Document:

exv10w1

 

Exhibit 10.1

INDEPENDENT CONTRACTOR AGREEMENT

          This Independent Contractor Agreement (the “Agreement”) is entered into this 1st
day of February, 2007 (“Effective Date”), by and between L’Atelier, a California Limited
Partnership (“Contractor”), and Guru Denim, Inc., a California corporation (the “Company”), with
respect to the following facts:

RECITALS

     A. The Company is a corporation duly organized and qualified to do business under the laws of
the State of California and is engaged in the business of designing, manufacturing and distributing
clothing both domestically and internationally.

     B. Contractor is engaged in the business of coordinating United States wholesale full price
sales, and wishes to provide her services to Company.

     C. Company wishes to retain Contractor on an exclusive basis to provide her services to
Company pursuant to the terms and conditions set forth in this Agreement.

     NOW THEREFORE, in consideration of the mutual covenants in this Agreement and for other good
and valuable consideration, it is agreed as follows:

     1. Term and Termination. The term of the Agreement shall be five (5) years,
commencing as of the Effective Date, provided that neither party terminates this Agreement earlier
as allowed by this Section 1. Either party may terminate this Agreement for any reason at any time
by giving the other party twelve (12) months prior written notice. Moreover, this Agreement shall
terminate automatically on the day Contractor dies or becomes permanently incapable of performing
her duties under this Agreement due to physical or mental illness or injury. Upon termination of
this Agreement, Contractor shall immediately return to the Company any and all property owned by
the Company.

     2. Duties. Contractor is engaged as a Coordinator of United States wholesale full
price sales, on an exclusive basis, to provide her services to the Company.

          a. The Company shall not be required to make available to Contractor any facilities or
equipment.

          b. Contractor may hire or contract with other people to fulfill the obligations under this
Agreement, as Contractor deems necessary, or may be required by the Company. Contractor
understands, however, that this Agreement is with Contractor alone, and that Contractor is solely
responsible to see that its terms are met. Contractor is solely responsible, also, for payments to
anyone else whom Contractor hires or with whom Contractor may contract.

     3. Compensation. As compensation for the services rendered by Contractor under this
Agreement, Contractor shall be entitled to a commission based on Net Sales in the Territory as set
forth on Exhibit A attached hereto. For purposes of this Agreement, “Net Sales” shall
refer to the gross purchase price received by the Company from the sale of any product less

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interest or finance charges, discounts, warehousing allowances, insurance and transportation
charges, taxes, rebates, cancellations and returns. For purposes of this Agreement, the
“Territory” shall refer to full price sales made to retailers in the United States, with the
exception of True Religion branded, company owned stores. All claims of Contractor for payment of
her invoices by the Company are waived by Contractor if not made within sixty (60) days from the
date of the expiration or termination of this Agreement for any reason. The Company shall pay
commissions to Contractor within fifteen (15) calendar days after the end of each calendar month of
invoicing. Subject to the foregoing, commissions on orders taken during the term of this Agreement
shall be paid when shipped regardless of the expiration or termination date of this Agreement.

     4. Expenses. It is understood and acknowledged by the parties that Contractor, in
connection with the services to be performed by Contractor for the Company, is obligated to expend
monies for business expenses. It is expressly acknowledged and agreed that Contractor shall bear
all such expenses, including without limitation all salespeople’s salaries and compensation related
expenses, showroom expenses, travel and entertainment expenses, fifty percent (50%) of U.S.
cooperative advertising expenses, and Contractor’s share of trade show participation expenses.
Contractor shall not be entitled to any reimbursement or allowance for expenses from the Company.
Moreover, as part of this Agreement, Contractor shall be required to establish two (2) dedicated
Company showrooms, one in Los Angeles of at least 6,000 sq. ft., and one in Manhattan, New York of
at least 6,000 sq. ft.. Any and all samples of Company product needed by the Contractor to perform
her services hereunder shall be paid for solely and exclusively by the Contractor at regular
wholesale United States line list prices.

     5. Staffing Requirements. Contractor will employ for the exclusive sale of True
Religion products a minimum of eleven (11) salespeople to handle men’s, women’s, and kid’s sales,
at least four (4) of which will exclusively handle men’s specialty store sales, at least four (4)
of which will exclusively handle women’s specialty store sales, one (1) of which will exclusively
handle key men’s accounts, one (1) of which will exclusively handle key women’s accounts and one
(1) of which will handle kid’s sales. In addition, contractor will employ at least two (2)
merchandise coordinators.

     6. Reporting Requirements. Contractor will provide at least bi-weekly salespeople’s
activity reports and pulse reports in similar form and substance at to what is detailed in
Exhibit B, Exhibit C, and Exhibit D.

     7. Confidential Information. Contractor acknowledges that many aspects of the
business and affairs of the Company and its parent company, True Religion Apparel, Inc., a
California corporation (“True Religion”), are confidential and that Contractor heretofore had or
will have access to certain commercial and other confidential, private, or personal information
relating to or concerning the Company and/or True Religion (“Confidential Information”).
Contractor acknowledges that all Confidential Information is exclusively owned and controlled by
the Company and/or True Religion.

          a. Contractor expressly agrees that she shall not, directly or indirectly, verbally or
otherwise, either during or after the performance of services for the Company,

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disclose, publish, reveal, disseminate, use or cause to be disclosed, published, revealed, or
disseminated, without the prior express written consent of the Chief Financial Officer of the
Company any Confidential Information whatsoever.

          b. Contractor acknowledges and agrees that any disclosure of Confidential Information will
cause irreparable harm to the Company and that these damages are not susceptible to measure. In
the event of a breach or threatened breach of this Agreement, Contractor and the Company hereby
agree that any remedy at law for any breach or threatened breach of this Agreement will be
inadequate and, accordingly, each party hereby stipulates that the Company is entitled to obtain
injunctive relief for any such breaches or threatened breaches, without the need to prove actual
damages or for the posting of a bond. The injunctive relief provided for in this paragraph is in
addition to, and is not in limitation of, any and all other remedies at law or in equity otherwise
available to the Company.

          c. Contractor understands that she will also be required to sign the Company’s standard
Non-Disclosure Agreement. Contractor also understands that this Confidential Information provision
is a material term of this Agreement and any breach of this provision shall be considered a
material breach.

     8. Independent Contractor Status. Contractor is retained by the Company only for the
purposes and to the extent set forth in this Agreement, and Contractor’s relationship to the
Company shall be that of an independent contractor. Except as set forth herein, Contractor may use
her entire time, energy and skill as she sees fit. Contractor shall not be considered under this
Agreement as having employee status or as being entitled to participate in any plans, arrangements
or distributions by the Company pertaining to or in connection with any pension, stock, bond or
profit sharing plan or any other similar fringe benefit for the Company’s regular employees.

     9. Taxes. Contractor acknowledges that no federal or state withholding taxes, FICA,
SDI, or other employee payroll taxes or deductions are made with respect to compensation paid to
Contractor pursuant to this Agreement. Contractor is responsible for all such taxes, and agrees to
report for federal and state income all such compensation, and to pay all taxes due thereon and to
indemnify, defend and hold the Company harmless in the event that any claims made by any taxing
authority, by reason of Contractor’s failure to properly pay any and all taxes which are due in
relation to the services provided pursuant to this Agreement.

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     10. Notice. All notices permitted or required by this Agreement shall be mailed,
certified or registered U.S. Mail, return receipt requested, postage prepaid and addressed as
follows:

To Contractor:

Ms. Jana Rangel

L’Atelier

110 East 9th Street

Suite A541

Los Angeles, CA 90079

Fax: (213) 683-0080

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To the Company:

Guru Denim, Inc.

1525 Rio Vista Avenue

Los Angeles, CA 90023

Fax: (323) 266-3075

Attention: President

     11. General Terms and Conditions.

          a. Entire Agreement. This Agreement constitutes the entire agreement between
Contractor and the Company, and supersedes all prior agreements, representations and understandings
of the parties whether written or oral.

          b. Successors and Assigns. The provisions of this Agreement shall inure to the
benefit of and be binding upon the Company and Contractor and their respective successors and
permitted assigns. This Agreement shall not be assigned, nor shall any duties under this Agreement
be delegated by Contractor without the prior written consent of the Company.

          c. Governing Law. This Agreement shall be governed by and interpreted under the
internal laws of the State of California.

          d. Severability. The invalidity or unenforceability of any particular provision of
this Agreement shall not affect the other provisions, and this Agreement shall be construed in all
respects as if any invalid or unenforceable provision were omitted.

          e. Opportunity to Consult With Legal Counsel. Contractor has entered into this
Agreement freely and voluntarily and has either consulted with independent legal counsel or has had
the opportunity to do so prior to execution.

          f. Amendments; Waivers. This Agreement may be amended, modified or supplemented only
by a writing executed by each of the parties. Either party may in writing waive any provision of
this Agreement to the extent such provision is for the benefit of the waiving party. No waiver by
either party of a breach of any provision of this Agreement shall be construed as a waiver of any
subsequent or different breach, and no forbearance by a party to seek a remedy for noncompliance or
breach by the other party shall be construed as a waiver of any right or remedy with respect to
such noncompliance or breach.

          g. Attorneys’ Fees. The prevailing party in any suit or other proceeding brought to
enforce, interpret or apply any provisions of this Agreement, shall be entitled to recover all
costs and expenses of the proceeding and investigation, including all attorneys’ fees.

          h. Arbitration. Any dispute relating to the terms, interpretation or performance of
this Agreement (other than claims for preliminary injunctive relief or other pre-

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judgment remedies) will be resolved at the request of either party through binding
arbitration. Arbitration will be conducted in Los Angeles County, California, under the rules and
procedures of the American Arbitration Association (“AAA”). The parties will request that AAA
appoint a single arbitrator. In the event any provision of this Agreement is held by a tribunal of
competent jurisdiction to be contrary to the law, the remaining provision of this Agreement will
remain in full force and effect. The waiver of any breach or default of this Agreement will not
constitute a waiver of any subsequent breach or default, and will not act to amend or negate the
rights of the waiving party.

          i. Right of Set-Off. All payments hereunder are subject to the Company’s rights to
set-of against such payments as a result of any monetary obligations or amounts due to the Company
by Contractor or as a result of Contractor’s breach of any obligation to the Company contained
herein.

          j. Indemnification. Contractor shall indemnify and hold the Company harmless from any
and all claims of third parties resulting (i) solely from acts or omissions of Contractor which
were not authorized by the Company and beyond the scope of Contractor’s authority under this
Agreement, and (ii) from Contractor’s performance of the terms of this Agreement. Company shall
indemnify and hold Contractor harmless from any and all products liability claims of third parties.

          k. License and Permits. Contractor represents and warrants she has all business
licenses and permits necessary to perform the services for the Company described herein.

          l. Construction. The language of this Agreement shall be construed as a whole,
according to its fair meaning, not strictly for or against Contractor or the Company, and with no
regard whatsoever to the identity or status or any person or persons who drafted all or any portion
of this Agreement.

          m. Counterparts. This Agreement may be executed by the Company and by Contractor in
two or more counterparts, each of which shall be deemed an original, but all of which shall
constitute one instrument.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the Effective Date.

	 	 	 	 	 
	“Contractor”	 	“Company”
	 
	 	 	 	 
	 	 	GURU DENIM, INC.
	 
	 	 	 	 
	/s/ Jana Rangel 

	 	By:	 	/s/ Michael Buckley 
	 

	 	 	 	 
	     Jana Rangel
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	Michael Buckley, President 
	 

	 	 	 	 
	 

	 	 	 	[Print Name and Title]

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EXHIBIT A

COMMISSION BASED ON SALES

IN THE TERRITORY

     As set forth in the Independent Contractor Agreement (the “Agreement”), to which this Exhibit
is attached, the “Territory” referenced in this Exhibit A shall refer to full price
wholesale sales made in the United States, with the exclusion of True Religion branded company
owned stores. The commission to be paid by Guru Denim, Inc. (the “Company”) pursuant to the
Agreement and this Exhibit A shall apply only to sales made by True Religion Apparel, Inc.
and the Company. Notwithstanding any other provisions of the Agreement, Contractor shall not be
eligible for any commission whatsoever regarding sales made by any of True Religion Apparel, Inc.’s
or the Company’s licensees. The commission referred to in the Agreement and this Exhibit A
is based off of the Net Sales value of the product sold to each United States full price retailer.

     The commission rate to be applied to the above-referenced sales shall be as follows:

	 	•	 	Contractor shall be paid 4% of Net Sales, as defined below, sold directly to
department stores and any other accounts that receive a discount, including any
accounts for which the Company pay freight costs.
	 
	 	•	 	Contractor shall be paid 8% of the Net Sales, as defined below, to all specialty
stores that pay full price and do not receive any type of discount or free freight.

     For purposes of this Exhibit A, “Net Sales” shall refer to the gross purchase price
received by the Company from the sale of any product, discounts, warehousing allowances, insurance
and transportation charges, taxes, rebates, cancellations and returns.

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EXHIBIT B

TRUE RELIGION

Spring 2007

ACCOUNT

EXECUTIVE:                                        

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	ACCOUNT
	 	 	FALL 06
	 	 	HOLIDAY 06
	 	 	SP 07 PROJ.
	 	 	SP 07ACTUAL
	 	 	CIMS
	 	 	APPT
	 	 	COMMENTS	 
	 

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EXHIBIT C

TRUE RELIGION

Spring 2007 Projections

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	SALES REP
	 	 	FALL 06
	 	 	HOLIDAY 06
	 	 	SP 07 PROJ.
	 	 	SP 07ACTUAL
	 	 	CIMS	 
	 

 

 

EXHIBIT D

“TRUE RELIGION PULSE REPORT”

An overview of your area of responsibility

	 	 	 	 	 
	To

	 	: Mike Buckley
	 	 
	From

	 	:	 	 
	Date

	 	:	 	 

General comments on trade in your area

What is selling?

What are our competitors selling? / Noticeable trends?

“THE PULSE”

     True Religion Customers weekly sales.

Customer 1:

	 	 	 	 	 
	Week ending date
	 	Units
	 	Value
	 
	 	 
	 	 

General comments from the retailer

 

 

Assessment of True Religion performance

Good {     }          Fair {     }          Poor {     }

Factors affecting assessment

“THE PULSE”

QUESTIONS YOU REQUIRE ANSWERING

Sales Management:

Credit Control:

Customer Services:

Design/Production:

General:

	 	 	 	 	 
	Signed:

	 	Date:exv10w1

 

Exhibit 10.1

AMENDED AND RESTATED

SUPPLEMENTAL RETIREMENT AGREEMENT

     THIS AMENDED AND RESTATED SUPPLEMENTAL RETIREMENT AGREEMENT (this “Agreement”) is made and
entered into as of this 23rd day of January 2007 by and between TD Banknorth Inc. (formerly known
as Banknorth Group, Inc.), its subsidiaries and affiliates (collectively, the “Corporation”), and
William J. Ryan (the “Executive”).

WITNESSETH:

     WHEREAS, the Corporation and the Executive are parties to a certain amended and restated
Supplemental Retirement Agreement dated as of May 9, 2006, which amended and restated an agreement
originally dated as of February 18, 2004, as amended by a First Amendment dated February 14, 2005
(as so amended and restated, the “Prior Agreement”);

     WHEREAS, the Prior Agreement was amended and restated in 2006 in order to comply with the
requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”),
including the guidance issued to date by the Internal Revenue Service (the “IRS”) and the proposed
regulations issued by the IRS in the fall of 2005, with none of the benefits payable under this
Plan to be deemed grandfathered for purposes of Section 409A of the Code;

     WHEREAS, this Agreement is being further amended and restated in order to take advantage of
the extension of the transitional relief granted by the IRS in Notice 2006-79 with respect to
payment and deferral elections; and

     WHEREAS, none of the changes to comply with Section 409A of the Code increase or decrease the
amount of the benefits payable to the Executive;

     NOW, THEREFORE, in consideration of the foregoing, the mutual covenants and agreements herein
contained, and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Corporation and the Executive hereby agree, and amend and restate the
Prior Agreement in its entirety, as follows:

ARTICLE ONE

     Section 1.1 Employment. This Agreement is not an agreement of employment and nothing
herein shall be deemed to confer on the Executive any right to continued employment with the
Corporation or limit in any way the right of the Corporation to terminate such employment. The
benefits provided under this Agreement are not part of any salary reduction plan or an arrangement
deferring a bonus or a salary increase.

 

 

ARTICLE TWO

     Section 2.1. Normal Retirement Benefits.

     (a) Generally. If the Executive continues in employment with the Corporation until his
sixty-fifth (65th) birthday (the “Normal Retirement Date”), subject to Sections 2.1(b) and 2.1(c)
below, he shall be entitled to a retirement benefit (the “Normal Retirement Benefit”) following his
actual “Separation from Service” as defined in Section 2.1(e) below, payable monthly as set forth
in Section 2.1 (d) below in the annual amount of sixty-five percent (65%) of his Benefit
Computation Base (defined in Section 2.2), multiplied by a fraction, not to exceed one (1), the
numerator of which is the actual number of months of the Executive’s employment with the
Corporation (including partial months for month of hire and month of termination) plus sixty-six
(66) and the denominator of which is three hundred (300) months, and reduced by:

	 	(1)	 	fifty percent (50%) of the Executive’s Primary Social Security retirement
benefit estimated as of the Normal Retirement Date based on the Social Security
retirement benefit formula assuming level future earnings based on his Benefit
Computation Base in effect on the date of termination of the Executive’s employment
with the Corporation;
	 
	 	(2)	 	the annual amount of benefits payable to the Executive, stated as a life
annuity commencing at the Normal Retirement Date, from the tax-qualified defined
benefit pension plan maintained by the Corporation (such plan, as it may hereafter be
amended, restated, otherwise modified or replaced, is hereinafter referred to as the
“Pension Plan”);
	 
	 	(3)	 	the annual amount of benefits payable to the Executive, stated as a life
annuity commencing at the Normal Retirement Date, which is the actuarial equivalent
(determined as described below) at the date of determination of the Normal Retirement
Benefit, of that portion of the Executive’s account balances attributable to
contributions by the Corporation to any and all qualified defined contribution plans
maintained by the Corporation; and
	 
	 	(4)	 	the annual amount of benefits payable to the Executive, stated as a life
annuity commencing at the Normal Retirement Date, attributable to contributions by the
Corporation (but not any amounts attributable to deferrals or contributions by the
Executive) from any other qualified or non-qualified retirement plan or agreement
maintained or entered into by the Corporation.

     Whenever an “actuarial equivalent” is required to be determined under this Agreement, such
actuarial equivalent shall be determined in the manner provided for determining actuarial
equivalents under the Pension Plan; provided however that such manner of determination shall be no
less favorable to the Executive than that prescribed for determining actuarial equivalents under
the Pension Plan as in effect on the date of this Agreement.

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     (b) Normal Retirement Benefit if Executive is Married. Notwithstanding anything to
the contrary in Section 2.1(a) or elsewhere, if and for so long as the Executive is married, the
Normal Retirement Benefit shall be the actuarial equivalent of the benefit that would otherwise be
provided in the form of a single life annuity as described in Section 2.1(a) above, but provided in
the form of a joint and survivor annuity for the benefit of the Executive and his spouse with
continuation of one hundred percent (100%) of the lifetime benefit to the survivor, calculated in a
manner consistent with provisions of the Pension Plan providing for joint and survivor annuity
benefits.

     (c) Additional Age and Service Credits. The Executive is entitled to additional age
and service credits for purposes of calculating the Executive’s benefits under this Agreement
pursuant to the Executive’s Employment Agreement with the Corporation dated as of August 25, 2004,
as amended (the “Employment Agreement”). If the Executive makes a valid election to receive his
additional benefits in the form of an increased Normal Retirement Benefit under this Agreement as
set forth below rather than in the form of a lump sum cash payment at the time the Executive’s
“Non-Competition and Retention Amount” is paid, as such term is defined in the Employment
Agreement, then the computation of the Executive’s Normal Retirement Benefit under this Agreement
shall reflect the additional age and service credits provided to the Executive under his Employment
Agreement in accordance with the terms of such agreement. Any election by the Executive to receive
such additional benefits in the form of an increased Normal Retirement Benefit under this Agreement
rather than in the form of a lump sum cash payment under the Executive’s Employment Agreement must
be (i) made while the Executive is an active employee of the Company or one of its subsidiaries,
(ii) made on or before December 31, 2007, and (iii) accompanied by a payment election that complies
with Section 2.4(c) below.

     (d) Payment of Monthly Benefits. The monthly benefits payable under this Section 2.1
shall commence on the first day of the month following the lapse of six months from the date of the
Executive’s Separation from Service (the “First Payment Date”) and end with the monthly payment
preceding his death, provided that the first monthly payment shall equal the sum of (i) one monthly
payment plus (ii) the cumulative amount of the monthly payments that would have been paid as of the
first day of each month following the date of Separation from Service and prior to the First
Payment Date absent the six-month delay required by Section 409A of the Code.

     (e) Separation from Service. A “Separation from Service” shall mean separation from
service within the meaning of Section 409A of the Code and the regulations issued thereunder.

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     Section 2.2 Benefit Computation Base. The Executive’s Benefit Computation Base for
purposes of Section 2.1(a) shall be the average of the Executive’s compensation from the
Corporation for the five (5) consecutive calendar years during the ten (10) years preceding the
Executive’s termination of employment with the Corporation in which such compensation is the
highest (excluding all years of the Executive’s employment by the Corporation after the year in
which the Normal Retirement Date occurs). For the purposes of this Agreement, compensation shall
mean the amount actually paid or made available to the Executive during a calendar year as
remuneration of a kind or nature reported by the Corporation on the Executive’s W-2, except as set
forth below. Compensation shall also include annual bonuses, any contributions made on behalf of
the Executive by the Corporation pursuant to a salary reduction agreement under Internal Revenue
Code Sections 125, 129 and/or 401(k), and any and all other amounts that would have been reportable
by the Corporation on the Executive’s W-2 but for deferral of payment of such amounts under any
agreement or plan or program (other than the Pension Plan), including any voluntary deferrals and
any deferrals required or mandated by the terms of any agreement or plan or program of the
Corporation or action of its Board of Directors, except that the $178,480 short-term incentive
bonus for calendar 2004 the payment of which was accelerated to December 2004 shall be taken into
account as if it was paid in 2005 rather than 2004. Compensation shall not include any amounts
available to the Executive pursuant to any Stock Option, Stock Appreciation Right, Senior
Management Long Term Incentive or Restricted Stock Unit Plans of the Corporation or paid to the
Executive pursuant to Sections 7, 10 and 11 of the Employment Agreement.

     Section 2.3 Accrued Benefit. The term “Accrued Benefit” shall mean the Normal
Retirement Benefit (before applying the offsets in clauses (1), (2), (3), and (4) of Section 2.1(a)
above) to which the Executive would be entitled under Section 2.1(a) commencing at the Normal
Retirement Date assuming continuation of the Executive’s employment with the Corporation until the
Normal Retirement Date based on the Benefit Computation Base on the date the Accrued Benefit is
determined, multiplied by a fraction not to exceed one (1), the numerator of which is the actual
number of months of the Executive’s employment with the Corporation (including partial months for
month of hire and month of termination) plus sixty-six (66) and the denominator of which is three
hundred (300) months, and reduced by:

	 	(1)	 	fifty percent (50%) of the Executive’s Primary Social Security retirement
benefit estimated as of the Normal Retirement Date based on the Social Security
retirement benefit formula assuming level future earnings based on his Benefit
Computation Base in effect on the date of termination of the Executive’s employment
with the Corporation;
	 
	 	(2)	 	the annual amount of benefits payable to the Executive, stated as a life
annuity commencing at the Normal Retirement Date, from the Pension Plan;
	 
	 	(3)	 	the annual amount of benefits payable to the Executive, stated as a life
annuity commencing at the Normal Retirement Date, which is the actuarial equivalent, at
the date of determination of the Accrued Benefit, of that portion of the Executive’s
account balances attributable to contributions by the Corporation to any and all
qualified defined contribution plans maintained by the Corporation; and
	 
	 	(4)	 	the annual amount of benefits payable to the Executive, stated as a life
annuity commencing at the Normal Retirement Date, attributable to contributions by the
Corporation (but not any amounts attributable to deferrals or contributions by the
Executive) from any other qualified or non-qualified retirement plan or agreement
maintained or entered into by the Corporation.

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     Section 2.4 Form of Payment and Payment Elections.

     (a) Optional Forms of Payment. In lieu of the life annuity payments provided either
(i) in Section 2.1 above (life annuity payments and joint and survivor annuity payments as
described in Section 2.1 above are hereinafter referred to as payments made in the “Normal Form”),
or (ii) as an Accrued Benefit under this Agreement, the Executive may elect, in writing, in a form
acceptable to the Corporation, an optional form of payment which shall be the actuarial equivalent
of payments that would otherwise be made in the Normal Form, and which shall be (x) any optional
form which is made available under the terms of the Pension Plan (including the different forms of
annuities set forth in Section 4.04 of the Pension Plan) or (y) a single lump sum payment, provided
that such election is made as set forth below. In addition, the Executive may elect to receive his
benefits under this Agreement upon any of the following events: (i) early retirement before age 65,
if the Executive is entitled to any early retirement benefit under the Pension Plan and if such
early retirement constitutes a Separation from Service, or (ii) termination of employment after the
Executive’s Normal Retirement Date if such termination constitutes a Separation from Service,
provided that in no event shall payments that are made under this Agreement as a result of a
Separation from Service be made prior to the lapse of six months from the date of such Separation
from Service.

     (b) Prior Elections. Any payment elections made by the Executive before January 1,
2005 shall continue in effect until such time as the Executive makes a subsequent payment election
and such election becomes effective as set forth below. If no prior payment election was made,
then the current payment election shall be deemed to be a Normal Form commencing at the time set
forth in Section 2.1(a) above.

     (c) Transitional Elections Prior to 2008. On or before December 31, 2007, if the
Executive wishes to change his payment election as to either the time or form of payment or both,
the Executive may do so by completing a payment election form approved by the Corporation, provided
that (i) any such election must be made while the Executive is an active employee of the
Corporation or one of its subsidiaries, (ii) any payment election made in 2006 cannot apply to
amounts that would otherwise be payable in 2006 and may not cause an amount to be paid in 2006 that
would otherwise be paid in a later year, and (iii) any payment election made in 2007 cannot apply
to amounts that would otherwise be payable in 2007 and may not cause an amount to be paid in 2007
that would otherwise be paid in a later year.

     (d) Changes in Payment Elections After 2007. On or after January 1, 2008, if the
Executive wishes to change his payment election as to either the time or form of payment or both,
the Executive may do so by completing a payment election form approved by the Corporation, provided
that any such election (i) must be made while the Executive is an active employee of the
Corporation or one of its subsidiaries, (ii) must be made at least 12 months before the date on
which any benefit payments as of a fixed date or pursuant to a fixed schedule are scheduled to
commence, (iii) shall not take effect until at least 12 months after the date the election is made
and accepted by the Corporation, and (iv) for payments to be made other than upon death, must
provide an additional deferral period of at least five years from the date such payment would
otherwise have been made (or in the case of any life annuity or installment
payments treated as a single payment, five years from the date the first amount was scheduled to be
paid), provided that clause (iv) above shall not apply to a change in the form of a payment from
one type of “life annuity” (as defined in the regulations under Section 409A of the Code) to
another type of life annuity if the annuities are actuarially equivalent applying reasonable
actuarial assumptions. For purposes of this Agreement and clause (iv) above, all life annuities or
installment payments under this Agreement shall be treated as a single payment.

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     Section 2.5 Vesting. The Executive, having completed more than five (5) years of
employment with the Corporation, has a vested interest in the retirement benefits payable under
this Agreement.

ARTICLE THREE

     Section 3.1 Beneficiary. In the event of the death of the Executive, any payments to
be made to the Executive hereunder after the date of his death (“Remaining Payments”) shall be made
to the Executive’s Beneficiary, as defined below, and in such case all references to “Executive”
herein shall, where applicable, apply to the Beneficiary. The Executive may name one or more
beneficiaries (each, a “Beneficiary”) in writing to the Corporation. If no Beneficiary is so named
or if no named Beneficiary is living at the time a payment is due, that payment and all subsequent
payments shall be made, when otherwise due, to the Executive’s estate, which shall be the
“Beneficiary” for purposes of this Agreement.

ARTICLE FOUR

     Section 4.1 Disability Prior to Retirement. No disability benefits will be paid under
this Agreement. If the Executive’s employment is terminated or suspended by reason of mental or
physical disability, disability benefits may be paid to the Executive pursuant to insurance
provided by the Corporation pursuant to a separate policy, plan or agreement. Upon the later of (x)
termination of any such other disability benefits, (y) the Normal Retirement Date or (z) the lapse
of six months following the date of termination of employment, payment to the Executive of his
Accrued Benefit (determined as of the date of disability) shall commence and such payment shall be
made in the form provided in Section 2.4. If, following termination or suspension of the
Executive’s employment by reason of disability, the Executive resumes employment with the
Corporation in the position he held immediately prior to the onset of disability, this Agreement
shall continue in full force and effect as if no such disability or termination or suspension of
employment had occurred. For the purposes of the numerator of the fractions in Sections 2.1 and
2.3, the Executive’s period of disability shall be treated as a period of employment with the
Corporation.

6

 

ARTICLE FIVE

     Section 5.1 Termination of Employment Prior to Normal Retirement Date. If the
Executive has a Separation from Service prior to the Normal Retirement Date for any reason, the
Executive shall be entitled to benefits in the amount of the Accrued Benefit determined as of the
date of his Separation from Service (“Early Retirement Benefits”) payable (x) in the Normal Form
commencing at the Normal Retirement Date or (y) to the extent so elected by the Executive, in any
other form permitted under Section 2.4 and commencing at such other time as may be permitted under
Section 5.2 below, subject to such adjustment as may be provided under Section 5.2 below.

     Section 5.2 Early Payment. By written notice to the Company, the Executive may elect
to have the Corporation commence payment of Early Retirement Benefits at any time after the
Executive has both attained age fifty-five (55) and has a Separation of Service, provided that such
payments are not made or do not commence prior to the first day of the month following the lapse of
six months from the date of Separation of Service. Early Retirement Benefits shall be in the
amount(s) determined in accordance with Section 5.1, but further reduced (1) by one-quarter of one
percent (.25%) per month for each month or partial month (up to sixty (60)) between the date of
commencement of Early Retirement Benefits and the Executive’s sixty-fifth (65th) birthday and (2)
by one-half of one percent (.50%) per month for each month or partial month between the date of
commencement of Early Retirement Benefits and the date of the Executive’s sixtieth (60th) birthday.

     Section 5.3 Payment. Benefits payable under this Article Five shall be paid in the
Normal Form or in any other manner elected by the Executive and permitted under Section 2.4.

     Section 5.4 Forfeiture. Notwithstanding anything to the contrary herein, benefits
under this Agreement shall be forfeited and all rights of the Executive and his Beneficiary shall
become null and void if the Executive’s employment is terminated for Cause. For the purposes of
this Section 5.4, the term “Cause” shall have the meaning given such term in the Employment
Agreement.

ARTICLE SIX

     Section 6.1 Assignment . No right to payment of any amount under this Agreement may be
assigned, pledged or encumbered, nor shall any such right or other interest in amounts payable
under this Agreement be subject to any attachment, garnishment, execution or other legal process.

ARTICLE SEVEN

     Section 7.1 Participation in Other Plans. Nothing contained in this Agreement shall be
construed to alter, abridge or in any manner affect the rights and privileges of the Executive to
participate in and be covered by any pension, profit-sharing, group insurance, bonus or any other
employee plan or plans which the Corporation may have or hereafter have.

7

 

     Section 7.2 Alternative Benefit under the SERP Plan. Without limiting the foregoing,
and notwithstanding anything to the contrary in the TD Banknorth Inc. Amended and Restated
Supplemental Retirement Plan (as the same may be amended, restated, otherwise modified or replaced,
the “SERP Plan”), including, without limitation, Article Three thereof, if on the date that
benefits become payable under this Agreement, the actuarial equivalent of the aggregate amount of
the benefits payable to the Executive under the terms of this Agreement is less than the actuarial
equivalent of the aggregate amount of the benefits to which the Executive would be entitled under
the SERP Plan if he were a “Participant” (as defined in the SERP Plan) in the SERP Plan (such
amount, the “Alternative Benefit”), the Executive shall be entitled to benefits payable in
accordance with the terms of this Agreement but in an aggregate amount equal to the actuarial
equivalent of the Alternative Benefit instead of in an aggregate benefit amount determined under
this Agreement. For purposes of calculating the actuarial equivalent of the Alternative Benefit to
which the Executive would be entitled under the SERP Plan, (1) the $178,480 short-term incentive
payment the payment of which was accelerated to December 2004 shall be taken into account as if it
was paid in 2005 rather than 2004, (2) the $6,260,440 long-term incentive payment the payment of
which was accelerated to December 2004 shall be taken into account in such amounts and at such
times as it would have been paid absent the acceleration, and (3) no amounts payable to the
Executive pursuant to Sections 7, 10 and 11 of the Employment Agreement shall be taken into
account.

ARTICLE EIGHT

     Section 8.1 Funding. The Corporation shall have the right, in its discretion, at any
time and from time to time to insure or otherwise provide for the obligations of the Corporation
under this Agreement or to refrain from same, and to determine the extent, nature and method
thereof, including the establishment of one or more trusts, provided that the terms of each trust
comply with Section 409A of the Code. Should the Corporation elect to insure this Agreement, in
whole or in part, through the medium of insurance or annuities, or both, the Corporation shall be
the owner and beneficiary of the policy. At no time shall the Executive be deemed to have any
right, title or interest in or to any specified asset or assets of any such trust or escrow
arrangement, including, without limitation, any insurance or annuity or other contracts or proceeds
therefrom. No such policy, contract or other asset shall in any way be considered to be security
for the performance of the Corporation’s obligations under this Agreement. The Executive agrees
that, if the Corporation purchases a life insurance or annuity policy on his life, he will sign any
papers that may be required for that purpose and undergo any medical examination or tests which may
be necessary, and otherwise reasonably cooperate with the Corporation in its efforts to secure any
such policy.

     Section 8.2. No Trust. Nothing herein and no action taken pursuant hereto shall create
or be deemed to create any trust or fiduciary relationship between the Corporation and the
Executive, his Beneficiary, or any other person.

8

 

ARTICLE NINE

     Section 9.1 Reorganization. The Corporation shall not merge with or consolidate into
or with another corporation or other entity, or reorganize, or sell substantially all of its assets
to
another corporation, firm or person unless and until such succeeding or continuing corporation,
firm or person agrees to assume and discharge the obligations of the Corporation under this
Agreement. Upon the occurrence of any such merger, consolidation, reorganization or sale, the term
“Corporation” as used in this Agreement shall be deemed to refer to such successor, assignee or
survivor or successor corporation, firm or person.

ARTICLE TEN

     Section 10.1 Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the Executive and his Beneficiary and the Corporation and any successor organization
which shall succeed to substantially all of its assets and business without regard to the form of
such succession.

     Section 10.2 Corporation. As used in this Agreement, the term “Corporation” shall mean
TD Banknorth Inc., and any entity that from time to time is aggregated with TD Banknorth Inc., its
successors and assigns, under Sections 414(b), 414(c), 414(m), 414(n) or 414(o) of the Code. For
the purpose of determining the Executive’s period of employment with the Corporation as required
hereunder, the term “Corporation” shall also include any predecessor of the Corporation.

ARTICLE ELEVEN

     Section 11.1. Communications. Any notice or other communication required or permitted
to be given under this Agreement shall be in writing and shall be deemed given (i) when delivered
or refused if sent by hand during regular business hours, (ii) three (3) business days after being
sent by United States Postal Service, registered or certified mail, postage prepaid, return receipt
requested, (iii) on the next business day when sent by reputable overnight express mail service
that provides tracing and proof of receipt or refusal of items mailed, or (iv) when received by the
addressee if by telecopier transmission addressed to the Corporation or Executive, as the case may
be, at the address or addresses set forth below or such other addresses as the parties may
designate in a notice given in accordance with this Section.

To the Corporation:

TD Banknorth Inc.

Two Portland Square

Portland, ME 04112

To the Executive:

William J. Ryan

At the address last appearing on the

personnel records of the Corporation

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ARTICLE TWELVE

     Section 12.1 Scope of Claims Procedures. This Article is based on final regulations
issued by the Department of Labor and published in the Federal Register on November 21, 2000 and
codified at 29 C.F.R. Section 2560.503-1. If any provision of this Article conflicts with the
requirements of those regulations, the requirements of those regulations will prevail.

     Section 12.2 Initial Claim. The Executive or any Beneficiary who believes he or she
is entitled to any benefit under the Plan (a “Claimant”) may file a claim with the Corporation.
The Corporation shall review the claim itself or appoint an individual or an entity to review the
claim.

	 	(a)	 	Initial Decision. The Claimant shall be notified within ninety (90)
days after the claim is filed whether the claim is allowed or denied, unless the
Claimant receives written notice from the Corporation or appointee of the Corporation
prior to the end of the ninety (90) day period stating that special circumstances
require an extension of the time for decision, such extension not to extend beyond the
day which is one hundred eighty (180) days after the day the claim is filed.
	 
	 	(b)	 	Manner and Content of Denial of Initial Claims. If the Corporation
denies a claim, it must provide to the Claimant, in writing or by electronic
communication:

	 	(i)	 	The specific reasons for the denial;
	 
	 	(ii)	 	A reference to the provision of the Agreement upon which the
denial is based;
	 
	 	(iii)	 	A description of any additional information or material that
the Claimant must provide in order to perfect the claim;
	 
	 	(iv)	 	An explanation of why such additional material or information
is necessary;
	 
	 	(v)	 	Notice that the Claimant has a right to request a review of the
claim denial and information on the steps to be taken if the Claimant wishes to
request a review of the claim denial; and
	 
	 	(vi)	 	A statement of the Claimant’s right to bring a civil action
under Section 502(a) of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”), following a denial on review of the initial denial.

10

 

     Section 12.3 Review Procedures.

	 	(a)	 	Request For Review. A request for review of a denied claim must be
made in writing to the Corporation within sixty (60) days after receiving notice of
denial. The decision upon review will be made within sixty (60) days after the
Corporation’s receipt of a request for review, unless special circumstances require
an extension of time for processing, in which case a decision will be rendered not
later than one hundred twenty (120) days after receipt of a request for review. A
notice of such an extension must be provided to the Claimant within the initial
sixty (60) day period and must explain the special circumstances and provide an
expected date of decision.
	 
	 	 	 	The reviewer shall afford the Claimant an opportunity to review and receive, without
charge, all relevant documents, information and records and to submit issues and
comments in writing to the Corporation. The reviewer shall take into account all
comments, documents, records and other information submitted by the Claimant
relating to the claim regardless of whether the information was submitted or
considered in the initial benefit determination.
	 
	 	(b)	 	Manner and Content of Notice of Decision on Review. Upon completion of
its review of an adverse claim determination, the Corporation will give the Claimant,
in writing or by electronic notification, a notice containing:

	 	(i)	 	its decision;
	 
	 	(ii)	 	the specific reasons for the decision;
	 
	 	(iii)	 	the relevant provisions of this Agreement on which its
decision is based;
	 
	 	(iv)	 	a statement that the Claimant is entitled to receive, upon
request and without charge, reasonable access to, and copies of, all documents,
records and other information in the Corporation’s files which is relevant to
the Claimant’s claim for benefits;
	 
	 	(v)	 	a statement describing the Claimant’s right to bring an action
for judicial review under Section 502(a) of ERISA; and
	 
	 	(vi)	 	if an internal rule, guideline, protocol or other similar
criterion was relied upon in making the adverse determination on review, a
statement that a copy of the rule, guideline, protocol or other similar
criterion will be provided without charge to the Claimant upon request.

     Section 12.4 Calculation of Time Periods. For purposes of the time periods specified
in this Article, the period of time during which a benefit determination is required to be made
begins at the time a claim is filed in accordance with the procedures of this Agreement without
regard to whether all the information necessary to make a decision accompanies the claim. If a
period of time is extended due to a Claimant’s failure to submit all information necessary, the
period for making the determination shall be tolled from the date the notification is sent to the
Claimant until the date the Claimant responds.

11

 

     Section 12.5 Legal Action. If the Corporation fails to follow the claims procedures
required by this Article, a Claimant shall be deemed to have exhausted the administrative
remedies available under the Agreement and shall be entitled to pursue any available remedy under
Section 502(a) of ERISA on the basis that the Agreement has failed to provide a reasonable claims
procedure that would yield a decision on the merits of the claim. A Claimant’s compliance with the
foregoing provisions of this Article is a mandatory requisite to a Claimant’s right to commence any
legal action with respect to any claims for benefits under the Agreement.

     Section 12.6 Review by the Corporation. Notwithstanding anything in this Agreement to
the contrary, the Corporation may determine, in its sole and absolute discretion, to review any
claim for benefits submitted by a Claimant under this Agreement.

ARTICLE THIRTEEN

     Section 13.1 Withholding. The Corporation shall be entitled to withhold from payment
of benefits hereunder any federal, state or local withholding or other taxes or charge from time to
time required to be withheld.

ARTICLE FOURTEEN

     14.1 General. The Board may at any time and from time to time amend, suspend or
terminate this Agreement or the Executive’s participation therein; provided, however, that no
amendment, suspension or termination may impair the rights of the Executive (or, in the case of the
Executive’s death, his Beneficiary or estate) to receive benefits accrued prior to the effective
date of such amendment, suspension or termination. Notwithstanding anything in the Agreement to
the contrary, the Board may amend in good faith any terms of the Agreement, including
retroactively, in order to comply with Section 409A of the Code. This Agreement may be altered or
amended only by a written agreement signed by the parties hereto.

     14.2 Termination. Under no circumstances may the Agreement permit the acceleration
of the time or form of any payment under the Agreement prior to the payment events specified
herein, except as provided in this Section 14.2. The Corporation may, in its discretion, elect to
terminate the Agreement in any of the following three circumstances and accelerate the payment of
the entire unpaid balance of the Executive’s accrued benefits in an amount equal to the Actuarial
Equivalent (as defined in the Pension Plan) of the Executive’s accrued benefits as of the date of
such payment in accordance with Section 409A of the Code:

	 	(i)	 	the Agreement is terminated within the 30 days preceding a Change In Control
and (1) all substantially similar arrangements sponsored by the Corporation are
terminated, and (2) the Executive and all participants under the substantially similar
arrangements receive all of their benefits under the terminated arrangements within 12
months of the date of termination of the arrangements,

12

 

	 	(ii)	 	the Agreement is terminated and (1) all arrangements sponsored by the
Corporation that would be aggregated with the Agreement under Treasury Regulation
1.409A-1(c) if the Executive participated in all of the arrangements are terminated,
(2) no payments other than payments that would be payable under
the terms of the arrangements if the termination had not occurred are made within 12
months of the termination of the arrangements; (3) all payments are made within 24
months of the termination of the arrangements; and (4) the Corporation does not
adopt a new arrangement that would be aggregated with the Agreement under Treasury
Regulation 1.409A-1(c) if the Executive participated in both arrangements, at any
time within five years following the date of termination of the Agreement, or
	 
	 	(iii)	 	the Agreement is terminated within 12 months of a corporate dissolution taxed
under Section 331 of the Code, or with the approval of a bankruptcy court pursuant to
11 U.S.C. §503(b)(1)(A), provided that the amounts deferred by the Executive under the
Agreement are included in the Executive’s gross income in the later of (1) the calendar
year in which the termination of the Agreement occurs, or (2) the first calendar year
in which the payment is administratively practicable.

ARTICLE FIFTEEN

     Section 15.1 Entire Agreement. This Agreement constitutes the entire agreement between
the parties with respect to the subject matter hereof and supercedes all prior agreements written
or oral with respect to its subject matter.

     Section 15.2 Capitalized Terms. Any capitalized terms used in this Agreement but not
otherwise defined herein shall have the meanings ascribed to such terms in the SERP Plan.

     Section 15.3 Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Maine.

     Section 15.4 Severability. Each provision of this Agreement is intended to be
severable and the invalidity, illegality or unenforceability of any portion of this Agreement shall
not affect the validity, legality and enforceability of the remainder.

13

 

     IN WITNESS WHEREOF, the Corporation and the Executive have caused this Agreement to be
executed as an instrument under seal as of the date and year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	TD BANKNORTH INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 /s/ Jay Milligan

	 	 	 	By:	 	/s/  Cynthia H. Hamilton	 	 
	 

	 	 	 	 	 	 	 	 
	Witness

	 	 	 	Name:
	 	Cynthia H. Hamilton	 	 
	 

	 	 	 	Title:
	 	Executive Vice President	 	 
	 
	 /s/ Jay Milligan
	 	 	 	/s/  William J. Ryan	 	 
	 	 	 	 	 	 	 
	Witness	 	 	 	William J. Ryan	 	 

14

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