Document:

Form of Executive Compensation Agreement

 Exhibit 10.4 
 EXECUTIVE COMPENSATION AGREEMENT 
 This Executive Compensation Agreement (the
“Agreement”) is made and entered into effective as of March 13, 2009, by and between Discover Financial Services, a Delaware corporation (the “Company”), and the executive name below (the
“Executive”). 
 WHEREAS, the Company, through the Compensation Committee of its Board of Directors (the
“Committee”), has adopted the Discover Financial Services Change in Control Severance Policy (“Policy”) effective September 21, 2007, as amended; and 
 WHEREAS, the Company, through the Committee, also has made certain equity-based compensation awards to the Executive (the “Discover
Awards”), and provides compensation and benefits through other plans, programs and arrangements (such plans, programs and arrangements are herein referred to collectively as the “Discover Plans”); and 
 WHEREAS, Morgan Stanley also has made certain equity-based compensation awards to the Executive, which were converted to Company equity-based
awards in connection with the Company’s spin-off from Morgan Stanley (the “Morgan Stanley Awards” and together with the Discover Awards are referred to herein as the “Awards”), and provides compensation and
benefits through other plans, programs and arrangements (such plans, programs and arrangements are herein referred to collectively as the “Morgan Stanley Plans” and together with the Discover Plans are referred to herein as the
“Plans”); and 
 WHEREAS, the United States Department of the Treasury (the “UST”) has implemented
and will implement various capital access programs for financial institutions under the Troubled Asset Relief Program (“TARP”) established by the Emergency Economic Stabilization Act of 2008, as amended by the American Recovery and
Reinvestment Act of 2009 (“EESA”); and 
 WHEREAS, EESA imposes certain requirements and conditions for institutions that
wish to participate in the TARP, including the imposition of certain restrictions on executive compensation; and 
 WHEREAS, the UST
has promulgated regulations on the application of these restrictions, and the UST retains the right to and may promulgate additional requirements and guidelines for institutions that wish to participate in the TARP; and 
 WHEREAS, the Company and the Executive believe that it is in the best interests of the Company to participate in the TARP in order to utilize a
potential new source of capital that will provide the Company with economic benefits; and 
 WHEREAS, the Company and the Executive
now consider it desirable to amend the Policy, Plans and Awards by this Agreement to qualify for participation in the TARP; 
 NOW
THEREFORE, in consideration of the mutual promises herein made and for the benefits the Executive will receive as a result of the Company’s participation in the TARP, the 

 
sufficiency of which are expressly acknowledged, the Company and the Executive agree as follows: 
 1. During any period in which any obligation arising from financial assistance provided under the TARP remains outstanding, not including
any period during which the Federal Government only holds warrants to purchase common stock of the Company (the “TARP Obligation Period”), notwithstanding any other provision of the Policy, Plans or Awards, to the contrary, the limitations
and restrictions of Section 111 of EESA will apply to the Company and the Executive, and the Policy, Plans and Awards are hereby deemed amended by this Agreement. 
 2. During any TARP Obligation Period, the Executive hereby agrees and consents to take such actions as are necessary and appropriate to
establish modifications, conditions, or other restrictions on the Executive’s compensation, including, without limitations, amendments of the Policy, Plans and Awards, in order to comply with Section 111 of EESA, its conforming
regulations, and any other relevant requirements of EESA and the TARP (the “EESA Requirements”), including, without limitation, termination of the Policy, Plans, Awards, or other compensation arrangements, to the extent such action
may reasonably be deemed necessary by the Company, in the opinion of its counsel, in order to so comply. Without limiting the application of the preceding sentence, the Executive hereby consents to the amendment of the Policy, Plans, and Awards, as
they relate to the Executive, and the Executive formally waives any claims the Executive may otherwise have against the Company, its subsidiaries, affiliates, assigns or successors (including any officer or director thereof) relating to the
amendment or any termination of the Policy, Plans, Awards, and other compensation arrangements. 
 3. The Executive hereby
voluntarily waives any claim against the Company for any changes to the Executive’s compensation or benefits that are required to comply with the EESA Requirements. The Executive acknowledges that the EESA Requirements may impose modification
of the compensation, bonus, incentive and other benefit plans, arrangements, policies and agreements (including so-called “golden parachute” agreements) that the Executive has with the Company or in which the Executive participates as they
relate to the TARP Obligation Period. 
 4. If the Executive is required to reimburse, or the Company is required to withhold
or “claw-back,” any bonus, retention award, or other compensation paid or payable to the Executive in order to comply with Section 111 of EESA, the Company will indemnify the Executive for reasonable legal fees incurred in connection
with any challenge to the UST’s claims and will reimburse the Executive’s reasonable expenses incurred in the filing of amended or other tax returns as may be necessary in connection with such reimbursement, withholding or claw-back, in
each case subject to the same terms and conditions for the indemnification of officers as apply under the Company’s by-laws; in each case, provided that the specific provisions of the financial statements, statements of earnings, revenues,
gains, or other performance metrics or criteria that resulted in the clawback requirement was not caused, directly or indirectly, by the Executive’s misconduct or gross negligence. 

 5. Any deemed amendment of the Policy, Plans and Awards will only apply to the Executive
during a TARP Obligation Period, will only apply to the minimum extent necessary to comply with the EESA Requirements, and will automatically lapse as to the Executive and the Company on the close of business on the day on which any obligation
arising from financial assistance provided under the TARP ceases to be outstanding. 
 6. If any portion of this Agreement is
found to be invalid or unenforceable, the remainder of the Agreement shall remain in full force and effect. This Agreement shall constitute the entire agreement between the Company and the Executive with respect to the subject matter hereof and
supersedes all prior or contemporaneous representations and agreements related thereto. 
 7. This Agreement will be governed
by Illinois law. 
 IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the date indicated above.

  

									
	DISCOVER FINANCIAL SERVICES	 		 	EXECUTIVE
					
	By:	 	  
	 		 	By:	 	  

					
	Its:	 	  
	 		 	Print Name:Amendment No. 2 to the Credit Agreement

 Exhibit 10.6 
 EXECUTION COPY 
 AMENDMENT NO. 2, dated as of March 11, 2009, to the Credit Agreement referred to
below, among DISCOVER FINANCIAL SERVICES, a Delaware corporation, DISCOVER BANK, a Delaware banking corporation, the SUBSIDIARY BORROWERS party from time to time thereto, the LENDERS party thereto and JPMORGAN CHASE BANK, N.A., as administrative
agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”). 
 The
Borrowers, the Lenders and the Administrative Agent are parties to a Credit Agreement dated as of June 6, 2007 (as amended by Amendment No. 1 dated as of February 29, 2008 and as modified and supplemented and in effect from time to
time, the “Credit Agreement”), providing, subject to the terms and conditions thereof, for extensions of credit to be made by or on behalf of said Lenders to the Borrowers in an aggregate principal amount not to exceed
$2,500,000,000. The Borrowers, the Lenders and the Administrative Agent wish to amend the Credit Agreement in certain respects and, accordingly, the parties hereto hereby agree as follows: 
 Section 1. Definitions. Except as otherwise defined in this Amendment No. 2, terms defined in the Credit Agreement (as amended hereby)
are used herein as defined therein. 
 Section 2. Amendments. Effective as of the date hereof as provided in Section 4 of
this Amendment No. 2, the Credit Agreement is hereby amended as follows: 
 2.01. References in the Credit Agreement to “this
Agreement” (and indirect references such as “hereunder”, “hereby”, “herein” and “hereof”) shall be deemed to be references to the Credit Agreement as amended hereby. 
 2.02. Defined Terms. Section 1.01 of the Credit Agreement is hereby amended by adding the following new definitions: 
 “Department of Education Loan Participation Program” means a program pursuant to which the United States Department of
Education purchases participation interests in eligible student loans that have been transferred to a custodian by a Company or Subsidiary. 
 2.03. Liens. 
 (a) Section 6.02 of the Credit Agreement is hereby amended by deleting the word “and” at the
end of clause (i) thereof. 
 (b) Section 6.02 of the Credit Agreement is hereby amended by deleting the existing clause (j)
and adding a new clause (j) to read in its entirety as follows: 
 “(j) Liens in favor of a custodian for the
benefit of the United States Department of Education to secure advances (or future advances) made (or to be made) to, or participation interests purchased from, such Company or Subsidiary in connection with a Department of Education Loan
Participation Program; and” 

 (c) Section 6.02 of the Credit Agreement is hereby amended by adding a new clause (k) to read
in its entirety as follows: 
 “(k) other Liens securing obligations in an aggregate amount not to exceed $100,000,000 at
any time outstanding.” 
 2.04. Mergers, Consolidations, Sales of Assets, Etc. Section 6.03(a) of the Credit Agreement is
hereby amended by replacing the words “(other than dispositions of assets pursuant to a Permitted Securitization)” therein with the words “(other than dispositions of assets pursuant to a Permitted Securitization or in connection with
participation in a Department of Education Loan Participation Program)”. 
 2.05. Restrictive Agreements. Section 6.07 of
the Credit Agreement is hereby amended by replacing the words “without reference to Section 6.02(g)” therein with the words “without reference to Section 6.02(k)”. 
 Section 3. Representations and Warranties. Each Borrower hereby represents and warrants to the Administrative Agent and the Lenders that
(i) the representations and warranties of such Borrower set forth in Article III of the Credit Agreement are, on the date hereof, true and complete as if made on the date hereof (and after giving effect to this Amendment No. 2) and as
if each reference in said Article III to “this Agreement” includes reference to this Amendment No. 2 and (ii) both immediately before and after giving effect to the amendments under Section 2 hereof, no Default has occurred
and is continuing. 
 Section 4. Conditions Precedent. The amendments to the Credit Agreement set forth in Section 2 of this
Amendment No. 2 shall become effective, as of the date hereof, upon the satisfaction of each of the following conditions precedent: 
 (i) receipt by the Administrative Agent of one or more counterparts of this Amendment No. 2 duly executed and delivered by each of the Borrowers and the Required Lenders; and 
 (ii) payment by the Companies to the Administrative Agent of all fees and other amounts due and payable on or prior to the date this
Amendment No. 2 becomes effective, including amounts, to the extent invoiced, for the reimbursement or payment of all out-of-pocket expenses required to be reimbursed by the Companies. 
 Section 5. Miscellaneous. Except as herein provided, the Credit Agreement shall remain unchanged and in full force and effect and is hereby
ratified and confirmed. This Amendment No. 2 may be executed in any number of counterparts, all of which taken together shall constitute one and the same agreement and any of the parties hereto may execute this Amendment No. 2 by
signing any such counterpart. This Amendment No. 2 shall be governed by, and construed in accordance with, the laws of the State of New York. 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 2 to be duly executed and
delivered as of the day and year first above written. 
  

			
	DISCOVER FINANCIAL SERVICES
		
	By:	 	/s/ Stephen R. Etherington
	 Name:
 Title:
	 	 Stephen R. Etherington
 Senior Vice President and
Treasurer

	  
 U.S. Federal Tax Identification No.:
36-2517428

  
  

			
	DISCOVER BANK
		
	By:	 	/s/ Michael F. Rickert
	 Name:
 Title:
	 	 Michael F. Rickert
 Vice President, Chief Financial
Officer and Treasurer

	  
 U.S. Federal Tax Identification No.:
51-0020270

			
	 JPMORGAN CHASE BANK, N.A.,
 individually and
as Administrative Agent,

		
	By:	 	/s/ Henry E. Steuart
	 Name:
 Title:
	 	 Henry E. Steuart
 Executive
Director

			
	 LENDERS
  
 BARCLAYS BANK PLC

		
	By:	 	/s/ David Barton
	 Name:
 Title:
	 	 David Barton
 Director

			
	 LENDERS
  
 THE BANK OF TOKYO-MITSUBISHI UJF, LTD., NEW YORK BRANCH

		
	By:	 	/s/ Chimie T. Pemba
	 Name:
 Title:
	 	 Chimie T. Pemba
 Authorized
Signatory

			
	 LENDERS
  
 CREDIT SUISSE, CAYMEN ISLANDS BRANCH

		
	By:	 	/s/ Jay Chall
	 Name:
 Title:
	 	 Jay Chall
 Director

  

			
		
	By:	 	/s/ Karl Studer
	 Name:
 Title:
	 	 Karl Studer
 Director

			
	 LENDERS
  
 GREENWICH CAPITAL MARKETS, INC., AS AGENT FOR THE ROYAL BANK OF SCOTLAND PLC

		
	By:	 	/s/ Fergus Smail
	 Name:
 Title:
	 	 Fergus Smail
 Senior Vice
President

			
	 LENDERS
  
 THE BANK OF NEW YORK MELLON

		
	By:	 	/s/ Jean Earley
	 Name:
 Title:
	 	 Jean Earley
 Vice President

			
	 LENDERS
  
 U.S. BANK NATIONAL ASSOCIATION

		
	By:	 	/s/ Jeffrey S. Johnson
	 Name:
 Title:
	 	 Jeffrey S. Johnson
 Vice
President

			
	 LENDERS
  
 WILLIAM STREET CREDIT CORPORATION

		
	By:	 	/s/ Mark Walton
	 Name:
 Title:
	 	 Mark Walton
 Assistant Vice
President

			
	 LENDERS
  
 BANK OF AMERICA

		
	By:	 	/s/ Stefanie Brown
	 Name:
 Title:
	 	 Stefanie Brown
 Vice President

			
	 LENDERS
  
 WELLS FARGO BANK, NATIONAL ASSOCIATION

		
	By:	 	/s/ Elizabeth S. Collins
	 Name:
 Title:
	 	 Elizabeth S. Collins
 Senior Vice
President

			
	 LENDERS
  
 MERRILL LYNCH BANK USA

		
	By:	 	/s/ Louis Alder
	 Name:
 Title:
	 	 Louis Alder
 First Vice President

			
	 LENDERS
  
 SOCIÉTÉ GÉNÉRALE

		
	By:	 	/s/ Shelley Yu
	 Name:
 Title:
	 	 Shelley Yu
 Director

			
	 LENDERS
  
 WACHOVIA BANK, NATIONAL ASSOCIATION

		
	By:	 	/s/ Grainne M. Pergolini
	 Name:
 Title:
	 	 Grainne M. Pergolini
 Director

			
	 LENDERS
  
 HSBC BANK USA, NATIONAL ASSOCIATION

		
	By:	 	/s/ Jimmy Tse
	 Name:
 Title:
	 	 Jimmy Tse
 Vice President

			
	 LENDERS
  
 FIRST COMMERCIAL BANK, LOS ANGELES BRANCH

		
	By:	 	/s/ Wen-Han Wu
	 Name:
 Title:
	 	 Wen-Han Wu
 Deputy General
Manager

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