, if any, that Executive may be entitled to under
            the employee benefit plans of the Company (excluding any severance
            plans), including amounts with respect to any accrued paid time off
            that has not been paid;

      (iii) For the period beginning on Executive's Retirement Date and ending
            eighteen (18) months after such date, Executive and his eligible
            dependents shall be entitled to continue to participate in the
            Company's group life, medical and dental plans on the same basis as
            immediately prior to Executive's Retirement Date. The Company shall
            pay the entire cost of such coverage, including any employee

                                       14

<PAGE>

            cost-sharing provisions, if any. To the extent the terms and
            conditions of the aforesaid plans do not permit participation by
            Executive and his eligible dependents, Company shall arrange to
            provide Executive and his eligible dependents with the same level of
            coverage under individual policies. Executive shall cease to be
            covered under the foregoing medical and/or dental insurance plans if
            he obtains other coverage under other medical, dental and/or vision
            insurance plans. After expiration of the eighteen month period, if
            Executive has not obtained any other medical, dental and/or vision
            plans, the Company shall offer coverage under COBRA to the maximum
            allowed and Executive shall be responsible for all costs thereof.

      (iv)  All Stock Options and/or Restricted Shares held by Executive shall
            fully vest and, as applicable, be exercisable immediately, and all
            restrictions on Restricted Shares shall lapse. Unless otherwise
            provided by the Company in its sole discretion, Executive (or
            Executive's executors, legal representatives or administrators, as
            applicable) shall be required to exercise all vested Stock Options
            held by him as of the date of termination within one hundred and
            twenty (120) days of termination. Any Stock Options not exercised
            within such 120-day period shall expire. Notwithstanding the
            foregoing, in no event shall the Stock Options be exercised later
            than the expiration date set forth in the stock option notice and
            stock option award agreement.

      On the Retirement Date, any SERP benefits Executive would be eligible for
            will be fully vested and payable to Executive.

12.6 EXPIRATION OF TERM; NON-RENEWAL.

(a)   The Executive's employment hereunder will terminate upon the expiration of
      the Term by reason of the non-renewal provisions in Section 1(c).

(b)   If Executive's employment hereunder is terminated because Executive
      provides notice of his election not to renew the Term in accordance with
      Section 1(c), Executive shall receive, as his sole compensation hereunder,
      all accrued but unpaid Base Salary, reimbursement for any unreimbursed
      business expenses and such employee benefits, if any, that Executive may
      be entitled to under the employee benefit plans of the Company (excluding
      any severance plans), including amounts with respect to any accrued paid
      time off that has not been paid.

(c)   Unless the parties otherwise agree in writing, continuation of Executive's
      employment with the Company beyond the expiration of the Term shall be
      deemed an employment at-will and shall not be deemed to extend any of the
      provisions of this Agreement and Executive's employment may thereafter be
      terminated at will by either Executive or the Company; provided, that, the
      provisions of Section 10 and Section 11 of this Agreement shall survive
      any termination of this Agreement or Executive's termination of employment
      hereunder. In addition, for purposes of clarification, in the event that
      this Agreement expires or is not renewed by Executive or the Company, the
      expiration of the

                                       15

<PAGE>

      Term of this Agreement shall not in and of itself result in the forfeiture
      of any Options or Restricted Shares held by Executive as of such date, and
      the terms of such Options and Restricted Shares shall thereafter be
      governed by the award agreements that provide for the grant of such
      Options and Restricted Shares.

12.7 TAX GROSS UP.

(a)   If, as a result of payments provided for under or pursuant to this
      Agreement together with all other payments in the nature of compensation
      provided to or for the benefit of Executive under any other agreement in
      connection with a Change in Control, Executive becomes subject to taxes of
      any state, local or federal taxing authority that would not have been
      imposed on such payments but for the occurrence of a Change in Control,
      including any excise tax under Section 4999 of the Code an any successor
      or comparable provision, then, in addition to any other benefits provided
      under or pursuant to this Agreement or otherwise, Company (including any
      successor to Company) shall pay to Executive at the time any such payments
      are made under or pursuant to this or the other agreements, an amount
      equal to the amount of any such taxes imposed or to be imposed on
      Executive (the amount of any such payment, the "Parachute Tax
      Reimbursement").

(b)   In addition, Company (including any successor to Company) shall "gross up"
      such Parachute Tax Reimbursement by paying to Executive at the same time
      an additional amount equal to the aggregate amount of any additional taxes
      (whether income taxes, excise taxes, special taxes, employment taxes or
      otherwise) that are or will be payable by Executive as a result of the
      Parachute Tax Reimbursement being paid or payable to Executive and/or as a
      result of the additional amounts paid or payable to Executive pursuant to
      this sentence, such that after payment of such additional taxes Executive
      shall have been paid on a net after-tax basis an amount equal to the
      Parachute Tax Reimbursement.

(c)   The amount of any Parachute Tax Reimbursement and of any such gross-up
      amounts shall be determined by Company's independent auditing firm, whose
      determination, absent manifest error, shall be treated as conclusive and
      binding absent a binding determination by a governmental taxing authority
      that a greater amount of taxes is payable by Executive.

13. OTHER AGREEMENTS. Executive represents and warrants to the Company that
there are no restrictions, agreements or understandings whatsoever to which
Executive is a party or by which he is bound that would prevent or make unlawful
Executive's execution of this Agreement or Executive's employment hereunder, or
which are or would be inconsistent or in conflict with this Agreement or
Executive's employment hereunder, or which would prevent, limit or impair in any
way the performance by Executive of his obligations hereunder.

14. SURVIVAL OF PROVISIONS. The provisions of this Agreement, including without
limitation those set forth in Sections 10, 11, 14, 15, 16, 17, 18, 19, 20, 21,
22, 23, 24, 25, 26, and 27 hereof, shall survive the termination of Executive's
employment hereunder and the payment of all amounts payable and delivery of all
post-termination compensation and benefits pursuant to this Agreement incident
to any such termination of employment.

                                       16

<PAGE>

15. SUCCESSORS AND ASSIGNS. This Agreement shall inure to the benefit of and be
binding upon the Company and its successors or permitted assigns and Executive
and his executors, administrators or heirs. The Company shall require any
successor or successors expressly to assume the obligations of the Company under
this Agreement. For purposes of this Agreement, the term "successor" shall
include the ultimate parent corporation of any corporation involved in a merger,
consolidation, or reorganization with or including the Company that results in
the stockholders of the Company immediately before such merger, consolidation or
reorganization owning, directly or indirectly, immediately following such
merger, consolidation or reorganization, securities of another corporation. It
shall also include the Company that results from any Initial Public Offering.
Executive may not assign any obligations or responsibilities under this
Agreement or any interest herein, by operation of law or otherwise, without the
prior written consent of the Company, except that any benefit to which Executive
may be entitled under this Agreement may be transferred pursuant to the laws of
descent and distribution without the prior written consent of the Company. At
any time, the Company may provide, without the prior written consent of
Executive, that Executive shall be employed pursuant to this Agreement by any of
its Affiliates instead of or in addition to CFS or Company, and in such case all
references herein to the "Company" shall be deemed to include any such entity,
provided that (i) such action shall not relieve the Company of any of its
obligations under this Agreement, including, without limitation, the Company's
obligation to make or cause an Affiliate to make or provide for any payment to
or on behalf of Executive pursuant to this Agreement, and (ii) Executive's
rights under this Agreement shall not be diminished as a result thereof. Except
for any determination that the Board is required to make pursuant to Section
12.4(a)(iii) hereof, the Board may assign any or all of its responsibilities
hereunder to any committee of the Board, in which case references to the Board
shall be deemed to refer to such committee.

16. EXECUTIVE BENEFITS. This Agreement shall not be construed to be in lieu of
or to the exclusion of any other rights, benefits and privileges to which
Executive may be entitled as an executive of Company under any retirement,
pension, profit-sharing, insurance, hospitalization or other plans or benefits
which may now be in effect or which may hereafter be adopted.

17. LITIGATION. If Executive is named as a defendant or receives a notice of a
deposition or subpoena concerning his prior employer, Executive shall provide
reasonable notice of such events and copy of such legal notices to the General
Counsel of the Company. If Executive is named as a defendant in a suit by a
third party after the termination of Executive's employment relating to issues
that arose during Executive's employment with the Company or by virtue of
Executive having been an employee of the Company, the Company will defend and
indemnify Executive regardless of whether he is still an active employee of the
Company so long as said Executive would have been covered under the insurance or
indemnification policies of the Company if Executive were still employed.
Nothing in this Section 17 shall limit any other right that Executive may have
under applicable law or otherwise to be indemnified and held harmless by the
Company.

18. NOTICES. All notices required to be given to any of the parties of this
Agreement shall be in writing and shall be deemed to have been sufficiently
given, subject to the further provisions of this Section 18, for all purposes
when presented personally to such party, or sent by facsimile transmission, any
national overnight delivery service, or certified or registered mail, to such
party at its address set forth below:

                                       17

<PAGE>

(a)   If to Executive:

(b)   If to Company:

      Collegiate Funding Services, Inc.
      c/o Collegiate Funding Services, L.L.C.
      100 Riverside Drive
      Fredericksburg, VA 22406
      Attention:
      Fax No. (540) 374-2021

Such notice shall be deemed to be received when delivered if delivered
personally, upon electronic or other confirmation of receipt if delivered by
facsimile transmission, the next business day after the date sent if sent by a
national overnight delivery service, or three (3) business days after the date
mailed if mailed by certified or registered mail. Any notice of any change in
such address shall also be given in the manner set forth above. Whenever the
giving of notice is required, the giving of such notice may be waived in writing
by the party entitled to receive such notice.

19. ENTIRE AGREEMENT; AMENDMENTS. This Agreement and any other documents,
instruments or other writings delivered or to be delivered in connection with
this Agreement as specified herein constitute the entire agreement among the
parties with respect to the subject matter of this Agreement and supersede all
prior and contemporaneous agreements, understandings, and negotiations, whether
written or oral, with respect to the terms of Executive's employment by Company.
This Agreement may be amended or modified only by a written instrument signed by
all parties hereto.

20. WAIVER. The waiver of the breach of any term or provision of this Agreement
shall not operate as or be construed to be a waiver of any other or subsequent
breach of this Agreement.

21. GOVERNING LAW. This Agreement shall be governed and construed as to its
validity, interpretation and effect by the laws of the State of New York,
without reference to its conflicts of laws provisions.

22. SEVERABILITY. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions of this Agreement or such provisions, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

                                       18

<PAGE>

23. SECTION HEADINGS. The section headings in this Agreement are for convenience
only; they form no part of this Agreement and shall not affect its
interpretation.

24. SPECIFIC ENFORCEMENT. Executive acknowledges that the restrictions contained
in Sections 10 and 11 hereof are reasonable and necessary to protect the
legitimate interests of Company and its Affiliates and that Company would not
have entered into this Agreement in the absence of such restrictions. Executive
also acknowledges that any breach by him of Sections 10 or 11 hereof will cause
continuing and irreparable injury to Company for which monetary damages would
not be an adequate remedy. Executive shall not, in any action or proceeding by
Company to enforce Sections 10 or 11 of this Agreement, assert the claim or
defense that an adequate remedy at law exists. In the event of such breach by
Executive, Company shall have the right to enforce the provisions of Sections 10
and 11 of this Agreement by seeking injunctive or other relief in any court, and
this Agreement shall not in any way limit remedies at law or in equity otherwise
available to Company. In the event that the provisions of Sections 10 or 11
hereof should ever be adjudicated to exceed the time, geographic, or other
limitations permitted by applicable law in any applicable jurisdiction, then
such provisions shall be deemed reformed in such jurisdiction to the maximum
time, geographic, or other limitations permitted by applicable law.

25. ARBITRATION. Any dispute or claim, other than those referred to in Section
26 of this Agreement, arising out of or relating to this Agreement or otherwise
relating to the employment relationship between Executive and the Company
(including but not limited to any claims under Title VII of the Civil Rights Act
of 1964, as amended; the Americans with Disabilities Act; the Age Discrimination
in Employment Act; the Family and Medical Leave Act; and the Employee Income
Retirement Security Act) shall be submitted to Arbitration, in New York City,
NY, and except as otherwise provided in this Agreement shall be conducted in
accordance with the rules of, but not under the auspices of, the American
Arbitration Association. The arbitration shall be conducted before an
arbitration tribunal comprised of three individuals, one selected by the
Company, one selected by Executive, and the third selected by the first two. The
parties and the arbitrators selected by them shall use their best efforts to
reach agreement on the identity of the tribunal within ten (10) business days of
either party to this Agreement submitting to the other party a written demand
for arbitration. The proceedings before the tribunal shall take place within
twenty (20) business days of the selection thereof. Executive and the Company
agree that such arbitration will be confidential and no details, descriptions,
settlements or other facts concerning such arbitration shall be disclosed or
released to any third party without the specific written consent of the other
party, unless required by law or court order or in connection with enforcement
of any decision in such arbitration. Any damages awarded in such arbitration
shall be limited to the contract measure of damages, and shall not include
punitive damages. The costs of the arbitrators shall be paid by the Company, and
each party shall bear his or its attorneys' fees and other costs, except that
(1) the arbitrators may specifically direct one party to bear the entire cost of
the arbitration, including all attorneys' fees, if the arbitrators determine
that such party acted in bad faith; or (2) Executive is successful in which case
the Company will pay Executive's attorneys fees and costs.

                                       19

<PAGE>

26. EQUITY CALL RIGHTS OF THE COMPANY.

(a)   In the event Executive's employment hereunder is terminated for any reason
      prior to the Initial Public Offering, the Company shall, for a period of
      up to six (6) months following the date of termination, have the option to
      purchase (the "Call Rights"), and Executive shall be required to sell to
      the Company, if the Company exercises the Call Rights, (i) any or all
      shares of Common Stock held by Executive ("Shares"), (ii) any or all
      Restricted Shares held by Executive and (iii) any or all Shares that are
      subject to the vested portion of any Stock Options held by the Executive
      (the "Vested Shares"), at a price per share as set forth below.

      (i)   If Executive's employment is terminated (i) due to Executive's
            death, (ii) by the Company because Executive is Totally Disabled,
            (iii) by the Company without Cause, or (iv) by Executive for Good
            Reason,

            (A) the price per share for any Shares and Vested Shares shall be
                  the Fair Market Value (as defined below); and

            (B) any restrictions on Restricted Shares held by Executive shall
                  lapse, and the price per share of such Restricted Shares shall
                  be the Fair Market Value (as defined below).

      (ii)  If Executive resigns without Good Reason,

            (A) the price per share for any Shares and Vested Shares shall be
                  the lower of the cost of such Shares and Vested Shares to
                  Executive or the Fair Market Value (as defined below); and

            (B) any Restricted Shares held by Executive shall be forfeited.

      (iii) If Executive's employment is terminated by the Company for Cause,
            any Shares, Vested Shares and Restricted Shares shall be forfeited.

(b)   For purposes of this Agreement, prior to the Initial Public Offering,
      "Fair Market Value" shall mean the fair market value of a share of Common
      Stock, as determined in good faith by the Board.

27. COUNTERPARTS. This Agreement may be executed in any number of counterparts,
and each such counterpart shall be deemed to be an original instrument, but all
such counterparts together shall constitute one and the same instrument.

                                       20

<PAGE>

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed the
day and year first written above.

Collegiate Funding Services, Inc.

By: ________________________

_________________________________________
     Title: Executive Vice President

                                       21<PAGE>

Deutsche Bank Executive Fund Tracker - US Residents
Plan Documentation - Plan Rules

1.   Purpose The purpose of the Deutsche Bank Executive Fund Tracker (EFT) for
     U.S. Residents (Cash Bonus Deferral Plan) (formerly the Deutsche Bank
     Americas Holding Corp. Deferred Compensation Plan) (the "Plan") is to
     provide a select group of management and highly compensated employees of
     Deutsche Bank Americas Holding Corp., a Delaware Corporation ("DBA") and
     its U.S. affiliates (together with DBA, the "Company") the opportunity to
     elect to defer receipt of a specified portion of their Actual Cash Bonuses
     and to have such Deferred Amounts increased or decreased to reflect the
     gains and losses referenced to one or more of the notional investment
     options designated by the Investment Committee.

2.   Definitions The following terms, when capitalized in the Plan, shall have
     the meanings set forth below:

a.   "Actual Cash Bonus" means the Actual Discretionary Bonus, the Actual
     Formula Bonus, or a combination thereof, but does not mean the Bonus
     Guarantee.

b.   "Actual Discretionary Bonus" means the cash portion of an employee's annual
     incentive compensation (bonus) payments to be paid to the employee as part
     of the Company's annual discretionary bonus scheme, generally payable
     during the calendar quarter after the calendar year-end to which the bonus
     relates.

c.   "Actual Formula Bonus" means the cash portion of an employee's bonus
     payments to be paid to the employee as part of the Company's formula bonus
     scheme, generally payable during the calendar quarter after the calendar
     year-end to which the bonus relates.

d.   "Actual Total Incentive" means an employee's Actual Cash Bonus plus any
     equity awards designated by DBA as components of the employee's total
     incentive and retention compensation to be awarded to the employee as part
     of the Company's total discretionary incentive and retention compensation
     schemes (including DB Global Partnership Plan awards, DB Share Scheme
     awards, and Restricted Equity Units), generally awarded during the first
     calendar quarter after the calendar year-end to which such compensation
     relates, plus any Commissions earned by the employee during the applicable
     calendar year.

e.   "Annual Installments" means an amount equal to "(1/A) x B," where "A"
     equals the number of installments remaining to be made (including the
     installment with respect to the calculation being made) and "B" equals the
     Deferral Account balance as of the date the amount of such installment is
     determined. For example, if a Participant elects a five-year installment
     option, he or she would receive a first installment equal to 1/5 of the
     account balance on the first installment date, 1/4 of the Deferral Account
     balance one year later, 1/3 and 1/2 a year and two years after that,
     respectively, and the remaining account balance on the fourth anniversary
     of the distribution date.

f.   "Beneficiary" means any person (which may include trusts and is not limited
     to one person) who has been designated by the Participant in his or her
     most recent written beneficiary designation filed with the Governance
     Committee to receive the benefits specified under the

<PAGE>
      Plan in the event of the Participant's death. If no Beneficiary has been
      designated who survives the Participant's death, then Beneficiary means
      the Participant's estate.

g.   "Governance Committee" means the Non-Qualified Plan Governance Committee or
     such other person(s) as the Executive Committee may designate.

h.   "Bonus Guarantee" means the guaranteed total incentive bonus to be paid as
     part of the Company's bonus scheme, generally payable during the calendar
     quarter after the calendar year end to which the bonus relates.

i.   "Bonus Payment Date" means the date each year on which Actual Cash Bonuses
     are paid.

j.   "Business Day" means a day on which the New York Stock Exchange is open for
     trading.

k.   "Cause" means, in respect to the termination of the Participant's
     employment by the Company: (i) any act or series of acts or omissions that,
     when taken together or alone, constitute a material breach of a
     Participant's terms and conditions of employment; (ii) the conviction of a
     Participant by a competent court of law for any crime (other than minor
     motoring offences or offences of a similar nature that do not materially
     affect the business or reputation of the Company); (iii) unlawful,
     unethical or illegal conduct or other misconduct by a Participant in
     connection with the performance of the Participant's duties as an employee
     of the Company; (iv) conduct by a Participant that violates the terms of
     the Company's Code of Professional Conduct or any of the Company's general
     personnel policies applicable to the Participant; (v) knowing failure or
     refusal by the Participant to carry out specific lawful instructions from
     the Company relating to material matters or duties within the scope of the
     Participant's responsibilities to the Company; (vi) commission by a
     Participant of any act involving dishonesty, fraud, misrepresentation, or
     breach of trust; or (vii) the issue of any order or the commencement of any
     enforcement action against a Participant (or against the Company as a
     result of the Participant's act or failure to act) by any regulatory body
     with authority over the conduct of business by the Company that materially
     impairs (A) the financial condition or business reputation of the Company
     or (B) the Participant's ability to perform his or her assigned duties.

l.   "Change in Control" means a change in the control of either Deutsche Bank
     AG or DBA which shall occur if, by one or a series of transactions or
     events, a third party or a group of third parties acting together (directly
     or indirectly) either: (i) acquires more than 50 percent of the issued
     share capital of Deutsche Bank AG or DBA and/or becomes entitled to
     exercise more than 50 percent of the voting rights attributable to the
     issued share capital of Deutsche Bank AG, or DBA (ii) acquires control of
     the stock, the Board of Directors of Deutsche Bank AG and DBA or a
     substantial portion of the assets of any division within the Deutsche Bank
     AG or DBA for which the Participant is then performing a substantial
     portion of his or her work. The Governance Committee will determine, at its
     sole discretion, whether or not a Change in Control has occurred in
     accordance with this definition.

m.   "Commissions" means the cash commission payments actually received by
     investment representatives of the Company on a monthly basis, but does not
     include Guaranteed Commissions.

                                       2
<PAGE>

n.   "Commission Payment Date" means the date on which Commissions are paid.

o.   "Committee" means the Executive Committee, the Governance Committee and the
     Investment Committee.

p.   "Company" shall have the meaning provided in Section 1 above.

q.   "DBA" shall have the meaning provided in Section 1 above.

r.   "Deferral Account" means a bookkeeping account established and maintained
     by the Company to reflect (i) Deferral Elections made by a Participant
     pursuant to this Plan (as described in Section 6(a)) and (ii) notional
     investment returns (whether positive or negative) on such Deferred Amounts
     and may be divided into sub-accounts. Deferral Accounts shall be maintained
     solely as bookkeeping entries by the Company to evidence unfunded
     obligations of the Company. Deferred Amounts will not be invested in any of
     the notional investment options, such options will only be used as devices
     for measuring the value of Deferral Accounts.

s.   "Deferred Amount" shall have the meaning provided in Section 5(b)(ii).

t.   "Deferral Election" means a Participant's election to defer a portion of
     his or her Actual Cash Bonus and/or Commissions, as the case may be, that
     would otherwise be payable by the Company on the Bonus Payment Date or
     Commission Payment Date applicable to such Actual Cash Bonus or
     Commissions, as the case may be, or, under certain circumstances as
     determined in the sole discretion of the Governance Committee, elections to
     defer other compensation.

u.   "Deferral Election Date" shall have the meaning provided in Section 5(c).

v.   "Deferred Amount" shall have the meaning provided in Section 5(b)(ii).

w.   "Disability" means a condition that would qualify a Participant to receive
     benefits under the DBA Long-Term Disability Plan or any successor plan
     thereto.

x.   "Election Form" means the form (which may be in electronic format) that is
     provided to Participants by the Governance Committee and that must be
     completed to create a valid Deferral Election under the Plan.

y.   "Election Year" means (i) in the case of the Actual Cash Bonus, the
     calendar year with respect to which an Actual Cash Bonus that is the
     subject of a Participant's Deferral Election is earned and (ii) in the case
     of Commissions, the calendar year immediately preceding the calendar year
     in which Commissions that are the subject of a Participant's Deferral
     Election are earned.

z.   "Executive Committee" means the Executive Committee of DBA.

                                       3

<PAGE>

aa.  "Guaranteed Commissions" means any commissions payable to an employee that
     were guaranteed to be paid by the Company prior to the period with respect
     to which they were earned.

bb.  "Investment Committee" means the committee appointed by the Executive
     Committee to carry out the responsibilities set forth in Section 6(d).

cc.  "Participant" means any United States employee of the Company who meets the
     eligibility requirements of Section 4 and who makes a valid and timely
     Deferral Election.

dd.  "Payroll Date" means any day on which a majority of the employees of the
     Company receive paychecks from the Company.

ee.  "Plan" shall have the meaning provided in Section 1 above.

ff.  "Plan Communication" shall have the meaning provided in paragraph "jj"
     below.

gg.  "Retirement" means a Participant's Termination of Employment on or after
     the Participant's attainment of (i) age 55 and completion of at least 5
     years of service with the Company if such Participant was hired prior to
     January 1, 1998, (ii) age 55 and completion of at least 10 years of service
     with the Company if such Participant was hired after December 31, 1997, or
     (iii) age 50 and completion of at least 10 years of service with the
     Company if such Participant's Termination of Employment is involuntary and
     other than for Cause.

hh.  "Termination of Employment" means a termination of employment with the
     Company.

ii.  "Unforeseen Hardship" shall have the meaning provided in Section 7(c).

jj.  "Valuation Date" means the date on which a Deferral Account shall be valued
     for purposes of reallocation or distribution. The actual Valuation Date for
     each investment option will be determined in accordance with the investment
     option materials in respect of each relevant investment option or other
     communications or documents approved by the Governance Committee and
     distributed or made available to the Participants (each a "Plan
     Communication").

3. Administration

a.   Generally The Committee shall administer the Plan and shall have all powers
     necessary to accomplish such administration, including without limitation,
     the power to specify rules, interpret the Plan and all documents related to
     the Plan, make determinations necessary or advisable for the administration
     of the Plan and create forms (including Election Forms) and instructions
     thereto. The Committee may require any person, as a condition to receiving
     any benefits under the Plan, to furnish such information to the Committee
     as it may reasonably deem necessary for the purpose of properly
     administering the Plan. Any actions or determinations of the Committee with
     respect to the Plan shall be conclusive and binding upon all persons
     interested in the Plan, except that no action or determination of the
     Governance Committee or the Investment Committee shall be binding upon the
     Executive Committee unless the Executive Committee consents thereto. The
     Committee may appoint

                                       4
<PAGE>

     agents and delegate thereto such powers and duties of the Committee in
     connection with the administration of the Plan as the Committee may from
     time to time deem appropriate and any reference to the applicable committee
     shall include any such delegatee.

b.   Limitation of Liability Each member of the Committee, as well as any
     individual to whom the Committee may delegate any authority under the Plan,
     shall be entitled, in good faith, to rely and act upon any report or other
     information furnished to him or her by any officer or other employee of the
     Company, the Company's independent certified public accountants, or any
     executive compensation consultant, legal counsel or other professional
     retained by the Company to assist in the administration of the Plan.
     Neither any member of the Committee nor any individual acting on behalf of
     the Committee shall be personally liable for any action, determination, or
     interpretation taken or made in good faith with respect to the Plan, and
     such persons shall, to the fullest extent permitted by law, be indemnified
     and protected by the Company with respect to any such action, determination
     or interpretation.

4. Participation

a.   A Director or Managing Director ("employee") of the Company shall be
     eligible to become a Participant in the Plan if: (i) with respect to an
     Election Year, the employee has a reasonable expectation that the sum of
     the following will equal or exceed $350,000: (A) annualized base salary
     from the Company in effect as of the date on which his or her Election Form
     is required to be filed, (B) Commissions earned from the Company in the
     Election Year and (C) Actual Total Incentive or actual guaranteed total
     incentive earned in the calendar year preceding such Election Year and,
     awarded or paid in the Election Year; (ii) with respect to the two calendar
     years preceding the Election Year, the employee had individual income that
     equaled or exceeded $350,000; and (iii) with respect to the calendar year
     following the Election Year, the employee has a reasonable expectation of
     individual income that will equal or exceed $350,000. An employee of the
     Company whose employment with the Company started between November 1 of the
     year preceding such Election Year and May 31 in the Election Year shall be
     eligible to become a Participant in the Plan if: (i) with respect to an
     Election Year, the employee has a reasonable expectation that the sum of
     the following will equal or exceed $350,000: (A) Annualized base salary
     from the Company in effect as of the date on which his or her Election Form
     is required to be filed, and (B) Actual guaranteed Actual Total Incentive
     to be awarded or paid in the year following such Election Year; and (ii)
     with respect to the two calendar years preceding the Election Year, the
     employee had individual income that equaled or exceeded $350,000. The
     Governance Committee may impose additional qualification requirements or
     conditions as it deems appropriate in its sole discretion. Unless otherwise
     provided in a governing employment agreement or as otherwise determined by
     the Governance Committee, an eligible employee as described in this Section
     4(a) shall cease eligibility under the Plan while employed under a
     secondment arrangement with respect to the period of secondment. All
     eligible employees shall only be permitted to make deferral elections with
     respect to U.S. source income.

b.   Participation in the Plan is entirely voluntary. The Governance Committee
     shall notify each eligible employee of his or her eligibility to
     participate in the Plan not later than 30 days (or such lesser period as
     may be practicable in the circumstances) prior to the Deferral Election
     Date for an Election Year.

                                       5

<PAGE>

c.   If a Participant ceases to meet the eligibility requirements described in
     Section 4(a) above, such Participant shall continue to be treated as a
     Participant with respect to any existing Deferral Account balance in his or
     her name for as long as such balance is maintained in accordance with the
     terms of the Plan, but shall not be permitted to make any additional
     Deferral Elections under the Plan.

5. Deferral Elections

a. General Rule

i.      Any employee of the Company who meets the eligibility requirements
        provided in Section 4 above may elect to defer up to 90% of his or her
        Actual Cash Bonus and, if applicable, up to 90% of his or her
        Commissions, in each case in respect of an Election Year, provided,
        however, that in addition to the foregoing 90% limitation, amounts
        comprising an employee's Actual Cash Bonus or Commissions may be subject
        to additional terms, conditions and limitations on its deferability
        imposed by (i) the Company bonus plans and programs pursuant to which it
        is awarded, and/or (ii) the Governance Committee. Any such additional
        terms, conditions or limitations, if imposed by the Governance
        Committee, shall be set forth on the Election Form or in rules or
        instructions relating to the Plan or Election Form, published by the
        Governance Committee. Notwithstanding the foregoing, the Governance
        Committee may, in its sole discretion, permit eligible employees to
        defer other compensation under the terms and conditions determined by
        the Governance Committee in its sole discretion.

ii.     Employees of the Company shall not be permitted to defer any component
        of their compensation under the Plan (including without limitation,
        severance payments) except as explicitly set forth in Section 5(a)(i)
        above.

b. Election Form Each employee of the Company who wishes to make a Deferral
Election under the Plan must complete and submit a valid Election Form to the
Governance Committee on or prior to the Deferral Election Date (which may be
distributed and submitted electronically). For each Election Year, Participants
will generally be given separate Election Forms with respect to the deferral of
Actual Cash Bonuses and Commissions. With respect to Deferral Elections relating
to Election Years prior to 2003, except as otherwise provided herein, no
Deferral Account distributions shall be made prior to the third anniversary of
the Bonus Payment Date or Commission Payment Date, as applicable, on which the
Participant's Actual Cash Bonus or Commission would otherwise have been paid
absent a Deferral Election. With respect to Deferral Elections relating to 2003
Election Year and thereafter, except as otherwise provided herein, in respect of
the Actual Cash Bonus, no Deferral Account distributions shall be made prior to
the first anniversary of the Bonus Payment Date on which the Participant's
Actual Cash Bonus would otherwise have been paid absent a Deferral Election and,
in respect of the Commissions, no Deferral Account distributions shall be made
prior to the first anniversary of the last Commission Payment Date to which such
Deferral Election relates. All distributions shall occur on Payroll Dates
occurring within a reasonable time (not to exceed 45 days) after the Valuation
Date(s) pertaining to such distributions, as provided below. Each Election Form
shall contain all of the following information and any additional information
deemed necessary or desirable by the Governance Committee:

                                      6

<PAGE>

i.   The name of each Company plan or program under which any portion of an
     employee's Actual Cash Bonus or Commissions may become payable and the
     Election Year or other period to which each such portion relates;

ii.  In respect of (A) the Actual Cash Bonus, either (i) the percentage of the
     employee's Actual Cash Bonus to be deferred or (ii) the dollar amount of
     the employee's Actual Cash Bonus to be deferred (the "Deferred Amount"), in
     either case, including the portion to be derived from each particular plan
     or arrangement listed above, and, (B) Commissions, the percentage of the
     employee's Commissions to be deferred; provided, that in no case shall the
     aggregate Deferred Amount pursuant to (A) and (B) of this paragraph exceed
     90% of the Participant's Actual Cash Bonus and Commissions for the relevant
     Election Year (notwithstanding any dollar amount specified by the
     Participant);

iii. The distribution schedule (specifying the month and year(s)) applicable to
     the Deferral Account in the event that the Participant remains employed
     with the Company, incurs a Termination of Employment as a result of
     Retirement, or voluntarily resigns, which distribution schedule shall be
     either: (A) a single lump-sum payment made on a Payroll Date within a
     reasonable time (not to exceed 45 days) after the Valuation Date(s) on or
     immediately following the designated distribution date, or (B) up to 20
     Annual Installments commencing on a Payroll Date within a reasonable time
     (not to exceed 45 days) after the Valuation Date(s) on or immediately
     following the designated distribution date; provided, that the timing and
     number of actual distributions shall be subject to the specific terms
     detailed in the materials describing each notional investment option or
     Plan Communication;

iv.  The distribution schedule (specifying the month and year(s)) applicable in
     the event of the Participant's Termination of Employment by the Company
     without Cause, which shall supersede the distribution schedule designated
     in Section 5(b)(iii) above, and shall be either (A) a single lump-sum
     payment made on a Payroll Date within a reasonable time (not to exceed 45
     days) after the Valuation Date(s) immediately following any such
     Termination of Employment, or (B) up to 20 Annual Installments commencing
     on a Payroll Date within a reasonable time (not to exceed 45 days) after
     the Valuation Date(s) immediately following any such Termination of
     Employment; provided, that the timing and number of actual distributions
     shall be subject to the specific terms detailed in the materials describing
     each notional investment option or Plan Communication. If a Participant
     does not make an election pursuant to this Section 5(b)(iv), any
     distribution(s) that would otherwise be subject to such an election shall
     be distributed in accordance with the Participant's election pursuant to
     Section 5(b)(iii);

v.   The distribution schedule (specifying the month and year(s)) applicable in
     the event of the Participant's Termination of Employment due to the
     Participant's Disability, which shall supersede the distribution schedule
     designated in Section 5(b)(iii) above, and shall be either (A) a single
     lump-sum payment made on a Payroll Date within a reasonable time (not to
     exceed 45 days) after the Valuation Date(s) immediately following any such
     Termination of Employment, or (B) up to 20 Annual Installments commencing
     on a Payroll Date within a reasonable time (not to exceed 45 days) after
     the Valuation Date(s) immediately following any such Termination of
     Employment; provided, that the timing

                                       7
<PAGE>

     and number of actual distributions shall be subject to the specific terms
     detailed in the materials describing each notional investment option or
     Plan Communication.

vi.  Some notional investment options attribute dividends after the distribution
     and reallocation process is completed (as detailed above). If this occurs,
     the dividend will be posted to Participants Deferral Account as soon as
     administratively feasible. The dividends will be notionally reinvested into
     the notional investment option that generated the dividend and will become
     available for reallocation in a subsequent monthly notional reallocation
     period. If a participant is receiving a final distribution of the entire
     balance of the Participant's Deferral Account, any subsequent dividends
     posted to the Participant's account will be distributed to the Participant
     through the Company's normal payroll procedures in the month immediately
     following any such notional dividend issue.

The distribution preferences specified on an Election Form shall apply only to
compensation deferred pursuant to such form (and any notional returns thereon),
and shall not apply to compensation deferred in other calendar years. Upon
deferral, Deferred Amounts will be notionally allocated to a default money
market fund and will remain so allocated until Participants notionally
reallocate Deferred Amounts in accordance with Section 6(c) below. Upon receipt
by the Governance Committee of an employee's valid Election Form, that employee
shall become a Participant, and the Deferral Elections of that Participant shall
be irrevocable; provided, that the Participant's notional investment elections
may be notionally reallocated pursuant to Section 6(c) below, and provided
further, that the Deferral Election may be unilaterally revoked by the Company
as the result of changes in law or regulations that would adversely affect the
Plan, including the intended deferred tax treatment of the Deferred Amounts.

c. Date of Election Except as provided below, a Deferral Election with respect
to Actual Cash Bonuses is only valid if it is received by the Governance
Committee on or prior to July 15th of the Election Year to which such Deferral
Election pertains and, with respect to Commissions, is only valid if it is
received by the Governance Committee prior to the Election Year in which such
Commissions are earned (the "Deferral Election Date").

i.   The Governance Committee may specify a different Deferral Election Date as
     it deems, in its sole discretion, necessary or desirable for any reason.

ii.  An employee who commences employment with the Company during an Election
     Year and meets the eligibility requirements of Section 4 above may file a
     valid Election Form with respect to the Actual Cash Bonus and, if
     applicable, Commissions, to be earned by such employee after the Deferral
     Election Date; provided, that such Election Form is received by the
     Governance Committee within 30 days after such Participant's first date of
     employment with the Company (or such other period as the Governance
     Committee deems, in its sole discretion, reasonably appropriate);

iii. The Governance Committee may specify a different Deferral Election Date
     with respect to any Actual Cash Bonus or Commissions payable during or
     relating to the year in which the Plan becomes effective; and

iv.  Under no circumstances may a Participant make a Deferral Election with
     respect to any portion of an Actual Cash Bonus or Commissions to which the
     Participant has attained, at

                                       8

<PAGE>

     the time of such Deferral Election, a legally enforceable right to receipt
     (either currently or upon the passage of time).

d. Effectiveness of Election Upon Certain Terminations of Employment If an
employee files an Election Form and then incurs a Termination of Employment for
any reason prior to the applicable Bonus Payment Date or Commission Payment
Date, such Election Form shall be deemed null and void, and, with respect to
such Election Year, such employee shall not become a Participant and no deferral
of such employee's Actual Cash Bonus or Commissions shall be made.

6. Deferral Accounts The following provisions shall apply to Deferral Accounts:

a. Establishment and Crediting of Deferral Accounts The Governance Committee
shall establish a separate Deferral Account for each Participant. The Governance
Committee may separate Deferral Accounts into sub-accounts as it deems
appropriate. On the Participant's initial Bonus Payment Date or Commission
Payment Date, as applicable, with respect to which the Participant has made a
Deferral Election (and each subsequent Bonus Payment Date or Commission Payment
Date, as applicable, with respect to which such Participant makes a Deferral
Election), the appropriate Deferred Amount shall be credited to such Deferral
Account (or a sub-account thereof). Deferral Accounts shall also be credited
and/or debited to reflect notional returns on the notional investment options
designated in the Election Form corresponding to each Deferral Account (taking
into consideration any notional reallocations pursuant to Section 6(c) below).

b. Initial Notional Allocation of Deferral Accounts Deferred Amounts credited to
a Deferral Account will initially be notionally allocated in the default money
market fund until Participants make valid notional reallocations request
pursuant to Section 6(c). Participants will not make any notional allocation
requests in their Election Forms.

c. Notional Reallocation of Notional Investments

i.   Notional reallocations must be made in increments of one percent of the
     value of a Deferral Account.

ii.  Prior to October 1, 2003, Participants may notionally reallocate amounts
     credited to their Deferral Accounts up to twice per calendar month.
     Notional reallocation orders received by the record keeper on a Business
     Day prior to 4:00p.m. EST will take effect on the following Business Day.

iii. Effective October 1, 2003, Participants may notionally reallocate amounts
     credited to their Deferral Accounts no more than once per calendar month.
     Notional reallocation requests must be made on or before the sixth to the
     last Business Day of the month and will be processed in accordance with the
     valuation and processing procedures described in the applicable investment
     option materials or Plan Communications. Requests received after the sixth
     to the last Business Day of the month shall be deemed to have been received
     in the next succeeding calendar month.

                                       9

<PAGE>

iv.  Notwithstanding the foregoing, the Governance Committee, in its sole
     discretion, may modify the procedures that Participants must follow
     regarding notional reallocations, including without limitation, the timing
     and frequency of notional reallocations and shall communicate any changes
     to Participants.

d. Elimination or Substitution of Notional Investment Options The Investment
Committee may add notional investment options to the Plan and discontinue any of
the notional investment options available under the Plan at any time for any
reason, subject to the consent of the Executive Committee. If the Investment
Committee eliminates a notional investment option, it may, in its discretion
subject to the approval of the Executive Committee, replace such discontinued
option with a notional investment option comparable in risks and objectives to
the discontinued notional option. Any Participant affected by the elimination of
a notional investment option shall be given a reasonable opportunity, to the
extent reasonably practicable and as deemed appropriate in the sole discretion
of the Governance Committee, to redirect the allocation of the portion of his or
her Deferral Account notionally invested in the discontinued notional investment
option among the other notional investment options, including any replacement
option. In the event the Governance Committee does not receive instructions from
an affected Participant or does not provide Participants with the opportunity to
redirect the allocation of their Deferral Account, the affected Participants'
Deferral Accounts shall be notionally invested in a money market investment
option.

The value of Deferral Accounts is subject to risk at all times based upon the
performance of the notional investment options to which it is notionally
allocated. If the value of the notional investment options to which a Deferral
Account is notionally allocated decreases in the future, the value of such
Deferral Account may be lower than the value of the initial Deferred Amounts.
Although Deferred Amounts will not actually be invested in the funds underlying
the notional investments options, such amounts will be subject to gains and
losses attributable to such funds. The Governance Committee may provide
Participants with a description of the underlying funds and their historical
returns, however, neither the Company nor the Committee is responsible for
actions, statements or performance of such funds. The performance of the
notional indexes will reflect all of the fees and costs of the referenced fund,
including among other things, fund administration fees. Although you will not
actually be investing in the underlying funds, the fund administration fees that
are reflected in the performance of the referenced fund will reduce the amount
of the company's deferred obligation to you and will be reflected in your
Deferral Account.

7. Distribution of Deferral Accounts

a. Cash Distribution All Deferral Accounts shall be distributed in cash only.

b. Timing of Distributions Except as otherwise provided herein, the balance of
each Deferral Account shall be distributed to the appropriate Participant in
accordance with the Participant's preference indicated pursuant to Section
5(b)(iii) above in the Election Form(s) corresponding to such Participant's
Deferral Account, assuming the Participant remains employed through, or has a
Termination of Employment due to Retirement prior to, the first scheduled
distribution date, provided, that all such distributions shall be made either
(i) in a single lump-sum payment, or (ii) in a number of Annual Installments not
to exceed twenty, in each case on a Payroll Date within a reasonable time (not
to exceed 45 days) after the Valuation Date(s) on or immediately following

                                       10
<PAGE>

such distribution date(s), provided, further, that the timing of actual
distributions shall be subject to the specific terms and conditions regarding
valuation and distribution procedures described in the applicable notional
investment option materials or Plan Communications. Earlier distributions of
Deferral Accounts may occur as follows:

i.   Participant's Termination of Employment by the Company Without Cause Except
     as otherwise provided herein, in the event of a Participant's Termination
     of Employment by the Company without Cause (other than a Termination of
     Employment by the Company without Cause under circumstances that meet the
     definition of Retirement in the Plan), the Participant's Deferral Account
     shall be distributed in accordance with the Participant's preference
     indicated in the Election Form corresponding to such Participant's Deferral
     Account pursuant to Section 5(b)(iv) above, subject to the specific terms
     and conditions regarding valuation and distribution procedures described in
     the applicable Plan Communications or notional investment option materials.
     The preferred Termination of Employment without Cause distribution schedule
     shall govern distributions from such Deferral Account without regard to
     whether the Participant had begun receiving installment payments prior to
     his or her Termination of Employment without Cause. If a Participant does
     not express a preferred Termination of Employment without Cause
     distribution schedule on the applicable Election Form, distributions from
     such Deferral Accounts shall be distributed in accordance with the
     Participant's election under Section 5(b)(iii) above.

ii.  Participant's Termination of Employment Due to Disability Except as
     otherwise provided herein, in the event of a Participant's Disability, the
     Participant's Deferral Account shall be distributed in accordance with the
     Participant's preference indicated in the Election Form(s) corresponding to
     such Participant's Deferral Account pursuant to Section 5(b)(v) above,
     subject to the specific terms and conditions regarding valuation and
     distribution procedures described in the applicable Plan Communications or
     notional investment option materials. The preferred Disability distribution
     schedule(s) shall govern distributions from such Deferral Account without
     regard to whether the Participant had begun receiving installment payments
     prior to his or her Disability. If a Participant does not express a
     preferred Termination of Employment due to Disability distribution schedule
     on the applicable Election Form, distributions from such Deferral Accounts
     shall be distributed in accordance with the Participant's election under
     Section 5(b)(iii) above.

iii. Participant's Death Except as otherwise provided herein, in the event of
     the Participant's death, the Participant's Deferral Account balance shall
     be distributed in a lump-sum payment to the Participant's Beneficiary(ies),
     subject to the specific terms and conditions regarding valuation and
     distribution procedures described in the applicable Plan Communications or
     notional investment option materials in which the Participant's Deferral
     Account was notionally invested, on a Payroll Date within a reasonable time
     (not to exceed 45 days) after the Valuation Date(s) immediately following
     the date on which the Governance Committee is notified of the Participant's
     death. Such lump-sum distribution shall be made without regard to whether
     the Participant had begun receiving installment payments prior to his or
     her death.

iv.  Termination for Cause Except as otherwise provided herein, in the event of
     a Participant's Termination of Employment for Cause, such Participant's
     Deferral Account shall be

                                       11

<PAGE>

     distributed, subject to the specific terms and conditions regarding
     valuation and distribution procedures described in the applicable Plan
     Communications or notional investment option materials in which the
     Participant's Deferral Account was notionally invested, on a Payroll Date
     within a reasonable time (not to exceed 45 days) after the Valuation
     Date(s) immediately following such Termination of Employment.

v.   All Other Terminations of Employment Except as otherwise provided herein,
     in the event of a Participant's Termination of Employment for any reason
     not enumerated above, including a voluntary resignation, the Participant's
     Deferral Account shall be distributed, subject to the specific terms and
     conditions regarding valuation and distribution procedures described in the
     applicable Plan Communications or notional investment option materials in
     which the Participant's Deferral Account was notionally invested, on a
     Payroll Date within a reasonable time (not to exceed 45 days) after the
     Valuation Date(s) determined in accordance with the Participant's
     preference indicated in the Election Form corresponding to such
     Participant's Deferral Account pursuant to Section 5(b)(iii) above.

Notwithstanding the foregoing, in the event the Company experiences a Change in
Control, business restructuring, wind down or corporate reorganization, the
Governance Committee may accelerate the distribution of Deferral Accounts as it
deems appropriate in its absolute discretion, provided that all similarly
situated Participants are treated alike.

c. Unforeseen Hardship If a Participant suffers an Unforeseen Hardship (as
defined below), the Governance Committee, in its sole discretion, may distribute
to the Participant that portion of his or her Deferral Account which the
Governance Committee determines, in its sole discretion, to be necessary to
alleviate the Unforeseen Hardship, including any amounts necessary to pay any
federal, state or local income taxes reasonably anticipated to result from the
distribution. A Participant requesting an emergency distribution to alleviate an
Unforeseen Hardship shall apply for the distribution in writing on a form
approved by the Governance Committee and shall provide such additional
information as the Governance Committee may deem necessary. "Unforeseen
Hardship" means an immediate and heavy financial need resulting from any of the
following and that the Participant cannot satisfy by any means other than a
distribution from his or her Deferral Account:

i.   Expenses which are not covered by insurance and which the Participant or
     his or her spouse or dependent has incurred as a result of, or is required
     to incur in order to receive, medical care;

ii.  A threatened eviction of the Participant from his or her principal
     residence or foreclosure on the mortgage of the Participant's principal
     residence; or

iii. Any other circumstance that is determined by the Governance Committee, in
     its sole discretion, to constitute an Unforeseen Hardship which is not
     covered by insurance and which cannot reasonably be relieved absent a
     distribution from his or her Deferral Account.

If a Participant receives an Unforeseen Hardship distribution of all or part of
his or her Deferral Account, that Participant will not be permitted to make any
additional Deferral Elections pursuant to this Plan for a period of 1 year after
such distribution is made.

                                       12
<PAGE>

8. Statements The Governance Committee shall furnish (or otherwise make
available) statements to each Participant reflecting the balance of his or her
Deferral Account, including any notional gains or losses resulting from the
notional investment of such Deferral Account balance, not less frequently than
once each calendar quarter.

9. Amendment, Suspension or Termination of the Plan The Executive Committee, in
its sole discretion, may amend, suspend or terminate the Plan without the
consent of the Participants, stockholders or any other person and may, in its
sole discretion, distribute the Deferral Account balance of any Participant at
any time, including without limitation, upon a Termination of Employment;
provided, however, that no such amendment, suspension or termination of the Plan
shall materially and adversely affect the amount credited to the Deferral
Account of any Participant as of the date of any such action (other than a
reduction in connection with a distribution).

10. General Provisions

a.   Limits on Transfer of Awards; Beneficiaries No right or interest of a
     Participant under the Plan shall be (i) pledged, encumbered, or
     hypothecated in any way, (ii) liable for or subject to any lien,
     obligation, or liability other than any lien, obligation or liability that
     such Participant may have with respect to the Company, or (iii) assignable
     or transferable by a Participant otherwise than by the laws of descent and
     distribution; provided, however, that a Participant may designate a
     Beneficiary (or Beneficiaries) to receive any distribution under the Plan
     in the event of the death of the Participant by utilizing the form provided
     by the Governance Committee for this purpose. A Beneficiary, guardian,
     legal representative or other person claiming any rights under the Plan
     from or through any Participant shall be subject to all terms and
     conditions of the Plan as well as the Election Form or other forms used
     under the Plan that would be applicable to such Participant unless the
     Plan, the Governance Committee's rules or their instructions provide
     otherwise with respect to such persons.

b.   Receipt and Release Each Participant, upon making a valid Deferral Election
     with respect to a portion of any Actual Cash Bonus or Commission, shall
     cease to have any enforceable interest in or claim to the deferred portion
     of such Actual Cash Bonus and Commission, if applicable, except as provided
     under this Plan with respect to Deferral Account balances. Distributions of
     Deferral Account balances, to the extent of such distributions, shall be in
     full satisfaction of all claims against the Company and/or the Committee
     for the Deferral Account balances to which such distributions relate. The
     Governance Committee may require Participants or Beneficiaries, as a
     condition to such distributions, to execute a receipt and release to this
     effect.

c.   Unfunded Status of Awards; Creation of Trusts The Plan is a non-qualified
     deferred compensation program, and as such is unfunded and unsecured. This
     means that all deferred amounts shall remain subject to the claims of the
     Company's general creditors. It is the express intent of the Company that
     the Plan constitute "a plan which is unfunded and is maintained by an
     employer primarily for the purpose of providing deferred compensation for a
     select group of management or highly compensated employees," within the
     meaning of Sections 201(2), 301(a)(3), 401(a)(1) and 4021(b)(6) of the
     Employee Retirement Income Security Act of 1974, as amended. With respect
     to any Deferral Account balance, nothing

                                       13
<PAGE>

     shall confer upon any Participant or Beneficiary any rights that are
     greater than those of a general creditor of the Company; provided, that the
     Governance Committee may authorize the creation of trusts or make other
     arrangements which could be used by the Company to assist it in meeting its
     obligations under the Plan, which trusts or other arrangements shall be
     consistent with the "unfunded" status of the Plan unless the Governance
     Committee otherwise determines. The Company cannot guarantee that changes
     in the law or regulations will not result in adverse tax consequences,
     including as a result of the use of a grantor trust.

d.   Plan Structure and Account Status Deferred Amounts and amounts credited to
     a Participant's Deferral Account are not actually invested in the notional
     investment options and neither the Company nor any third party is under any
     obligation to make any investments in connection with Participants'
     notional investment allocations. Participants will have no ownership or
     other interest in any financial or other instrument or arrangement that the
     Company may acquire or enter into to hedge its obligations under this Plan.

e.   Compliance With Other Company Obligations Participants shall have no right
     to receive distributions with respect to any Deferral Accounts until all of
     the Participant's legal and contractual obligations to the Company existing
     prior to the time such right arose shall have been complied with in full.

f.   No Right to Continued Employment Except as may otherwise be provided in
     separate agreements, all employees of the Company are "at-will" employees.
     Accordingly, nothing contained in this Plan shall confer, and neither the
     establishment of a Deferral Account nor the crediting of any amounts
     thereto shall be construed as conferring upon any Participant any right to
     (i) continue in employment with the Company, (ii) interfere in any way with
     the Company's right to terminate the employment of the Participant with the
     Company, or (iii) increase or decrease the level of compensation or
     responsibilities of such Participant.

g.   No Rights in Notional Investment Options Nothing contained in this Plan
     shall confer, and neither (i) the establishment, (ii) the crediting of any
     amounts to, (iii) the notional allocation of, nor (iv) any notional
     reallocation of a Deferral Account shall be construed as conferring upon
     any Participant any right or interest in any of the notional investment
     options available for the notional investment of Deferral Account balances.

h.   Applicable Withholdings and Reporting All distributions to be made pursuant
     to the Plan shall be subject to any required federal, state, local and
     other applicable withholdings or deductions as determined by the Company
     and all amounts paid under the Plan shall be reported as ordinary income to
     the relevant taxing authority.

i.   No Right to Participate No employee of the Company shall have any claim or
     right to participate in the Plan. The invitation of an employee to
     participate in the Plan with respect to any Election Year shall not confer
     upon such employee any right to participate in the Plan in any subsequent
     Election Year.

j.   Plan Expenses Other than any administrative expenses and fees (including
     12b-1 fees) that may be incurred with respect to Participants' Deferral
     Accounts (which fees shall be deducted from Participants' Deferral Accounts
     as deemed appropriate in the sole discretion of the Governance Committee),
     all expenses and costs incurred in connection with the operation of

                                       14
<PAGE>

     the Plan shall be borne by the Company; provided that the Company may
     determine at any time in its sole discretion to pass the costs of the Plan
     on to the Participants.

k.   Governing Law The validity, construction, and effect of the Plan and any
     rules and regulations relating to the Plan shall be governed in accordance
     with the laws of the State of New York without giving effect to the
     principles of conflicts of laws thereof.

l.   Interpretation Whenever necessary or appropriate in the Plan, where the
     context requires, the singular term and the related pronouns shall include
     the plural and the masculine gender shall include the feminine gender.

m.   Successors and Assigns Subject to the limitations set forth in Section
     10(a) above, the Plan shall inure to the benefit of, and be binding upon,
     the parties hereto and their successors and assigns.

n.   Headings The headings contained in this Plan document are for convenience
     only and shall have no bearing upon the interpretation or construction of
     this Plan document.

11. Effective Date This Plan is adopted effective as of December 15, 1993, as
amended through June 1, 2004. As of this date, this Plan applies to all awards
granted under this Plan, and supersedes and replaces all prior plan documents
previously provided until a plan issued with a later effective date supersedes
and replaces this Plan.

                                       15
<PAGE>

Addendum: Share Deferral Program Under the Deutsche Bank Executive Fund Tracker
(EFT) for U.S. Residents (Cash Bonus Deferral Plan) As Amended Through June 1,
2004 Dated June 1, 2004

     This addendum ("Addendum") supplements the Deutsche Bank Executive Fund
Tracker (EFT) Plan for U.S. Residents (Cash Bonus Deferral Plan), as amended
through June 1, 2004 (the "Plan"), by providing a separate share deferral
program pursuant to which individuals eligible to participate in the Plan may
defer certain Deutsche Bank equity awards. Except as expressly modified herein,
all terms and conditions of the Plan are incorporated into this Addendum as if
first set forth herein. The provisions of this Addendum shall in no way affect
cash deferrals made in accordance with the Plan. Any capitalized terms contained
but not defined in this Addendum will have the meanings provided in the Plan.

1. Definitions

a.   "DB Share Scheme Award" means an award to a Participant of notional
     Deutsche Bank shares pursuant to the DB Share Scheme applicable to such
     Participant, as amended from time to time, or such other equity
     compensation plan as the Committee, in its sole discretion, determines.

b.   "DB Share Scheme Award Vesting Date" means the date on which the notional
     Deutsche Bank shares awarded to a Participant pursuant to a DB Share Scheme
     Award vest and would otherwise be distributed to the Participant absent his
     or her deferral pursuant to this Plan.

c.   "Deferral Election" means, with respect to DB Share Scheme Awards, a
     Participant's election to defer a portion of his or her DB Share Scheme
     Award(s) under the terms of the Plan, provided, that any such election
     shall be irrevocable once accepted by the Committee and no modifications to
     the distribution schedule of any such deferral shall be permitted, except
     as may otherwise be provided by the terms of the Plan.

n.   "Deferred Amount" means, with respect to DB Share Scheme Award(s), any
     portion of such DB Share Scheme Award(s) deferred pursuant to the Plan.

o.   "Election Year" means, with respect to DB Share Scheme Award(s), the
     calendar year preceding the DB Share Scheme Award Vesting Date(s)
     applicable to such DB Share Scheme Award(s).

2. Deferral of DB Share Scheme Awards Employees who meet the eligibility
requirements contained in Section 4 of the Plan shall be permitted to defer, in
addition to any other Deferred Amounts under the Plan, up to 90% of DB Share
Scheme Award(s) due to vest in the calendar year following an Election Year,
provided that deferrals of DB Share Scheme Awards must have a minimum value of
$15,000 at the time of the applicable Deferral Election. Elections to defer DB
Share Scheme Awards shall be made by July 15th of the applicable Election Year,
or such other date as the Committee, in its sole discretion, determines. If a
Deferral Election requests deferral of an amount in excess of 90% of any DB
Share Scheme Award(s), such request shall be adjusted by the Committee so that
it complies with the 90% limit.

                                       16
<PAGE>

3. Election Form Each Participant who wishes to defer a portion of any DB Share
Scheme Award(s) shall complete a separate Election Form for such award(s)
containing the following information, as well as any additional information
reasonably required by the Committee:

a. Confirmation of the DB Share Scheme Award Vesting Date(s) applicable to the
deferred portion of the DB Share Scheme Award(s);

b. The percentage, not to exceed 90%, of the DB Share Scheme Award(s) to be
deferred under the Plan;

c. The distribution schedules applicable to the deferred DB Share Scheme
Award(s), as provided in Sections 5(b)(iii), 5(b)(iv) and 5(b)(v) of the Plan.

4. Crediting of Notional Deutsche Bank Shares to Deferral Account If a
Participant makes a valid deferral of any portion of any DB Share Scheme
Award(s), a number of notional Deutsche Bank Shares equal to the amount so
deferred shall be credited to such Participant's Deferral Account on the DB
Share Scheme Award Vesting Date(s) applicable to the deferred portion of such DB
Share Scheme Award(s). Notional Deutsche Bank shares credited to a Deferral
Account under the Plan shall be held as notional Deutsche Bank shares at all
times prior to their distribution, and, notwithstanding any provision of the
Plan to the contrary, shall not be subject to reallocation as provided in
Section 6(c) of the Plan. Any notional dividends paid on notional Deutsche Bank
shares held in Deferral Accounts shall be notionally allocated to the default
money market fund and may be notionally reallocated by Participants as provided
in Section 6(c) of the Plan.

5. Distribution of Deferred Amounts Any portion of a Participant's Deferred
Amount that is comprised of notional Deutsche Bank Shares shall be distributed,
without exception, in Deutsche Bank shares, and shall otherwise be distributed
in accordance with the provisions of Section 7 of the Plan, including without
limitation, the termination of employment provisions contained therein. Notional
dividends (and any gains or losses on the notional investment thereof) shall be
distributed in cash.

6. No Rights In Notional Shares Participants shall have no rights in any
Deutsche Bank shares as a result of the crediting of notional Deutsche Bank
shares to their Deferral Accounts.

7. Participation Fees If a Participant's employment with the Company is
terminated, a quarterly administration fee of 15 basis points will be assessed
on the balance of notional Deutsche Bank shares held in the Plan for such
Participant. No participation fees will be charged to Participants who are
active employees of the Company with respect to notional Deutsche Bank shares
held in the Plan.

In addition to those risks noted in the Plan, the value of any Deferral Account
holding notional Deutsche Bank Shares is subject to risk at all times based upon
the performance of the notional Deutsche Bank shares held in such Deferral
Accounts. If the value of notional Deutsche Bank shares decreases in the future,
the value of a Deferral Account holding such shares may be lower than the value
of the initial Deferred Amounts. Although Deferred Amounts will not actually be
invested in Deutsche Bank shares, such amounts will be subject to gains and
losses attributable to such shares.

                                       17

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